Labor Department awards $45M for Denison Job Corps Center operations to Management & Training Corporation

Contract Overview

Contract Amount: $44,970,502 ($45.0M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2003-11-01

End Date: 2009-03-31

Contract Duration: 1,977 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: OPERATION OF THE DENISON JOB CORPS CENTER IN DENISON, IOWA

Place of Performance

Location: DENISON, CRAWFORD County, IOWA, 51442, UNITED STATES OF AMERICA

State: Iowa Government Spending

Plain-Language Summary

Department of Labor obligated $45.0 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF THE DENISON JOB CORPS CENTER IN DENISON, IOWA Key points: 1. Contract awarded to a single entity for facility support services. 2. The contract spans over 5 years, indicating a long-term need. 3. No small business participation noted, potentially limiting broader economic impact. 4. The sector involves facility support, crucial for operational continuity.

Value Assessment

Rating: fair

The contract's cost-plus-incentive-fee structure suggests potential for cost overruns if not managed tightly. Benchmarking against similar facility support contracts is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically fosters competitive pricing. However, the specific pricing mechanisms of a cost-plus-incentive-fee contract require careful monitoring to ensure cost efficiency.

Taxpayer Impact: Taxpayer funds are utilized for the operation of the Job Corps center, aiming to provide vocational training and employment opportunities.

Public Impact

Supports vocational training for youth, contributing to workforce development. Ensures the operational continuity of a key federal program. Potential for economic activity in the Denison, Iowa region through center operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-incentive-fee contracts can lead to higher costs if not closely managed.
Lack of small business participation may miss opportunities for economic inclusion.

Positive Signals

Full and open competition generally promotes competitive pricing.
Long contract duration suggests a stable and ongoing need for services.

Sector Analysis

This contract falls under Facilities Support Services, a broad category encompassing maintenance, operation, and management of physical infrastructure. Spending in this sector is often driven by the need to maintain government facilities and programs efficiently.

Small Business Impact

The contract data indicates no specific set-aside for small businesses. This means opportunities for small business participation were either not pursued or not met, potentially limiting the reach of federal contracting dollars.

Oversight & Accountability

The Department of Labor's Employment and Training Administration is responsible for overseeing this contract. Robust oversight is crucial, especially with cost-plus-incentive-fee structures, to ensure performance and cost control.

Related Government Programs

Facilities Support Services
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Potential for cost overruns due to cost-plus-incentive-fee structure.
Lack of small business participation.
Contract duration is long (1977 days), increasing exposure to potential performance issues.
The specific services provided under 'Facilities Support Services' are broad and require detailed performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $45.0 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF THE DENISON JOB CORPS CENTER IN DENISON, IOWA

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 $45.0 million.

What is the period of performance?

Start: 2003-11-01. End: 2009-03-31.

What is the benchmark cost for similar Job Corps center operations or facility support contracts of comparable scope and duration?

Determining a precise benchmark requires access to a database of similar contracts, including their scope, duration, and pricing structures. However, general industry data for facility management and support services can provide a comparative basis. Factors like geographic location, specific services required (e.g., maintenance, security, catering), and the complexity of the facility significantly influence costs. A detailed analysis would compare the per-unit costs (e.g., cost per student, cost per square foot) against industry averages and other government contracts.

How effectively has the contractor managed costs under the cost-plus-incentive-fee structure to ensure taxpayer value?

Assessing cost management effectiveness requires reviewing the contractor's performance reports, audit findings, and any documented cost savings or overruns against the incentive targets. The 'br' value of 22747 might represent a baseline or target cost, and comparing actual expenditures against this would reveal performance. A review of the incentive fee payouts and justifications is also necessary to understand if the structure successfully motivated cost efficiency or led to inflated expenses.

What is the impact of awarding this contract through full and open competition on the overall cost and quality of services provided?

Full and open competition is generally expected to drive down costs and improve service quality by allowing multiple vendors to bid. The fact that this method was used suggests a competitive marketplace for these services. However, the ultimate impact depends on the number and quality of bids received, the specific contract terms (like the cost-plus-incentive-fee structure), and the ongoing performance monitoring by the agency to ensure the competitive advantages translate into tangible benefits for the program and taxpayers.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation ID: AE97311000

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Contractor Details

Address: 500 NORTH MARKETPLACE DR, CENTERVILLE, UT, 84014

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

Financial Breakdown

Contract Ceiling: $135,716,622

Exercised Options: $135,716,622

Current Obligation: $44,970,502

Timeline