Department of Labor awards $71.3M contract for NYC Job Corps Centers to Res-Care, Inc

Contract Overview

Contract Amount: $71,349,188 ($71.3M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2012-03-29

End Date: 2017-09-30

Contract Duration: 2,011 days

Daily Burn Rate: $35.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE NEW YORK CITY JOB CORPS CENTERS

Place of Performance

Location: BROOKLYN, KINGS County, NEW YORK, 11205

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $71.3 million to RES-CARE, INC for work described as: OPERATION OF THE NEW YORK CITY JOB CORPS CENTERS Key points: 1. The contract value of $71.3M over 5 years represents significant investment in workforce development. 2. Res-Care, Inc. is the sole awardee, raising questions about competitive pricing. 3. Potential risks include service quality and cost overruns if competition was limited. 4. The 'Other Technical and Trade Schools' sector often sees varied contract structures.

Value Assessment

Rating: fair

The contract type is Cost Plus Incentive Fee, which can lead to costs exceeding initial estimates. Benchmarking against similar vocational training contracts is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, suggesting multiple bids were considered. However, the definitive contract structure and single awardee warrant scrutiny for price discovery.

Taxpayer Impact: Taxpayer funds are utilized for workforce development programs, aiming for long-term economic benefits through improved employment outcomes.

Public Impact

Job Corps centers provide essential training and support to disadvantaged youth. The contract's success directly impacts the quality and accessibility of these services in New York City. Effective program management is crucial for ensuring taxpayer dollars yield positive social and economic returns.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contract type
Sole awardee despite full and open competition

Positive Signals

Focus on job training for disadvantaged youth
Potential for positive social impact

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' sector, which is vital for vocational training. Spending benchmarks in this sector can vary widely based on program scope and duration.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors. Further analysis is needed to determine the extent of small business participation.

Oversight & Accountability

The Office of the Assistant Secretary for Administration and Management is responsible for oversight. Regular performance reviews and audits are essential to ensure accountability and effective use of funds.

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 cost overruns due to CPIF contract type.
Limited transparency on competitive outcomes despite 'full and open' designation.
Dependence on a single contractor for critical job training services.
Need for robust performance monitoring to ensure effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $71.3 million to RES-CARE, INC. OPERATION OF THE NEW YORK CITY JOB CORPS CENTERS

Who is the contractor on this award?

The obligated recipient is RES-CARE, 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 $71.3 million.

What is the period of performance?

Start: 2012-03-29. End: 2017-09-30.

What was the competitive landscape during the bidding process for this contract?

While the contract was awarded under 'full and open competition,' the fact that Res-Care, Inc. is the sole awardee suggests a need to examine the bid evaluation criteria and the number of proposals received. Understanding why only one offer was selected is key to assessing if the competition truly drove the best value.

How does the Cost Plus Incentive Fee structure impact potential cost overruns and taxpayer risk?

The Cost Plus Incentive Fee (CPIF) structure allows for contractor reimbursement of allowable costs plus a fee that is adjusted based on performance against pre-determined targets. This can incentivize efficiency but also carries the risk of costs exceeding initial projections if targets are not met or if the base fee is substantial, requiring close monitoring by the agency.

What are the key performance indicators (KPIs) used to measure the effectiveness of the Job Corps centers under this contract?

Effectiveness is typically measured by KPIs such as student graduation rates, job placement rates post-training, and average starting wages of placed graduates. The Department of Labor would likely have specific metrics tied to the CPIF to ensure the contractor is meeting program goals and delivering value for taxpayer investment.

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

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Harris Hill Nursing Facility LLC (UEI: 081017660)

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: $71,349,188

Exercised Options: $71,349,188

Current Obligation: $71,349,188

Actual Outlays: $688,095

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline