Labor Department's $42.8M contract for Burdick JCC operations awarded to MINACT, INC

Contract Overview

Contract Amount: $42,860,750 ($42.9M)

Contractor: Minact, Inc

Awarding Agency: Department of Labor

Start Date: 2004-06-01

End Date: 2009-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $23.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF BURDICK JCC

Place of Performance

Location: MINOT, WARD County, NORTH DAKOTA, 58703

State: North Dakota Government Spending

Plain-Language Summary

Department of Labor obligated $42.9 million to MINACT, INC for work described as: OPERATION OF BURDICK JCC Key points: 1. Contract value represents a significant investment in vocational training and support services. 2. The contract was awarded through full and open competition, suggesting a robust bidding process. 3. Performance risk appears moderate given the cost-plus incentive fee structure. 4. The duration of the contract (5 years) indicates a long-term commitment to the services provided. 5. The North Dakota location suggests a focus on regional workforce development needs. 6. The specific NAICS code (611519) points to specialized technical and trade school services.

Value Assessment

Rating: fair

The contract's total value of $42.8 million over five years averages to approximately $8.56 million annually. Benchmarking this against similar contracts for operating educational or vocational facilities is challenging without more specific service details. However, the cost-plus incentive fee (CPIF) structure suggests that the government aims to control costs by incentivizing the contractor to perform efficiently. The final cost will depend on performance against established targets.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of only one bid (no: 1) is unusual for a full and open competition and raises questions about the level of actual market interest or the effectiveness of the solicitation process. While competition was theoretically open, the single bid may limit price discovery and potentially lead to less competitive pricing than if multiple bids had been received.

Taxpayer Impact: A single bid in a full and open competition could mean taxpayers did not benefit from the full range of potential cost savings that robust competition typically provides.

Public Impact

Individuals seeking vocational training and employment services in North Dakota are the primary beneficiaries. The contract supports the operation of the Burdick Job Corps Center, delivering essential educational and career development programs. Geographic impact is concentrated in North Dakota, addressing local workforce needs. The contract has implications for the workforce employed at the center and for the students who gain skills and employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Single bid received despite full and open competition, potentially indicating limited market interest or barriers to entry.
Cost-plus incentive fee (CPIF) contract type requires careful monitoring to ensure cost efficiency and prevent overruns.
Contract duration of five years is substantial and requires ongoing performance evaluation.

Positive Signals

Awarded through full and open competition, theoretically allowing for the best value to be identified.
The CPIF structure includes incentives for contractor performance, aligning contractor and government interests.
The contract supports a critical federal program (Job Corps) aimed at workforce development.

Sector Analysis

This contract falls within the broader education and training services sector, specifically focusing on vocational and technical education. The Job Corps program is a significant federal initiative aimed at preparing young people for careers. The market for operating such centers involves specialized educational providers and management firms. Benchmarking spending requires comparison to other Job Corps center operations or similar large-scale vocational training contracts.

Small Business Impact

The data indicates that small business participation was not a specific set-aside requirement for this contract (sb: false). There is no explicit information on subcontracting plans for small businesses. The primary contractor, MINACT, INC., is not identified as a small business. Therefore, the direct impact on the small business ecosystem is likely minimal unless MINACT, INC. actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of Labor's Employment and Training Administration. The CPIF structure necessitates rigorous financial and performance monitoring to ensure adherence to contract terms and cost controls. Transparency is generally maintained through contract award databases and performance reporting requirements. The Inspector General's office within the Department of Labor would have jurisdiction over audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

Department of Labor - Job Corps Program
Vocational Training Services
Workforce Development Programs
Federal Education Contracts

Risk Flags

Single Bidder in Full and Open Competition
Potential for Cost Overruns with CPIF
Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $42.9 million to MINACT, INC. OPERATION OF BURDICK JCC

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 $42.9 million.

What is the period of performance?

Start: 2004-06-01. End: 2009-05-31.

What is the track record of MINACT, INC. in managing federal contracts, particularly those similar to the Burdick JCC operation?

Information regarding MINACT, INC.'s specific track record with federal contracts, especially those involving the operation of Job Corps centers or similar vocational training facilities, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes with previous government engagements. Without this, it's difficult to gauge their experience and reliability in managing a contract of this scale and nature. Further research into federal procurement databases and contractor performance systems would be necessary to provide a detailed analysis of their past performance.

How does the awarded contract value compare to the operational costs of similar Job Corps centers or vocational training facilities?

The provided data indicates a total contract value of $42,860,750 over 1825 days (5 years), averaging approximately $8.56 million per year for the operation of the Burdick Job Corps Center. Direct comparison to similar facilities is difficult without access to specific operational cost data for other Job Corps centers or comparable vocational training institutions. Factors such as geographic location, student population size, specific program offerings, and local labor costs can significantly influence operational expenses. A thorough benchmark analysis would require aggregating and normalizing cost data from a range of comparable centers to establish a reliable average operational cost per student or per center.

What are the key performance indicators (KPIs) and incentive structures within the Cost Plus Incentive Fee (CPIF) arrangement for this contract?

The provided data specifies the contract type as Cost Plus Incentive Fee (CPIF) but does not detail the specific Key Performance Indicators (KPIs) or the exact incentive fee structure. Typically, CPIF contracts establish target costs and target profits, with the final profit determined by the contractor's performance against pre-defined metrics. These metrics often relate to cost savings, schedule adherence, quality standards, or specific program outcomes (e.g., student graduation rates, job placement success). The government and contractor negotiate the sharing of cost variances (above or below target) and the potential for incentive fees based on achieving or exceeding performance targets. A detailed review of the contract's Statement of Work and award documentation would be necessary to identify the precise KPIs and incentive mechanisms.

What is the historical spending trend for the operation of the Burdick JCC or similar services by the Department of Labor?

The provided data represents a single contract award for the operation of the Burdick JCC from June 1, 2004, to May 31, 2009, totaling $42.8 million. This data point alone does not provide a historical spending trend. To establish such a trend, one would need to examine spending records for this specific center over multiple contract cycles, as well as comparable spending on other Job Corps centers or similar workforce development initiatives managed by the Department of Labor over several fiscal years. Analyzing annual obligations, contract modifications, and the number and value of contracts awarded over time would reveal spending patterns and potential fluctuations.

What is the assessed risk associated with the contractor (MINACT, INC.) and the nature of the services provided?

The provided data offers limited insight into the specific risk assessment for MINACT, INC. or the services. The contract type, Cost Plus Incentive Fee (CPIF), suggests a moderate level of performance risk, as the government aims to incentivize efficiency. The duration of the contract (5 years) implies a commitment to stable service delivery. However, without a contractor performance history, financial stability assessment, or details on the complexity and criticality of the services (beyond operating a Job Corps center), a comprehensive risk evaluation is not possible. Potential risks could include contractor performance failures, cost overruns if incentives are poorly structured, or disruptions to student services.

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 ID: 98382000

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $52,093,489

Exercised Options: $42,870,032

Current Obligation: $42,860,750

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline