Department of Labor awards $44.2M contract to Career Systems Development Corporation for Job Corps center operations in Minnesota

Contract Overview

Contract Amount: $44,171,356 ($44.2M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2003-10-01

End Date: 2009-01-31

Contract Duration: 1,949 days

Daily Burn Rate: $22.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATE THE HUBERT H. HUMPHREY JOB CORPS CENTER, AND PROVIDE OUTREACH AND ADMISSIONS SERVICES FOR ARRIVALS FROM THE STATE OF MINNESOTA AND CAREER TRANSITION SERVICES FOR JOB CORPS YOUTH RETURNING TO THE STATE OF MINNESOTA

Place of Performance

Location: SAINT PAUL, RAMSEY County, MINNESOTA, 55108, UNITED STATES OF AMERICA

State: Minnesota Government Spending

Plain-Language Summary

Department of Labor obligated $44.2 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: OPERATE THE HUBERT H. HUMPHREY JOB CORPS CENTER, AND PROVIDE OUTREACH AND ADMISSIONS SERVICES FOR ARRIVALS FROM THE STATE OF MINNESOTA AND CAREER TRANSITION SERVICES FOR JOB CORPS YOUTH RETURNING TO THE STATE OF MINNESOTA Key points: 1. Contract focuses on operating a Job Corps center and providing crucial outreach, admissions, and transition services. 2. The contract has been active since 2003, indicating a long-term relationship and established performance. 3. Services are geographically focused on Minnesota, impacting youth within the state. 4. The contract type is Cost Plus Incentive Fee, suggesting performance-based incentives tied to cost and other factors. 5. The award was made under full and open competition, implying a robust bidding process. 6. The contractor, Career Systems Development Corporation, has managed this center for an extended period.

Value Assessment

Rating: good

The contract's value of approximately $44.2 million over its duration suggests a significant investment in youth workforce development. Benchmarking this against similar Job Corps center operations would provide a clearer picture of value for money. The Cost Plus Incentive Fee structure allows for adjustments based on performance, which can be a positive indicator if managed effectively. However, without specific performance metrics and comparisons to other centers, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive offers. The fact that it was competed openly suggests that the Department of Labor sought the best value proposition from the market.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through a competitive bidding environment, leading to more efficient use of public funds.

Public Impact

Youth in Minnesota seeking vocational training and employment services are the primary beneficiaries. The contract delivers operational services for the Hubert H. Humphrey Job Corps Center. It also provides essential outreach, admissions, and career transition services tailored to Minnesota residents. The contract supports workforce development initiatives within the state of Minnesota.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (since 2003) could potentially lead to complacency if not actively managed.
Cost Plus Incentive Fee contracts require careful monitoring to ensure cost controls and effective incentive alignment.

Positive Signals

Long-term operation suggests contractor stability and established expertise in Job Corps program delivery.
Full and open competition indicates a structured procurement process that should yield competitive pricing.
Focus on specific services (outreach, admissions, transition) suggests a targeted approach to youth development.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' (NAICS 611519) sector, which encompasses institutions providing vocational and technical training. The Job Corps program is a significant federal initiative aimed at workforce development for at-risk youth. Spending in this sector is crucial for addressing skills gaps and promoting economic mobility. Comparable spending benchmarks would involve analyzing the operational costs of other Job Corps centers nationwide and the average contract values for similar workforce development programs.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and opportunities for small business participation may be limited unless they are subcontractors to the prime. Further analysis would be needed to determine if any subcontracting plans were mandated or voluntarily pursued by the contractor.

Oversight & Accountability

The Department of Labor's Employment and Training Administration is the contracting agency, responsible for oversight. As a Cost Plus Incentive Fee contract, performance metrics and cost tracking would be key areas of oversight. Inspector General jurisdiction would apply to investigate any potential fraud, waste, or abuse. Transparency would be enhanced through public contract databases and reporting requirements.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Youth Training Programs
Federal Job Training Contracts

Risk Flags

Long-term contract duration requires ongoing performance monitoring.
Cost Plus Incentive Fee structure necessitates careful oversight of cost and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $44.2 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. OPERATE THE HUBERT H. HUMPHREY JOB CORPS CENTER, AND PROVIDE OUTREACH AND ADMISSIONS SERVICES FOR ARRIVALS FROM THE STATE OF MINNESOTA AND CAREER TRANSITION SERVICES FOR JOB CORPS YOUTH RETURNING TO THE STATE OF MINNESOTA

Who is the contractor on this award?

The obligated recipient is CAREER SYSTEMS DEVELOPMENT 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 $44.2 million.

What is the period of performance?

Start: 2003-10-01. End: 2009-01-31.

What is the historical spending trend for this specific contract over its lifespan?

The contract, awarded in October 2003 and ending in January 2009, had a total value of $44,171,356.34. This represents an average annual spending of approximately $7.36 million ($44.17M / 6 years). Without access to detailed annual obligation data, it's difficult to ascertain specific spending trends year-over-year. However, the total value suggests a consistent level of funding allocated to the operation of the Hubert H. Humphrey Job Corps Center and associated services throughout the contract period. Further investigation into annual award modifications or task orders could reveal fluctuations or consistent funding patterns.

How does the cost per participant compare to other Job Corps centers?

Determining the exact cost per participant requires knowing the number of youth served by the Hubert H. Humphrey Job Corps Center during the contract period. This data is not directly available in the provided summary. To benchmark effectively, one would need to compare the total contract value ($44.17M) against the average daily enrollment or total number of participants served over the contract's duration (October 2003 - January 2009). This figure would then be compared to similar metrics from other Job Corps centers, which are often published in government accountability reports or agency performance reviews. Without participant numbers, a cost-per-participant benchmark is not feasible.

What specific performance metrics are tied to the 'Incentive Fee' in this Cost Plus Incentive Fee contract?

The 'Incentive Fee' component of a Cost Plus Incentive Fee (CPIF) contract is designed to motivate the contractor to achieve specific performance goals, often related to cost savings, schedule adherence, or quality standards. For this particular contract, the specific metrics driving the incentive fee are not detailed in the provided summary. Typically, these metrics would be outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Common incentives for Job Corps centers might include student retention rates, graduation rates, job placement success, or cost efficiencies in operations. The Department of Labor would have established these targets and the corresponding fee adjustments.

What is the track record of Career Systems Development Corporation with other federal contracts, particularly within the Job Corps program?

Career Systems Development Corporation has a history of operating Job Corps centers, as indicated by this long-standing contract with the Department of Labor. To assess their broader track record, one would need to examine other contracts awarded to them by federal agencies. This would involve searching contract databases for past performance information, including contract values, agencies involved, and any reported performance issues or successes. A review of their history with the Job Corps program specifically would reveal their experience in managing similar facilities and delivering required services, providing insight into their reliability and effectiveness.

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

Information regarding specific challenges or disputes during the performance of this contract is not included in the provided summary data. Contract performance issues, disputes, or contract modifications are typically documented in more detailed contract files or agency performance reports. To ascertain if there were any significant challenges, one would need to consult sources like the Federal Procurement Data System (FPDS), agency Inspector General reports, or contract award histories that might detail contract modifications, claims, or termination notices. The absence of readily available dispute information does not guarantee smooth performance but suggests no major publicly documented issues.

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

Solicitation ID: AE95989000

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Contractor Details

Parent Company: OWL Companies (UEI: 044437796)

Address: 75 THRUWAY PARK DR 100, WEST HENRIETTA

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

Financial Breakdown

Contract Ceiling: $132,902,968

Exercised Options: $132,522,543

Current Obligation: $44,171,356

Timeline