Department of Labor awards $67.9M contract to Career Systems Development Corp for youth vocational services

Contract Overview

Contract Amount: $67,906,824 ($67.9M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2003-03-01

End Date: 2008-06-30

Contract Duration: 1,948 days

Daily Burn Rate: $34.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE

Sector: Other

Official Description: PROVIDE VOCATIONAL AND ACADEMIC SERVICES TO YOUTH AGES 16 TO 24 OLD.

Place of Performance

Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95832

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $67.9 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: PROVIDE VOCATIONAL AND ACADEMIC SERVICES TO YOUTH AGES 16 TO 24 OLD. Key points: 1. Contract awarded to Career Systems Development Corporation for vocational and academic services. 2. The contract spans over 5 years, from March 2003 to June 2008. 3. Services target youth aged 16 to 24, focusing on employment and training. 4. The contract type is Cost Plus Incentive, suggesting performance-based incentives. 5. NAICS code 561210 indicates Facilities Support Services.

Value Assessment

Rating: fair

The contract's Cost Plus Incentive fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar vocational training contracts is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Cost Plus Incentive fee structure may not always yield the lowest possible price.

Taxpayer Impact: Taxpayer funds are utilized for youth employment and training programs, aiming for long-term societal benefits through improved workforce participation.

Public Impact

Provides essential vocational and academic services to at-risk youth. Aims to improve employment prospects and life skills for young adults. Supports the Department of Labor's mission in workforce development. Contract duration of over 5 years indicates a significant, long-term program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive fee structure can lead to higher costs.
Lack of specific performance metrics makes value assessment difficult.
Long contract duration may not reflect current market needs.

Positive Signals

Full and open competition utilized.
Addresses critical youth employment needs.
Supports a key government mission.

Sector Analysis

The sector involves workforce development and training services, often contracted by government agencies. Spending benchmarks for similar youth vocational programs vary widely based on scope and duration.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

Oversight would typically be managed by the Department of Labor's Employment and Training Administration. The Cost Plus Incentive fee structure requires diligent monitoring to ensure cost efficiency and program effectiveness.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to CPIF structure.
Lack of specific performance metrics for value assessment.
Long contract duration may not be cost-effective.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $67.9 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. PROVIDE VOCATIONAL AND ACADEMIC SERVICES TO YOUTH AGES 16 TO 24 OLD.

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 $67.9 million.

What is the period of performance?

Start: 2003-03-01. End: 2008-06-30.

What specific vocational and academic outcomes were achieved by this contract?

The provided data does not detail the specific outcomes or performance metrics achieved by Career Systems Development Corporation. Further analysis would require access to program reports, completion rates, and post-program employment data to assess the true value and effectiveness of the vocational and academic services provided to the youth.

How did the Cost Plus Incentive fee structure impact the final cost compared to a fixed-price contract?

A Cost Plus Incentive (CPIF) contract allows for shared savings or cost overruns between the government and the contractor based on performance targets. While it can incentivize efficiency, it inherently carries a higher risk of cost escalation than a fixed-price contract if targets are not met or if costs exceed projections. Without the final cost data and performance against targets, a precise comparison is not possible.

What was the competitive landscape for these youth services during the solicitation period?

The contract was awarded under 'full and open competition,' suggesting multiple bids were likely received. However, the specific number of bidders and their qualifications are not detailed. Understanding the competitive landscape would involve reviewing the solicitation documents and bid analysis from the Department of Labor to ascertain if the chosen contractor offered the best value proposition.

Industry Classification

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

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE (V)

Contractor Details

Parent Company: OWL Companies (UEI: 044437796)

Address: 75 THRUWAY PARK DR 100, WEST HENRIETTA, NY, 25

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $57,220,026

Exercised Options: $64,447,408

Current Obligation: $67,906,824

Timeline