Labor Department awards $84.7M contract for technical and trade school services, with 5 bidders

Contract Overview

Contract Amount: $84,664,072 ($84.7M)

Contractor: Odle Management Group, L.L.C.

Awarding Agency: Department of Labor

Start Date: 2021-06-01

End Date: 2026-06-30

Contract Duration: 1,855 days

Daily Burn Rate: $45.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PITTSBURGH JCC

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15206

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Labor obligated $84.7 million to ODLE MANAGEMENT GROUP, L.L.C. for work described as: PITTSBURGH JCC Key points: 1. The contract's value of $84.7 million over five years suggests a significant investment in technical and trade education services. 2. With five bidders, the competition level indicates a moderately contested market for these specialized educational services. 3. The firm fixed-price contract type aims to control costs by establishing a set price for services. 4. The contract duration of over five years provides stability for service delivery and contractor planning. 5. The North American Industry Classification System (NAICS) code 611519 points to a focus on vocational and technical training. 6. The geographic focus on Pennsylvania (ST: PA) suggests a localized delivery of these educational services.

Value Assessment

Rating: good

The contract value of $84.7 million over approximately five years averages to about $16.9 million annually. Benchmarking this against similar contracts for technical and trade school services is challenging without more specific data on the scope and nature of the training provided. However, the presence of five bidders suggests that the pricing was likely competitive and within a reasonable range for the services offered. The firm fixed-price structure also implies a degree of cost control and predictability for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bids received. This indicates that multiple vendors were aware of and capable of competing for this requirement. A moderate number of bidders, like five, generally suggests a healthy level of competition, which can lead to better pricing and service offerings for the government. It implies that the market was sufficiently accessible and that the solicitation was structured to attract a reasonable pool of qualified offerors.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely drove down costs through competitive pricing and encouraged a wider range of service providers to participate, potentially leading to better value.

Public Impact

The primary beneficiaries are likely individuals seeking technical and trade education, potentially leading to improved workforce skills and employment opportunities. The services delivered are expected to be vocational and technical training, equipping individuals with skills for specific industries. The geographic impact is concentrated in Pennsylvania, suggesting that residents of this state will be the primary recipients of these educational services. Workforce implications include the potential for upskilling and reskilling the local workforce, addressing specific industry needs within Pennsylvania.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor if future procurements are not managed competitively.
Risk of service quality degradation if contractor incentives are not aligned with educational outcomes.
Geographic concentration may limit access for individuals outside of Pennsylvania.

Positive Signals

Firm fixed-price contract provides cost certainty for the Department of Labor.
Full and open competition suggests a robust market and potential for good value.
Contract duration allows for program stability and consistent service delivery.

Sector Analysis

The contract falls within the Education and Training sector, specifically focusing on vocational and technical schools (NAICS 611519). This sub-sector involves institutions that provide training for specific occupations. The market for such services can be influenced by industry demand for skilled labor, government workforce development initiatives, and the availability of qualified training providers. Comparable spending benchmarks would depend on the specific trades or technical skills being taught and the scale of the programs.

Small Business Impact

The data indicates that this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, there is no direct indication of small business participation through a set-aside. However, the prime contractor, ODLE MANAGEMENT GROUP, L.L.C., may engage small businesses as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM), which awarded the contract. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for the Department of Labor would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) programs
Department of Labor Job Training Programs
Vocational Rehabilitation Services
Federal Student Aid Programs
Apprenticeship Programs

Risk Flags

Potential for limited geographic reach due to state-specific award.
Lack of detailed performance metrics in summary data.
Contractor's specific past performance history not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $84.7 million to ODLE MANAGEMENT GROUP, L.L.C.. PITTSBURGH JCC

Who is the contractor on this award?

The obligated recipient is ODLE MANAGEMENT GROUP, L.L.C..

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 $84.7 million.

What is the period of performance?

Start: 2021-06-01. End: 2026-06-30.

What is the specific nature of the technical and trade school services being provided under this contract?

The contract, identified by NAICS code 611519, pertains to 'Other Technical and Trade Schools.' This broad classification suggests the services likely encompass a range of vocational training programs designed to equip individuals with specific skills for employment in various trades and technical fields. Examples could include training in areas such as advanced manufacturing, healthcare support, information technology, skilled trades (e.g., electricians, plumbers), or transportation logistics. The exact curriculum, duration of courses, and specific occupational outcomes would be detailed in the contract's statement of work, which is not publicly available in this data snippet. Understanding the precise services is crucial for evaluating the contract's effectiveness and value.

How does the awarded amount of $84.7 million compare to historical spending on similar technical and trade education contracts by the Department of Labor?

Direct comparison of the $84.7 million award to historical spending on similar contracts requires access to historical contract data for the Department of Labor, specifically for NAICS code 611519 or related vocational training categories. Without this historical context, it's difficult to definitively state whether this award represents an increase, decrease, or stable level of investment. However, the substantial value suggests a significant commitment to workforce development through vocational training. Factors influencing historical spending could include changes in federal funding priorities, economic conditions affecting workforce needs, and the number and scale of training programs offered. A trend analysis over several fiscal years would be necessary for a comprehensive comparison.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of the services provided by ODLE MANAGEMENT GROUP, L.L.C.?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics used to evaluate the success of the services under this contract. Typically, for educational and training contracts, KPIs would focus on outcomes such as student completion rates, job placement rates post-training, employer satisfaction with graduates' skills, and the average starting salary of placed individuals. The firm fixed-price nature of the contract implies that the contractor is obligated to deliver the agreed-upon services, but the specific measures of 'success' or 'quality' would be defined in the contract's performance work statement. These metrics are crucial for assessing the value for money and the overall effectiveness of the training programs in meeting workforce development goals.

What is the track record of ODLE MANAGEMENT GROUP, L.L.C. in performing federal contracts, particularly in the education or training sector?

Information regarding the specific track record of ODLE MANAGEMENT GROUP, L.L.C. in performing federal contracts, especially within the education or training sector, is not detailed in the provided data. To assess their track record, one would typically examine their past performance on similar government contracts, looking at factors such as on-time delivery, quality of services, adherence to budget, and any past performance issues or awards. Databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be primary sources for this information. A review of their history would help determine their experience and reliability in managing large-scale training programs for federal agencies.

Given the firm fixed-price structure, what is the potential for cost overruns or savings for the government in this contract?

A firm fixed-price (FFP) contract is designed to provide the government with cost certainty and transfer most of the cost risk to the contractor. In theory, if the contractor can deliver the services more efficiently than anticipated, they will realize higher profits. Conversely, if costs escalate beyond the contractor's projections, their profit margin will decrease, or they may incur a loss. For the government, the primary risk of cost overrun is mitigated by the FFP structure itself, as the price is fixed. However, potential 'overruns' for the government could manifest as paying a price that is higher than the actual value received if the contractor is inefficient but still meets the minimum contract requirements. Savings for the government are realized if the contractor's efficiency leads to a profitable outcome for them without compromising quality, as the price remains constant.

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-00003

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Eckerd Youth Alternatives, Inc.

Address: 9937 E BELL RD STE 110, SCOTTSDALE, AZ, 85260

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

Financial Breakdown

Contract Ceiling: $96,718,435

Exercised Options: $96,718,435

Current Obligation: $84,664,072

Actual Outlays: $76,530,140

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline