Department of Labor awards $57M contract for job training services to Education & Training Resources LLC

Contract Overview

Contract Amount: $57,011,854 ($57.0M)

Contractor: Education & Training Resources LLC

Awarding Agency: Department of Labor

Start Date: 2021-01-08

End Date: 2026-08-31

Contract Duration: 2,061 days

Daily Burn Rate: $27.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HUBERT H. HUMPHREY JOB CORPS CENTER WITH OA/CTS

Place of Performance

Location: SAINT PAUL, RAMSEY County, MINNESOTA, 55108

State: Minnesota Government Spending

Plain-Language Summary

Department of Labor obligated $57.0 million to EDUCATION & TRAINING RESOURCES LLC for work described as: HUBERT H. HUMPHREY JOB CORPS CENTER WITH OA/CTS Key points: 1. Contract awarded through full and open competition, indicating a broad search for qualified vendors. 2. The contract duration of 2061 days suggests a long-term need for these services. 3. The firm fixed-price structure aims to provide cost certainty for the government. 4. The award to a single contractor, Education & Training Resources LLC, warrants scrutiny of performance and value. 5. The contract is not set aside for small businesses, suggesting larger firms were expected to compete. 6. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school services.

Value Assessment

Rating: fair

The contract value of $57 million over approximately 5.7 years averages to about $10 million annually. Benchmarking this against similar job training contracts is difficult without more specific service details. However, the firm fixed-price nature suggests an attempt to control costs. Further analysis would require comparing the scope of services and outcomes to other government-funded training programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which is a complex designation. It implies that while the competition was intended to be broad, specific sources may have been excluded for documented reasons. With 8 bidders, the competition level appears moderate, which could lead to reasonable price discovery. However, the exclusion of sources warrants further investigation into the rationale.

Taxpayer Impact: A moderate number of bidders suggests that taxpayers likely benefited from competitive pricing, though the exclusion of certain sources might have limited the full potential for cost savings.

Public Impact

The primary beneficiaries are individuals seeking vocational training and job placement services through the Hubert H. Humphrey Job Corps Center. The contract delivers essential educational and training resources to prepare individuals for skilled trades and technical occupations. The services are geographically focused on Minnesota (ST: MN, SN: MINNESOTA). The contract has significant workforce implications, aiming to equip participants with in-demand skills and improve their employability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause requires careful review to ensure fair competition and prevent undue restrictions.
The long contract duration could present risks if market needs or training methodologies change significantly.
Performance metrics and quality assurance will be critical to ensure the value of taxpayer funds.

Positive Signals

The award followed a full and open competition, indicating a robust search for qualified providers.
The firm fixed-price contract provides cost predictability for the Department of Labor.
The moderate number of bidders (8) suggests a competitive environment for this service.

Sector Analysis

This contract falls within the broader education and training services sector, specifically focusing on vocational and technical education. The market for such services is substantial, driven by government initiatives to address workforce development needs and skill gaps. Comparable spending benchmarks would involve analyzing other Job Corps center contracts and similar workforce development programs administered by federal agencies like the Department of Labor and potentially the Department of Education.

Small Business Impact

The contract data indicates that this was not set aside for small businesses (SB: false, SS: false). This suggests that the scope and requirements of the contract were likely geared towards larger organizations capable of managing extensive training programs. There is no explicit information on subcontracting plans for small businesses, which would be a key area for oversight to ensure small business participation in the broader ecosystem.

Oversight & Accountability

Oversight will likely be managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management (SA). Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency is facilitated by the contract award notice, but detailed performance data and audits would be crucial for a full assessment. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Vocational Rehabilitation Services
Adult Education and Literacy Programs

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Risk of cost overruns if fixed-price contract does not adequately account for all potential costs.
Need for robust performance monitoring to ensure service quality and effectiveness.
Dependency on contractor's ability to adapt training to evolving labor market needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $57.0 million to EDUCATION & TRAINING RESOURCES LLC. HUBERT H. HUMPHREY JOB CORPS CENTER WITH OA/CTS

Who is the contractor on this award?

The obligated recipient is EDUCATION & TRAINING RESOURCES LLC.

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 $57.0 million.

What is the period of performance?

Start: 2021-01-08. End: 2026-08-31.

What is the specific scope of services provided under this contract?

The contract is associated with the Hubert H. Humphrey Job Corps Center and falls under NAICS code 611519 (Other Technical and Trade Schools). This indicates the services likely encompass vocational training, academic instruction, career counseling, job placement assistance, and potentially residential support for participants. The specific curriculum and training areas would be detailed in the contract's statement of work, focusing on preparing individuals for employment in technical and trade occupations. The duration of the contract (over 5 years) suggests a comprehensive and ongoing delivery of these services.

How does the pricing of this contract compare to similar federal job training initiatives?

Direct price comparison is challenging without detailed service level agreements and performance outcomes for other contracts. However, the contract is firm fixed-price, which aims to cap costs for the government. The total award of $57 million over approximately 2061 days (about 5.7 years) averages to roughly $10 million annually. This figure needs to be contextualized against the number of participants served, the types of training provided, and the success rates in job placement and retention. Benchmarking against other Job Corps centers or similar workforce development contracts would require access to detailed cost and performance data, which is often not publicly available in a standardized format.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' designation?

This designation implies that while the competition was broadly advertised, certain potential bidders were intentionally excluded. The risks lie in understanding the justification for these exclusions. If the exclusions were arbitrary or based on non-meritocratic reasons, it could indicate a lack of true competition, potentially leading to higher costs or suboptimal service quality. Conversely, if the exclusions were based on specific, documented requirements (e.g., unique capabilities, past performance issues with certain firms), then the competition might still be robust among the remaining eligible bidders. Thorough documentation and justification for any exclusions are critical for mitigating these risks.

What is the track record of Education & Training Resources LLC in performing federal contracts?

Information regarding the specific track record of 'Education & Training Resources LLC' in performing federal contracts is not detailed in the provided data. A comprehensive assessment would require searching federal procurement databases (like SAM.gov or FPDS) for past performance ratings, contract history, and any reported issues or awards received by this specific entity. Understanding their experience with similar large-scale training programs, their financial stability, and their history of meeting government requirements would be crucial for evaluating the risk associated with this award.

How effective are Job Corps programs generally in achieving their stated goals?

Job Corps programs, in general, aim to provide comprehensive training and education to disadvantaged youth, leading to improved employment and earnings. Studies on the effectiveness of Job Corps have shown mixed results, with some indicating positive impacts on earnings and employment, while others suggest more modest gains or variations depending on program location and implementation. Key factors influencing effectiveness include the quality of training, the relevance of skills taught to local labor market demands, and the strength of career counseling and placement services. Continuous evaluation and adaptation are essential for maximizing program effectiveness.

What are the historical spending patterns for job training services by the Department of Labor?

The Department of Labor consistently allocates significant funding towards workforce development and job training initiatives, reflecting its core mission. Historical spending patterns would show substantial investments in programs like Job Corps, WIOA grants, and various apprenticeship programs. Spending levels can fluctuate based on economic conditions, administration priorities, and congressional appropriations. Analyzing trends over several fiscal years would reveal the scale of investment in different types of training and the distribution of funds across various programs and contractors, providing context for the $57 million award.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1605JW-20-R-00004

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Foxmar, Inc.

Address: 2422 AIRWAY CT, BOWLING GREEN, KY, 42103

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

Financial Breakdown

Contract Ceiling: $63,525,789

Exercised Options: $63,228,849

Current Obligation: $57,011,854

Actual Outlays: $49,283,461

Subaward Activity

Number of Subawards: 48

Total Subaward Amount: $3,670,629

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline