Department of Labor's $43.9M contract for technical and trade schools awarded to ADAMS AND ASSOCIATES INC

Contract Overview

Contract Amount: $43,891,938 ($43.9M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2012-05-15

End Date: 2019-07-31

Contract Duration: 2,633 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF

Place of Performance

Location: KITTRELL, GRANVILLE County, NORTH CAROLINA, 27544

State: North Carolina Government Spending

Plain-Language Summary

Department of Labor obligated $43.9 million to ADAMS AND ASSOCIATES INC for work described as: IGF::OT::IGF Key points: 1. The contract's value of $43.9 million over its duration suggests a significant investment in technical and trade education services. 2. Awarded under full and open competition, the contract indicates a market where multiple vendors could potentially offer these specialized services. 3. The 'Other Technical and Trade Schools' (NAICS 611519) classification points to a focus on vocational training and skill development. 4. The contract's duration of approximately 7.2 years (2633 days) implies a long-term need for these educational services. 5. The use of a Cost Plus Incentive Fee (CPIF) pricing structure suggests that performance targets and cost efficiencies were key considerations. 6. The absence of small business set-aside flags indicates that the primary competition was likely among larger, established entities.

Value Assessment

Rating: fair

Benchmarking the value of this $43.9 million contract is challenging without specific performance metrics or comparable contract data. The CPIF structure implies an attempt to align contractor incentives with government objectives, which can be a good value driver if well-structured. However, the long duration and cost-reimbursement nature warrant scrutiny to ensure costs remained reasonable and services effective throughout the period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that the Department of Labor sought the best possible offer from a wide range of potential providers. The presence of 7 bids (no=7) indicates a healthy level of interest and competition for this requirement, which typically aids in price discovery and can lead to more favorable terms for the government.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down prices and encouraging innovation among contractors vying for the award.

Public Impact

The primary beneficiaries are likely individuals seeking vocational training and skill development through the programs funded by this contract. Services delivered include technical and trade education, equipping individuals with skills for specific occupations. The geographic impact is not specified but likely centers around locations where the training is administered. Workforce implications include the potential for upskilling and reskilling the labor force, addressing specific industry needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 7 years) increases the risk of cost overruns or evolving needs not being met efficiently.
Cost Plus Incentive Fee (CPIF) contracts can sometimes lead to higher overall costs if incentive targets are not sufficiently challenging or if baseline costs are inflated.
Lack of specific performance data makes it difficult to assess the true value for money and effectiveness of the training provided.
The 'Other Technical and Trade Schools' category is broad, raising questions about the specificity and relevance of the training to current labor market demands.

Positive Signals

Awarded via full and open competition, indicating a robust selection process and potential for competitive pricing.
Multiple bidders (7) suggest a competitive market and a good selection of potential providers.
The CPIF structure, if managed effectively, can incentivize contractor performance and cost control.
The contract addresses a clear need for vocational and technical training, contributing to workforce development.

Sector Analysis

The contract falls within the Education and Training Services sector, specifically focusing on vocational and technical education (NAICS 611519). This sector is crucial for workforce development, providing specialized skills training that aligns with industry demands. Comparable spending benchmarks would involve analyzing other federal contracts for similar vocational training programs or educational services, considering factors like student capacity, program duration, and subject matter.

Small Business Impact

There is no indication that this contract included a small business set-aside (ss=false, sb=false). This suggests that the competition was likely dominated by larger firms capable of handling the scale and complexity of a $43.9 million contract. Subcontracting opportunities for small businesses may exist, but they are not explicitly mandated by the contract's award structure.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's contracting officers and program managers. Accountability measures would be tied to the CPIF structure, performance metrics, and reporting requirements outlined in the contract. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Labor Workforce Development Programs
Federal Grants for Vocational Training
Department of Education Postsecondary Education Funding
Department of Defense SkillBridge Program

Risk Flags

Long contract duration
Cost-reimbursement pricing structure (CPIF)
Broad NAICS category lacking specificity
Limited public performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $43.9 million to ADAMS AND ASSOCIATES INC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is ADAMS AND ASSOCIATES 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 $43.9 million.

What is the period of performance?

Start: 2012-05-15. End: 2019-07-31.

What was the specific nature of the technical and trade school services provided under this contract?

The contract, classified under NAICS code 611519 ('Other Technical and Trade Schools'), indicates that the services involved providing vocational and technical education. While the specific trades or technical fields are not detailed in the provided data, this category typically encompasses training for occupations such as mechanics, electricians, cosmetologists, culinary arts, and other skilled trades that require hands-on training and specific technical knowledge. The Department of Labor likely utilized these services to enhance workforce skills, retrain individuals for in-demand jobs, or support specific agency initiatives requiring specialized vocational expertise.

How did the Cost Plus Incentive Fee (CPIF) structure influence the contractor's performance and the final cost?

The Cost Plus Incentive Fee (CPIF) pricing structure means that the contractor is reimbursed for allowable costs plus a performance-based incentive fee. The fee is adjusted based on whether the final cost is below or above a pre-negotiated target cost, and potentially on other performance metrics (e.g., quality, timeliness). For this $43.9 million contract, the CPIF likely aimed to incentivize ADAMS AND ASSOCIATES INC. to control costs while meeting specific educational or training objectives. The effectiveness of this structure depends heavily on the clarity and attainability of the incentive targets and the rigor of cost monitoring by the Department of Labor. Without detailed performance reports, it's difficult to quantify the precise impact on cost savings or performance enhancement.

What was the track record of ADAMS AND ASSOCIATES INC. with federal contracts prior to and during this award?

Information on ADAMS AND ASSOCIATES INC.'s prior federal contracting history is not provided in the data snippet. A comprehensive assessment would require reviewing their past performance on other government contracts, including their adherence to schedules, quality standards, and budget constraints. Examining their performance on this specific $43.9 million contract, particularly regarding cost control and the achievement of training objectives under the CPIF model, would be crucial. Past performance is a significant factor in federal procurement, and any history of issues or successes would provide context for evaluating this award.

How does the $43.9 million cost compare to similar federal investments in vocational training?

Comparing the $43.9 million cost requires context regarding the scope, duration, and specific services provided. This contract spanned approximately 7.2 years, making the annual average cost around $6.1 million. To benchmark, one would need to identify other federal contracts for vocational training programs of similar scale and duration, delivered by comparable institutions. Factors such as the number of individuals trained, the types of skills imparted, and the geographic reach would be essential for a meaningful comparison. Without such data, it's difficult to definitively state whether this represents a high, low, or average investment.

What were the primary risks associated with this contract, and how were they managed?

Key risks for a contract of this nature and duration include potential cost overruns due to the CPIF structure, the risk that the training provided might not align with evolving labor market demands, and challenges in ensuring consistent quality across all training activities over several years. Management of these risks would typically involve robust oversight by the contracting officer, regular performance reviews, audits of costs, and mechanisms for contract modification if market needs shift. The incentive structure itself is a risk management tool, aiming to align contractor and government interests.

What is the historical spending pattern for 'Other Technical and Trade Schools' (NAICS 611519) by the Department of Labor?

The provided data only details one specific contract. To understand historical spending patterns for NAICS 611519 by the Department of Labor, one would need to analyze federal procurement databases (like FPDS) over several fiscal years. This analysis would reveal the total amount spent, the number of contracts awarded in this category, the primary contractors, and the duration and value of those contracts. Such a review could indicate whether this $43.9 million award represents a significant increase or decrease in departmental investment in this sector and identify any trends in contracting approaches.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOL111RP20421

Offers Received: 7

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 10395 DOUBLE R BLVD, RENO, NV, 89521

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

Financial Breakdown

Contract Ceiling: $87,937,456

Exercised Options: $44,925,152

Current Obligation: $43,891,938

Actual Outlays: $1,631,717

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline