Labor Department awards $31.6M contract for Homestead Job Corps Center operations to RES-CARE, INC

Contract Overview

Contract Amount: $31,619,076 ($31.6M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2011-07-29

End Date: 2016-07-31

Contract Duration: 1,829 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF HOMESTEAD JOB CORPS CENTER WHICH INCLUDES THE PROVISION OF ACADEMIC, CAREER TECHNICAL, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING; AND RELATED SUPPORT SERVICES FOR AN ESTIMATED TOTAL OF 496 STUDENTS.

Place of Performance

Location: HOMESTEAD, MIAMI-DADE County, FLORIDA, 33033

State: Florida Government Spending

Plain-Language Summary

Department of Labor obligated $31.6 million to RES-CARE, INC for work described as: OPERATION OF HOMESTEAD JOB CORPS CENTER WHICH INCLUDES THE PROVISION OF ACADEMIC, CAREER TECHNICAL, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING; AND RELATED SUPPORT SERVICES FOR AN ESTIMATED TOTAL OF 496 STUDENTS. Key points: 1. Contract supports academic, technical, and social skills training for 496 students. 2. Awarded via full and open competition, indicating market availability. 3. Cost Plus Incentive Fee contract type allows for performance-based adjustments. 4. Focus on vocational training aligns with workforce development needs.

Value Assessment

Rating: good

The contract value of $31.6 million over five years averages approximately $6.3 million annually. This appears reasonable for operating a Job Corps center serving nearly 500 students, considering the scope of services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple vendors were eligible and encouraged to bid. This method generally promotes competitive pricing and ensures the government receives fair value.

Taxpayer Impact: Taxpayer funds are utilized to provide essential job training and support services, aiming to enhance employability and reduce long-term reliance on public assistance.

Public Impact

Provides critical vocational and academic training to young adults. Aims to improve employment outcomes and economic self-sufficiency. Supports local economy through job creation and student spending. Addresses skills gaps in the regional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Cost Plus Incentive Fee structure.
Dependence on a single contractor for comprehensive student services.
Ensuring consistent quality of training across all program areas.

Positive Signals

Focus on comprehensive student development.
Competitive award process.
Long-term contract duration allows for program stability.

Sector Analysis

The education and training sector, particularly vocational and technical schools, plays a vital role in preparing individuals for the workforce. Spending in this area is benchmarked against similar federal programs and institutional costs.

Small Business Impact

The contract was awarded via full and open competition, but it is not specified if small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of Labor's Employment and Training Administration is responsible for overseeing this contract. Regular performance reviews and financial audits are expected to ensure accountability and effective service delivery.

Related Government Programs

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

Risk Flags

Cost overrun potential
Contractor performance risk
Effectiveness of training programs
Student retention and completion rates

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $31.6 million to RES-CARE, INC. OPERATION OF HOMESTEAD JOB CORPS CENTER WHICH INCLUDES THE PROVISION OF ACADEMIC, CAREER TECHNICAL, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING; AND RELATED SUPPORT SERVICES FOR AN ESTIMATED TOTAL OF 496 STUDENTS.

Who is the contractor on this award?

The obligated recipient is RES-CARE, 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 $31.6 million.

What is the period of performance?

Start: 2011-07-29. End: 2016-07-31.

What is the historical performance of RES-CARE, INC. in managing similar government contracts, particularly Job Corps centers?

Assessing RES-CARE, INC.'s past performance is crucial for understanding their capability to deliver on this contract. Reviewing previous contract awards, performance evaluations, and any documented issues or successes with similar government programs, especially Job Corps centers, will provide insight into their operational efficiency, financial management, and ability to meet student needs and program objectives.

How does the cost-plus-incentive-fee structure impact the overall cost-effectiveness and contractor performance?

The Cost Plus Incentive Fee (CPIF) structure aims to incentivize the contractor to control costs and meet performance targets. While it allows for flexibility, it also carries the risk of cost overruns if targets are not met or if the incentive structure is not well-defined. Effective oversight is needed to ensure the incentives align with desired outcomes and taxpayer value.

What are the key performance indicators (KPIs) used to measure the success of the training programs and student outcomes?

Measuring the success of the Job Corps program relies on specific KPIs, such as student graduation rates, job placement rates post-training, average starting wages of placed graduates, and employer satisfaction. The Department of Labor likely has established metrics to track these outcomes, ensuring the program effectively prepares students for meaningful employment and contributes to their long-term success.

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

Solicitation Procedures: TWO STEP

Solicitation ID: DOLJ09UA00026

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Carestream Health, Inc. (UEI: 244882650)

Address: 9901 LINN STATION RD, LOUISVILLE, KY, 40223

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

Financial Breakdown

Contract Ceiling: $78,688,401

Exercised Options: $51,273,388

Current Obligation: $31,619,076

Actual Outlays: $-304,210

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline