Labor Department's $35.7M Job Corps Contract Lacks Competition, Raises Cost Concerns

Contract Overview

Contract Amount: $35,671,280 ($35.7M)

Contractor: National Plastering Industrys Joint Apprenticeship Trust Fund

Awarding Agency: Department of Labor

Start Date: 2013-06-01

End Date: 2018-03-14

Contract Duration: 1,747 days

Daily Burn Rate: $20.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

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

Place of Performance

Location: HYATTSVILLE, PRINCE GEORGES County, MARYLAND, 20785

State: Maryland Government Spending

Plain-Language Summary

Department of Labor obligated $35.7 million to NATIONAL PLASTERING INDUSTRYS JOINT APPRENTICESHIP TRUST FUND for work described as: IGF::OT::IGF VARIOUS JOB CORPS CENTER Key points: 1. Significant spending on apprenticeship training for Job Corps centers. 2. Sole-source award to National Plastering Industries raises competition questions. 3. Contract duration of 1747 days suggests long-term reliance. 4. Lack of competition may lead to suboptimal pricing and value. 5. Focus on a specific trade (plastering) may limit broader skill development.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes a direct pricing assessment difficult. Without benchmarks from competitive bids, it's hard to determine if $35.7 million represents fair value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning no other vendors were considered. This significantly limits price discovery and potentially allows for higher costs than would be achieved in a competitive environment.

Taxpayer Impact: The absence of competition means taxpayers may be paying more than necessary for these apprenticeship services, as there was no market pressure to drive down costs.

Public Impact

Job Corps participants may receive specialized training in plastering, potentially impacting their future employment opportunities. The long contract duration suggests a sustained investment in this specific training program. Federal funds are directed towards workforce development initiatives through this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Cost-plus contract type
Long contract duration

Positive Signals

Supports workforce development
Focus on specific trade skills

Sector Analysis

This contract falls under the broader category of workforce development and vocational training. Spending in this sector aims to equip individuals with job-ready skills. Benchmarks for similar apprenticeship programs can vary widely based on trade, duration, and location.

Small Business Impact

The contract was not awarded to a small business. Analysis of opportunities for small businesses in providing similar apprenticeship training services is not available from the provided data.

Oversight & Accountability

The sole-source nature of this contract warrants further oversight to ensure the funds are being used efficiently and effectively. Accountability for program outcomes and cost control is crucial given the lack of competitive pressure.

Related Government Programs

Apprenticeship Training
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Potential for overpayment due to lack of competition
Limited transparency in cost structure
Risk of suboptimal training outcomes without performance metrics
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $35.7 million to NATIONAL PLASTERING INDUSTRYS JOINT APPRENTICESHIP TRUST FUND. IGF::OT::IGF VARIOUS JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is NATIONAL PLASTERING INDUSTRYS JOINT APPRENTICESHIP TRUST FUND.

Which agency awarded this contract?

Awarding agency: Department of Labor (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $35.7 million.

What is the period of performance?

Start: 2013-06-01. End: 2018-03-14.

What is the specific training curriculum and its effectiveness in preparing apprentices for employment in the plastering trade?

The provided data does not detail the specific training curriculum or its effectiveness. Further investigation would be needed to assess the quality of instruction, the skills acquired by participants, and their subsequent employment rates. This information is critical for evaluating the true value of the $35.7 million investment.

Were there any attempts to explore competitive options or justify the sole-source award beyond the initial justification?

The data indicates the contract was 'NOT COMPETED,' suggesting no competitive process was undertaken. A thorough review would be necessary to determine if alternative vendors were considered or if specific circumstances justified bypassing competition. Without this, the risk of inflated costs remains high.

How does the fixed fee component of this Cost Plus Fixed Fee contract compare to industry standards for similar apprenticeship programs?

Determining the fairness of the fixed fee requires detailed cost breakdowns and comparison with industry benchmarks for comparable apprenticeship programs. The lack of competition makes it difficult to ascertain if this fee adequately reflects the market. Further analysis of the contractor's cost structure is needed.

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 11720 BELTSVILLE DR STE 100, BELTSVILLE, MD, 20705

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

Financial Breakdown

Contract Ceiling: $182,277,700

Exercised Options: $182,277,700

Current Obligation: $35,671,280

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline