Department of Labor's $44.1M Job Corps contract awarded to Chugach Education Services, Inc. for vocational training

Contract Overview

Contract Amount: $44,177,909 ($44.2M)

Contractor: Chugach Education Services, Inc.

Awarding Agency: Department of Labor

Start Date: 2013-09-01

End Date: 2018-12-31

Contract Duration: 1,947 days

Daily Burn Rate: $22.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::CT::IGF JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT PROVIDES SERVICES FOR CENTER OPERATIONS, OUTREACH/ADMISSIONS, AND CAREER TRANSITION.

Place of Performance

Location: PALMER, MATANUSKA SUSITNA County, ALASKA, 99645

State: Alaska Government Spending

Plain-Language Summary

Department of Labor obligated $44.2 million to CHUGACH EDUCATION SERVICES, INC. for work described as: IGF::CT::IGF JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT PROVIDES SERVICES FOR CENTER OPERATIONS, OUTREACH/ADMISSIONS, AND CAREER TRANSITION. Key points: 1. The contract focuses on essential services for youth vocational training, including center operations, outreach, admissions, and career transition. 2. Awarded as a definitive contract, it signifies a commitment to a specific service provider for a defined period. 3. The contract type, Cost Plus Incentive Fee (CPIF), aims to incentivize cost savings and performance improvements. 4. The duration of the contract, spanning over 1900 days, indicates a long-term investment in the Job Corps program. 5. The absence of specific competition details suggests a potential for limited market engagement. 6. The contract's geographic focus in Alaska (AK) highlights a regional approach to youth development programs.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed cost breakdowns and performance metrics. The CPIF structure suggests an attempt to align contractor incentives with government objectives, which can be a positive indicator if well-structured. However, without comparative data on per-participant costs or program outcomes for similar Job Corps centers, a definitive assessment of value for money is challenging. The total award amount of $44.1 million over its duration suggests a significant investment in vocational training services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition procurement. This approach bypasses the standard full and open competition process, potentially limiting the government's ability to secure the most competitive pricing or innovative solutions. The reasons for this designation are not provided, but it suggests circumstances where a specific contractor was deemed uniquely qualified or necessary.

Taxpayer Impact: Sole-source awards can limit taxpayer benefit by potentially foregoing cost savings that could arise from a competitive bidding process. This can lead to higher overall program costs if alternative providers could offer similar services at a lower price.

Public Impact

Young individuals aged 16-24, particularly those facing barriers to employment, benefit from vocational training and career development services. The contract delivers critical services for the operation of Job Corps centers, ensuring the continuity of training programs. Services include outreach and admissions to recruit eligible youth, and career transition support to help graduates find employment. The geographic impact is concentrated in Alaska (AK), addressing youth employment needs within that specific region. Workforce implications include the training and upskilling of young individuals, preparing them for entry into the labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in suboptimal pricing.
Limited transparency on the justification for sole-source award.
Performance metrics and outcomes data are not readily available for assessment.

Positive Signals

The Cost Plus Incentive Fee (CPIF) contract type aims to align contractor performance with government goals.
The long contract duration suggests a stable and consistent service delivery for the program.
The contract supports a vital youth vocational training program, addressing a key societal need.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' category, a segment of the broader education and workforce development sector. The federal government invests significantly in vocational training programs like Job Corps to equip young adults with job-ready skills. Market size for such services is substantial, driven by federal, state, and private initiatives aimed at improving employment outcomes. This contract represents a specific instance of federal spending to fulfill its mandate in this area, with comparable spending benchmarks difficult to ascertain without more granular data on program scope and regional needs.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this contract is not available in the provided data. As a sole-source award, the typical mechanisms for promoting small business participation through competition may not have been utilized. Further investigation would be needed to determine if any small business goals were incorporated into the contract's terms or if subcontracting opportunities were mandated.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Inspector General (IG) and relevant program offices. The CPIF contract type inherently includes performance-based oversight to monitor costs and incentivize efficiency. Transparency regarding specific oversight mechanisms, accountability measures, and audit reports would require accessing contract-specific documentation and IG reports related to the Job Corps program.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Youth Training Programs
Vocational Rehabilitation Services

Risk Flags

Sole-source award lacks transparency.
Potential for uncompetitive pricing due to limited competition.
Performance metrics and value-for-money assessment are not readily available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $44.2 million to CHUGACH EDUCATION SERVICES, INC.. IGF::CT::IGF JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT PROVIDES SERVICES FOR CENTER OPERATIONS, OUTREACH/ADMISSIONS, AND CAREER TRANSITION.

Who is the contractor on this award?

The obligated recipient is CHUGACH EDUCATION SERVICES, 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 $44.2 million.

What is the period of performance?

Start: 2013-09-01. End: 2018-12-31.

What is the historical spending trend for Job Corps center operations contracts, and how does this award compare?

Analyzing historical spending for Job Corps center operations requires access to detailed contract databases and budget allocations over multiple fiscal years. Without this specific data, it's challenging to provide a precise comparison. However, the $44.1 million award over approximately five years (2013-2018) suggests an average annual expenditure of roughly $8.8 million per year for this specific center's operations. This figure should be benchmarked against the average cost per center nationally and regionally, considering factors like student enrollment, services provided, and geographic cost of living. Trends in federal funding for workforce development programs, including Job Corps, can fluctuate based on economic conditions and administration priorities, impacting overall spending patterns.

What specific performance metrics are used to evaluate Chugach Education Services, Inc. under this Cost Plus Incentive Fee (CPIF) contract?

The provided data does not detail the specific performance metrics tied to the incentive fee structure of this CPIF contract. Typically, CPIF contracts outline key performance indicators (KPIs) related to program outcomes, operational efficiency, student success rates (e.g., graduation, job placement), and cost control. The 'incentive' component means that Chugach Education Services, Inc. could earn additional profit or incur penalties based on achieving or failing to meet these pre-defined targets. A thorough review of the contract's Statement of Work (SOW) and the contract clauses related to the incentive fee would be necessary to identify these metrics and understand how performance is measured and rewarded.

What was the justification for awarding this contract on a sole-source basis, and were there any attempts to explore competitive options?

The data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' signifying a sole-source or limited competition procurement. The specific justification for this determination is not provided. Federal procurement regulations allow for sole-source awards under certain circumstances, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without further documentation, such as a Justification for Other Than Full and Open Competition (JOFOC), it is impossible to ascertain the precise reasons or whether alternative competitive approaches were considered and deemed unsuitable. This lack of transparency can raise questions about the procurement process.

How does the cost per participant in this Job Corps contract compare to national averages or similar contracts in other regions?

Calculating a precise cost per participant requires knowing the total number of participants served throughout the contract's duration and the total cost incurred. The provided data includes the total award amount ($44.1 million) and contract duration (1947 days, approximately 5.3 years), but not the number of participants. To perform this comparison, one would need to divide the total cost by the average annual enrollment or number of individuals served. This figure should then be compared against national averages for Job Corps centers, which can vary significantly based on the intensity of services, cost of living in the region (Alaska being a high-cost state), and the specific training programs offered. Without participant numbers, a cost-per-participant benchmark is not feasible.

What is the track record of Chugach Education Services, Inc. in managing federal contracts, particularly within the education or workforce development sector?

Assessing the track record of Chugach Education Services, Inc. requires examining their past performance on federal contracts. This would involve reviewing contract databases (like FPDS or SAM.gov) for previous awards, their performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes, terminations, or audits. While this specific contract is for Job Corps operations, their experience with similar large-scale educational or workforce development programs would be a key indicator of their capability. A positive performance history on prior government contracts would suggest a lower risk for this current award, whereas a history of issues might raise concerns about their ability to effectively manage this significant federal 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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation

Address: 3800 CENTERPOINT DR STE 700, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $108,997,481

Exercised Options: $78,190,868

Current Obligation: $44,177,909

Actual Outlays: $252,312

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline