Department of Labor's Delaware Valley Job Corps Center contract awarded to Adams and Associates Inc. for $57.6M

Contract Overview

Contract Amount: $57,569,824 ($57.6M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2012-07-02

End Date: 2018-01-31

Contract Duration: 2,039 days

Daily Burn Rate: $28.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE DELAWARE VALLEY JOB CORPS CENTER

Place of Performance

Location: CALLICOON, SULLIVAN County, NEW YORK, 12723

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $57.6 million to ADAMS AND ASSOCIATES INC for work described as: OPERATION OF THE DELAWARE VALLEY JOB CORPS CENTER Key points: 1. The contract's value of $57.6 million over approximately six years suggests a significant investment in vocational training. 2. Full and open competition was utilized, indicating a potentially robust bidding process. 3. The contract type, Cost Plus Incentive Fee (CPIF), allows for performance-based adjustments, potentially driving efficiency. 4. The duration of the contract (2039 days) points to a long-term commitment to service delivery. 5. The North American Industry Classification System (NAICS) code 611519 covers 'Other Technical and Trade Schools,' placing this contract within the education and training sector. 6. The award was made to Adams and Associates Inc., a contractor with a substantial contract value, warranting scrutiny of their performance history.

Value Assessment

Rating: fair

The contract value of $57.6 million over roughly six years averages to about $9.6 million annually. Benchmarking this against similar Job Corps center operations would be necessary for a precise value-for-money assessment. Without specific comparable contract data, it's difficult to definitively state if this represents excellent or questionable pricing. The CPIF contract type suggests an attempt to incentivize performance, which can be a positive indicator if well-structured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. With three bidders identified, this suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider selection of qualified contractors. The presence of multiple bidders is a positive sign for price discovery.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it encourages a competitive bidding environment, which can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are students seeking vocational training and employment opportunities through the Delaware Valley Job Corps program. The contract supports the delivery of educational and vocational training services, aiming to equip individuals with job skills. The geographic impact is centered around the Delaware Valley region, serving the local workforce development needs. Workforce implications include the employment of instructors, administrative staff, and support personnel at the Job Corps center, as well as the placement of graduates into the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPIF contract type, while incentivizing, can lead to cost overruns if not carefully managed and monitored.
The long contract duration necessitates ongoing performance monitoring to ensure continued value and effectiveness.
The specific performance metrics and incentive structures within the CPIF contract are critical for assessing true value for money.

Positive Signals

The use of full and open competition suggests a commitment to obtaining the best value through a competitive process.
The contract's focus on vocational training aligns with federal workforce development goals.
The award to a single contractor for a significant duration implies a level of trust and established capability.

Sector Analysis

This contract falls within the education and training sector, specifically vocational and technical schools. The Job Corps program is a significant federal initiative aimed at workforce development. The market for operating such centers involves educational institutions, non-profit organizations, and private companies specializing in training. Annual spending on workforce development programs can be substantial, with Job Corps being a key component.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. Further investigation would be needed to determine the extent of small business participation, either as prime contractors or subcontractors, and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM) and potentially the Office of Inspector General (OIG). The CPIF structure requires diligent monitoring of costs and performance against established metrics to ensure accountability and prevent contractor overcharging. Transparency would be enhanced through regular performance reports and audits.

Related Government Programs

Department of Labor Workforce Innovation and Opportunity Act (WIOA) Programs
Other Federal Job Training and Employment Services
Vocational Rehabilitation Services

Risk Flags

Contract duration
Contract type (CPIF)
Performance metric clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $57.6 million to ADAMS AND ASSOCIATES INC. OPERATION OF THE DELAWARE VALLEY JOB CORPS CENTER

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 $57.6 million.

What is the period of performance?

Start: 2012-07-02. End: 2018-01-31.

What is the track record of Adams and Associates Inc. in managing federal contracts, particularly Job Corps centers?

Adams and Associates Inc. has a history of managing federal contracts, including those related to Job Corps centers. A thorough review of their past performance, including any awards, penalties, or contract modifications, would be essential. Analyzing their success in meeting performance targets, managing budgets, and complying with federal regulations on previous contracts provides critical insight into their capability and reliability. Specific data on their performance metrics, student outcomes, and financial management on prior contracts would be necessary for a comprehensive assessment.

How does the annual cost per student for this Job Corps center compare to national averages?

To compare the annual cost per student, we first need to determine the average number of students served by the Delaware Valley Job Corps Center under this contract. The total contract value of $57.6 million over approximately 2039 days (roughly 5.6 years) yields an average annual cost of about $10.3 million. If the center serves, for example, 500 students annually, the cost per student would be approximately $20,600. This figure then needs to be benchmarked against national averages for Job Corps centers, which can vary significantly based on location, program offerings, and student demographics. A detailed analysis would require access to student enrollment data and national Job Corps cost-per-student benchmarks.

What are the key performance indicators (KPIs) and incentive structures within the Cost Plus Incentive Fee (CPIF) contract?

The effectiveness and value for money of a CPIF contract are heavily dependent on the specific Key Performance Indicators (KPIs) and the associated incentive fee structure. For a Job Corps center, these KPIs could include student graduation rates, job placement rates, starting salaries of placed graduates, and student satisfaction. The incentive fee would be designed to reward the contractor for exceeding targets in these areas and potentially penalize them for falling short. Without the detailed contract clauses outlining these specific KPIs and fee adjustments, it is impossible to fully assess the contractor's motivation and the potential for cost efficiency or overruns.

What is the historical spending trend for the operation of the Delaware Valley Job Corps Center?

The provided data reflects a single contract award from 2012 to 2018 for the operation of the Delaware Valley Job Corps Center. To understand historical spending trends, data from previous contracts awarded for this center would be required. This would involve examining contract values, durations, and any adjustments over time. Analyzing this historical data would reveal whether spending has been consistent, increasing, or decreasing, and whether it aligns with changes in program scope, student enrollment, or inflation. Without prior contract details, a trend analysis is not possible.

What is the potential impact of the 'Other Technical and Trade Schools' NAICS code on the types of training offered?

The NAICS code 611519, 'Other Technical and Trade Schools,' is broad and encompasses a wide range of vocational and technical training programs that do not fit into more specific categories. This suggests that the Delaware Valley Job Corps Center, operated under this contract, likely offers diverse training in various skilled trades and technical fields. Examples could include automotive repair, culinary arts, healthcare support, information technology, or construction trades. The flexibility of this classification allows the program to adapt to evolving labor market demands and offer training in emerging industries, potentially enhancing the employability of its graduates.

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: DOLJ11QARFP00002

Offers Received: 3

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: $57,569,824

Exercised Options: $57,569,824

Current Obligation: $57,569,824

Actual Outlays: $402,010

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline