Labor Dept Awards $74.8M for Youth Vocational Training to Career Systems Development Corp

Contract Overview

Contract Amount: $74,844,460 ($74.8M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2003-10-01

End Date: 2005-09-30

Contract Duration: 730 days

Daily Burn Rate: $102.5K/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 TRAINING TO YOUTH

Place of Performance

Location: IMPERIAL BEACH, SAN DIEGO County, CALIFORNIA, 91932

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $74.8 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: PROVIDE VOCATIONAL AND ACADEMIC TRAINING TO YOUTH Key points: 1. Contract awarded to a single vendor, Career Systems Development Corporation. 2. The contract value is substantial at $74.8 million. 3. The contract type is Cost Plus Incentive, suggesting potential for cost overruns. 4. The sector is vocational training, a critical area for youth development.

Value Assessment

Rating: fair

The contract value of $74.8 million for a 2-year period appears high for vocational training services. Benchmarking against similar contracts for youth development programs is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the award to a single entity suggests specific capabilities were sought.

Taxpayer Impact: Taxpayer funds are being used for youth vocational training, aiming for long-term societal benefits through improved employment outcomes.

Public Impact

Provides essential vocational and academic training to youth, potentially improving their future employment prospects. Supports the Department of Labor's mission to prepare young people for the workforce. The program's success hinges on effective training delivery and job placement rates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive contract type can lead to higher costs than fixed-price contracts.
Lack of specific performance metrics or outcomes in the provided data.
The contract duration of 2 years may not be sufficient for long-term impact assessment.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Focuses on a critical area of youth development and workforce readiness.
Contract awarded to a known entity, potentially indicating established expertise.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on facilities support services (NAICS 561210) related to training. Benchmarks for similar youth development or vocational training contracts are not readily available but are typically project-dependent.

Small Business Impact

The data indicates the contract was not set aside for small businesses (SB: false). Therefore, small businesses were likely not the primary focus of this award, though they could be subcontractors.

Oversight & Accountability

The Department of Labor's Employment and Training Administration is responsible for overseeing this contract. Robust oversight is crucial to ensure effective program delivery and proper use of funds, especially with a Cost Plus Incentive contract type.

Related Government Programs

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

Risk Flags

Cost Plus Incentive contract type.
Lack of specific performance metrics in provided data.
Potential for cost overruns.
Limited information on subcontractor utilization.
No clear indication of long-term impact assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $74.8 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. PROVIDE VOCATIONAL AND ACADEMIC TRAINING TO YOUTH

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 $74.8 million.

What is the period of performance?

Start: 2003-10-01. End: 2005-09-30.

What are the key performance indicators (KPIs) for this contract, and what are the target outcomes for youth participants?

The provided data does not specify the key performance indicators (KPIs) or target outcomes for this contract. Effective oversight would require clearly defined metrics such as training completion rates, job placement rates, and average starting salaries for participants. Without these, assessing the program's success and value for taxpayer money is challenging.

What is the rationale for using a Cost Plus Incentive (CPI) contract type for vocational training, and what are the associated risks?

A Cost Plus Incentive (CPI) contract allows for costs to be reimbursed plus a fee, with incentives for meeting certain performance targets. For vocational training, this might be used if specific outcomes are hard to define upfront. However, the primary risk is that the government may pay more than necessary if cost controls are weak or incentives are not well-aligned with desired results, potentially leading to inflated costs.

How does the success of this vocational training program compare to other similar initiatives funded by the government?

Direct comparison is difficult without specific performance data for this contract. Success metrics like job placement rates, participant retention, and long-term career progression are essential for benchmarking. The Department of Labor likely has internal data or reports on similar programs, but this contract's specific effectiveness relative to others is not detailed in the provided information.

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

Solicitation ID: RFP-02-03

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $98,200,154

Exercised Options: $83,255,834

Current Obligation: $74,844,460

Contract Characteristics

Cost or Pricing Data: NO

Timeline