Labor Department awards $155.7M contract for Job Corps centers to Adams and Associates Inc

Contract Overview

Contract Amount: $155,716,864 ($155.7M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2020-12-29

End Date: 2026-07-31

Contract Duration: 2,040 days

Daily Burn Rate: $76.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATION OF THE KEYSTONE/RED ROCK JOB CORPS CENTERS, OUTREACH/ADMISSIONS, CAREER TRANSITION SERVICES

Place of Performance

Location: DRUMS, LUZERNE County, PENNSYLVANIA, 18222

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Labor obligated $155.7 million to ADAMS AND ASSOCIATES INC for work described as: OPERATION OF THE KEYSTONE/RED ROCK JOB CORPS CENTERS, OUTREACH/ADMISSIONS, CAREER TRANSITION SERVICES Key points: 1. The contract supports the operation of Job Corps centers, including outreach and career transition services. 2. Adams and Associates Inc. is the incumbent contractor, suggesting potential for continuity. 3. The contract is a Firm Fixed Price type, which shifts cost risk to the contractor. 4. The broad NAICS code (611519) covers various technical and trade schools, indicating a wide scope of services.

Value Assessment

Rating: good

The contract value of $155.7M over approximately 5.6 years appears reasonable for operating multiple Job Corps centers. Benchmarking against similar large-scale educational service contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive sign for price discovery and achieving fair market value. The specific competition details and number of bidders would offer more insight.

Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

Job Corps centers provide vocational training and job placement services to young adults, impacting workforce development. The contract ensures the continued operation of essential training programs for disadvantaged youth. Success in career transition services can lead to increased employment and economic self-sufficiency for participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in if performance is consistently good.
Scope creep could increase costs if not managed effectively.
Reliance on a single contractor for critical youth services.

Positive Signals

Firm Fixed Price contract shifts cost risk to the contractor.
Full and open competition promotes value for taxpayer dollars.
Long-term contract provides stability for program operations.

Sector Analysis

The education and training sector, particularly vocational programs like Job Corps, requires significant investment to equip individuals with marketable skills. Spending benchmarks vary widely based on program scope and participant numbers.

Small Business Impact

The provided data does not indicate any specific set-aside for small businesses. Further analysis would be needed to determine if small businesses are participating as subcontractors or if there were opportunities missed.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is responsible for overseeing this contract. Robust oversight is crucial to ensure program effectiveness and fiscal responsibility.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Contract duration is substantial, requiring ongoing monitoring.
Potential for performance degradation over time.
Dependence on a single contractor for critical services.
NAICS code is broad, potentially masking specific service costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $155.7 million to ADAMS AND ASSOCIATES INC. OPERATION OF THE KEYSTONE/RED ROCK JOB CORPS CENTERS, OUTREACH/ADMISSIONS, CAREER TRANSITION SERVICES

Who is the contractor on this award?

The obligated recipient is ADAMS AND ASSOCIATES 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 $155.7 million.

What is the period of performance?

Start: 2020-12-29. End: 2026-07-31.

What is the historical performance of Adams and Associates Inc. in operating Job Corps centers, and how does it compare to industry benchmarks?

Evaluating the contractor's past performance is critical. A review of past performance evaluations, contract modifications, and any disputes or challenges would reveal their track record. Comparing key performance indicators (KPIs) like graduation rates, job placement success, and cost efficiency against similar Job Corps centers or vocational training programs will help determine if the current award represents good value and effective service delivery.

What specific metrics are used to measure the success of the career transition services, and how are these tracked and reported?

Understanding the success metrics for career transition services is vital for assessing program effectiveness. Key metrics likely include job placement rates, starting salaries, job retention rates, and participant satisfaction. The contract should clearly define these metrics, the reporting frequency, and the methodology for data collection. Robust tracking and transparent reporting ensure accountability and allow for continuous improvement of the services provided.

How does the cost per participant for this contract compare to other similar Job Corps center operations or vocational training programs?

A cost-per-participant analysis is essential for determining the financial efficiency of the contract. This involves dividing the total contract value by the expected number of participants served over the contract period. Benchmarking this figure against historical data for the same centers, other Job Corps centers, or comparable vocational training programs nationwide will highlight whether the current contract represents a cost-effective use of taxpayer funds or if there are opportunities for cost savings.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

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: 1630J2-20-R-00002

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10395 DOUBLE R BLVD, RENO, NV, 89521

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

Financial Breakdown

Contract Ceiling: $171,311,210

Exercised Options: $171,311,210

Current Obligation: $155,716,864

Actual Outlays: $141,918,795

Subaward Activity

Number of Subawards: 86

Total Subaward Amount: $9,121,449

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline