Labor Department's $37.2M Northlands JCC Contract with RES-CARE, Inc. Awarded via Full and Open Competition

Contract Overview

Contract Amount: $37,241,637 ($37.2M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2005-11-18

End Date: 2011-06-30

Contract Duration: 2,050 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE NORTHLANDS JCC

Place of Performance

Location: VERGENNES, ADDISON County, VERMONT, 05491

State: Vermont Government Spending

Plain-Language Summary

Department of Labor obligated $37.2 million to RES-CARE, INC for work described as: OPERATION OF THE NORTHLANDS JCC Key points: 1. The contract value is $37.2 million over its lifetime. 2. RES-CARE, INC. is the sole contractor for this service. 3. The contract type is Cost Plus Incentive Fee, which can lead to cost overruns. 4. The sector appears to be related to vocational training or technical schools.

Value Assessment

Rating: fair

The contract's Cost Plus Incentive Fee structure suggests potential for costs to exceed initial estimates. Benchmarking against similar technical school contracts is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: While competition was present, the Cost Plus Incentive Fee structure warrants scrutiny to ensure taxpayer funds are used efficiently and effectively.

Public Impact

Provides vocational training and technical education services. Supports workforce development and employment opportunities. Impacts individuals seeking new skills or career changes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contract type can incentivize higher costs.
Long contract duration (2050 days) may not reflect current needs.
No small business participation noted.

Positive Signals

Awarded through full and open competition.
Contract aims to provide valuable training services.

Sector Analysis

This contract falls within the Other Technical and Trade Schools sector, likely related to workforce development and vocational training. Benchmarks for this specific niche are not readily available, but government spending on education and training programs is substantial.

Small Business Impact

There is no indication of small business participation in this contract. Further analysis would be needed to determine if opportunities were missed or if the nature of the service precluded small business involvement.

Oversight & Accountability

The contract's Cost Plus Incentive Fee nature requires diligent oversight from the Department of Labor to ensure performance targets are met and costs remain controlled. Regular reviews of expenditures and outcomes are crucial.

Related Government Programs

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

Risk Flags

Cost Plus Incentive Fee structure.
Lack of small business participation.
Long contract duration.
Limited public information on specific services and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $37.2 million to RES-CARE, INC. OPERATION OF THE NORTHLANDS JCC

Who is the contractor on this award?

The obligated recipient is RES-CARE, 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 $37.2 million.

What is the period of performance?

Start: 2005-11-18. End: 2011-06-30.

What specific training programs are offered under this contract, and how do they align with current labor market demands?

The contract, 'OPERATION OF THE NORTHLANDS JCC,' likely encompasses a range of vocational and technical training. Specific program details are not provided, but the objective is presumably to equip individuals with skills relevant to employment. Assessing alignment with labor market demands would require examining the curriculum, graduate placement rates, and employer feedback.

What are the key performance indicators (KPIs) for the incentive fee structure, and how has RES-CARE, INC. performed against them?

The Cost Plus Incentive Fee (CPIF) structure implies that RES-CARE, INC.'s fee is adjusted based on meeting or exceeding certain performance targets. Without access to the contract's specific KPIs and performance reports, it's impossible to evaluate how effectively the incentive mechanism has driven desired outcomes or controlled costs.

How does the cost per participant for this program compare to similar government-funded training initiatives?

Determining the cost per participant requires knowing the total number of individuals trained and the total cost incurred. Given the contract value and duration, and the absence of specific output data, a precise per-participant cost benchmark cannot be calculated. A comparative analysis would necessitate data from comparable training programs.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Onex Rescare Acquisition, LLC (UEI: 966833399)

Address: 10140 LINN STATION RD, LOUISVILLE, KY, 40223

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

Financial Breakdown

Contract Ceiling: $37,241,637

Exercised Options: $37,241,637

Current Obligation: $37,241,637

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline