Department of Labor awards $20.5M contract for Facilities Support Services to RES-CARE, INC

Contract Overview

Contract Amount: $20,542,581 ($20.5M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2002-12-15

End Date: 2007-12-31

Contract Duration: 1,842 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE

Sector: Other

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40223

State: Kentucky Government Spending

Plain-Language Summary

Department of Labor obligated $20.5 million to RES-CARE, INC for work described as: Key points: 1. Contract awarded for Facilities Support Services, a common government need. 2. The contract value of $20.5M over 5 years indicates a significant investment. 3. Competition type is 'FULL AND OPEN COMPETITION', suggesting a robust bidding process. 4. The sector is Facilities Support Services, which has broad applicability across agencies.

Value Assessment

Rating: fair

The contract type is Cost Plus Incentive, which can lead to cost overruns if not managed carefully. The award amount of $20.5M over 5 years needs to be benchmarked against similar contracts for facilities support to determine true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific pricing structure (Cost Plus Incentive) requires careful monitoring to ensure cost efficiency and prevent contractor overspending.

Taxpayer Impact: The use of full and open competition is positive for taxpayers, as it aims to secure the best possible price. However, the cost-plus nature of the contract necessitates vigilant oversight to ensure funds are used efficiently.

Public Impact

Ensures continued operation of essential facilities for the Department of Labor. Supports employment through the contractor, RES-CARE, INC. The services provided are critical for the agency's day-to-day functions. The long-term nature of the contract provides stability for service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive contract type can lead to higher costs if not managed.
Lack of specific performance metrics in provided data.
Potential for scope creep in facilities support services.

Positive Signals

Awarded under full and open competition.
Long contract duration (5 years) suggests a stable and needed service.
Contractor is a known entity in the service area.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing building maintenance, operations, and related services. Spending in this sector is generally consistent across government agencies, reflecting the ongoing need for physical infrastructure management. Benchmarks would typically focus on cost per square foot or per service provided.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

Oversight of this Cost Plus Incentive contract is crucial. The Department of Labor's contracting officers must actively monitor costs, performance, and adherence to the incentive structure to ensure taxpayer funds are used effectively and efficiently.

Related Government Programs

Facilities Support Services
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Cost Plus Incentive contract type.
Long contract duration.
Potential for cost overruns.
Lack of specific performance data.
Need for strong oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $20.5 million to RES-CARE, INC. See the official description on USAspending.

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 $20.5 million.

What is the period of performance?

Start: 2002-12-15. End: 2007-12-31.

What is the average cost per square foot for facilities support services in Kentucky for contracts of similar scope and duration?

Benchmarking the cost per square foot for facilities support services in Kentucky requires access to detailed contract data and market analysis. Typically, government contracts for such services are compared against industry standards and historical data for similar agencies. Without specific square footage and service level details, providing an exact benchmark is challenging, but costs can range significantly based on location, building type, and services included.

How effectively are the incentive clauses in the Cost Plus Incentive contract being utilized to control costs and improve performance?

The effectiveness of incentive clauses in a Cost Plus Incentive contract hinges on the clarity of the performance metrics and the alignment of incentives with desired outcomes. Regular performance reviews and cost analysis by the Department of Labor are essential to ensure RES-CARE, INC. is motivated to meet or exceed targets efficiently. Without specific performance data, it's difficult to assess the current effectiveness.

What is the potential risk of cost overruns given the Cost Plus Incentive contract type and the duration of the contract?

Cost Plus Incentive contracts inherently carry a risk of cost overruns if the incentive structure is not tightly managed or if unforeseen issues arise. The 5-year duration amplifies this risk, as market conditions and service needs can change. Robust oversight, clear performance metrics, and proactive risk management by the Department of Labor are critical to mitigate potential overspending and ensure value for taxpayers.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE (V)

Contractor Details

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

Address: 10140 LINN STATION RD, LOUISVILLE, KY, 03

Business Categories: Category Business, Not Designated a Small Business

Timeline