Department of Labor awards $46.1M contract to Applied Technology Systems for Detroit Job Corps Center operations

Contract Overview

Contract Amount: $46,123,967 ($46.1M)

Contractor: Applied Technology Systems, Inc.

Awarding Agency: Department of Labor

Start Date: 2003-07-15

End Date: 2008-09-30

Contract Duration: 1,904 days

Daily Burn Rate: $24.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE

Sector: Other

Official Description: OPERATION OF THE DETROIT JOB CORPS CENTER

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48206

State: Michigan Government Spending

Plain-Language Summary

Department of Labor obligated $46.1 million to APPLIED TECHNOLOGY SYSTEMS, INC. for work described as: OPERATION OF THE DETROIT JOB CORPS CENTER Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee, which can incentivize cost control but also carries risk. 3. The duration of 1904 days (approx. 5.2 years) indicates a significant, long-term commitment. 4. The contract value of $46.1M is substantial for operating a Job Corps center.

Value Assessment

Rating: fair

The Cost Plus Incentive Fee (CPIF) contract type allows for shared savings if costs are below target, but can lead to higher costs if targets are not met. The award amount of $46.1M over approximately 5.2 years needs to be benchmarked against similar Job Corps center operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently for the operation of the Job Corps center.

Public Impact

Job Corps centers provide vocational training and job placement services to young people. This contract directly impacts the operational capacity and service delivery of the Detroit Job Corps Center. The effectiveness of Applied Technology Systems, Inc. in managing the center will determine the success of the program for participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPIF contract type can lead to cost overruns if not managed carefully.
No specific small business participation noted.
The NAICS code 611519 is broad and may not fully capture the scope of services.

Positive Signals

Awarded under full and open competition.
Long-term contract provides stability for operations.
Potential for cost savings through incentive fee structure.

Sector Analysis

The education and training sector, particularly vocational programs like Job Corps, relies on government contracts for operation. Benchmarks for similar center operations would be crucial for assessing value for money.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the prime contractor is expected to subcontract.

Oversight & Accountability

The Department of Labor's Employment and Training Administration is responsible for overseeing this contract. Regular performance reviews and audits would be essential to ensure accountability and effective use of funds.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to CPIF contract type.
Lack of explicit small business participation.
Broad NAICS code may obscure specific service costs.
Need for robust performance monitoring to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $46.1 million to APPLIED TECHNOLOGY SYSTEMS, INC.. OPERATION OF THE DETROIT JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is APPLIED TECHNOLOGY SYSTEMS, 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 $46.1 million.

What is the period of performance?

Start: 2003-07-15. End: 2008-09-30.

What is the historical performance of Applied Technology Systems, Inc. in managing similar government contracts, particularly Job Corps centers?

Assessing the contractor's past performance is critical. Reviewing previous contracts, client feedback, and any documented performance issues or successes will provide insight into their capability to effectively manage the Detroit Job Corps Center. This includes their track record in meeting performance metrics, managing budgets, and delivering quality training and placement services.

How does the cost per participant compare to other Job Corps centers of similar size and scope?

Benchmarking the cost per participant against other Job Corps centers is essential for evaluating the contract's value. If the cost per participant is significantly higher than comparable centers, it could indicate inefficiencies or a lack of competitive pricing, despite the full and open competition award. This analysis helps determine if taxpayer funds are being used effectively.

What are the key performance indicators (KPIs) for this contract, and how will success be measured?

Understanding the KPIs is crucial for assessing the effectiveness of the contract. These metrics should align with the goals of the Job Corps program, such as student graduation rates, job placement success, and post-placement employment retention. The government's oversight mechanism for tracking and evaluating performance against these KPIs will determine the overall success and value delivered.

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 INCENTIVE (V)

Contractor Details

Address: 1300 E NINTH ST PENTON BUILDING, CLEVELAND, OH, 90

Business Categories: Black American Owned Business, Category Business, Educational Institution, Higher Education, Minority Owned Business, Small Business

Financial Breakdown

Contract Ceiling: $46,135,834

Exercised Options: $46,123,967

Current Obligation: $46,123,967

Timeline