Labor Department's $35M Roswell JCC Contract with Career Opportunities Inc. Faces Scrutiny
Contract Overview
Contract Amount: $34,985,581 ($35.0M)
Contractor: Career Opportunities Inc
Awarding Agency: Department of Labor
Start Date: 2011-10-01
End Date: 2017-02-28
Contract Duration: 1,977 days
Daily Burn Rate: $17.7K/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: OPERATION OF ROSWELL JCC
Place of Performance
Location: ROSWELL, CHAVES County, NEW MEXICO, 88203
Plain-Language Summary
Department of Labor obligated $35.0 million to CAREER OPPORTUNITIES INC for work described as: OPERATION OF ROSWELL JCC Key points: 1. Contract awarded to Career Opportunities Inc. for $34.9M. 2. Full and open competition after exclusion of sources was used. 3. Contract duration was 1977 days, significantly longer than the 4-year period of performance. 4. The contract type is Cost Plus Incentive Fee, which can lead to cost overruns. 5. No small business participation was noted.
Value Assessment
Rating: questionable
The contract's Cost Plus Incentive Fee structure, combined with a duration significantly exceeding the stated period of performance, raises concerns about cost control and potential overspending compared to fixed-price or simpler cost-reimbursement contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method suggests that while competition was sought, certain entities were excluded, potentially limiting the pool of bidders and impacting price discovery. This could lead to less competitive pricing.
Taxpayer Impact: The extended duration and incentive fee structure, coupled with potentially limited competition, may result in taxpayers paying more than necessary for the services provided.
Public Impact
Taxpayers may be overpaying due to the contract's structure and duration. Lack of small business involvement limits opportunities for smaller enterprises. The extended contract timeline raises questions about the initial planning and ongoing necessity of the services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Extended duration beyond period of performance
- Cost Plus Incentive Fee structure
- No small business participation
- Limited competition method
Positive Signals
- Contract awarded to a specific entity for services.
- Competition was sought, albeit with exclusions.
Sector Analysis
The 'Other Technical and Trade Schools' sector (NAICS 611519) often involves specialized training and educational services. Benchmarks for similar contracts are difficult to ascertain without more specific service details, but extended durations and complex fee structures are generally less common for standard educational contracts.
Small Business Impact
The contract data indicates no small business participation (sb: false). This suggests that opportunities for small businesses were either not sought or not met, which is a missed opportunity for economic inclusion and potentially for more competitive pricing.
Oversight & Accountability
The significant discrepancy between the contract duration (1977 days) and the period of performance (implied by start/end dates) warrants further oversight to understand the reasons for the extension and ensure accountability for any cost implications.
Related Government Programs
- Other Technical and Trade Schools
- Department of Labor Contracting
- Office of the Assistant Secretary for Administration and Management Programs
Risk Flags
- Extended contract duration beyond period of performance
- Cost Plus Incentive Fee structure can lead to higher costs
- No small business participation
- Limited competition method used
- Lack of clarity on specific services and performance metrics
Tags
other-technical-and-trade-schools, department-of-labor, nm, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $35.0 million to CAREER OPPORTUNITIES INC. OPERATION OF ROSWELL JCC
Who is the contractor on this award?
The obligated recipient is CAREER OPPORTUNITIES 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 $35.0 million.
What is the period of performance?
Start: 2011-10-01. End: 2017-02-28.
What was the justification for the contract duration significantly exceeding the stated period of performance, and how did this impact the overall cost?
The provided data indicates a contract duration of 1977 days, while the period of performance appears to be approximately 1640 days (from Oct 1, 2011, to Feb 28, 2017). The reason for this discrepancy is unclear and requires further investigation. Extended durations can often lead to increased administrative costs and potential scope creep, impacting the overall value for taxpayers.
How did the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method affect the competitiveness of bids and the final pricing for the Roswell JCC operation?
This procurement method implies that while the competition was intended to be open, specific sources were excluded. This exclusion could limit the number of potential bidders, potentially reducing the competitive pressure on pricing. Without knowing which sources were excluded and why, it's difficult to definitively assess the impact, but it raises concerns about whether the government secured the best possible price.
What specific services were provided under this Cost Plus Incentive Fee contract, and how was the incentive structure designed to ensure effective service delivery and cost control?
The contract falls under NAICS code 611519 (Other Technical and Trade Schools), suggesting educational or training services. A Cost Plus Incentive Fee (CPIF) contract allows for contractor reimbursement of allowable costs plus a predetermined incentive fee based on meeting certain performance targets. The effectiveness hinges on how well these targets align with desired outcomes and cost efficiencies.
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: S111ANM001
Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 1251 IH 35 N, SAN MARCOS, TX, 78666
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $60,337,929
Exercised Options: $35,221,476
Current Obligation: $34,985,581
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-10-01
Current End Date: 2017-02-28
Potential End Date: 2021-03-04 00:00:00
Last Modified: 2021-12-23
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