Department of Labor's $24.5M Joliet Job Corps Center contract awarded to Management & Training Corporation

Contract Overview

Contract Amount: $24,488,385 ($24.5M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2000-04-15

End Date: 2003-09-30

Contract Duration: 1,263 days

Daily Burn Rate: $19.4K/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 JOLIET JOB CORPS CENTER

Place of Performance

Location: JOLIET, WILL County, ILLINOIS, 60433

State: Illinois Government Spending

Plain-Language Summary

Department of Labor obligated $24.5 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF THE JOLIET JOB CORPS CENTER Key points: 1. The contract's value of $24.5 million over approximately 3.5 years suggests a significant investment in workforce development. 2. Management & Training Corporation, the incumbent, has a long-standing relationship with the government, indicating potential stability but also a need to assess ongoing value. 3. The 'Cost Plus Fixed Fee' contract type carries inherent risks of cost overruns, requiring close monitoring of expenditures against the fixed fee. 4. The contract's duration of 1263 days (approx. 3.5 years) allows for sustained program delivery but necessitates performance evaluation throughout its term. 5. The absence of small business set-aside flags suggests the primary contractor is likely a large entity, with potential for subcontracting opportunities. 6. The contract's focus on 'Other Technical and Trade Schools' (NAICS 611519) positions it within a critical sector for vocational training and skill development.

Value Assessment

Rating: fair

The total award amount of $24.5 million for operating the Joliet Job Corps Center over roughly 3.5 years averages to approximately $7 million annually. Benchmarking this against other Job Corps center operations would be necessary for a precise value-for-money assessment. The 'Cost Plus Fixed Fee' structure, while providing cost certainty for the contractor's fee, can incentivize higher spending by the contractor to maximize their fee, potentially leading to less efficient operations if not rigorously overseen. Without specific performance metrics or comparisons to similar centers, it's difficult to definitively assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit offers. The presence of two offers (no: 2) suggests a moderate level of competition for this significant contract. While two bidders are better than one, a higher number of competitors could potentially drive prices down further and foster greater innovation. The specific details of the bidding process and the evaluation criteria would be crucial to understanding the full impact of this competition level on price discovery.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, potentially leading to lower prices and better service offerings. However, with only two bidders, the competitive pressure might have been less intense than in a more crowded field.

Public Impact

The primary beneficiaries are the individuals seeking vocational training and employment services through the Joliet Job Corps Center. The contract delivers essential workforce development services, including career counseling, job training, and placement assistance. The geographic impact is concentrated in Joliet, Illinois, and surrounding areas, providing local economic and workforce development benefits. The contract supports the creation and maintenance of jobs within the training center and potentially for the graduates who find employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to higher overall costs if not managed tightly.
Limited competition (2 bidders) may have resulted in a higher price than a more competitive scenario.
The contract duration is substantial, requiring ongoing vigilance to ensure performance remains high throughout the term.

Positive Signals

Full and open competition was utilized, ensuring a broad range of potential providers could compete.
The incumbent contractor has a history with the government, suggesting a degree of familiarity and established processes.
The contract is for a critical social service (Job Corps), indicating a commitment to workforce development.

Sector Analysis

This contract falls within the Education and Training sector, specifically focusing on vocational and technical education. The Job Corps program is a significant federal initiative aimed at providing disadvantaged youth with the skills and education needed to secure employment. The market for operating such centers involves specialized educational service providers, often competing for multi-year government contracts. The annual spending on Job Corps centers nationally represents a substantial investment in human capital development.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (sb: false). The primary contractor, Management & Training Corporation, is likely a large business. While there's no explicit mention of subcontracting requirements, large federal contracts often include provisions for small business participation. Further analysis would be needed to determine if MTC has a robust subcontracting plan to engage small businesses in fulfilling the contract's requirements, thereby contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's Employment and Training Administration. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure the fixed fee is earned appropriately. The government would likely employ contract officers and program managers to track performance against objectives, conduct site visits, and ensure compliance with all terms and conditions. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Performance Monitoring Intensity
Competition Level Adequacy

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $24.5 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF THE JOLIET 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 $24.5 million.

What is the period of performance?

Start: 2000-04-15. End: 2003-09-30.

What is Management & Training Corporation's track record in operating Job Corps centers?

Management & Training Corporation (MTC) has a long history of operating Job Corps centers for the Department of Labor, dating back decades. They are one of the largest private operators of correctional facilities and Job Corps centers in the United States. Their experience includes managing student recruitment, academic and vocational training, health and wellness services, and job placement. While their extensive experience suggests a capacity to manage such centers, performance reviews and past audit findings would be critical to fully assess their track record specifically for the Joliet center and overall program effectiveness. Evaluating their success rates in placing graduates into sustainable employment and their adherence to program standards would provide further insight.

How does the $24.5 million award compare to similar Job Corps center contracts?

The $24.5 million award for the Joliet Job Corps Center over approximately 3.5 years equates to an average annual value of roughly $7 million. To benchmark this effectively, one would need to compare it with contracts for Job Corps centers of similar size, student capacity, and geographic location. Factors such as the cost of living in the area, the types of vocational programs offered, and the specific services mandated by the Department of Labor can significantly influence contract values. Without access to a database of comparable Job Corps center contracts, it's challenging to definitively state whether this award represents a particularly high or low cost per student or per center. However, $7 million annually for a center of this nature is within the expected range for substantial federal investments in workforce development.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for operating a Job Corps center?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. While the fee is fixed, the contractor has less incentive to control costs aggressively compared to fixed-price contracts, as their profit (the fee) is not directly tied to cost savings. This can potentially lead to higher overall expenditures if the government's oversight is not robust. For a Job Corps center, this means MTC might incur higher operational costs, which are passed through, while their profit remains constant. Effective risk mitigation requires stringent government oversight of allowable costs, regular performance reviews, and clear performance standards to ensure the contractor operates efficiently and effectively within the spirit of the contract.

How effective is the Job Corps program in achieving its stated goals, and how does this contract contribute?

The Job Corps program aims to help young people from disadvantaged backgrounds obtain competitive academic, vocational, and social skills needed to secure meaningful employment and become self-sufficient. Program effectiveness is often measured by graduate employment rates, wage progression, and retention in employment. Studies on Job Corps have shown mixed results, with some indicating positive impacts on earnings and employment, while others suggest areas for improvement, particularly concerning long-term outcomes and cost-effectiveness. This specific contract contributes by providing the operational framework and resources necessary for the Joliet center to deliver these training and support services. The success of this contract is directly linked to the center's ability to meet its performance metrics and contribute to the overall effectiveness of the Job Corps initiative.

What are the historical spending patterns for the Joliet Job Corps Center or similar contracts?

Historical spending data for the Joliet Job Corps Center would reveal trends in contract values, potential fluctuations, and the duration of previous awards. For instance, if previous contracts were significantly lower or higher, it could indicate changes in program scope, inflation, or competitive dynamics. Analyzing spending patterns over multiple award cycles helps in understanding the long-term investment in the center and identifying any anomalies. Without specific historical data for this contract ID or the Joliet center, a general observation is that Job Corps center contracts are typically multi-year and represent substantial, consistent federal investment in workforce development. Changes in funding levels can also reflect shifts in federal budget priorities or legislative changes affecting the program.

What is the significance of the NAICS code 611519 (Other Technical and Trade Schools) in the context of this contract?

The NAICS code 611519, 'Other Technical and Trade Schools,' signifies that the core business of the Joliet Job Corps Center, as defined by this contract, is providing postsecondary vocational education and training. This includes schools that offer training in specific trades and occupations, such as automotive repair, healthcare support, information technology, and skilled trades. This classification highlights the contract's focus on equipping individuals with practical, job-ready skills demanded by the labor market. It differentiates the center from institutions offering academic degrees (like community colleges or universities) and emphasizes its role in direct workforce preparation for specific industries.

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, 02

Business Categories: Category Business, Not Designated a Small Business

Timeline