Department of Labor's Turner Job Corps Center contract awarded to Education & Training Resources LLC for $95.4M over 5 years

Contract Overview

Contract Amount: $95,389,720 ($95.4M)

Contractor: Education & Training Resources LLC

Awarding Agency: Department of Labor

Start Date: 2011-01-01

End Date: 2016-12-03

Contract Duration: 2,163 days

Daily Burn Rate: $44.1K/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 TURNER JOB CORPS CENTER WHICH INCLUDES PROVISION OF ACADEMIC, CAREER TECHNICAL, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING AND RELATED SUPPORT SERVICES FOR AN ESTIMATED 930 STUDENTS; AND PROVIDE A RESIDENTIAL PARENT/CHILD CARE PROGRAM ON CENTER FOR 40 STUDENT/PARENTS AND 48 PRE-SCHOOL CHILDEN.

Place of Performance

Location: ALBANY, DOUGHERTY County, GEORGIA, 31705

State: Georgia Government Spending

Plain-Language Summary

Department of Labor obligated $95.4 million to EDUCATION & TRAINING RESOURCES LLC for work described as: OPERATION OF TURNER JOB CORPS CENTER WHICH INCLUDES PROVISION OF ACADEMIC, CAREER TECHNICAL, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING AND RELATED SUPPORT SERVICES FOR AN ESTIMATED 930 STUDENTS; AND PROVIDE A RESIDENTIAL PARENT/CHILD CARE PROGRAM ON CENTER FOR 40 STUDENT/PARE… Key points: 1. The contract focuses on comprehensive academic, career technical, social skills, and career development training for approximately 930 students. 2. It also includes a residential parent/child care program for 40 student parents and 48 preschool children, indicating a broad scope of support services. 3. The contract type is Cost Plus Incentive Fee (CPIF), which allows for shared cost savings and cost overruns between the government and contractor. 4. The duration of the contract was 2163 days, spanning from January 1, 2011, to December 3, 2016. 5. The contract was awarded under full and open competition after exclusion of sources, suggesting a competitive bidding process. 6. The North American Industry Classification System (NAICS) code 611519 points to 'Other Technical and Trade Schools', aligning with the training services provided.

Value Assessment

Rating: fair

The contract's value of $95.4 million over approximately five years for operating a Job Corps center is substantial. Benchmarking this against similar large-scale training and residential programs is complex due to the unique combination of academic, vocational, and childcare services. The Cost Plus Incentive Fee (CPIF) structure suggests an attempt to incentivize efficiency, but the final cost-effectiveness depends heavily on the achieved performance metrics and the contractor's ability to manage costs within the incentive framework. Without specific performance data and comparable contract details, a definitive value-for-money assessment is challenging.

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.' This indicates that the solicitation was made available to all responsible prospective contractors, and any restrictions or exclusions were justified. The presence of three bidders (no=3) suggests a moderate level of competition for this significant contract. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions, but three bidders still provide a basis for price discovery and selection.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging the best value. While three bidders is not an exceptionally high number, it still provides a mechanism to compare proposals and pricing, potentially leading to better outcomes for the government and taxpayers.

Public Impact

Low-income youth and young adults seeking academic and vocational training benefit from the services provided. Student parents and their young children receive specialized residential care and support, addressing unique family needs. The program aims to equip participants with job-ready skills, potentially leading to improved employment opportunities and economic self-sufficiency. The contract supports workforce development initiatives by training individuals for in-demand occupations. The geographic impact is centered in Georgia (st=GA, sn=GEORGIA), serving the local community and potentially broader regional needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPIF contract type can lead to cost overruns if not managed carefully, potentially exceeding initial estimates.
The success of the program is heavily reliant on the contractor's ability to effectively deliver a wide range of services, from academic to social support.
Ensuring consistent quality of training and support across all students, especially those in the residential parent/child program, presents a management challenge.

Positive Signals

The contract specifies a comprehensive set of services, indicating a commitment to holistic student development.
The inclusion of a residential parent/child care program addresses a critical need for a specific vulnerable population.
The use of full and open competition suggests an effort to secure the best possible provider and value.
The CPIF structure, if managed well, can incentivize cost efficiency and performance improvements.

Sector Analysis

The contract falls within the broader education and training sector, specifically focusing on vocational and technical education. The NAICS code 611519, 'Other Technical and Trade Schools,' categorizes this service. The Job Corps program is a significant federal initiative aimed at workforce development, and contracts like this represent substantial investments in preparing individuals for employment. Comparable spending benchmarks would involve looking at other large-scale federal or state-funded training programs, educational institutions, and social service providers that offer similar comprehensive support and residential components.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions (sb=false) or subcontracting goals. Therefore, the primary focus of this contract appears to be on large business or other than small business prime contractors. The absence of explicit small business participation requirements means that the direct impact on the small business ecosystem for this specific contract is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration. Mechanisms would include regular performance reviews, financial audits, and adherence to program specific regulations and reporting requirements. The CPIF structure itself implies a level of oversight to track costs and performance against established targets. Transparency would be facilitated through contract award databases and potentially through program performance reports, though specific details on Inspector General jurisdiction or detailed oversight reports are not provided.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Job Training Programs
Youth Development Programs
Residential Child Care Programs

Risk Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee contracts.
Complexity of managing diverse services including academic, vocational, and residential childcare.
Dependence on contractor's ability to achieve student performance and placement goals.
Ensuring consistent quality of service delivery across all program components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $95.4 million to EDUCATION & TRAINING RESOURCES LLC. OPERATION OF TURNER JOB CORPS CENTER WHICH INCLUDES PROVISION OF ACADEMIC, CAREER TECHNICAL, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING AND RELATED SUPPORT SERVICES FOR AN ESTIMATED 930 STUDENTS; AND PROVIDE A RESIDENTIAL PARENT/CHILD CARE PROGRAM ON CENTER FOR 40 STUDENT/PARENTS AND 48 PRE-SCHOOL CHILDEN.

Who is the contractor on this award?

The obligated recipient is EDUCATION & TRAINING RESOURCES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $95.4 million.

What is the period of performance?

Start: 2011-01-01. End: 2016-12-03.

What was the track record of Education & Training Resources LLC prior to this award?

Information regarding the specific track record of Education & Training Resources LLC prior to this award is not detailed in the provided data. However, as a contractor for a significant federal program like the Turner Job Corps Center, it is likely that the company had prior experience in education, training, or facility management. Federal procurement databases and past performance reviews would typically contain more granular details on a contractor's history, including previous contracts, performance ratings, and any past issues or successes. The award of a Cost Plus Incentive Fee contract of this magnitude suggests that the Department of Labor assessed the contractor as capable of managing the complex requirements.

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

To compare the per-student cost, we first calculate the approximate annual cost per student. The total contract value is $95,389,719.60, and the duration is approximately 5 years (2163 days / 365.25 days/year ≈ 5.92 years). The estimated number of students is 930. The total cost over the contract period is $95.4M. If we consider the full duration, the average annual cost is roughly $95.4M / 5.92 years ≈ $16.1M per year. The average annual cost per student would then be approximately $16.1M / 930 students ≈ $17,300 per student per year. This figure needs to be compared against national averages for Job Corps centers, which can vary significantly based on location, services offered (especially residential components), and student demographics. Without specific benchmark data for comparable Job Corps centers or other federal/state training programs with similar residential and comprehensive support services, a precise comparison is difficult. Factors like the inclusion of the parent/child care program would increase the per-student cost compared to centers without such services.

What were the key performance indicators (KPIs) for this contract, and how was performance measured?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for a Job Corps center contract, typical KPIs would likely include student academic achievement rates, graduation rates, successful completion of vocational training, job placement rates after graduation, and post-placement employment retention rates. The Cost Plus Incentive Fee (CPIF) structure implies that performance against specific targets would be measured, and the contractor's fee would be adjusted based on achieving or exceeding these targets. The Department of Labor would have established a performance work statement (PWS) outlining these requirements and the metrics for evaluation. Regular reporting and site visits would be part of the oversight process to monitor performance.

What is the historical spending trend for the operation of the Turner Job Corps Center?

The provided data pertains to a single contract awarded from January 1, 2011, to December 3, 2016, with a value of $95.4 million. This represents the spending for that specific contract period. To understand the historical spending trend for the Turner Job Corps Center, one would need to examine contract awards for this center over multiple periods, including prior contracts before 2011 and any subsequent contracts after 2016. Analyzing these historical awards would reveal whether spending has increased, decreased, or remained relatively stable over time, and identify any significant changes in contract scope or value that might explain fluctuations. Without access to this broader historical contract data, only the spending for this specific 2011-2016 period can be assessed.

What risks were identified by the Department of Labor when awarding this contract?

The provided data does not explicitly detail the risks identified by the Department of Labor (DOL) during the award of this contract. However, common risks associated with large, complex service contracts like operating a Job Corps center include contractor performance risk (failure to meet service delivery standards), cost overrun risk (especially with CPIF contracts), management risk (inability to effectively manage operations and staff), compliance risk (failure to adhere to federal regulations), and risks related to student outcomes (low graduation or placement rates). The DOL would have conducted due diligence, including reviewing past performance, financial stability, and technical proposals, to mitigate these risks. The competitive bidding process itself is a risk mitigation strategy. Specific risk flags or assessments are typically documented in internal agency procurement files.

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: DOLJ11UA00037

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 2422 AIRWAY CT, BOWLING GREEN, KY, 42103

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $155,941,042

Exercised Options: $132,238,963

Current Obligation: $95,389,720

Actual Outlays: $338,715

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline