Department of Labor's $41.6M Flint Hills Job Corps Center contract awarded to Management & Training Corporation

Contract Overview

Contract Amount: $41,618,834 ($41.6M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2011-11-01

End Date: 2017-05-31

Contract Duration: 2,038 days

Daily Burn Rate: $20.4K/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 FLINT HILLS JOB CORPS CENTER IN MANHATTAN, KANSAS

Place of Performance

Location: MANHATTAN, RILEY County, KANSAS, 66503

State: Kansas Government Spending

Plain-Language Summary

Department of Labor obligated $41.6 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF THE FLINT HILLS JOB CORPS CENTER IN MANHATTAN, KANSAS Key points: 1. The contract's cost-plus-incentive-fee structure aims to align contractor performance with government objectives. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract duration of 2038 days (approximately 5.6 years) indicates a significant, long-term commitment. 4. The award was made to a single contractor, Management & Training Corporation. 5. The contract falls under the 'Other Technical and Trade Schools' NAICS code, highlighting its focus on vocational training. 6. The contract's value of over $41 million suggests a substantial investment in workforce development.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics and detailed cost breakdowns. However, the total award of over $41 million for operating a Job Corps center over approximately 5.6 years suggests a significant investment. The cost-plus-incentive-fee (CPIF) pricing structure means that the final cost could vary based on performance, making a direct comparison to fixed-price contracts difficult. Further analysis would require understanding the scope of services provided and comparing them to similar Job Corps center operations.

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 bids. While the data shows one award, the initial competition phase likely involved multiple interested parties. The level of competition at the bid submission stage is not detailed, but the 'full and open' designation generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: A competitive bidding process, even if resulting in a single awardee, is generally favorable for taxpayers as it encourages multiple firms to offer their best pricing and service proposals.

Public Impact

The primary beneficiaries are the students enrolled in the Job Corps program at the Flint Hills center, who receive vocational training and support services. The contract delivers essential workforce development services, aiming to equip individuals with skills for employment. The geographic impact is focused on Manhattan, Kansas, and the surrounding region, providing local economic benefits and training opportunities. Workforce implications include the creation of jobs for instructors, administrative staff, and support personnel at the center, as well as the long-term impact of skilled graduates entering the local and national workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the true value for money.
The CPIF contract type can lead to cost overruns if not managed carefully.
Limited information on the number of bidders in the final award stage.
The long contract duration might reduce flexibility to adapt to changing workforce needs.

Positive Signals

Awarded through full and open competition, suggesting a robust initial selection process.
The contract aims to provide valuable workforce development services.
The CPIF structure incentivizes contractor performance.
The contract supports a critical federal program (Job Corps).

Sector Analysis

This contract falls within the Education and Training Services sector, specifically related to vocational and technical education. The Job Corps program is a significant federal initiative aimed at preparing young people for careers. Comparable spending benchmarks would involve looking at other Job Corps center contracts awarded by the Department of Labor or similar workforce development programs across federal agencies. The market for operating such centers involves specialized management and training organizations.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. It is also unclear if Management & Training Corporation has subcontracting plans that would involve small businesses. Without this information, the direct impact on the small business ecosystem remains unknown, though large federal contracts can sometimes create opportunities for small business suppliers and service providers.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). Accountability measures are likely tied to the performance incentives within the CPIF contract and regular reporting requirements. Transparency is generally facilitated through contract award databases, though detailed operational performance data may be less publicly accessible. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Job Training Programs
Vocational Education Grants

Risk Flags

Contract Duration
Performance Incentive Structure
Single Awardee Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $41.6 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF THE FLINT HILLS JOB CORPS CENTER IN MANHATTAN, KANSAS

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING CORPORATION.

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 $41.6 million.

What is the period of performance?

Start: 2011-11-01. End: 2017-05-31.

What is the historical spending pattern for the Flint Hills Job Corps Center contract?

The provided data reflects a single award for the operation of the Flint Hills Job Corps Center to Management & Training Corporation with a total value of $41,618,834.05, spanning from November 1, 2011, to May 31, 2017. This represents a period of approximately 5.6 years. To understand the broader historical spending pattern, one would need to examine previous contracts for this specific center, if any, and compare the annual or total spending against inflation-adjusted figures and the scope of services provided during those periods. Without prior contract data for this center, this award represents the primary historical spending data point available.

How does the cost-plus-incentive-fee (CPIF) structure impact the final cost and contractor performance?

A Cost-Plus-Incentive-Fee (CPIF) contract is designed to share risks and rewards between the government and the contractor. The contractor is reimbursed for allowable costs and receives a fixed fee that is adjusted based on performance against pre-determined targets (e.g., cost, schedule, performance). If the contractor exceeds targets, they earn a higher fee; if they fall short, their fee is reduced. This structure incentivizes the contractor to control costs and improve performance to maximize their fee. For this contract, it means the final cost could be higher or lower than the initial estimate, depending on Management & Training Corporation's success in meeting performance objectives related to student outcomes, operational efficiency, and other key metrics defined in the contract.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used for this contract. However, for Job Corps center operations, typical KPIs often include student enrollment rates, completion rates, job placement rates, starting wages of placed graduates, student satisfaction, and compliance with federal regulations and program standards. The 'incentive fee' component of the CPIF contract implies that specific, measurable targets related to these or similar KPIs were established. The contractor's fee would be adjusted based on their achievement of these targets, directly linking their financial reward to program effectiveness and operational success.

What is the track record of Management & Training Corporation in operating Job Corps centers?

Management & Training Corporation (MTC) is a significant private operator of Job Corps centers and other workforce training facilities. They have a long history of managing government contracts, including numerous Job Corps centers across the United States. MTC's track record generally involves operating these centers to meet federal performance standards. While specific performance details for each center can vary, MTC is recognized as an experienced provider in this sector. A comprehensive assessment would involve reviewing MTC's performance history across all their federal contracts, including any past issues, successes, and compliance records, which are often available through government performance management systems and Inspector General reports.

How does the $41.6 million contract value compare to other Job Corps center operations?

The $41.6 million contract value for operating the Flint Hills Job Corps Center over approximately 5.6 years (2011-2017) places it as a substantial contract. The average cost per year is roughly $7.4 million. Job Corps centers vary significantly in size, student capacity, and the range of vocational programs offered, which directly impacts operating costs. Larger centers or those in high-cost-of-living areas might have higher budgets. To make a precise comparison, one would need to analyze the student capacity and service scope of the Flint Hills center against other Job Corps centers funded by the Department of Labor during the same period. Generally, contracts for operating large, comprehensive Job Corps centers can range from $5 million to over $15 million annually.

What are the potential risks associated with operating a Job Corps center under a CPIF contract?

Operating a Job Corps center under a CPIF contract presents several potential risks. For the government, there's the risk that the 'incentive' targets might not be sufficiently challenging, leading to a higher final cost without commensurate performance gains. Conversely, if targets are too aggressive or poorly defined, the contractor might focus on easily achievable metrics at the expense of overall program quality. There's also the risk of disputes over performance evaluations, which can impact the incentive fee. For the contractor, the risk lies in not meeting performance targets, leading to a reduced fee and potentially lower profitability. Effective risk management requires clear, measurable, and achievable performance metrics, robust oversight, and transparent communication between the government and the contractor.

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: DOLJ11RA00036

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PLACE DR STE 100, CENTERVILLE, UT, 84014

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,067,591

Exercised Options: $42,067,591

Current Obligation: $41,618,834

Actual Outlays: $581,749

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline