Labor Department's $27M IGF Contract with ODLE Management Group Faces Scrutiny Over Technical School Operations

Contract Overview

Contract Amount: $27,066,927 ($27.1M)

Contractor: Odle Management Group, L.L.C.

Awarding Agency: Department of Labor

Start Date: 2012-04-08

End Date: 2017-05-31

Contract Duration: 1,879 days

Daily Burn Rate: $14.4K/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 THE NEW ORLEANS JCC IGF::CT::IGF

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Labor obligated $27.1 million to ODLE MANAGEMENT GROUP, L.L.C. for work described as: OPERATION OF THE NEW ORLEANS JCC IGF::CT::IGF Key points: 1. The contract awarded to ODLE MANAGEMENT GROUP, L.L.C. for 'Other Technical and Trade Schools' services is valued at $27.07 million. 2. Competition was conducted under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting a potentially limited bidding process. 3. The contract type is 'COST PLUS INCENTIVE FEE', which can lead to cost overruns if not managed carefully. 4. The duration of the contract was 1879 days, indicating a long-term commitment for these services.

Value Assessment

Rating: questionable

The Cost Plus Incentive Fee (CPIF) contract structure, with a base fee and incentive targets, can be complex to assess for value. Without detailed performance metrics and final award amounts, it's difficult to determine if the final price reflects optimal value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that while the competition was intended to be open, specific sources were excluded. This could limit the pool of potential bidders and potentially impact price discovery.

Taxpayer Impact: The total value of $27.07 million represents taxpayer funds allocated to technical and trade school operations. The effectiveness of the competition and contract management will determine the ultimate impact on taxpayer value.

Public Impact

Taxpayers may be impacted by the efficiency and effectiveness of the technical and trade school services provided under this contract. The exclusion of certain sources during the competition phase raises questions about whether the government secured the best possible pricing and service. Long-term contracts like this require ongoing oversight to ensure continued relevance and value for money.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources
Cost Plus Incentive Fee structure can incentivize cost increases
Long contract duration may not reflect current needs

Positive Signals

Contract awarded to a specific company for specialized services
Clear contract end date established

Sector Analysis

The IT sector, particularly technical and trade schools, often involves specialized knowledge and services. Benchmarking spending in this area requires comparison with similar training programs and educational service contracts, which can vary widely based on scope and duration.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The contract's duration and CPIF structure necessitate robust oversight from the Department of Labor to ensure ODLE MANAGEMENT GROUP, L.L.C. meets performance objectives and manages costs effectively. Accountability hinges on performance reviews and adherence to contract terms.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for limited competition impacting price
CPIF contract type can lead to cost overruns
Lack of detail on specific services provided
Unclear performance metrics for incentive fees
No indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $27.1 million to ODLE MANAGEMENT GROUP, L.L.C.. OPERATION OF THE NEW ORLEANS JCC IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is ODLE MANAGEMENT GROUP, L.L.C..

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 $27.1 million.

What is the period of performance?

Start: 2012-04-08. End: 2017-05-31.

What specific technical and trade school services were provided, and how did they align with the Department of Labor's mission?

The contract details 'Other Technical and Trade Schools' services, but the specific curriculum, target audience, and educational outcomes are not specified. Understanding these details is crucial to assessing the alignment with the Department of Labor's mission, which typically focuses on workforce development, job training, and ensuring fair labor practices. Without this information, it's difficult to gauge the direct impact on the agency's strategic goals.

What were the key performance indicators (KPIs) for the incentive fee, and were they met?

The Cost Plus Incentive Fee (CPIF) structure implies that ODLE MANAGEMENT GROUP, L.L.C. had specific performance targets tied to financial incentives. Information regarding these KPIs, the baseline performance, and the actual achieved results is essential to evaluate if the incentive structure effectively drove desired outcomes and if the government paid appropriately based on performance. Without this data, the effectiveness of the incentive mechanism remains unclear.

What was the rationale for excluding specific sources during the 'full and open competition' phase?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a deviation from a completely open bidding process. Understanding the justification for excluding certain potential bidders is critical. Reasons could range from specific technical requirements to national security concerns. However, any exclusion needs clear justification to ensure fair competition and to confirm that the government did not forgo potentially better offers due to an unnecessarily narrowed scope.

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: S12YALA004

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 10605 N HAYDEN RD STE 110, SCOTTSDALE, AZ, 85260

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $35,027,866

Exercised Options: $27,066,927

Current Obligation: $27,066,927

Actual Outlays: $133,201

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline