Labor Department's $43.7M Penobscot JCC Contract Awarded to Career Systems Development Corp

Contract Overview

Contract Amount: $43,683,189 ($43.7M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2006-01-20

End Date: 2010-09-30

Contract Duration: 1,714 days

Daily Burn Rate: $25.5K/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 PENOBSCOT JCC

Place of Performance

Location: BANGOR, PENOBSCOT County, MAINE, 04401

State: Maine Government Spending

Plain-Language Summary

Department of Labor obligated $43.7 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: OPERATION OF THE PENOBSCOT JCC Key points: 1. The contract, valued at $43.7 million, supports the operation of the Penobscot Job Corps Center. 2. Career Systems Development Corporation has held this contract, indicating a potential incumbent advantage. 3. The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. 4. The sector appears to be related to education and training services, falling under 'Other Technical and Trade Schools'.

Value Assessment

Rating: fair

The contract value of $43.7 million over approximately 4 years suggests a significant investment. Benchmarking against similar Job Corps center operations would be necessary to assess if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which theoretically allows for the best price discovery. However, the duration and specific nature of the services may limit the number of truly competitive bids.

Taxpayer Impact: Taxpayer funds are being used to operate a critical workforce development program. The efficiency and effectiveness of the contractor directly impact the value received by taxpayers.

Public Impact

Provides job training and employment services to youth in Maine. Supports the Department of Labor's mission to enhance workforce development. The success of the program impacts local employment rates and economic opportunity for participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contract type can incentivize cost growth.
Long contract duration may reduce flexibility and opportunities for re-competition.
Incumbent contractor may have an advantage in future competitions.

Positive Signals

Awarded under full and open competition.
Supports a vital government program for youth employment.
Contract has performance incentives built-in.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' category, often associated with workforce development and vocational training. Spending in this sector is driven by government initiatives to equip citizens with job-ready skills.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

Oversight by the Department of Labor's Employment and Training Administration is crucial to ensure the contractor meets performance standards and manages costs effectively under the CPIF structure.

Related Government Programs

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

Risk Flags

Cost Plus Incentive Fee (CPIF) contract type can lead to cost overruns.
Long contract duration may limit competitive opportunities and innovation.
Potential for incumbent advantage in future procurements.
Need to verify performance against program goals and participant outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $43.7 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. OPERATION OF THE PENOBSCOT JCC

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 (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $43.7 million.

What is the period of performance?

Start: 2006-01-20. End: 2010-09-30.

What is the cost per participant for this Job Corps center compared to national averages?

To assess the value, a detailed cost-per-participant analysis is needed. This involves dividing the total contract value by the number of participants served over the contract period. Comparing this metric to national averages for Job Corps centers, adjusted for regional cost differences and program intensity, would reveal if the Penobscot center is operating efficiently or if costs are higher than expected.

What are the key performance indicators (KPIs) for this contract, and how has the contractor performed against them?

Understanding the KPIs is essential for evaluating effectiveness and risk. These likely include metrics such as job placement rates, average wage of placed participants, and completion rates. Performance data against these KPIs would indicate if the contractor is delivering on the program's objectives and if the incentive fee structure is driving desired outcomes, thereby mitigating performance risk.

How does the contractor's past performance on similar contracts influence the risk assessment for this award?

Past performance is a critical indicator of future success and risk. A review of Career Systems Development Corporation's track record on previous Job Corps contracts or similar workforce development programs would be informative. Positive performance history suggests lower risk, while documented issues or failures would raise concerns about the contractor's ability to effectively manage this significant contract and achieve program goals.

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: OWL Companies (UEI: 044437796)

Address: 75 THRUWAY PARK DRIVE, #100, WEST HENRIETTA, NY, 14586

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

Financial Breakdown

Contract Ceiling: $48,083,743

Exercised Options: $48,083,743

Current Obligation: $43,683,189

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline