Labor Department Awards $10.4M for Apprenticeship Expansion, Focusing on Industry Intermediaries

Contract Overview

Contract Amount: $10,432,331 ($10.4M)

Contractor: National Institute of Innovation & Technology Inc

Awarding Agency: Department of Labor

Start Date: 2021-12-15

End Date: 2024-12-15

Contract Duration: 1,096 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: INDUSTRY INTERMEDIARIES TO LAUNCH, PROMOTE, AND EXPAND MULTI-EMPLOYER REGISTERED APPRENTICESHIP MODELS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $10.4 million to NATIONAL INSTITUTE OF INNOVATION & TECHNOLOGY INC for work described as: INDUSTRY INTERMEDIARIES TO LAUNCH, PROMOTE, AND EXPAND MULTI-EMPLOYER REGISTERED APPRENTICESHIP MODELS. Key points: 1. Contract aims to scale multi-employer registered apprenticeship programs. 2. Focus on industry intermediaries suggests a strategy to broaden reach. 3. Potential risk lies in the effectiveness of intermediaries in program adoption. 4. The IT sector is not directly involved, but workforce development is key.

Value Assessment

Rating: fair

The contract is a Time and Materials type, awarded under full and open competition. The total value is $10.4 million over 1096 days. Benchmarking per-unit cost for apprenticeship program expansion is difficult due to the service-based nature and varying program scopes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating a broad search for qualified vendors. This method generally promotes competitive pricing and allows for a wide range of potential solutions to be considered.

Taxpayer Impact: Taxpayer funds are being invested in expanding apprenticeship models, which could lead to a more skilled workforce and potentially reduce unemployment, offering long-term economic benefits.

Public Impact

Expansion of registered apprenticeship programs can lead to a more skilled and adaptable workforce. Support for industry intermediaries may streamline the creation and promotion of apprenticeship opportunities. This initiative could address specific industry labor shortages by providing tailored training pathways. Success hinges on the ability of intermediaries to effectively recruit and support both employers and apprentices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Effectiveness of intermediaries in program adoption.
Scalability of the model across different industries and regions.
Measuring the long-term impact on employment and wages.

Positive Signals

Addresses a critical need for skilled labor.
Utilizes a competitive bidding process.
Focuses on a proven training model (apprenticeships).

Sector Analysis

This contract falls under workforce development and training services, specifically focusing on apprenticeship models. Spending in this area is crucial for economic growth and addressing labor market needs. Benchmarks vary widely depending on the specific training provided and the target industry.

Small Business Impact

The provided data does not indicate whether small businesses were specifically targeted or participated in this contract. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is overseeing this contract. Standard oversight mechanisms for federal contracts should apply, including performance monitoring and financial accountability.

Related Government Programs

Apprenticeship Training
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for intermediaries to underperform.
Difficulty in standardizing program quality across diverse entities.
Measuring long-term economic impact and ROI.
Ensuring equitable access to apprenticeship opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $10.4 million to NATIONAL INSTITUTE OF INNOVATION & TECHNOLOGY INC. INDUSTRY INTERMEDIARIES TO LAUNCH, PROMOTE, AND EXPAND MULTI-EMPLOYER REGISTERED APPRENTICESHIP MODELS.

Who is the contractor on this award?

The obligated recipient is NATIONAL INSTITUTE OF INNOVATION & TECHNOLOGY INC.

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 $10.4 million.

What is the period of performance?

Start: 2021-12-15. End: 2024-12-15.

What is the expected return on investment for this $10.4 million investment in apprenticeship programs?

The return on investment is expected to manifest through a more skilled workforce, reduced unemployment rates, and increased productivity across various sectors. Quantifying this precisely is challenging as it depends on the long-term career trajectories of apprentices and the economic impact of filling labor shortages. The Department of Labor anticipates that successful program expansion will yield significant economic and social benefits.

What are the primary risks associated with relying on industry intermediaries for apprenticeship expansion?

Key risks include the potential for intermediaries to lack the necessary expertise or resources to effectively recruit employers and apprentices, or to ensure program quality and compliance. There's also a risk of inconsistent program adoption across different regions or industries if intermediaries are not adequately supported or incentivized. Ensuring accountability and standardized outcomes across diverse intermediary-led programs presents a significant challenge.

How will the effectiveness of these multi-employer apprenticeship models be measured and evaluated?

Effectiveness will likely be measured through metrics such as the number of new apprenticeship programs launched, the number of employers participating, and the number of apprentices enrolled and completing their training. Key performance indicators may also include job placement rates, wage progression of completers, and feedback from participating employers and apprentices to ensure program quality and relevance.

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

Offers Received: 10

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1333 ASHTON RD, HANOVER, MD, 21076

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

Financial Breakdown

Contract Ceiling: $10,432,331

Exercised Options: $10,432,331

Current Obligation: $10,432,331

Actual Outlays: $10,432,331

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline