Department of Labor awards $52.2M contract for youth vocational services to Chugach McKinley, Inc

Contract Overview

Contract Amount: $52,221,157 ($52.2M)

Contractor: Chugach Mckinley, Inc.

Awarding Agency: Department of Labor

Start Date: 2003-07-15

End Date: 2008-08-31

Contract Duration: 1,874 days

Daily Burn Rate: $27.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

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: PALMER, MATANUSKA-SUSITNA County, ALASKA, 99645

State: Alaska Government Spending

Plain-Language Summary

Department of Labor obligated $52.2 million to CHUGACH MCKINLEY, INC. for work described as: PROVIDE VOCATIONAL AND ACADEMIC SERVICES TO YOUTH AGES 16 TO 24 OLD. Key points: 1. Contract awarded for vocational and academic services to youth. 2. Chugach McKinley, Inc. is the sole awardee. 3. The contract spans over 5 years. 4. The award is for facilities support services.

Value Assessment

Rating: questionable

The contract type is Cost Plus Incentive, which can lead to cost overruns if not managed tightly. The total award amount is substantial for the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for this significant contract raises concerns about the optimal use of taxpayer funds.

Public Impact

Provides essential vocational and academic services to at-risk youth. Supports workforce development initiatives for young adults. Ensures continuity of services for program participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Cost-plus contract type can incentivize overspending.
Long contract duration without competition.

Positive Signals

Addresses critical need for youth services.
Supports vulnerable population.
Long-term service provision.

Sector Analysis

This contract falls under Facilities Support Services, a broad category. The spending benchmark for similar services varies widely depending on scope and location. The $52.2M over 5 years suggests a significant program.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses.

Oversight & Accountability

The contract's sole-source nature and cost-plus incentive fee structure warrant close oversight to ensure cost efficiency and program effectiveness. Regular performance reviews are crucial.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $52.2 million to CHUGACH MCKINLEY, INC.. PROVIDE VOCATIONAL AND ACADEMIC SERVICES TO YOUTH AGES 16 TO 24 OLD.

Who is the contractor on this award?

The obligated recipient is CHUGACH MCKINLEY, INC..

Which agency awarded this contract?

Awarding agency: Department of Labor (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $52.2 million.

What is the period of performance?

Start: 2003-07-15. End: 2008-08-31.

What is the justification for the sole-source award, and were alternative competition methods explored?

The justification for the sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source is available or in cases of urgent need. Without further information, it's unclear if alternative competition methods were explored or deemed unsuitable for this specific requirement.

How is the 'incentive' component of the Cost Plus Incentive contract structured to ensure value for taxpayer money?

The Cost Plus Incentive (CPI) contract type aims to share cost savings and overruns between the government and the contractor. The 'incentive' is typically tied to meeting or exceeding specific performance targets, such as cost reduction, schedule adherence, or quality standards. The effectiveness relies on well-defined metrics and robust government oversight to ensure the contractor is motivated to achieve optimal outcomes.

What are the key performance indicators (KPIs) for the vocational and academic services, and how is their achievement measured?

The provided data does not specify the key performance indicators (KPIs) for the vocational and academic services. Effective measurement would typically involve tracking metrics such as youth graduation rates, job placement success, skill acquisition, and participant satisfaction. The Department of Labor's oversight would be responsible for defining and monitoring these KPIs to ensure the program's effectiveness.

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: NOT AVAILABLE FOR COMPETITION

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE (V)

Contractor Details

Parent Company: Chugach Alaska Corporation (UEI: 071844021)

Address: 560 E 34TH AVE, ANCHORAGE, AK, 00

Business Categories: Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $1,922,838

Exercised Options: $52,194,363

Current Obligation: $52,221,157

Timeline