Department of Labor's $26.5M Apprenticeship Contract with International Masonry Institute Lacked Competition

Contract Overview

Contract Amount: $26,490,115 ($26.5M)

Contractor: International Masonry Institute

Awarding Agency: Department of Labor

Start Date: 2013-06-01

End Date: 2018-02-28

Contract Duration: 1,733 days

Daily Burn Rate: $15.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF MASONRY JOB CORPS CENTER

Place of Performance

Location: HYATTSVILLE, PRINCE GEORGES County, MARYLAND, 20785

State: Maryland Government Spending

Plain-Language Summary

Department of Labor obligated $26.5 million to INTERNATIONAL MASONRY INSTITUTE for work described as: IGF::OT::IGF MASONRY JOB CORPS CENTER Key points: 1. The contract awarded to International Masonry Institute for apprenticeship training represents a significant investment. 2. Lack of competition raises concerns about potential overpayment and limited market exploration. 3. The cost-plus-fixed-fee structure may incentivize higher costs without strong performance metrics. 4. This spending falls within the broader context of workforce development and vocational training initiatives.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee (CPFF) structure, with a final cost of $26.5M, makes direct per-unit cost comparison difficult without detailed performance data. CPFF contracts can sometimes lead to higher costs compared to fixed-price contracts if not managed rigorously.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits the government's ability to explore alternative providers or negotiate more competitive pricing, potentially leading to less favorable terms.

Taxpayer Impact: The lack of competition means taxpayers may not have received the best possible value for the $26.5M spent on apprenticeship training.

Public Impact

Taxpayers funded a significant contract for apprenticeship training without competitive bidding. The International Masonry Institute received sole-source funding for workforce development programs. The long duration of the contract (over 4 years) suggests a substantial, ongoing need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus-fixed-fee contract type
No small business participation reported

Positive Signals

Supports apprenticeship and workforce development

Sector Analysis

This contract falls under the 'Other' sector, specifically workforce development and vocational training. Benchmarks for similar apprenticeship programs are difficult to establish due to the specialized nature and lack of competitive data.

Small Business Impact

The data indicates that small businesses were not involved in this contract, as the 'sb' field is false. This represents a missed opportunity to support small business participation in government contracting.

Oversight & Accountability

The 'NOT COMPETED' status suggests potential weaknesses in the procurement process oversight. Further review would be needed to understand the justification for the sole-source award and ensure accountability.

Related Government Programs

Apprenticeship Training
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Sole-source award lacks transparency and competitive pricing.
Cost-plus-fixed-fee structure may not incentivize cost efficiency.
No reported small business participation.
Potential for overpayment due to lack of competition.
Limited insight into program effectiveness and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $26.5 million to INTERNATIONAL MASONRY INSTITUTE. IGF::OT::IGF MASONRY JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL MASONRY INSTITUTE.

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 $26.5 million.

What is the period of performance?

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

What was the specific justification for awarding this contract on a sole-source basis, and were alternative procurement methods considered?

The provided data states the contract was 'NOT COMPETED,' implying a sole-source award. A thorough review would require accessing the contract file to determine the specific justification, such as unique capabilities or urgent need. Without this information, it's impossible to assess if alternative methods were appropriately considered or if this represented the best approach for acquiring the services.

How was the 'fixed fee' component determined in this Cost Plus Fixed Fee (CPFF) contract, and what performance metrics were tied to it?

The data does not specify how the fixed fee was determined or what performance metrics were associated with it. CPFF contracts aim to provide cost control by fixing the fee, but the effectiveness relies heavily on the negotiation of that fee and the establishment of clear performance standards. Without this detail, assessing the value and risk associated with the fee is challenging.

What outcomes and impact were achieved through this $26.5M apprenticeship program, and how were they measured?

The provided data focuses on contract details and does not include information on program outcomes or impact. To assess effectiveness, one would need to review performance reports, completion rates, job placement statistics, and the overall contribution of the program to the Department of Labor's workforce development goals. This data is crucial for understanding the return on investment.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Apprenticeship Training

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: DOL121

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 42 EAST ST, ANNAPOLIS, MD, 21401

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

Financial Breakdown

Contract Ceiling: $145,020,274

Exercised Options: $145,020,274

Current Obligation: $26,490,115

Actual Outlays: $-88,135

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline