Department of Labor awards $70.4M contract for Job Corps Center operations, with 4 bidders

Contract Overview

Contract Amount: $70,376,210 ($70.4M)

Contractor: Eckerd Youth Alternatives, Inc.

Awarding Agency: Department of Labor

Start Date: 2021-11-01

End Date: 2026-10-31

Contract Duration: 1,825 days

Daily Burn Rate: $38.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: OPERATION OF THE POTOMAC JOB CORPS CENTER WITH OA & CTS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $70.4 million to ECKERD YOUTH ALTERNATIVES, INC. for work described as: OPERATION OF THE POTOMAC JOB CORPS CENTER WITH OA & CTS Key points: 1. The contract value represents a significant investment in vocational training and youth development. 2. Competition dynamics suggest a potentially competitive bidding process, which can drive better pricing. 3. The contract duration of five years indicates a long-term commitment to service provision. 4. Performance will be crucial for ensuring the effectiveness of the Job Corps program. 5. This contract positions Eckerd Youth Alternatives as a key provider in the youth services sector. 6. The cost-plus-fixed-fee structure allows for flexibility but requires careful oversight of costs.

Value Assessment

Rating: good

The total award of $70.4 million over five years averages to approximately $14.1 million annually. Benchmarking this against similar large-scale Job Corps center operations requires detailed cost breakdowns, but the number of bidders (4) suggests a degree of market validation. The cost-plus-fixed-fee (CPFF) pricing structure means that while the contractor's costs are reimbursed, their profit is fixed, which can incentivize efficiency if managed well. However, CPFF contracts can sometimes lead to higher overall costs if not rigorously monitored for scope creep and unnecessary expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With four bidders participating, the competition level appears moderate. This suggests that while there was interest from multiple entities, the market for operating large Job Corps centers might be somewhat concentrated. The presence of four bidders likely contributed to price discovery and offered the agency a choice among qualified providers.

Taxpayer Impact: A full and open competition with multiple bidders generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service quality. It ensures that the government is not unduly constrained by limited options.

Public Impact

Youth from the District of Columbia and surrounding areas will benefit from vocational training and support services. The contract ensures the continued operation of the Potomac Job Corps Center, providing essential educational and career development programs. Services delivered include academic instruction, career technical training, job placement assistance, and life skills development. The geographic impact is focused on the Washington D.C. metropolitan area. The contract supports jobs for instructors, counselors, administrative staff, and support personnel at the center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts require diligent oversight to prevent cost overruns and ensure value for money.
The long-term nature of the contract necessitates ongoing performance monitoring to ensure sustained quality of services.
Dependence on a single center operator for a significant youth population requires contingency planning for service disruptions.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contractor, Eckerd Youth Alternatives, Inc., has experience in youth services, suggesting operational capability.
The contract duration provides stability for program participants and staff.

Sector Analysis

The operation of Job Corps centers falls within the broader education and workforce development sector, specifically focusing on vocational training for at-risk youth. This sector is characterized by government funding and a mix of non-profit and for-profit service providers. The market size for such services is substantial, driven by federal and state initiatives aimed at improving youth employment outcomes. This contract represents a significant portion of spending for a single center, and comparable contracts exist across the nation for other Job Corps locations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses explicitly stated in the provided summary. This means that the primary contractor, Eckerd Youth Alternatives, Inc., will likely manage the majority of the operations. The impact on the small business ecosystem would depend on whether the prime contractor voluntarily engages small businesses for support services, which is not detailed here.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management, which awarded the contract. As a cost-plus-fixed-fee contract, rigorous financial oversight is expected to monitor expenditures and ensure the fixed fee is earned appropriately. Performance metrics and reporting requirements will be key accountability measures. Transparency will be facilitated through contract award databases and potentially through program evaluation reports published by the Department of Labor.

Related Government Programs

Department of Labor Workforce Innovation and Opportunity Act Programs
Other Federal Job Training Programs
Youth Development Services Contracts
Vocational Education Grants

Risk Flags

Cost-Plus-Fixed-Fee contract type requires diligent oversight.
Long-term contract duration necessitates sustained performance monitoring.
Potential for cost escalation in CPFF contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $70.4 million to ECKERD YOUTH ALTERNATIVES, INC.. OPERATION OF THE POTOMAC JOB CORPS CENTER WITH OA & CTS

Who is the contractor on this award?

The obligated recipient is ECKERD YOUTH ALTERNATIVES, 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 $70.4 million.

What is the period of performance?

Start: 2021-11-01. End: 2026-10-31.

What is Eckerd Youth Alternatives, Inc.'s track record with federal contracts, particularly those involving youth services or Job Corps centers?

Eckerd Youth Alternatives, Inc. has a history of operating youth development programs and facilities. While specific details on all their federal contracts are not provided here, their selection for this significant Job Corps center operation suggests they have prior experience and a demonstrated capability in managing similar programs. A deeper dive into their contract history with the Department of Labor and other agencies would reveal their performance ratings, any past issues, and their success in meeting program objectives on previous contracts. This information is crucial for assessing their reliability and effectiveness in fulfilling the current contract's requirements.

How does the annual cost of operating this Job Corps center compare to other similar centers nationwide?

The total award of $70.4 million over five years equates to an average annual cost of approximately $14.1 million for the Potomac Job Corps Center. To benchmark this effectively, one would need to compare it with the annual operating costs of other Job Corps centers of similar size, scope, and geographic location. Factors such as student enrollment capacity, the range of vocational programs offered, local labor costs, and the specific services provided (e.g., residential vs. non-residential) significantly influence operating expenses. Without access to a comprehensive database of Job Corps center operating costs, a precise comparison is difficult, but the number of bidders suggests the pricing was deemed competitive within the market.

What are the primary risks associated with the cost-plus-fixed-fee (CPFF) contract type for this operation?

The primary risk with a CPFF contract is the potential for cost overruns if the contractor's actual costs exceed initial estimates, even though their fee remains fixed. While the government reimburses allowable costs, inadequate oversight can lead to inefficiencies or unnecessary expenditures by the contractor seeking to maximize their operational scope within the cost reimbursement. For the Department of Labor, this means diligent monitoring of all expenditures, ensuring they are reasonable, allocable, and necessary for contract performance. There's also a risk that the fixed fee might not adequately incentivize exceptional performance if not tied to clear, measurable outcomes.

What are the key performance indicators (KPIs) that will be used to measure the success of the Job Corps center operations under this contract?

Key performance indicators for Job Corps center operations typically include student enrollment rates, retention rates, completion rates for vocational training programs, and post-graduation employment placement rates. Other important metrics may involve student satisfaction, the quality of academic and technical instruction, the efficiency of support services (like counseling and housing), and adherence to safety and facility maintenance standards. The specific KPIs for this contract would be detailed in the Performance Work Statement (PWS) and would be used by the Department of Labor to assess Eckerd Youth Alternatives, Inc.'s performance and ensure the program is meeting its objectives for youth development and workforce readiness.

How has federal spending on Job Corps center operations evolved over the past five years, and does this contract align with historical trends?

Federal spending on Job Corps center operations has generally remained a significant component of the Department of Labor's budget, though specific allocations can fluctuate based on overall appropriations and program priorities. Historically, the program has aimed to serve a large number of disadvantaged youth annually. This $70.4 million contract over five years represents a substantial, but not necessarily unprecedented, investment for a single large center. To determine alignment with historical trends, one would need to analyze aggregate federal spending data for Job Corps center operations over recent years to see if the funding levels for individual centers are consistent with past awards and the overall program's budget trajectory.

What is the potential impact of this contract on the local workforce in the District of Columbia?

This contract is expected to have a positive impact on the local workforce in the District of Columbia by creating and sustaining jobs directly related to the operation of the Potomac Job Corps Center. These positions would include instructors, counselors, administrative staff, maintenance personnel, and support services employees. Furthermore, by providing vocational training and job placement assistance to youth in the region, the contract indirectly contributes to the development of a more skilled local workforce, potentially filling labor demands in various industries and improving the long-term economic prospects of participants.

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: 1605JE-20-R-00007

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 100 STARCREST DR, CLEARWATER, FL, 33765

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: $89,334,611

Exercised Options: $88,422,240

Current Obligation: $70,376,210

Actual Outlays: $61,451,579

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline