Department of Labor awards $7.86M contract to Fastport for apprenticeship expansion in transportation

Contract Overview

Contract Amount: $7,862,543 ($7.9M)

Contractor: Fastport, Inc.

Awarding Agency: Department of Labor

Start Date: 2023-06-29

End Date: 2026-06-28

Contract Duration: 1,095 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: TIME AND MATERIALS

Sector: Transportation

Official Description: EXPANSION OF REGISTERED APPRENTICESHIP (RA) PROGRAMS THROUGH INDUSTRY INTERMEDIARIES: RA ACCELERATION IN ESTABLISHED INDUSTRIES-TRANSPORTATION

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 $7.9 million to FASTPORT, INC. for work described as: EXPANSION OF REGISTERED APPRENTICESHIP (RA) PROGRAMS THROUGH INDUSTRY INTERMEDIARIES: RA ACCELERATION IN ESTABLISHED INDUSTRIES-TRANSPORTATION Key points: 1. Contract aims to accelerate Registered Apprenticeship programs via industry intermediaries. 2. Focus on established industries, specifically transportation, suggests targeted sector growth. 3. The contract duration of 1095 days indicates a medium-term investment in program development. 4. Awarded on a Time and Materials basis, requiring close monitoring of labor costs. 5. The absence of small business set-aside suggests a focus on established intermediaries. 6. This initiative aligns with broader federal goals to expand workforce development opportunities.

Value Assessment

Rating: good

The contract value of $7.86 million over three years appears reasonable for a national initiative focused on expanding registered apprenticeship programs through industry intermediaries. Benchmarking against similar large-scale workforce development grants or contracts would provide a clearer picture of value for money. The Time and Materials pricing structure necessitates careful oversight to ensure costs remain aligned with project milestones and deliverables, preventing potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 9 bidders suggests a competitive landscape for this type of service. A competitive process is generally expected to yield fair market pricing and encourage innovative approaches from contractors.

Taxpayer Impact: A full and open competition ensures that taxpayer funds are used efficiently by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

Benefits workers by expanding access to skills training and career pathways in the transportation sector. Aims to strengthen the transportation workforce by developing new apprenticeship programs. Geographic impact is national, targeting established industries across the country. Workforce implications include potential for increased skilled labor availability in transportation and related fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type requires diligent oversight to manage labor costs effectively.
The success of the program is heavily reliant on the effectiveness of Fastport, Inc. as an industry intermediary.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Focus on expanding Registered Apprenticeship programs aligns with national workforce development priorities.
The contract duration suggests a commitment to achieving measurable outcomes in apprenticeship expansion.

Sector Analysis

The transportation sector is a critical component of the U.S. economy, facing ongoing needs for skilled labor. This contract fits within the broader federal strategy to bolster workforce development and address potential labor shortages in key industries. Comparable spending in workforce development initiatives can vary widely, but investments in apprenticeship programs are generally seen as cost-effective long-term solutions for building a skilled workforce.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The focus on industry intermediaries suggests that the primary contractor is expected to have established networks and capabilities, which may or may not involve significant subcontracting to smaller entities. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight will likely be managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management. Accountability measures would be tied to the performance metrics and deliverables outlined in the contract. Transparency is generally facilitated through contract awards databases and reporting requirements, though specific details of program implementation and spending may vary.

Related Government Programs

Department of Labor Apprenticeship Programs
Transportation Workforce Development Initiatives
Industry Intermediary Grants
Registered Apprenticeship Expansion

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Dependence on the effectiveness and efficiency of the industry intermediary (Fastport, Inc.).
Ensuring widespread adoption and success of new apprenticeship programs across the transportation sector.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $7.9 million to FASTPORT, INC.. EXPANSION OF REGISTERED APPRENTICESHIP (RA) PROGRAMS THROUGH INDUSTRY INTERMEDIARIES: RA ACCELERATION IN ESTABLISHED INDUSTRIES-TRANSPORTATION

Who is the contractor on this award?

The obligated recipient is FASTPORT, 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 $7.9 million.

What is the period of performance?

Start: 2023-06-29. End: 2026-06-28.

What is Fastport, Inc.'s track record in managing federal apprenticeship programs?

Fastport, Inc. has a demonstrated history of working with federal agencies and industry partners to develop and expand apprenticeship programs. They have been involved in initiatives aimed at connecting job seekers with training opportunities, particularly in sectors like transportation and logistics. Their experience often involves building partnerships between employers, educational institutions, and government bodies to create effective training pipelines. While specific performance metrics for past federal contracts are not detailed here, their continued engagement in this space suggests a level of success and capability in facilitating apprenticeship growth and administration. Further investigation into their past performance reports and client testimonials would provide a more comprehensive understanding of their track record.

How does the $7.86 million contract value compare to similar federal investments in apprenticeship expansion?

The $7.86 million contract value for expanding registered apprenticeship programs through industry intermediaries in the transportation sector is a significant investment. Comparing it to similar federal initiatives requires looking at the scope, duration, and specific objectives of other programs. For instance, large-scale grants awarded by the Department of Labor to support apprenticeship often range from a few million to tens of millions of dollars, depending on whether they are national in scope, target specific industries, or focus on particular populations. The value here seems aligned with substantial, multi-year efforts aimed at systemic change within an industry's workforce development. However, a precise benchmark would necessitate a detailed analysis of comparable contracts, considering factors like the number of apprentices to be trained, the complexity of the industry, and the expected outcomes.

What are the primary risks associated with this Time and Materials contract?

The primary risk associated with this Time and Materials (T&M) contract is the potential for cost overruns if not managed diligently. 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, especially if the project scope expands or if labor hours are not efficiently utilized. To mitigate this risk, the Department of Labor will need robust oversight mechanisms, including detailed tracking of labor hours, verification of material costs, and regular performance reviews to ensure the contractor is meeting milestones and objectives within a reasonable timeframe. Clear communication and defined ceilings or limits within the contract are also crucial.

How effective is the use of industry intermediaries in expanding apprenticeship programs?

Industry intermediaries, such as Fastport, Inc. in this case, can be highly effective in expanding apprenticeship programs. They often possess deep knowledge of specific industry needs, established networks with employers, and the capacity to streamline the development and administration of apprenticeship standards. By acting as a central point of contact and support, intermediaries can reduce the administrative burden on individual employers, making it easier for them to adopt or expand apprenticeship offerings. They can also facilitate collaboration among various stakeholders, including training providers and educational institutions. The success of this approach, however, depends on the intermediary's ability to effectively engage employers, design relevant training curricula, and ensure quality assurance throughout the apprenticeship lifecycle.

What are the historical spending patterns for apprenticeship expansion initiatives within the Department of Labor?

The Department of Labor has historically allocated significant funding towards apprenticeship expansion initiatives, recognizing their importance in workforce development. Spending patterns have evolved over time, with increasing emphasis on leveraging industry partnerships and innovative approaches. Recent years have seen a focus on grants and contracts that support the development of new apprenticeship programs, particularly in high-growth or in-demand sectors like technology, healthcare, and advanced manufacturing, in addition to traditional fields like construction and transportation. Funding often supports intermediaries, direct grants to employers, and efforts to modernize apprenticeship standards. The total annual investment can fluctuate based on congressional appropriations and administration priorities, but there is a consistent commitment to supporting apprenticeship as a key workforce training 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: 1605C2-23-R-00004

Offers Received: 9

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 59 GROUSE RUN, PELHAM, NH, 03076

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

Financial Breakdown

Contract Ceiling: $12,660,327

Exercised Options: $7,862,543

Current Obligation: $7,862,543

Actual Outlays: $5,961,531

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline