Department of Labor awards $86.5M contract for Job Corps construction training programs to Home Builders Institute

Contract Overview

Contract Amount: $86,488,226 ($86.5M)

Contractor: Home Builders Institute

Awarding Agency: Department of Labor

Start Date: 2023-07-31

End Date: 2026-07-31

Contract Duration: 1,096 days

Daily Burn Rate: $78.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Other

Official Description: OPERATION OF CTT PROGRAMS AT JOB CORPS CENTERS BUILDING CONSTRUCTION, ELECTRICAL, PLUMBING, HVAC AND SOLAR

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 $86.5 million to HOME BUILDERS INSTITUTE for work described as: OPERATION OF CTT PROGRAMS AT JOB CORPS CENTERS BUILDING CONSTRUCTION, ELECTRICAL, PLUMBING, HVAC AND SOLAR Key points: 1. The contract focuses on vocational training in construction trades, including electrical, plumbing, HVAC, and solar. 2. Home Builders Institute is the sole awardee under full and open competition. 3. The contract duration is approximately three years, with a fixed-price incentive pricing structure. 4. This spending supports workforce development in critical infrastructure sectors.

Value Assessment

Rating: good

The fixed-price incentive contract aims to control costs while ensuring quality training. The award amount of $86.5M over three years suggests a substantial investment in vocational education.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: Taxpayer funds are being invested in a program designed to build a skilled workforce, potentially leading to increased economic productivity and reduced unemployment.

Public Impact

Enhances vocational training opportunities for individuals seeking careers in skilled trades. Addresses the demand for skilled labor in construction and related fields. Supports the Job Corps program's mission to provide education and job training to young people. Invests in renewable energy training through the inclusion of solar technology.

Waste & Efficiency Indicators

Waste Risk Score: 78 / 10

Warning Flags

Potential for cost overruns if performance targets are not met under the incentive structure.
Reliance on a single contractor for a critical training program.

Positive Signals

Supports a vital federal program aimed at workforce development.
Utilizes a competitive bidding process to ensure value.
Focuses on in-demand skills for economic growth.

Sector Analysis

This contract falls within the vocational rehabilitation services sector, specifically focusing on workforce development and skilled trades training. Benchmarks for similar large-scale training contracts can vary significantly based on scope and duration.

Small Business Impact

The data indicates this contract was awarded through full and open competition, but does not specify the extent of small business participation in the subcontracting plan. Further analysis would be needed to determine the impact on small businesses.

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, including performance monitoring and financial reviews, should be in place.

Related Government Programs

Vocational Rehabilitation Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Lack of specific performance metrics for trainee outcomes.
Potential for cost overruns if incentive targets are not met.
Limited information on small business subcontracting.
Dependence on a single entity for a broad training initiative.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $86.5 million to HOME BUILDERS INSTITUTE. OPERATION OF CTT PROGRAMS AT JOB CORPS CENTERS BUILDING CONSTRUCTION, ELECTRICAL, PLUMBING, HVAC AND SOLAR

Who is the contractor on this award?

The obligated recipient is HOME BUILDERS INSTITUTE.

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 $86.5 million.

What is the period of performance?

Start: 2023-07-31. End: 2026-07-31.

What is the projected number of individuals expected to be trained and placed in jobs as a result of this contract?

The contract details do not explicitly state the projected number of trainees or job placements. However, given the $86.5 million investment over three years, the expectation is to train a significant cohort of individuals in essential construction trades, contributing to the Job Corps program's overall goals of workforce development and reducing youth unemployment.

What are the key performance indicators (KPIs) tied to the incentive structure of this contract?

The contract type is Fixed Price Incentive (FPI), which means the final price is based on the contractor's actual cost and performance against targets. Specific KPIs would likely include trainee completion rates, job placement success, employer satisfaction, and potentially the acquisition of specific certifications relevant to the trades being taught.

How does the cost per trainee compare to similar vocational training programs funded by the government?

Without specific data on the number of trainees and the breakdown of program costs, a direct per-trainee cost comparison is not feasible. However, the $86.5 million contract over three years suggests a substantial investment per trainee, which should be evaluated against the program's effectiveness in producing skilled, employable individuals in high-demand fields.

Industry Classification

NAICS: Health Care and Social Assistance › Vocational Rehabilitation Services › Vocational Rehabilitation Services

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-00007

Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 1201 15TH ST NW 6TH FL, WASHINGTON, DC, 20005

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: $158,260,629

Exercised Options: $90,608,210

Current Obligation: $86,488,226

Actual Outlays: $74,534,076

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline