Department of Labor Awards $59.3M Initial Contract for Job Corps Vocational Training

Contract Overview

Contract Amount: $59,281,846 ($59.3M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2011-09-27

End Date: 2017-03-31

Contract Duration: 2,012 days

Daily Burn Rate: $29.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS IS THE INITIAL CONTRACT. MODIFICATIONS TO INCREASE FUNDS AVAILABLE AND ESTIMATED COST ARE FORTHCOMING.

Place of Performance

Location: SAN BERNARDINO, SAN BERNARDINO County, CALIFORNIA, 92407

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $59.3 million to MANAGEMENT & TRAINING CORPORATION for work described as: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS IS THE INITIAL CONTRACT. MODIFICATIONS TO INCREASE FUNDS AVAILABLE AND ESTIMATED COST ARE FORTHCOMING. Key points: 1. This is the initial contract for the Job Corps program, with potential for future modifications. 2. The contract is awarded to Management & Training Corporation, a significant player in workforce development. 3. The program targets youth aged 16-24, addressing a critical demographic for skill development. 4. The sector involves vocational training, crucial for economic mobility and workforce readiness.

Value Assessment

Rating: fair

This is an initial contract, making a direct pricing assessment difficult. Future modifications will provide more data for comparison against similar vocational training programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process. The 'Cost Plus Incentive Fee' (CPIF) structure aims to incentivize performance while managing costs.

Taxpayer Impact: The investment in youth vocational training aims to improve long-term economic outcomes for participants and potentially reduce reliance on social services.

Public Impact

Provides essential vocational skills to young adults, enhancing their employability. Addresses a critical need for skilled labor in various industries. Potential to reduce unemployment rates among young people. Supports economic development by preparing the future workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Initial contract; scope and cost may increase significantly with modifications.
CPIF contracts can sometimes lead to cost overruns if not closely monitored.
Effectiveness of vocational training programs can vary.

Positive Signals

Full and open competition suggests a fair market approach.
Focus on youth development addresses a key societal need.
Potential for positive long-term economic impact.

Sector Analysis

The vocational training sector is vital for equipping individuals with job-ready skills. Spending benchmarks vary widely based on program scope, duration, and target population.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract's award or subcontracting.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management oversees this contract. Robust oversight will be crucial, especially as modifications are anticipated.

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 significant cost increases via modifications.
CPIF contracts require diligent oversight to control spending.
Measuring long-term effectiveness and ROI can be challenging.
Dependence on contractor performance for program success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $59.3 million to MANAGEMENT & TRAINING CORPORATION. JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS IS THE INITIAL CONTRACT. MODIFICATIONS TO INCREASE FUNDS AVAILABLE AND ESTIMATED COST ARE FORTHCOMING.

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING CORPORATION.

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 $59.3 million.

What is the period of performance?

Start: 2011-09-27. End: 2017-03-31.

What is the projected long-term return on investment for the Job Corps program based on participant outcomes?

Quantifying the long-term ROI requires tracking participant employment rates, wage progression, and reduced reliance on public assistance post-program completion. While the immediate goal is skill acquisition, the ultimate measure of success is sustained economic self-sufficiency, which can significantly outweigh the initial program costs through increased tax revenue and reduced social program expenditures.

What are the key performance indicators (KPIs) used to manage the Cost Plus Incentive Fee (CPIF) contract and ensure program effectiveness?

Effective KPIs for this CPIF contract would likely include participant completion rates, job placement rates in relevant fields, average starting wages of placed participants, and employer satisfaction surveys. The incentive fee structure should be tied to achieving or exceeding targets in these areas, ensuring the contractor is motivated to deliver high-quality training and successful outcomes.

How will the Department of Labor ensure accountability and prevent potential cost overruns given the expectation of contract modifications?

Accountability will hinge on rigorous monitoring of expenditures against performance metrics, transparent reporting from the contractor, and proactive engagement by the contracting officer. Establishing clear baseline costs and performance expectations before modifications are approved, and conducting thorough reviews of justification for increased funds, will be critical to managing costs effectively.

Industry Classification

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

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PLACE DR STE 100, CENTERVILLE, UT, 84014

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

Financial Breakdown

Contract Ceiling: $59,476,055

Exercised Options: $59,476,055

Current Obligation: $59,281,846

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline