Department of Labor's $24.5M contract for Florida outreach and career services awarded to Cornerstone Solutions, Inc

Contract Overview

Contract Amount: $24,459,614 ($24.5M)

Contractor: Cornerstone Solutions, Inc.

Awarding Agency: Department of Labor

Start Date: 2011-05-17

End Date: 2016-05-31

Contract Duration: 1,841 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: TO PROVIDE OUTREACH AND ADMISSIONS SERVICES IN THE STATE OF FLORIDA AND POST-CENTER CAREER TRANSITION SERVICES FOR GRADUATES AND FORMER ENROLLEES IN THE STATE OF FLORIDA.

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33181

State: Florida Government Spending

Plain-Language Summary

Department of Labor obligated $24.5 million to CORNERSTONE SOLUTIONS, INC. for work described as: TO PROVIDE OUTREACH AND ADMISSIONS SERVICES IN THE STATE OF FLORIDA AND POST-CENTER CAREER TRANSITION SERVICES FOR GRADUATES AND FORMER ENROLLEES IN THE STATE OF FLORIDA. Key points: 1. Contract focused on vital post-graduation and career transition services for individuals in Florida. 2. The contract utilized a cost-plus-incentive-fee structure, aiming to align contractor performance with government objectives. 3. Awarded through full and open competition, suggesting a robust market evaluation. 4. The duration of the contract was over 1800 days, indicating a long-term service requirement. 5. The contract's scope included outreach and admissions, highlighting a focus on program enrollment and engagement. 6. Services extended to post-center career transition, emphasizing graduate support and alumni relations.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable service contracts. The cost-plus-incentive-fee (CPIF) structure suggests an attempt to control costs while incentivizing performance, but the ultimate value depends heavily on the effectiveness of the outreach and career transition services delivered. The total award amount of $24.5 million over approximately five years indicates a significant investment in workforce development in Florida. Further analysis would require understanding the per-student or per-placement costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was open, certain sources were excluded for specific reasons, possibly related to prior performance or specialized capabilities. The presence of four bids suggests a reasonable level of competition, which is generally positive for price discovery and ensuring a competitive market.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging better service delivery from contractors.

Public Impact

Individuals in Florida seeking career training and transition services are the primary beneficiaries. The contract supports the Department of Labor's mission to enhance workforce development and employment opportunities. Services are geographically focused within the state of Florida. The contract likely impacts the education and career services sector workforce in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value for money.
The 'after exclusion of sources' clause in the competition type warrants further investigation into the rationale.
CPIF contracts can sometimes lead to cost overruns if not managed tightly.
The long contract duration could lead to vendor lock-in if not properly monitored.

Positive Signals

Awarded through full and open competition, indicating a broad market search.
The inclusion of incentive fees suggests a focus on performance-based outcomes.
The contract addresses critical post-graduation and career transition needs.

Sector Analysis

This contract falls within the broader 'Support Services' sector, specifically related to workforce development and education. The market for such services includes educational institutions, career counseling firms, and government contractors specializing in outreach and placement. The total award of $24.5 million over five years represents a substantial investment in this niche, suggesting a significant need for these services in Florida. Comparable spending benchmarks would typically involve analyzing other federal or state contracts for similar workforce development and career transition programs.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem is not evident from this information alone. Further investigation into the contractor's subcontracting plan, if any, would be necessary to assess its implications for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). Accountability measures would be embedded within the Cost Plus Incentive Fee (CPIF) structure, linking contractor payment to performance outcomes. Transparency would be facilitated through contract reporting requirements, though specific public access details are not provided here. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) Programs
Department of Labor Career Services
State Workforce Agencies
Adult Education and Literacy Programs

Risk Flags

Potential for cost overruns inherent in CPIF contracts.
Effectiveness of outreach and career transition services is not explicitly detailed.
Rationale for 'exclusion of sources' in competition needs clarification.
Long contract duration may limit flexibility and introduce vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $24.5 million to CORNERSTONE SOLUTIONS, INC.. TO PROVIDE OUTREACH AND ADMISSIONS SERVICES IN THE STATE OF FLORIDA AND POST-CENTER CAREER TRANSITION SERVICES FOR GRADUATES AND FORMER ENROLLEES IN THE STATE OF FLORIDA.

Who is the contractor on this award?

The obligated recipient is CORNERSTONE SOLUTIONS, 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 $24.5 million.

What is the period of performance?

Start: 2011-05-17. End: 2016-05-31.

What specific performance metrics were used to evaluate Cornerstone Solutions, Inc. under this CPIF contract?

The provided data does not detail the specific performance metrics tied to the incentive fee structure of this contract. Typically, for outreach and admissions services, metrics might include the number of individuals successfully enrolled, retention rates, completion rates, and post-graduation employment placement rates. For career transition services, metrics could involve the number of individuals placed in new careers, salary levels achieved, and time to re-employment. The effectiveness of the CPIF structure hinges on clearly defined, measurable, achievable, relevant, and time-bound (SMART) goals that align with the Department of Labor's objectives for workforce development in Florida.

How does the per-student cost of this contract compare to similar federal or state-funded workforce development programs?

Without specific data on the number of students served or the exact breakdown of costs per service component (outreach, admissions, career transition), a direct per-student cost comparison is not feasible. The total contract value of $24.5 million over approximately 1841 days (roughly 5 years) averages to about $13.3 million per year. To benchmark, one would need to divide this annual cost by the average number of participants served annually. This figure would then need to be compared against similar programs, considering variations in service intensity, target populations, and regional economic factors. For instance, programs focused on high-demand technical skills might have higher per-student costs but yield greater long-term economic benefits.

What were the primary risks identified for this contract, and how were they mitigated?

Potential risks for a contract of this nature could include low enrollment numbers, high dropout rates, ineffective career placement services, and cost overruns. The 'Cost Plus Incentive Fee' (CPIF) structure itself is a risk mitigation strategy, designed to incentivize the contractor to perform efficiently and effectively by linking a portion of their profit to achieving specific performance targets. Other mitigation strategies might involve regular performance reviews, site visits, data audits, and clear communication channels between the Department of Labor and Cornerstone Solutions, Inc. The 'after exclusion of sources' in the competition type might also indicate a pre-identified risk associated with certain potential bidders.

What is the historical spending pattern for similar outreach and career transition services by the Department of Labor?

Analyzing historical spending patterns for similar services requires access to federal procurement databases and budget reports. The Department of Labor frequently contracts for workforce development, training, and career services. Spending in this area can fluctuate based on economic conditions, legislative priorities, and the availability of funding. Contracts for outreach and career transition services are common, particularly for programs aimed at specific demographics or industries. To understand the pattern for this specific contract, one would look at prior awards to Cornerstone Solutions, Inc. or other contractors performing similar functions, noting the total amounts, durations, and agencies involved over several fiscal years.

What was the rationale behind excluding certain sources during the 'Full and Open Competition After Exclusion of Sources' process?

The 'Full and Open Competition After Exclusion of Sources' designation suggests that while the competition was broadly open, specific potential contractors were intentionally excluded from bidding. The rationale for such exclusions typically stems from factors like past performance issues (e.g., failure to meet contract requirements on previous engagements), organizational conflicts of interest, or specific technical requirements that only a subset of the market can meet. Without further documentation from the agency, the precise reasons for excluding sources in this particular procurement remain unspecified but are generally tied to ensuring the best value and minimizing risk for the government.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOLJ11UA00035

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 1526 E FORREST AVE STE 280, EAST POINT, GA, 30344

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $41,996,406

Exercised Options: $30,331,884

Current Obligation: $24,459,614

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline