Department of Labor's $54.2M Job Corps Training Contract with UBC National Job Corps Training Fund Inc. Lacks Competition
Contract Overview
Contract Amount: $54,219,322 ($54.2M)
Contractor: UBC National JOB Corps Training Fund Inc
Awarding Agency: Department of Labor
Start Date: 2013-05-31
End Date: 2019-09-17
Contract Duration: 2,300 days
Daily Burn Rate: $23.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF UBC NATIONAL JOB CORPS TRAINING FUND, INC.
Place of Performance
Location: LAS VEGAS, CLARK County, NEVADA, 89119
State: Nevada Government Spending
Plain-Language Summary
Department of Labor obligated $54.2 million to UBC NATIONAL JOB CORPS TRAINING FUND INC for work described as: IGF::OT::IGF UBC NATIONAL JOB CORPS TRAINING FUND, INC. Key points: 1. Significant federal investment in vocational rehabilitation services. 2. Sole-source award raises concerns about price discovery and potential overspending. 3. Contract duration of 2300 days (over 6 years) indicates long-term reliance. 4. Lack of competition limits opportunities for other qualified providers.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. Without competitive bidding, it's difficult to assess if the fixed fee and total award amount represent fair market value compared to similar vocational training services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may prevent the government from securing the best possible pricing through a competitive process.
Taxpayer Impact: The lack of competition for a $54.2 million contract means taxpayers may not be receiving the most cost-effective service delivery for vocational rehabilitation.
Public Impact
Job seekers in Nevada may be impacted by the services provided under this contract. The long-term nature of the contract suggests a sustained need for these training programs. Federal funding for workforce development is directed to a single, non-competed provider.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
- Long contract duration
Positive Signals
- Addresses vocational rehabilitation needs
- Established provider relationship
Sector Analysis
This contract falls under Vocational Rehabilitation Services, a sector focused on helping individuals with disabilities or disadvantages find employment. Benchmarks for similar services are difficult to establish without competitive data, but the scale of this award is substantial.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the prime contractor is UBC NATIONAL JOB CORPS TRAINING FUND INC. There is no information on subcontracting opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this contract warrants scrutiny from oversight bodies to ensure the funds are being used effectively and that the pricing is reasonable, despite the absence of competition.
Related Government Programs
- Vocational Rehabilitation Services
- Department of Labor Contracting
- Office of the Assistant Secretary for Administration and Management Programs
Risk Flags
- Sole-source award lacks competition
- Cost Plus Fixed Fee contract type may incentivize higher costs
- Long contract duration without re-competition
- Potential for uncompetitive pricing
- Lack of transparency in justification for sole-source award
Tags
vocational-rehabilitation-services, department-of-labor, nv, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $54.2 million to UBC NATIONAL JOB CORPS TRAINING FUND INC. IGF::OT::IGF UBC NATIONAL JOB CORPS TRAINING FUND, INC.
Who is the contractor on this award?
The obligated recipient is UBC NATIONAL JOB CORPS TRAINING FUND 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 $54.2 million.
What is the period of performance?
Start: 2013-05-31. End: 2019-09-17.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically require a documented justification, such as a unique capability or urgent need, when not competing a contract. Without this information, it's impossible to assess if the government adequately explored options to ensure fair pricing and access to a broader range of qualified providers.
How does the cost-plus-fixed-fee structure impact the government's ability to control costs and ensure value for money in this long-term training program?
Cost-plus-fixed-fee contracts can lead to higher costs if the contractor's actual expenses exceed projections, as the government covers these costs plus a predetermined fee. For a long-term program like this, the fixed fee should be carefully negotiated and reviewed periodically to ensure it remains fair. Without competitive benchmarks, it's challenging to ascertain if the total cost and fee represent good value.
What performance metrics and outcomes are being tracked to ensure the effectiveness of the vocational rehabilitation services provided under this contract?
Effective oversight requires clear performance metrics and outcome tracking to ensure the $54.2 million investment yields tangible results for job seekers. Key indicators might include job placement rates, wage levels achieved post-training, and participant satisfaction. Regular performance reviews are essential to hold the contractor accountable and make necessary adjustments to the program.
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: DOL121RP20461
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6801 PLACID ST, LAS VEGAS, NV, 89119
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $172,955,310
Exercised Options: $54,219,322
Current Obligation: $54,219,322
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-05-31
Current End Date: 2019-09-17
Potential End Date: 2019-09-17 00:00:00
Last Modified: 2021-09-30
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