Department of Labor awards $47.4M contract for Chicago Job Corps Center operations to Management & Training Corporation

Contract Overview

Contract Amount: $47,391,514 ($47.4M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2003-09-15

End Date: 2008-07-31

Contract Duration: 1,781 days

Daily Burn Rate: $26.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE

Sector: Other

Official Description: OPERATION OF THE PAUL SIMON CHICAGO JOB CORPS CENTER

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60623

State: Illinois Government Spending

Plain-Language Summary

Department of Labor obligated $47.4 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF THE PAUL SIMON CHICAGO JOB CORPS CENTER Key points: 1. The contract value of $47.4 million over approximately 5 years represents a significant investment in vocational training. 2. Management & Training Corporation is a major player in the private correctional and detention facility management sector, with this contract indicating diversification. 3. The 'Cost Plus Incentive' contract type carries inherent risk of cost overruns if not managed tightly, but incentivizes performance. 4. The 'Other Technical and Trade Schools' sector is crucial for workforce development, with this contract supporting a key federal program.

Value Assessment

Rating: fair

The contract's Cost Plus Incentive fee structure suggests a potential for costs to exceed initial estimates if performance targets are aggressively pursued or if unforeseen issues arise. Benchmarking against similar large-scale educational facility management contracts would be necessary for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. However, the specific details of the bidding and selection process are not provided, making it difficult to assess the extent of competitive pressure on the final price.

Taxpayer Impact: Taxpayer funds are being utilized for job training and development, aiming to improve workforce skills and reduce unemployment. The effectiveness of the program in achieving these goals will ultimately determine the true taxpayer impact.

Public Impact

Supports job training for disadvantaged youth, potentially impacting local employment rates and economic mobility. The operation of a Job Corps center provides essential services and employment opportunities within the Chicago area. Federal investment in vocational education aims to address skills gaps and contribute to a more competitive workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive fee structure can lead to higher costs if not closely monitored.
Limited information on specific performance metrics and their impact on the incentive fee.
Potential for contractor to prioritize profit over optimal service delivery under incentive contracts.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Contract supports a vital federal program for workforce development.
Long contract duration (1781 days) indicates a stable, long-term commitment to the program.

Sector Analysis

The 'Other Technical and Trade Schools' sector, classified under NAICS 611519, encompasses institutions providing vocational and technical training. Federal spending in this area supports workforce development initiatives. Benchmarks for similar large-scale training center operations would typically consider student outcomes, facility management costs, and program efficiency.

Small Business Impact

The data indicates that small business participation was not a stated requirement or outcome for this contract (ss: false, sb: false). This suggests that the primary focus was on the capabilities of larger, established organizations rather than promoting small business involvement.

Oversight & Accountability

The Department of Labor's Employment and Training Administration is responsible for overseeing this contract. Robust oversight mechanisms, including performance reviews and financial audits, are crucial to ensure efficient use of taxpayer funds and effective program delivery.

Related Government Programs

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

Risk Flags

Cost Plus Incentive contract type carries inherent risk of cost escalation.
Lack of specific performance metrics tied to incentive fees.
Potential for contractor to prioritize profit over program effectiveness.
Limited information on contractor's specific experience with federal job training programs.
No explicit small business participation goals noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $47.4 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF THE PAUL SIMON CHICAGO 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 $47.4 million.

What is the period of performance?

Start: 2003-09-15. End: 2008-07-31.

What is the historical performance of Management & Training Corporation in managing similar federal training programs, and how does it compare to industry averages?

Assessing MTC's track record in managing federal training programs is crucial for understanding their capability and efficiency. A comparative analysis against industry benchmarks for student placement rates, cost-effectiveness, and program completion would provide valuable insights into the potential value and risks associated with this contract. Without this data, it's difficult to definitively gauge the contractor's suitability beyond their initial bid.

How are the incentive fees structured within this Cost Plus Incentive contract, and what specific performance metrics are tied to them?

The effectiveness of the incentive fee structure hinges on clearly defined, measurable, and achievable performance metrics. Understanding these metrics (e.g., student graduation rates, job placement success, cost savings) and the associated fee adjustments is vital for evaluating whether the contract truly incentivizes optimal outcomes for the Job Corps program and taxpayers. Vague or easily manipulated metrics could undermine the intended benefits.

What is the projected long-term impact of this Job Corps Center operation on local employment and economic development in Chicago?

The ultimate effectiveness of this contract lies in its contribution to the Paul Simon Chicago Job Corps Center's mission. Analyzing the center's historical data on student outcomes, job placement rates, and the subsequent economic impact on participants and the local community is essential. This assessment should consider whether the federal investment translates into sustainable employment and improved economic mobility for the targeted population.

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: 500 N MARKET PLACE DR, CENTERVILLE, UT, 02

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $47,391,514

Exercised Options: $47,391,514

Current Obligation: $47,391,514

Timeline