Department of Labor's $79.5M contract for Job Corps Center operations awarded to MINACT, INC

Contract Overview

Contract Amount: $79,523,568 ($79.5M)

Contractor: Minact, Inc

Awarding Agency: Department of Labor

Start Date: 2012-10-01

End Date: 2019-08-15

Contract Duration: 2,509 days

Daily Burn Rate: $31.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF EXCELSIOR SPRINGS JOB CORPS CENTER.

Place of Performance

Location: EXCELSIOR SPRINGS, CLAY County, MISSOURI, 64024

State: Missouri Government Spending

Plain-Language Summary

Department of Labor obligated $79.5 million to MINACT, INC for work described as: OPERATION OF EXCELSIOR SPRINGS JOB CORPS CENTER. Key points: 1. Contract awarded through full and open competition, suggesting a robust market search. 2. The contract type, Cost Plus Incentive Fee (CPIF), aims to align contractor performance with government objectives. 3. The duration of the contract (2509 days) indicates a long-term commitment to service delivery. 4. The award value of $79.5M over the contract period suggests significant investment in workforce development. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school services. 6. The contract was awarded to a single contractor, MINACT, INC., highlighting their role in this specific service area.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires detailed cost breakdowns and performance metrics, which are not fully available. The CPIF structure suggests an attempt to control costs by incentivizing efficiency. However, without specific performance data or comparisons to similar centers, a definitive value-for-money assessment is challenging. The base award amount of $79.5M over approximately 7 years indicates a substantial operational budget.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that the Department of Labor solicited bids from all responsible sources. The presence of two bids suggests a competitive process, though the specifics of the bidding landscape (e.g., number of initial solicitations, reasons for only two final bids) are not detailed. This level of competition is generally positive for price discovery.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging better service offerings from contractors.

Public Impact

The primary beneficiaries are individuals seeking vocational training and job placement services through the Job Corps program. The contract supports the operation of the Excelsior Springs Job Corps Center, delivering essential workforce development services. The geographic impact is centered in Missouri, where the Job Corps center is located, potentially benefiting the local economy through job creation and skill development. Workforce implications include the employment of instructors, administrative staff, and support personnel at the center, as well as the training of individuals for various trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness of the services provided.
The CPIF contract type, while incentivizing, can lead to cost overruns if not managed carefully.
Limited information on the competitive landscape beyond the number of bids received.
The long duration of the contract could reduce flexibility in adapting to changing workforce needs.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified contractors.
The CPIF contract structure is designed to encourage cost efficiency and performance.
The contract supports a vital federal program focused on workforce development and job training.

Sector Analysis

The Job Corps program falls within the broader education and training sector, specifically focusing on vocational and technical education. This contract represents a significant investment in a public-private partnership to deliver these services. Comparable spending benchmarks would involve analyzing other Job Corps center contracts and similar workforce development initiatives funded by federal agencies. The market for operating such centers is specialized, often involving experienced educational or service management organizations.

Small Business Impact

There is no indication from the provided data that this contract included small business set-asides or specific subcontracting requirements for small businesses. The focus appears to be on the prime contractor's ability to operate the Job Corps center. Further investigation would be needed to determine if MINACT, INC. has a subcontracting plan that benefits small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management. Mechanisms likely include regular performance reviews, financial audits, and adherence to program-specific reporting requirements. Transparency is generally facilitated through contract award databases and public reporting on federal spending. The Inspector General's office would have jurisdiction for investigating fraud, waste, and abuse.

Related Government Programs

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

Risk Flags

Long contract duration may limit flexibility.
CPIF contract type requires careful monitoring of costs and performance.
Limited public data on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $79.5 million to MINACT, INC. OPERATION OF EXCELSIOR SPRINGS JOB CORPS CENTER.

Who is the contractor on this award?

The obligated recipient is MINACT, 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 $79.5 million.

What is the period of performance?

Start: 2012-10-01. End: 2019-08-15.

What is the historical spending pattern for the Excelsior Springs Job Corps Center under MINACT, INC.?

The provided data indicates a single award to MINACT, INC. for the operation of the Excelsior Springs Job Corps Center with a total award value of $79,523,568. This award covers a period from October 1, 2012, to August 15, 2019, spanning approximately 2509 days. Without access to historical contract data prior to this award or subsequent awards for the same center, it is difficult to establish a comprehensive spending pattern. However, this single large award suggests a consistent and significant investment in the center's operations over the contract's duration. Further analysis would require examining contract databases for previous or subsequent contracts related to this specific center or for MINACT, INC.'s performance across multiple Job Corps centers.

How does the per-student cost of this contract compare to other Job Corps centers?

To compare the per-student cost, we would need the average number of students served by the Excelsior Springs Job Corps Center during the contract period and the total operational cost. The total award value is $79,523,568 over approximately 2509 days. If we assume an average daily operational cost, it would be roughly $31,695 per day ($79,523,568 / 2509 days). However, without knowing the student enrollment numbers, calculating a meaningful per-student cost is impossible. Benchmarking against other Job Corps centers would require accessing similar data (total cost and student numbers) for a representative sample of centers to determine if the Excelsior Springs center's operational efficiency is in line with national averages or outliers.

What are the key performance indicators (KPIs) used to evaluate MINACT, INC.'s performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate MINACT, INC.'s performance. However, for Job Corps center operations, typical KPIs often include student enrollment rates, completion rates, job placement rates, starting wages of placed graduates, employer satisfaction, and adherence to safety and operational standards. As this is a Cost Plus Incentive Fee (CPIF) contract, the incentive fees would be tied to achieving specific performance targets related to these or similar metrics. A thorough review of the contract's Statement of Work (SOW) and the contract clauses would be necessary to identify the precise KPIs and incentive structures.

What is MINACT, INC.'s track record in operating federal Job Corps centers?

MINACT, INC. has a significant track record in operating federal Job Corps centers, as evidenced by this substantial contract. The award of a $79.5 million contract for the Excelsior Springs Job Corps Center from 2012 to 2019 suggests a history of successful performance or at least a strong competitive standing within the Job Corps contracting space. To fully assess their track record, one would need to examine their performance on this and potentially other Job Corps contracts, looking at factors such as contract renewals, performance evaluations, any past performance issues or awards, and their overall experience in workforce development and education services. Their continued involvement in operating such facilities implies a level of competence recognized by the Department of Labor.

What are the risks associated with a Cost Plus Incentive Fee (CPIF) contract for Job Corps center operations?

Cost Plus Incentive Fee (CPIF) contracts, like the one awarded to MINACT, INC., carry specific risks. The primary risk is that the contractor may incur higher costs than anticipated if the incentive targets are set too high or if the government's cost estimates are inaccurate. While CPIF aims to control costs by rewarding efficiency, there's a potential for 'gold plating' or unnecessary expenditures to meet targets. Conversely, if targets are too easily met, the incentive may not drive significant cost savings. Effective government oversight is crucial to monitor costs, validate performance against targets, and ensure that the incentive structure truly benefits the taxpayer by promoting both cost-effectiveness and high-quality service delivery in the operation of the Job Corps center.

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: DOLJ12RA00044

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 5220 KEELE ST, JACKSON, MS, 39206

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

Financial Breakdown

Contract Ceiling: $143,877,214

Exercised Options: $100,120,534

Current Obligation: $79,523,568

Actual Outlays: $490,194

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline