Department of Labor awards $6.7M for apprenticeship expansion, with 15 bids received

Contract Overview

Contract Amount: $6,747,106 ($6.7M)

Contractor: Washington Technology Industry Association

Awarding Agency: Department of Labor

Start Date: 2020-09-28

End Date: 2024-09-27

Contract Duration: 1,460 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EXPANSION OF REGISTERED APPRENTICESHIP THROUGH INDUSTRY INTERMEDIARY 2020

Place of Performance

Location: REDMOND, KING County, WASHINGTON, 98052

State: Washington Government Spending

Plain-Language Summary

Department of Labor obligated $6.7 million to WASHINGTON TECHNOLOGY INDUSTRY ASSOCIATION for work described as: EXPANSION OF REGISTERED APPRENTICESHIP THROUGH INDUSTRY INTERMEDIARY 2020 Key points: 1. The contract aims to expand registered apprenticeships by leveraging industry intermediaries. 2. A competitive bidding process with 15 offers suggests a healthy market interest. 3. The contract duration of 1460 days indicates a long-term commitment to program development. 4. Focus on apprenticeship training aligns with federal workforce development goals. 5. The use of a Time and Materials contract type may require close monitoring of costs. 6. The awardee, Washington Technology Industry Association, is positioned to influence sector growth.

Value Assessment

Rating: good

The contract value of $6.7 million over approximately four years appears reasonable for a program focused on expanding registered apprenticeships through an industry intermediary. Benchmarking against similar federal investments in workforce development and apprenticeship programs would provide a more precise value-for-money assessment. The Time and Materials pricing structure necessitates careful oversight to ensure costs remain aligned with the program's objectives and do not escalate beyond initial expectations. Without specific performance metrics and outcomes, a definitive value assessment is challenging, but the competitive nature of the award suggests a baseline level of market validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, attracting 15 bids. This high level of competition is a positive indicator, suggesting that the market has multiple capable entities interested in supporting the Department of Labor's apprenticeship expansion goals. The significant number of bidders likely contributed to price discovery and allowed the agency to select from a range of qualified proposals, potentially leading to a more favorable outcome in terms of both cost and technical approach.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and encouraged innovative solutions, ensuring federal funds are used efficiently to achieve program objectives.

Public Impact

Workers seeking new skills and career pathways through registered apprenticeships will benefit directly. The program aims to increase the number of registered apprenticeships nationwide. The geographic impact is expected to be broad, supporting workforce development across various regions. This initiative has positive implications for the skilled trades and other industries facing workforce shortages. The contract supports the development of a more skilled and adaptable workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure if not closely managed.
Ensuring equitable access to apprenticeship opportunities across diverse demographics.
Measuring the long-term impact and success rate of apprentices placed through the program.
Sustaining program momentum and funding beyond the initial contract period.

Positive Signals

Awarded through full and open competition, indicating broad market interest and potential for innovation.
The significant number of bidders (15) suggests a competitive environment that could lead to better value.
The contract duration of nearly four years allows for sustained program development and impact.
Focus on expanding registered apprenticeships aligns with critical national workforce development needs.

Sector Analysis

The workforce development sector, particularly apprenticeship programs, is a critical component of the U.S. economy, aiming to bridge skills gaps and provide pathways to well-paying jobs. Federal spending in this area supports various initiatives, including direct training, intermediary services, and program development. This contract, valued at $6.7 million, fits within the broader landscape of federal investments in education and training, aiming to leverage industry expertise to scale effective apprenticeship models. Comparable spending benchmarks would involve analyzing other federal grants and contracts focused on apprenticeship expansion and workforce intermediaries.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). However, the broad competition may still offer opportunities for small businesses to participate as subcontractors to the prime awardee, the Washington Technology Industry Association. The impact on the small business ecosystem will depend on the subcontracting plans developed by the prime contractor and the extent to which they engage smaller, specialized firms in delivering apprenticeship services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM), which is responsible for administrative and management functions. Accountability measures will be embedded within the contract's performance work statement, requiring the awardee to meet specific milestones and reporting requirements. Transparency is facilitated through the federal contract database where award details are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract funds.

Related Government Programs

Department of Labor Apprenticeship Programs
Workforce Innovation and Opportunity Act (WIOA) Programs
Industry-Recognized Apprenticeship Programs (IRAPs)
Federal Skills Training Initiatives

Risk Flags

Potential for cost overruns due to T&M contract type.
Ensuring equitable access and outcomes for diverse participant groups.
Measuring long-term program effectiveness and return on investment.
Dependency on the industry intermediary's capacity and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $6.7 million to WASHINGTON TECHNOLOGY INDUSTRY ASSOCIATION. EXPANSION OF REGISTERED APPRENTICESHIP THROUGH INDUSTRY INTERMEDIARY 2020

Who is the contractor on this award?

The obligated recipient is WASHINGTON TECHNOLOGY INDUSTRY ASSOCIATION.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $6.7 million.

What is the period of performance?

Start: 2020-09-28. End: 2024-09-27.

What is the track record of the Washington Technology Industry Association (WTIA) in managing federal grants or contracts related to workforce development and apprenticeships?

Assessing the Washington Technology Industry Association's (WTIA) track record requires a review of their past performance on similar federal initiatives. While specific details of their prior federal contract history are not provided in the basic award data, their selection as a prime awardee for this significant apprenticeship expansion contract suggests they possess relevant experience and capabilities. WTIA's mission often involves advocating for and supporting the technology sector, which can include workforce development components. Further investigation into their past performance reports, any prior federal awards, and their organizational capacity for managing complex programs would be necessary for a comprehensive assessment of their track record in this specific domain.

How does the $6.7 million contract value compare to other federal investments in apprenticeship intermediaries or similar workforce development programs?

The $6.7 million contract value for the expansion of registered apprenticeships through an industry intermediary is a moderate investment within the federal landscape of workforce development. Federal spending on apprenticeship and related training initiatives can range significantly, from smaller grants to large-scale programs. For instance, the Department of Labor's own budget includes substantial allocations for various workforce programs. Comparing this specific contract requires looking at the scale and scope of other intermediary-focused contracts or grants. If this contract aims to serve a national or multi-state region, its value might be considered standard or even modest. Conversely, if it targets a specific state or a niche industry, it could represent a significant investment. Benchmarking against similar contracts awarded to industry associations or non-profits for apprenticeship scaling would provide better context on its relative value.

What are the primary risks associated with a Time and Materials (T&M) contract type for this apprenticeship expansion initiative?

The primary risk associated with a Time and Materials (T&M) contract type for this apprenticeship expansion initiative is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can lead to unpredictable final costs for the government if the scope of work expands, if labor hours are not efficiently utilized, or if material costs increase unexpectedly. For the Department of Labor, this necessitates robust oversight, detailed tracking of labor hours, and stringent management of material procurement to ensure the $6.7 million award does not exceed its allocated budget. Effective monitoring and clear definition of effort are crucial to mitigate these risks and ensure value for taxpayer money.

What specific performance metrics will be used to evaluate the success of the apprenticeship expansion program funded by this contract?

The success of this apprenticeship expansion program will likely be evaluated through a set of performance metrics defined in the contract's Performance Work Statement (PWS). These metrics typically focus on tangible outcomes related to apprenticeship growth and effectiveness. Key indicators could include the number of new registered apprenticeships created or expanded, the number of individuals enrolled and completing these programs, the diversity of participants, and the successful placement of apprentices into employment post-completion. Furthermore, metrics related to employer engagement, the development of new apprenticeship standards, and the overall reach and impact of the industry intermediary model will be crucial. The Department of Labor will monitor these metrics to ensure the contractor is meeting its obligations and achieving the program's objectives within the allocated budget.

How has federal spending on apprenticeship programs evolved over the past five years, and does this contract represent a continuation or shift in strategy?

Federal spending on apprenticeship programs has generally seen an upward trend over the past five years, reflecting a growing recognition of apprenticeships as a vital pathway for workforce development and addressing skills gaps. Initiatives under various administrations have aimed to expand access, diversify participation, and encourage employer involvement. This $6.7 million contract for apprenticeship expansion through an industry intermediary aligns with this broader strategy of leveraging partnerships to scale effective models. It represents a continuation of federal commitment to strengthening the apprenticeship ecosystem, likely focusing on innovative approaches facilitated by industry expertise. Analyzing historical spending patterns would reveal the specific focus areas and funding levels, helping to contextualize whether this contract signifies a particular emphasis or a standard investment within an ongoing strategy.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Apprenticeship Training

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1630DC-20-R-00020

Offers Received: 15

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 8201 164TH AVE NE, SUITE 200, REDMOND, WA, 98052

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,747,106

Exercised Options: $6,747,106

Current Obligation: $6,747,106

Actual Outlays: $5,252,492

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline