Department of Labor's $78.7M contract for Atterbury Job Corps Center operations awarded to Management & Training Corporation

Contract Overview

Contract Amount: $78,710,640 ($78.7M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2000-01-15

End Date: 2005-02-28

Contract Duration: 1,871 days

Daily Burn Rate: $42.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: OPERATION OF THE ATTERBURY JOB CORPS CENTER

Place of Performance

Location: EDINBURGH, JOHNSON County, INDIANA, 46124

State: Indiana Government Spending

Plain-Language Summary

Department of Labor obligated $78.7 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF THE ATTERBURY JOB CORPS CENTER Key points: 1. The contract value of $78.7 million over its duration indicates a significant investment in workforce development. 2. Competition dynamics for this contract are assessed to understand pricing effectiveness and contractor selection. 3. Risk indicators are evaluated based on contract type, performance history, and potential for cost overruns. 4. Performance context is established by comparing this contract to similar workforce development programs. 5. The sector positioning of this contract is within educational services and workforce training, a critical area for public investment.

Value Assessment

Rating: fair

The total contract value of $78.7 million for a period of approximately 5 years (from 2000 to 2005) suggests an average annual expenditure of roughly $15.7 million. Benchmarking this against similar Job Corps center operations would be necessary for a precise value-for-money assessment. The 'COST PLUS FIXED FEE' (CPFF) contract type can sometimes lead to higher costs if not closely managed, as the contractor is reimbursed for all allowable costs plus a fixed fee. Without specific performance metrics and cost breakdowns, it's challenging to definitively assess if this represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that multiple bidders were likely considered. With two bidders identified ('no': 2), the level of competition appears moderate. This suggests that the Department of Labor sought multiple proposals to ensure a competitive price and select the most qualified contractor. The presence of at least two bidders generally aids in price discovery and can lead to more favorable terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: A full and open competition with multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down costs through competitive bidding. This process aims to secure the best possible service at the most reasonable price for the government.

Public Impact

The primary beneficiaries are individuals seeking vocational training and employment opportunities through the Job Corps program. The services delivered include the operation and management of the Atterbury Job Corps Center, providing education, vocational training, and job placement assistance. The geographic impact is focused on Indiana, where the Atterbury Job Corps Center is located, serving the local and regional workforce. Workforce implications include the creation of jobs for instructors, administrators, and support staff at the center, as well as the development of a skilled workforce for local and national employers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST PLUS FIXED FEE' contract type carries inherent risks of cost escalation if not rigorously monitored.
A moderate level of competition (2 bidders) might not have driven the absolute lowest price compared to a scenario with more intense bidding.
The contract duration of over 5 years (1871 days) requires sustained oversight to ensure ongoing performance and value.
The absence of specific performance metrics in the provided data makes it difficult to assess the contractor's effectiveness beyond basic operational delivery.

Positive Signals

The contract was awarded through 'FULL AND OPEN COMPETITION,' indicating a structured and transparent procurement process.
The Department of Labor's engagement in workforce development through Job Corps centers addresses critical societal needs for training and employment.
The contract's objective is to provide essential services that contribute to individual self-sufficiency and economic growth.
The long-term nature of the contract suggests a commitment to sustained program delivery and stability for the center's operations.

Sector Analysis

The contract falls within the broader education and training services sector, specifically focusing on vocational and technical education provided by Job Corps centers. This sector is crucial for addressing skills gaps and preparing individuals for employment. Comparable spending benchmarks would involve analyzing other Job Corps center contracts and similar government-funded workforce development initiatives. The market for operating such centers is typically competitive, involving specialized education and training providers.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside requirement ('sb': false). Therefore, the direct impact on small businesses through set-asides is likely minimal for this prime contract. However, the prime contractor, Management & Training Corporation, may engage small businesses as subcontractors for various support services, which would contribute to the small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's Employment and Training Administration. Mechanisms likely include regular performance reviews, financial audits, and site visits to ensure compliance with contract terms and performance standards. Accountability measures would be tied to the achievement of program objectives, such as student enrollment, completion rates, and job placement success. Transparency is generally facilitated through contract award databases and public reporting requirements, though specific operational details may be proprietary.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Department of Labor Training Grants
Vocational Rehabilitation Services

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring for potential cost creep.
Moderate competition level (2 bidders) may not have yielded the most competitive pricing.
Contract duration over 5 years necessitates ongoing performance management.
Lack of specific performance metrics in summary data hinders detailed value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $78.7 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF THE ATTERBURY JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING 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 $78.7 million.

What is the period of performance?

Start: 2000-01-15. End: 2005-02-28.

What is the historical spending trend for the Atterbury Job Corps Center operations under Management & Training Corporation?

The provided data covers a single definitive contract awarded from January 15, 2000, to February 28, 2005, with a total value of $78,710,640. This represents an average annual expenditure of approximately $15.7 million. To understand historical spending trends, one would need to examine prior contracts for this center, potentially with different contractors, and subsequent contracts awarded after February 2005. Analyzing these periods would reveal if spending has increased, decreased, or remained relatively stable over time, and whether changes correlate with shifts in program scope, inflation, or contractor performance.

How does the cost per student at the Atterbury Job Corps Center compare to national averages for Job Corps centers?

To determine the cost per student, we would need the average number of students served annually by the Atterbury Job Corps Center during the contract period (2000-2005). With the total contract value of $78.7 million over approximately five years, we can calculate an average annual cost of roughly $15.7 million. If, for example, the center served an average of 1,000 students per year, the average annual cost per student would be approximately $15,700. This figure would then need to be compared against national average cost-per-student data for Job Corps centers, which can fluctuate based on program intensity, location, and specific services offered. A higher or lower cost per student could indicate differences in operational efficiency, service quality, or student demographics.

What specific performance metrics were used to evaluate Management & Training Corporation's success in operating the Atterbury Job Corps Center?

The provided data does not detail the specific performance metrics used to evaluate Management & Training Corporation. However, typical performance metrics for Job Corps center contracts include student enrollment rates, program completion rates, job placement rates (both in-field and at a living wage), student retention rates, and employer satisfaction. The 'COST PLUS FIXED FEE' (CPFF) contract structure implies that performance against defined objectives would be crucial for the contractor to earn their fee and potentially for future contract renewals. A thorough review of the contract's Statement of Work (SOW) and any associated Performance Work Statements (PWS) would be necessary to identify these metrics.

What is the track record of Management & Training Corporation in operating other Job Corps centers or similar government contracts?

Management & Training Corporation (MTC) is a significant operator of correctional facilities and Job Corps centers. A review of their broader contract history would reveal their experience and performance across multiple sites and contract types. For Job Corps centers specifically, MTC has operated numerous facilities nationwide. Assessing their track record would involve examining past performance evaluations, any contract disputes or terminations, and their success in meeting performance targets across these various contracts. A generally positive track record across multiple sites would suggest a lower risk associated with their operational capabilities for the Atterbury center.

Were there any significant cost overruns or disputes during the performance of this contract?

The provided summary data does not indicate any significant cost overruns or disputes during the performance of this contract (2000-2005). However, the 'COST PLUS FIXED FEE' (CPFF) contract type inherently allows for reimbursement of allowable costs, which can sometimes lead to higher total expenditures than fixed-price contracts if cost controls are not stringent. To ascertain if there were overruns or disputes, one would need to consult contract modification histories, Inspector General reports, or litigation records associated with this specific award. The absence of readily available flags suggests that the contract may have proceeded without major financial controversies, but this cannot be definitively confirmed without deeper investigation.

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

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 500 N MARKET PLACE DR, CENTERVILLE, UT, 84014

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline