Labor Department's $32.7M Vocational Rehab Contract Awarded Sole-Source to Painters Union

Contract Overview

Contract Amount: $32,676,120 ($32.7M)

Contractor: International Union of Painters and Allied Trades

Awarding Agency: Department of Labor

Start Date: 2013-06-01

End Date: 2018-02-28

Contract Duration: 1,733 days

Daily Burn Rate: $18.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF

Place of Performance

Location: HANOVER, ANNE ARUNDEL County, MARYLAND, 21076

State: Maryland Government Spending

Plain-Language Summary

Department of Labor obligated $32.7 million to INTERNATIONAL UNION OF PAINTERS AND ALLIED TRADES for work described as: IGF::OT::IGF Key points: 1. Significant sole-source award to a specific union for vocational rehabilitation services. 2. Contract duration of over 4 years suggests a long-term need for these services. 3. The cost-plus-fixed-fee structure requires careful monitoring to control expenses. 4. Lack of competition raises questions about potential cost efficiencies and market alternatives. 5. Services are geographically concentrated in Maryland, limiting broader applicability. 6. The contract's focus on vocational rehabilitation aligns with workforce development goals.

Value Assessment

Rating: fair

The contract's total value of $32.7 million over approximately 4.8 years averages to about $6.8 million annually. Benchmarking this against similar vocational rehabilitation services is challenging due to the specialized nature of the award to a union. The cost-plus-fixed-fee (CPFF) pricing structure, while allowing for flexibility, can lead to higher costs if not managed diligently. Without competitive bids, it's difficult to ascertain if this represents optimal value for money compared to potential market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific entity possesses unique capabilities or when circumstances preclude full and open competition. The absence of a competitive process means that price discovery through market forces was not utilized, potentially impacting the final cost to the government.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding processes.

Public Impact

Benefits union members and potentially other individuals seeking vocational rehabilitation services. Delivers vocational rehabilitation services aimed at improving employment outcomes. Services are primarily delivered within Maryland. Implications for the workforce include support for individuals re-entering or advancing in skilled trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to sole-source award and CPFF structure.
Limited transparency on performance metrics and outcomes without competitive context.
Geographic concentration may not address needs in other regions.

Positive Signals

Addresses a specific need for vocational rehabilitation services.
Long-term contract indicates a sustained relationship and potential for service continuity.
Award to a union may leverage specialized expertise in trade-specific rehabilitation.

Sector Analysis

The vocational rehabilitation services sector is part of the broader human services industry, focusing on assisting individuals with disabilities or other barriers to employment. This contract, specifically with the International Union of Painters and Allied Trades, suggests a niche focus within skilled trades. Comparable spending benchmarks are difficult to establish without more detailed service descriptions and market data, but federal spending on workforce development and training programs is substantial.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large union organization suggests that the primary focus was on specialized service delivery rather than fostering small business participation. This could limit opportunities for small businesses to engage in providing or supporting these vocational rehabilitation services.

Oversight & Accountability

Oversight for this contract would fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management. As a cost-plus-fixed-fee contract, rigorous financial oversight and auditing would be crucial to ensure costs are reasonable and fixed fees are earned appropriately. Transparency would depend on the Department's reporting practices regarding contract performance and expenditures. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse.

Related Government Programs

Department of Labor Workforce Innovation and Opportunity Act Programs
Department of Veterans Affairs Vocational Rehabilitation and Employment
State Vocational Rehabilitation Agencies

Risk Flags

Sole-source award may indicate lack of market research or unique capability claims.
Cost-plus-fixed-fee contracts require robust oversight to prevent cost overruns.
Limited competition can lead to suboptimal pricing and reduced innovation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $32.7 million to INTERNATIONAL UNION OF PAINTERS AND ALLIED TRADES. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL UNION OF PAINTERS AND ALLIED TRADES.

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 $32.7 million.

What is the period of performance?

Start: 2013-06-01. End: 2018-02-28.

What is the specific nature of the vocational rehabilitation services provided under this contract?

The provided data indicates the contract is for 'Vocational Rehabilitation Services' (NAICS code 624310). While the specific services are not detailed, this category generally includes programs that help individuals with disabilities or other disadvantages prepare for and secure employment. Given the award to the International Union of Painters and Allied Trades, it is highly probable that these services are tailored towards individuals seeking or returning to careers within the painting and allied trades, potentially including skills training, job placement assistance, and support services.

How does the cost-plus-fixed-fee (CPFF) structure impact the value for money in this sole-source contract?

The Cost-Plus-Fixed-Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a predetermined fixed fee. While this can be appropriate for research and development or services where cost estimation is difficult, it shifts much of the financial risk to the government. In a sole-source scenario, without competitive pressure to drive down costs, the government is reliant on the contractor's cost accounting and the agency's oversight to ensure reasonableness. The fixed fee provides some incentive for efficiency, but the primary risk of cost overruns remains with the government, potentially diminishing value for money compared to a competitively bid fixed-price contract.

What are the potential risks associated with awarding a large contract solely to a union?

Awarding a large contract solely to a union, as seen here, carries several potential risks. Firstly, it bypasses the competitive marketplace, which could lead to higher costs and potentially less innovation than if multiple providers were considered. Secondly, it concentrates service delivery and accountability within a single entity, meaning any performance issues or disruptions at the union could significantly impact service continuity. Lastly, it may limit the diversity of approaches and expertise that could be brought to bear on vocational rehabilitation if other specialized non-profit or for-profit organizations were involved.

What is the historical spending pattern for vocational rehabilitation services within the Department of Labor?

The provided data only reflects a single contract award of $32.7 million from 2013 to 2018. To understand historical spending patterns, a broader analysis of the Department of Labor's budget and contract awards related to NAICS code 624310 (Vocational Rehabilitation Services) and similar workforce development initiatives over multiple fiscal years would be necessary. This would reveal trends in funding levels, types of contracts utilized (competitive vs. sole-source), and the distribution of funds across different service providers and geographic areas.

How does the geographic limitation to Maryland affect the overall impact and efficiency of this contract?

The contract's stated location is Maryland ('MD'). This geographic limitation means the vocational rehabilitation services funded by this $32.7 million award are primarily intended for individuals residing or seeking employment within that state. While this ensures focused support for Maryland residents, it limits the contract's reach and potential impact on a national scale. If similar needs exist in other states, this sole-source award does not address them, potentially requiring separate, future contracting efforts. The efficiency is localized, serving a specific population but not contributing to broader national workforce development goals through this particular instrument.

Industry Classification

NAICS: Health Care and Social Assistance › Vocational Rehabilitation Services › Vocational Rehabilitation Services

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: DOL131RP20610

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7230 PARKWAY DR, HANOVER, MD, 21076

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

Financial Breakdown

Contract Ceiling: $59,880,404

Exercised Options: $36,128,570

Current Obligation: $32,676,120

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline