Puerto Rico Job Corps Centers contract awarded to RES-CARE, INC for $94.2M over 5 years

Contract Overview

Contract Amount: $94,206,334 ($94.2M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2011-05-24

End Date: 2016-11-30

Contract Duration: 2,017 days

Daily Burn Rate: $46.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE PUERTO RICO JOB CORPS CENTERS

Place of Performance

Location: BARRANQUITAS, BARRANQUITAS County, PUERTO RICO, 00794

Plain-Language Summary

Department of Labor obligated $94.2 million to RES-CARE, INC for work described as: OPERATION OF THE PUERTO RICO JOB CORPS CENTERS Key points: 1. Contract value of $94.2M for operating Job Corps centers. 2. Awarded to RES-CARE, INC under full and open competition. 3. Potential risk associated with long-term service contracts. 4. Sector: Education/Training services.

Value Assessment

Rating: fair

The contract value of $94.2M over five years suggests a significant investment in vocational training. Benchmarking against similar large-scale educational service contracts would be necessary for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing by allowing all eligible vendors to bid.

Taxpayer Impact: Taxpayer funds are utilized for vocational training programs aimed at improving workforce readiness in Puerto Rico.

Public Impact

Provides vocational training and employment services to youth in Puerto Rico. Supports economic development by equipping individuals with job skills. Operates under a cost-plus incentive fee structure, potentially influencing cost management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus incentive fee structure may lead to cost overruns if not managed tightly.
Lack of specific performance metrics in provided data.
Potential for vendor lock-in with long-term service contracts.

Positive Signals

Full and open competition suggests a competitive award process.
Contract aims to provide valuable job training and employment opportunities.
Service contract for essential youth development programs.

Sector Analysis

This contract falls within the Other Technical and Trade Schools (NAICS 611519) sector, focusing on vocational training. Benchmarks for similar government-operated training centers would provide context for the $94.2M award.

Small Business Impact

The data indicates the prime contractor is RES-CARE, INC and does not specify any small business subcontracting. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The Office of the Assistant Secretary for Administration and Management within the Department of Labor is responsible for this contract. Oversight would involve monitoring service delivery, cost controls, and performance against contract requirements.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for cost overruns due to CPIF structure.
Lack of detailed performance metrics in the provided data.
Long-term service contracts can present risks if performance degrades.
Dependence on a single contractor for essential youth services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $94.2 million to RES-CARE, INC. OPERATION OF THE PUERTO RICO JOB CORPS CENTERS

Who is the contractor on this award?

The obligated recipient is RES-CARE, INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $94.2 million.

What is the period of performance?

Start: 2011-05-24. End: 2016-11-30.

What is the specific performance framework and key performance indicators (KPIs) used to measure the effectiveness of the Job Corps centers under this contract?

The provided data does not detail the specific performance framework or KPIs. Effective oversight would require clearly defined metrics related to student graduation rates, job placement success, and post-placement earnings. These KPIs are crucial for assessing the value and impact of the training programs and ensuring accountability for taxpayer investment.

How does the cost-plus incentive fee (CPIF) structure incentivize RES-CARE, INC to manage costs effectively while ensuring high-quality training outcomes?

A CPIF contract allows the contractor to earn a higher fee if they meet or exceed certain cost and performance targets. For this contract, it implies that RES-CARE, INC is incentivized to control operational costs while achieving specific training and placement goals. However, the effectiveness hinges on the clarity and attainability of these targets and robust government monitoring to prevent cost inflation.

What is the long-term impact of these Job Corps centers on the employment and earning potential of participants in Puerto Rico?

The long-term impact is a primary objective of the Job Corps program. While this contract focuses on the operational period, its success should be measured by sustained employment rates and increased earning potential for graduates. Evaluating post-contract outcomes and comparing them to national averages or similar programs would provide a clearer picture of the program's lasting value.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOLJ10RFP00003

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Harris Hill Nursing Facility LLC

Address: 9901 LINN STATION RD, LOUISVILLE, KY, 40223

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $178,186,247

Exercised Options: $124,984,193

Current Obligation: $94,206,334

Actual Outlays: $-390,195

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline