Department of Labor's $46M Ottumwa Job Corps Center contract awarded to Career Systems Development Corporation

Contract Overview

Contract Amount: $46,145,494 ($46.1M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2011-07-01

End Date: 2016-12-31

Contract Duration: 2,010 days

Daily Burn Rate: $23.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE OTTUMWA JOB CORPS CENTER IN OTTUMWA, IOWA

Place of Performance

Location: OTTUMWA, WAPELLO County, IOWA, 52501

State: Iowa Government Spending

Plain-Language Summary

Department of Labor obligated $46.1 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: OPERATION OF THE OTTUMWA JOB CORPS CENTER IN OTTUMWA, IOWA Key points: 1. The contract's cost-plus-incentive-fee structure aims to align contractor performance with government objectives. 2. A definitive contract award suggests a structured procurement process. 3. The duration of the contract (over 5 years) indicates a significant, long-term commitment. 4. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade education services. 5. The contract was awarded under full and open competition, implying a broad search for qualified bidders.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns and performance metrics. The cost-plus-incentive-fee (CPIF) pricing model can lead to cost overruns if not managed carefully, but it also incentivizes efficiency. Comparing it to similar Job Corps center operations would provide better context on whether the $46 million over five years represents a reasonable investment for the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple potential bidders were solicited and evaluated. This approach generally fosters a competitive environment, allowing the agency to select the offer that best meets its requirements and offers the most value. The presence of four bidders (no) suggests a reasonable level of interest in this service area.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and ensures that the government is not unduly constrained in its choice of contractors.

Public Impact

The primary beneficiaries are students seeking vocational training and career development at the Ottumwa Job Corps Center. The contract supports the delivery of technical and trade education services, aiming to improve participants' employability. The geographic impact is concentrated in Ottumwa, Iowa, and surrounding areas, providing local economic benefits and workforce development. Workforce implications include the creation and maintenance of jobs for instructors, support staff, and administrative personnel at the center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep in CPIF contracts if performance incentives are not well-defined or if costs escalate unexpectedly.
Ensuring consistent quality of training and student outcomes across the contract's duration requires ongoing monitoring.
Dependence on a single contractor for an extended period could reduce flexibility in adapting to evolving training needs.

Positive Signals

Full and open competition suggests a robust selection process, potentially leading to a qualified and capable contractor.
The CPIF structure incentivizes the contractor to achieve specific performance goals, aligning their interests with the agency's.
A multi-year contract provides stability for the program and the students it serves, ensuring continuity of operations.

Sector Analysis

The contract falls within the education and training services sector, specifically focusing on vocational and technical education. The Job Corps program is a significant federal initiative aimed at workforce development. Spending in this sector is driven by the need to equip individuals with skills for in-demand occupations. Comparable spending benchmarks would involve analyzing other Job Corps center contracts or similar government-funded training programs.

Small Business Impact

There is no indication from the provided data that this contract included specific small business set-asides or subcontracting requirements. The focus appears to be on securing the best overall offer through full and open competition. Further investigation would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight of this contract would typically be managed by the Department of Labor's Employment and Training Administration. Accountability measures would be tied to the performance metrics and incentive clauses within the Cost Plus Incentive Fee (CPIF) contract. Transparency would be facilitated through contract award databases and potentially through program performance reporting, though specific oversight details are not provided.

Related Government Programs

Department of Labor Job Corps Program
Federal Workforce Development Initiatives
Vocational Training Grants
Adult Education Programs

Risk Flags

Potential for cost overruns in CPIF contracts.
Ensuring consistent quality of training and student outcomes.
Long-term contract dependence may limit flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $46.1 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. OPERATION OF THE OTTUMWA JOB CORPS CENTER IN OTTUMWA, IOWA

Who is the contractor on this award?

The obligated recipient is CAREER SYSTEMS DEVELOPMENT CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Labor (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $46.1 million.

What is the period of performance?

Start: 2011-07-01. End: 2016-12-31.

What was the contractor's track record prior to this award?

Information regarding Career Systems Development Corporation's specific track record prior to the award of this Ottumwa Job Corps Center contract is not detailed in the provided data. However, as a recipient of a definitive contract valued at over $46 million for a significant duration, it suggests they possessed the necessary qualifications and experience to be selected through a full and open competition. Further research into their past performance on similar government contracts, client references, and any history of performance issues or accolades would be necessary for a comprehensive assessment of their track record.

How does the total contract value compare to similar Job Corps center operations?

Direct comparison of the total contract value ($46.1 million) to similar Job Corps center operations requires access to data on other center contracts, including their size, scope, duration, and geographic location. The provided data indicates this contract covers the operation of the Ottumwa Job Corps Center from July 2011 to December 2016, a period of approximately 5.5 years. Without specific benchmarks for centers of comparable student capacity or service offerings, it is difficult to definitively state whether this value is high, low, or average. Factors such as local cost of living, specific training programs offered, and student support services can significantly influence contract costs.

What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for operating a Job Corps center?

The primary risks associated with a CPIF contract for operating a Job Corps center revolve around cost control and performance alignment. While CPIF incentivizes the contractor to meet or exceed performance targets, there's a risk that the 'cost plus' component could lead to higher-than-expected expenditures if the base cost estimates are inaccurate or if unforeseen operational challenges arise. The incentive structure must be carefully designed to ensure that the goals being incentivized truly reflect the government's priorities and that the contractor is not motivated to cut corners on essential services to achieve financial targets. Effective government oversight is crucial to monitor costs, validate performance metrics, and ensure the contractor remains focused on delivering quality training and support services.

How effective has the Ottumwa Job Corps Center been in achieving its program goals under this contract?

The provided data does not include specific metrics on the effectiveness of the Ottumwa Job Corps Center in achieving its program goals. Effectiveness would typically be measured by indicators such as student graduation rates, job placement rates post-graduation, average wages earned by graduates, and employer satisfaction. While the contract was awarded under full and open competition and utilized a CPIF structure, these procurement and pricing mechanisms do not inherently guarantee program effectiveness. Ongoing monitoring and evaluation by the Department of Labor would be necessary to assess the center's performance against its stated objectives and the needs of the students and the local workforce.

What has been the historical spending trend for operating the Ottumwa Job Corps Center?

The provided data pertains to a single definitive contract awarded from July 1, 2011, to December 31, 2016, with a total value of $46,145,494. This represents the spending for that specific contract period. To understand the historical spending trend, data from previous contracts for the operation of the Ottumwa Job Corps Center, as well as any subsequent contracts, would be required. Without this broader context, it's impossible to analyze trends in spending, such as increases or decreases over time, or to identify significant shifts in investment in the center's operations.

What is the significance of the NAICS code 611519 for this contract?

The North American Industry Classification System (NAICS) code 611519, 'Other Technical and Trade Schools,' signifies the primary business activity the contractor is expected to perform. For the Ottumwa Job Corps Center contract, this code indicates that the services procured involve providing vocational and technical instruction and training. These schools typically offer programs designed to prepare students for specific occupations, often in skilled trades or technical fields. The selection of this NAICS code by the Department of Labor clearly defines the scope of work and the expected educational and training outcomes for the students served by the center.

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: DOLJ11RA00034

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: OWL Companies (UEI: 044437796)

Address: 75 THRUWAY PARK DR STE 100, WEST HENRIETTA, NY, 14586

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $174,063,644

Exercised Options: $97,905,429

Current Obligation: $46,145,494

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline