Labor Dept. Awards $6.6M Contract to National Restaurant Association for Hospitality Apprenticeship Expansion

Contract Overview

Contract Amount: $6,655,118 ($6.7M)

Contractor: National Restaurant Association Educational Foundation

Awarding Agency: Department of Labor

Start Date: 2023-06-29

End Date: 2026-06-28

Contract Duration: 1,095 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: Other

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

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 $6.7 million to NATIONAL RESTAURANT ASSOCIATION EDUCATIONAL FOUNDATION for work described as: EXPANSION OF REGISTERED APPRENTICESHIP (RA) PROGRAMS THROUGH INDUSTRY INTERMEDIARIES: RA ACCELERATION IN ESTABLISHED INDUSTRIES-HOSPITALITY Key points: 1. Focus on hospitality sector apprenticeship expansion via industry intermediaries. 2. Contract awarded through full and open competition. 3. Potential for significant impact on workforce development in a key industry. 4. Risk of program effectiveness dependent on intermediary engagement and trainee retention.

Value Assessment

Rating: fair

The contract is a Time and Materials definitive contract with a ceiling of $6,655,118 over 3 years. Without specific performance metrics or comparable data, assessing value for money is difficult. The pricing structure allows for flexibility but could lead to cost overruns if not managed closely.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing. However, the specific details of the competition and the number of bidders are not provided.

Taxpayer Impact: Taxpayer funds are being invested in workforce development, aiming to create a more skilled labor pool in the hospitality industry, which could lead to long-term economic benefits.

Public Impact

Enhances skilled labor availability in the hospitality sector. Supports economic growth through workforce development initiatives. Provides opportunities for individuals to gain on-the-job training and certifications. Addresses potential labor shortages in a critical service industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials contract.
Effectiveness hinges on intermediary program execution.
Measuring actual apprenticeship success rates and long-term employment is crucial.

Positive Signals

Addresses a clear industry need for skilled workers.
Leverages established industry expertise through the National Restaurant Association.
Promotes structured training and career pathways.

Sector Analysis

The hospitality industry often faces challenges with workforce training and retention. This contract aims to address these by expanding registered apprenticeship programs, a proven method for developing skilled labor. Benchmarks for similar workforce development contracts vary widely based on scope and duration.

Small Business Impact

The data does not indicate any specific provisions or focus on small business participation in this contract. The primary awardee is a large industry association, suggesting that subcontracting opportunities for small businesses may be limited or not explicitly detailed.

Oversight & Accountability

Oversight will be critical to ensure the effective implementation of apprenticeship programs and the appropriate use of funds. The Department of Labor's Office of the Assistant Secretary for Administration and Management is responsible for this contract, implying a level of established administrative oversight.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to Time and Materials structure.
Dependence on intermediary's program management capabilities.
Measuring long-term impact and job retention can be challenging.
Ensuring program scalability and broad reach across diverse hospitality businesses.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $6.7 million to NATIONAL RESTAURANT ASSOCIATION EDUCATIONAL FOUNDATION. EXPANSION OF REGISTERED APPRENTICESHIP (RA) PROGRAMS THROUGH INDUSTRY INTERMEDIARIES: RA ACCELERATION IN ESTABLISHED INDUSTRIES-HOSPITALITY

Who is the contractor on this award?

The obligated recipient is NATIONAL RESTAURANT ASSOCIATION EDUCATIONAL FOUNDATION.

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

How will the effectiveness of the apprenticeship programs be measured to ensure a return on investment for taxpayer funds?

Effectiveness will likely be measured through key performance indicators such as the number of apprentices enrolled, completion rates, job placement rates post-apprenticeship, and potentially wage progression. Regular reporting from the industry intermediary to the Department of Labor will be essential for tracking these metrics and assessing the program's overall success in developing a skilled hospitality workforce.

What are the primary risks associated with a Time and Materials contract for apprenticeship expansion, and how are they being mitigated?

The primary risk with Time and Materials contracts is the potential for cost overruns if the scope of work is not well-defined or if efficiencies are not realized. Mitigation strategies may include establishing clear labor rates, setting a firm contract ceiling, requiring detailed progress reports, and implementing strong project management oversight to monitor hours and materials used against planned activities.

To what extent will this initiative address the hospitality industry's specific skill gaps, and how will the curriculum be adapted to evolving industry needs?

The National Restaurant Association Educational Foundation, as the intermediary, is well-positioned to identify and address specific skill gaps within the hospitality sector. The curriculum's adaptability will depend on the established feedback mechanisms between the association, employers, and apprentices, ensuring that training remains relevant to current and future industry demands and technological advancements.

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: 8

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2055 L ST NW STE 700, WASHINGTON, DC, 20036

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

Financial Breakdown

Contract Ceiling: $10,656,164

Exercised Options: $6,655,118

Current Obligation: $6,655,118

Actual Outlays: $5,206,431

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline