Department of Labor's $28M Job Corps contract awarded to Alutiiq Education & Training, LLC for student services

Contract Overview

Contract Amount: $27,994,933 ($28.0M)

Contractor: Alutiiq Education & Training, LLC

Awarding Agency: Department of Labor

Start Date: 2011-07-08

End Date: 2017-01-31

Contract Duration: 2,034 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF BAMBERG JOB CORPS CENTER WHICH INCLUDES THE PROVISION OF ACADEMIC, CAREER TECHNICAL, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING, AND RELATED SUPPORT SERVICES FOR 220 STUDENTS.

Place of Performance

Location: BAMBERG, BAMBERG County, SOUTH CAROLINA, 29003

State: South Carolina Government Spending

Plain-Language Summary

Department of Labor obligated $28.0 million to ALUTIIQ EDUCATION & TRAINING, LLC for work described as: OPERATION OF BAMBERG JOB CORPS CENTER WHICH INCLUDES THE PROVISION OF ACADEMIC, CAREER TECHNICAL, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING, AND RELATED SUPPORT SERVICES FOR 220 STUDENTS. Key points: 1. The contract focuses on comprehensive training and support services for 220 students at the Bamberg Job Corps Center. 2. Performance is structured under a Cost Plus Incentive Fee (CPIF) arrangement, aligning contractor incentives with government objectives. 3. The contract duration of 2034 days (approximately 5.6 years) suggests a long-term commitment to service provision. 4. The award was made under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process with specific source exclusions. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school services. 6. The contract's value of approximately $28 million over its term implies a significant investment in workforce development.

Value Assessment

Rating: good

The contract value of $27,994,933.05 over approximately 5.6 years for operating a Job Corps center with 220 students appears reasonable. Benchmarking against similar Job Corps center operations would provide a more precise value-for-money assessment. The CPIF contract type suggests an effort to control costs while incentivizing performance, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, certain sources were excluded from consideration. The number of bidders is not specified, but the exclusion of sources suggests a potentially narrower competitive field than a purely full and open competition. This could impact price discovery.

Taxpayer Impact: The exclusion of sources may limit the number of potential bidders, potentially leading to less aggressive pricing than if all qualified sources were allowed to compete. Taxpayers benefit from competition, but the specific nature of this competition warrants further review to ensure optimal value.

Public Impact

The primary beneficiaries are the 220 students enrolled in the Bamberg Job Corps Center, who receive academic, career technical, social skills, and career development training. The services delivered aim to enhance the employability and future career prospects of young individuals, particularly those facing barriers to employment. The geographic impact is focused on South Carolina, where the Bamberg Job Corps Center is located, potentially boosting the local workforce. Workforce implications include the training of a skilled labor pool and the direct employment of staff to operate the center and deliver services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' in the competition method requires scrutiny to ensure it was justified and did not unduly restrict competition.
Lack of specific performance metrics and outcomes data makes it difficult to fully assess the effectiveness and value delivered.
The CPIF structure, while incentivizing, can lead to cost overruns if not closely monitored and managed.

Positive Signals

The long contract duration suggests a stable and ongoing need for these critical workforce development services.
The CPIF contract type, when managed effectively, can lead to cost savings and improved performance.
Awarding to a single entity for comprehensive service delivery can streamline operations and accountability.

Sector Analysis

This contract falls within the Education and Training sector, specifically focusing on vocational and technical training programs. The Job Corps program is a significant federal initiative aimed at workforce development for at-risk youth. Comparable spending benchmarks would involve analyzing other Job Corps center contracts and similar government-funded training programs to assess cost-effectiveness and operational efficiency.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem is not evident from this information. Further analysis would be needed to determine if small businesses are involved as subcontractors or if the prime contractor has small business utilization goals.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). Accountability measures are embedded in the CPIF contract type, which links contractor payment to performance and cost control. Transparency would be enhanced through regular reporting requirements and potential site visits. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Job Training Programs
Vocational Education Grants

Risk Flags

Competition Method - 'Exclusion of Sources' requires justification.
Performance Measurement - Lack of explicit KPIs in summary data.
Cost Control - CPIF requires diligent oversight to prevent cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $28.0 million to ALUTIIQ EDUCATION & TRAINING, LLC. OPERATION OF BAMBERG JOB CORPS CENTER WHICH INCLUDES THE PROVISION OF ACADEMIC, CAREER TECHNICAL, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING, AND RELATED SUPPORT SERVICES FOR 220 STUDENTS.

Who is the contractor on this award?

The obligated recipient is ALUTIIQ EDUCATION & TRAINING, LLC.

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 $28.0 million.

What is the period of performance?

Start: 2011-07-08. End: 2017-01-31.

What is the track record of Alutiiq Education & Training, LLC in managing federal contracts, particularly those related to education and training?

Alutiiq Education & Training, LLC has a history of managing federal contracts, including those within the education and training domain. As a subsidiary or affiliate, its performance is often linked to the broader Alutiiq group's experience. Analyzing past performance evaluations, contract awards, and any reported issues or successes with similar government programs would provide a clearer picture of their capabilities. Specific to Job Corps, their experience in operating centers, managing student populations, and delivering required academic and vocational training is crucial. A review of their contract history with the Department of Labor and other agencies would reveal their reliability, efficiency, and ability to meet contractual obligations and performance standards.

How does the cost per student for this contract compare to other Job Corps centers or similar federal training programs?

The total contract value is approximately $28 million over roughly 5.6 years for 220 students. This equates to an approximate annual cost per student of $27.9 million / 5.6 years / 220 students = ~$22,500 per student per year. Benchmarking this figure against other Job Corps centers, which can vary significantly based on location, services offered, and student demographics, is essential. National averages for Job Corps center operations can range widely, but this figure appears to be within a plausible range, potentially on the higher side depending on the specific services and support provided. Comparison with other federal workforce development programs, such as those funded under WIOA, would also offer context, though direct comparisons can be challenging due to differing program structures and target populations.

What are the key performance indicators (KPIs) used to assess the success of the Bamberg Job Corps Center under this contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for Job Corps centers include student retention rates, academic achievement (e.g., GED attainment, high school diploma completion), vocational training completion rates, and post-program outcomes such as job placement rates, wages earned by graduates, and the duration of employment. The CPIF (Cost Plus Incentive Fee) structure implies that specific performance targets related to these or similar metrics are established, and the contractor's fee is adjusted based on their achievement. The Department of Labor would monitor these KPIs closely to ensure the center is meeting its objectives for student development and workforce readiness.

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

CPIF contracts, while designed to incentivize performance and cost control, carry inherent risks. A primary risk is that the 'cost' component can escalate if the contractor's costs are higher than anticipated, even if performance targets are met. The government bears a significant portion of cost overruns, although the incentive fee aims to mitigate this. There's also a risk of 'gaming the system,' where contractors might focus on easily achievable performance metrics to maximize their incentive fee, potentially at the expense of more critical but harder-to-measure outcomes. Effective government oversight is crucial to monitor costs, validate performance data, and ensure that the incentive structure truly drives desired results and value for taxpayers.

How has federal spending on Job Corps center operations evolved over time, and does this contract represent a significant shift?

Federal spending on the Job Corps program has historically been substantial, reflecting its role as a key national workforce development initiative. Spending levels can fluctuate based on economic conditions, administration priorities, and congressional appropriations. This specific contract, awarded in 2011 and ending in 2017, represents a single award for one center's operation during that period. To assess its significance, one would need to compare its value and duration against the overall Job Corps budget and the number of centers funded during those years. It does not inherently represent a shift but rather a component of the broader federal investment in the program. Analyzing historical spending trends for the Job Corps program overall would provide context for this contract's place within that landscape.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Solicitation ID: DOLJ10UA00033

Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corp

Address: 3909 ARCTIC BLVD STE 400, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,123,364

Exercised Options: $38,826,461

Current Obligation: $27,994,933

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline