Department of Labor's $87.5M Job Corps contract awarded to Career Systems Development Corp

Contract Overview

Contract Amount: $87,489,208 ($87.5M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2014-03-28

End Date: 2019-09-30

Contract Duration: 2,012 days

Daily Burn Rate: $43.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

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 TO THE SAN DIEGO JOB CORPS CENTER.

Place of Performance

Location: IMPERIAL BEACH, SAN DIEGO County, CALIFORNIA, 91932

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $87.5 million to CAREER SYSTEMS DEVELOPMENT CORPORATION 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 TO THE SAN DIEGO JOB CORPS CENTER. Key points: 1. The contract supports vocational training for youth aged 16-24 in San Diego. 2. Career Systems Development Corporation is the sole awardee. 3. The contract type is Cost Plus Incentive Fee, indicating shared risk and reward. 4. The sector is vocational training, a key component of workforce development.

Value Assessment

Rating: fair

The Cost Plus Incentive Fee (CPIF) structure suggests a focus on performance and cost control. However, without specific benchmarks for similar vocational training programs, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. The CPIF pricing structure allows for adjustments based on performance, potentially leading to better value if managed effectively.

Taxpayer Impact: Taxpayer funds are used to provide vocational training, aiming to improve youth employment and earning potential, which can have long-term economic benefits.

Public Impact

Provides essential job skills training to young adults, addressing unemployment. Supports the San Diego community by offering educational and career opportunities. The program's success can lead to a more skilled workforce and reduced reliance on social services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics for value assessment.
Potential for cost overruns with CPIF if not closely monitored.

Positive Signals

Full and open competition promotes fair pricing.
Focus on youth vocational training addresses a critical societal need.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' category, a subset of the broader education and training sector. Spending in this area is crucial for workforce development and economic mobility.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or partners in this contract.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is responsible for oversight. Regular performance reviews and financial audits are expected to ensure accountability.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Cost Plus Incentive Fee contracts require diligent monitoring to prevent cost overruns.
Performance data is needed to fully assess program effectiveness and value.
Dependence on a single contractor for a critical service.
The contract duration is significant, requiring ongoing evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $87.5 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. IGF::CT::IGF JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT PROVIDES SERVICES TO THE SAN DIEGO JOB CORPS CENTER.

Who is the contractor on this award?

The obligated recipient is CAREER SYSTEMS DEVELOPMENT CORPORATION.

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 $87.5 million.

What is the period of performance?

Start: 2014-03-28. End: 2019-09-30.

What is the cost per student trained under this contract, and how does it compare to national averages for similar vocational programs?

The provided data does not include the number of students trained or the total cost per student. To assess value, this metric is crucial. Comparing it to national averages for similar vocational programs would reveal if the San Diego Job Corps Center is operating efficiently or if costs are higher than expected, potentially indicating areas for cost savings or program improvement.

What are the key performance indicators (KPIs) for this contract, and what are the contractor's performance ratings?

The contract type (CPIF) suggests performance is a factor, but specific KPIs are not detailed in the provided data. Understanding these metrics (e.g., graduation rates, job placement rates, starting salaries) and the contractor's historical performance against them is essential for evaluating program effectiveness and identifying potential risks related to service delivery or outcomes.

What is the long-term impact of the Job Corps program in San Diego on participant employment and earning potential?

The ultimate effectiveness of this contract lies in its ability to improve participants' long-term employment and earning potential. Data on post-program success, such as sustained employment, career advancement, and increased income, would demonstrate the societal return on investment. Without this outcome data, the full value and effectiveness of the vocational training services remain difficult to ascertain.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOLJ12SA00010

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: OWL Companies (UEI: 044437796)

Address: 75 THRUWAY PARK DR STE 100, WEST HENRIETTA, NY, 14586

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

Financial Breakdown

Contract Ceiling: $164,574,951

Exercised Options: $114,848,605

Current Obligation: $87,489,208

Actual Outlays: $5,451,834

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline