DOL awards $37.8M contract for technical and trade school operations to MINACT, INC

Contract Overview

Contract Amount: $37,855,988 ($37.9M)

Contractor: Minact, Inc

Awarding Agency: Department of Labor

Start Date: 2004-09-01

End Date: 2010-08-31

Contract Duration: 2,190 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF JC CENTER

Place of Performance

Location: SHREVEPORT, CADDO County, LOUISIANA, 71109

State: Louisiana Government Spending

Plain-Language Summary

Department of Labor obligated $37.9 million to MINACT, INC for work described as: OPERATION OF JC CENTER Key points: 1. Contract value of $37.8M over 6 years. 2. MINACT, INC. is the sole awardee. 3. Contract type is Cost Plus Incentive Fee. 4. Sector is Other Technical and Trade Schools.

Value Assessment

Rating: questionable

The contract value is substantial for 'Other Technical and Trade Schools'. Without benchmarks for similar services, assessing pricing effectiveness is difficult. The Cost Plus Incentive Fee structure can lead to cost overruns if not managed tightly.

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. However, the long duration and specific nature of the services may limit the number of viable bidders.

Taxpayer Impact: Taxpayer funds are used for vocational training services. The effectiveness of the training and the long-term employment outcomes for participants will determine the ultimate value for taxpayers.

Public Impact

Provides vocational training and technical education services. Aims to improve employment opportunities for participants. Long contract duration suggests ongoing need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration
Cost Plus Incentive Fee structure
Lack of specific performance metrics provided

Positive Signals

Full and open competition
Focus on employment and training

Sector Analysis

This contract falls under the 'Other Technical and Trade Schools' category, which can encompass a wide range of vocational and specialized training programs. Spending benchmarks for this specific sub-sector are not readily available, making direct comparison challenging.

Small Business Impact

The data indicates that small businesses were not a primary focus for this contract, as the awardee is MINACT, INC., a known entity, and there's no explicit mention of small business participation or subcontracting goals.

Oversight & Accountability

Oversight would focus on MINACT, INC.'s performance in delivering effective training and achieving participant employment outcomes. The Cost Plus Incentive Fee structure requires careful monitoring to ensure costs are controlled and incentives are aligned with desired results.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Lack of specific performance metrics
Potential for cost overruns with CPIF
Long contract duration without clear exit strategy
Limited visibility into small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $37.9 million to MINACT, INC. OPERATION OF JC CENTER

Who is the contractor on this award?

The obligated recipient is MINACT, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $37.9 million.

What is the period of performance?

Start: 2004-09-01. End: 2010-08-31.

What is the typical cost per participant for similar vocational training programs?

Determining a precise benchmark for 'Other Technical and Trade Schools' is challenging due to the diverse nature of programs. However, comparable government-funded vocational training initiatives often range from a few hundred to several thousand dollars per participant, depending on the skill set taught, program duration, and required certifications. A detailed cost analysis of MINACT's program against these varied benchmarks is needed.

What are the key performance indicators (KPIs) for this contract and how are they measured?

The provided data does not specify the key performance indicators (KPIs) for this contract. Effective oversight would require clearly defined metrics related to training completion rates, participant skill acquisition, and post-training employment success. Without these, it's difficult to assess the contractor's performance and the overall value delivered to the government and participants.

How does the Cost Plus Incentive Fee structure incentivize MINACT, INC. to deliver high-quality training efficiently?

The Cost Plus Incentive Fee (CPIF) structure theoretically incentivizes the contractor to control costs and meet performance targets. However, the effectiveness depends heavily on the specific incentive clauses and the baseline cost targets set by the government. Without details on these, it's unclear if the CPIF is driving optimal value or potentially encouraging cost escalation if performance metrics are loosely defined or easily met.

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: JC-RIV-301

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 5220 KEELE STREET, JACKSON, MS, 39206

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $39,815,061

Exercised Options: $39,815,061

Current Obligation: $37,855,988

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline