Labor Dept. Awards $93.6M Contract to Horizons Youth Services for North Texas JC Center Operations

Contract Overview

Contract Amount: $93,632,748 ($93.6M)

Contractor: Horizons Youth Services, L.C.

Awarding Agency: Department of Labor

Start Date: 2005-10-01

End Date: 2010-10-31

Contract Duration: 1,856 days

Daily Burn Rate: $50.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF NORTH TEXAS JC CENTER

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75069

State: Texas Government Spending

Plain-Language Summary

Department of Labor obligated $93.6 million to HORIZONS YOUTH SERVICES, L.C. for work described as: OPERATION OF NORTH TEXAS JC CENTER Key points: 1. The contract value of $93.6M over 5 years is substantial, indicating significant operational scope. 2. Competition was full and open after exclusion of sources, suggesting a competitive bidding process. 3. The contract type (Cost Plus Incentive Fee) introduces performance-based incentives but also cost-reimbursement risks. 4. The sector is 'Other Technical and Trade Schools,' highlighting a focus on vocational training and education services.

Value Assessment

Rating: fair

The contract value of $93.6M over 1856 days suggests an average annual value of approximately $50M. Benchmarking this against similar contracts for operating educational or youth centers would be necessary for a precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This method implies that while the competition was broad, specific sources may have been excluded, potentially impacting the breadth of price discovery.

Taxpayer Impact: The use of full and open competition generally aims for the best value for taxpayers, though the specific exclusion of sources warrants further scrutiny.

Public Impact

This contract directly impacts the operation of a Job Corps Center, providing training and employment services to young adults. The funding supports educational programs and vocational training, contributing to workforce development in Texas. Taxpayers are funding essential services aimed at improving the employability and future prospects of participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contract type can lead to cost overruns if not managed carefully.
Exclusion of sources in the competition process might limit competitive pricing.
Long contract duration (over 5 years) increases exposure to potential performance or economic changes.

Positive Signals

Full and open competition generally promotes competitive pricing.
The contract aims to provide valuable youth training and employment services.
Incentive fee structure can drive better performance.

Sector Analysis

The 'Other Technical and Trade Schools' sector involves educational institutions providing vocational training. Spending in this area is often driven by government initiatives to improve workforce skills and address specific industry needs.

Small Business Impact

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

Oversight & Accountability

The Department of Labor, specifically the Office of the Assistant Secretary for Administration and Management, is responsible for overseeing this contract. Standard oversight mechanisms for federal contracts would apply.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to Cost Plus Incentive Fee structure.
Limited price discovery if source exclusions were significant.
Long-term contract duration increases risk exposure.
Dependence on a single contractor for critical youth services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $93.6 million to HORIZONS YOUTH SERVICES, L.C.. OPERATION OF NORTH TEXAS JC CENTER

Who is the contractor on this award?

The obligated recipient is HORIZONS YOUTH SERVICES, L.C..

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 $93.6 million.

What is the period of performance?

Start: 2005-10-01. End: 2010-10-31.

What specific services are included under the 'OPERATION OF NORTH TEXAS JC CENTER' and how do they align with Job Corps program goals?

The contract likely encompasses the full range of services required to operate a Job Corps center, including academic instruction, vocational training, career counseling, job placement assistance, and supportive services such as health and wellness programs. These services are designed to equip disadvantaged youth with the skills and experience needed for successful employment and further education, directly aligning with the core mission of the Job Corps program.

What was the rationale for excluding certain sources during the 'full and open competition' process, and what was the impact on the final contract price?

The rationale for excluding specific sources would typically be documented in the procurement record, often related to capability, past performance, or specific technical requirements. The impact on price is difficult to quantify without access to bidding data, but excluding potential bidders could theoretically reduce competitive pressure, potentially leading to a higher price than if all qualified sources had participated.

How effectively has Horizons Youth Services managed similar contracts in the past, and what performance metrics are in place for this contract?

Assessing past performance requires reviewing Horizons Youth Services' contract history with the government, looking for indicators of successful delivery, adherence to budget, and compliance. For this contract, performance metrics would be tied to the Cost Plus Incentive Fee structure, likely measuring participant outcomes like training completion rates, job placement success, and post-placement retention, alongside operational efficiency and cost control.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: JC-RIV-4-04

Offers Received: 6

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Endless Horizons Inc

Address: 3586 HORIZONS WAY, HARRISONBURG, VA, 22802

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $280,587,993

Exercised Options: $280,499,982

Current Obligation: $93,632,748

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline