DOL's $40.7M Job Corps Contract for Jacksonville Center Awarded to Chugach Education Services

Contract Overview

Contract Amount: $40,669,231 ($40.7M)

Contractor: Chugach Education Services, Inc.

Awarding Agency: Department of Labor

Start Date: 2011-02-01

End Date: 2016-07-31

Contract Duration: 2,007 days

Daily Burn Rate: $20.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF JACKSONVILLE JOB CORPS CENTER WHICH INCLUDES THE PROVISION OF ACADEMIC, CAREER TECHNICAL TRAINING, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING, AND RELATED SUPPORT SERVICES FOR AN ESTIMATED TOTAL OF 350 STUDENTS ENROLLED AT JACKSONVILLE JOB CORPS CENTER.

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32209

State: Florida Government Spending

Plain-Language Summary

Department of Labor obligated $40.7 million to CHUGACH EDUCATION SERVICES, INC. for work described as: OPERATION OF JACKSONVILLE JOB CORPS CENTER WHICH INCLUDES THE PROVISION OF ACADEMIC, CAREER TECHNICAL TRAINING, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING, AND RELATED SUPPORT SERVICES FOR AN ESTIMATED TOTAL OF 350 STUDENTS ENROLLED AT JACKSONVILLE JOB CORPS CENTER. Key points: 1. Contract supports academic and vocational training for 350 students. 2. Chugach Education Services, Inc. is the sole awardee. 3. Potential risk in cost escalation due to Cost Plus Incentive Fee structure. 4. Spending falls within the 'Other Technical and Trade Schools' sector.

Value Assessment

Rating: fair

The contract's Cost Plus Incentive Fee (CPIF) structure allows for potential cost overruns if performance targets are not met, but also incentivizes efficiency. Benchmarking against similar educational service contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded via 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are used to provide essential job training services. The CPIF structure requires careful monitoring to ensure cost-effectiveness and prevent unnecessary expenditure.

Public Impact

Provides critical job training and career development for 350 students. Supports economic mobility and workforce development in Jacksonville, FL. Ensures continued operation of the Jacksonville Job Corps Center. Potential for improved student outcomes and employment rates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may reduce price competitiveness.
CPIF contract type can lead to cost overruns.
Lack of detailed cost data hinders precise benchmarking.

Positive Signals

Addresses a critical need for workforce development.
Supports a significant number of students.
Contract duration provides program stability.

Sector Analysis

This contract falls under the 'Other Technical and Trade Schools' sector, providing specialized training. Spending benchmarks for this specific niche are not readily available, but the amount is substantial for a single center's operation.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this larger contract.

Oversight & Accountability

The Department of Labor's Employment and Training Administration is responsible for oversight. The CPIF contract type necessitates robust performance monitoring and financial oversight to ensure value for taxpayer money.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Limited competition may result in suboptimal pricing.
Cost Plus Incentive Fee structure carries inherent risk of cost overruns.
Lack of detailed cost breakdown hinders thorough value analysis.
Past performance data for the contractor is not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $40.7 million to CHUGACH EDUCATION SERVICES, INC.. OPERATION OF JACKSONVILLE JOB CORPS CENTER WHICH INCLUDES THE PROVISION OF ACADEMIC, CAREER TECHNICAL TRAINING, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING, AND RELATED SUPPORT SERVICES FOR AN ESTIMATED TOTAL OF 350 STUDENTS ENROLLED AT JACKSONVILLE JOB CORPS CENTER.

Who is the contractor on this award?

The obligated recipient is CHUGACH EDUCATION SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $40.7 million.

What is the period of performance?

Start: 2011-02-01. End: 2016-07-31.

What is the specific performance criteria tied to the incentive fee, and how are they measured?

The incentive fee structure is tied to specific performance metrics outlined in the contract. These likely include student completion rates, job placement success, and employer satisfaction. The Employment and Training Administration would have established clear measurement methodologies and reporting requirements to track progress against these goals and determine the incentive payout.

How does the 'exclusion of sources' in the competition process impact the final price and service quality?

Excluding certain sources limits the pool of potential offerors, which can reduce competitive pressure and potentially lead to a higher price than if all qualified vendors could compete. However, it might be justified if only specific vendors possess unique capabilities or if prior performance necessitates their inclusion. The impact on service quality depends on the rigor of the evaluation process for the remaining eligible bidders.

What is the historical cost performance of Chugach Education Services, Inc. on similar Job Corps contracts?

Analyzing Chugach Education Services, Inc.'s past performance on similar Job Corps contracts is crucial for assessing future value and risk. Reviewing their track record regarding cost control, adherence to schedules, and achievement of performance metrics would provide insights into their operational efficiency and reliability. This historical data is key to understanding if the current contract's pricing is competitive and if the CPIF structure is likely to be managed effectively.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOLJ10UA00038

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation (UEI: 071844021)

Address: 3800 CENTERPOINT DR STE 601, ANCHORAGE, AK, 99503

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $70,351,372

Exercised Options: $52,014,873

Current Obligation: $40,669,231

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline