Department of Labor awards $98M contract to Serrato Corporation for Other Technical and Trade Schools services

Contract Overview

Contract Amount: $97,998,957 ($98.0M)

Contractor: Serrato Corporation

Awarding Agency: Department of Labor

Start Date: 2021-06-01

End Date: 2026-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $53.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NORTH TEXAS AWARD

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75069

State: Texas Government Spending

Plain-Language Summary

Department of Labor obligated $98.0 million to SERRATO CORPORATION for work described as: NORTH TEXAS AWARD Key points: 1. The contract value of $98M is significant, indicating a substantial need for the services provided. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 5 years (1825 days) allows for long-term service delivery. 4. The North American Industry Classification System (NAICS) code 611519 points to specialized technical training.

Value Assessment

Rating: good

The contract's firm fixed price structure provides cost certainty. Benchmarking against similar technical training contracts would be beneficial to fully assess value.

Cost Per Unit: $53,698

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process. This method aims to secure the best value for the government by allowing all eligible vendors to compete.

Taxpayer Impact: Taxpayer funds are being utilized for specialized technical and trade school services, with competition aiming to ensure efficient allocation.

Public Impact

Supports workforce development through specialized training programs. Potential impact on individuals seeking technical skills and certifications. Government investment in education and training infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition utilized.
Firm fixed price contract type.
Long contract duration for sustained services.

Sector Analysis

This contract falls within the education and training sector, specifically focusing on technical and trade schools. Spending benchmarks in this area can vary widely based on the specific skills and duration of training provided.

Small Business Impact

The data indicates that small businesses were not specifically prioritized or awarded this contract, as the 'sb' field is false. Further analysis would be needed to determine if small businesses participated in the full and open competition.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is overseeing this contract. Standard procurement oversight processes should ensure compliance and performance.

Related Government Programs

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

Risk Flags

Lack of specific detail on training provided.
Need for external benchmarking of per-unit cost.
Potential for contractor lock-in due to long duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $98.0 million to SERRATO CORPORATION. NORTH TEXAS AWARD

Who is the contractor on this award?

The obligated recipient is SERRATO CORPORATION.

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 $98.0 million.

What is the period of performance?

Start: 2021-06-01. End: 2026-05-31.

What specific technical and trade skills are being provided under this contract?

The NAICS code 611519 indicates 'Other Technical and Trade Schools.' While this suggests vocational training, the specific skills are not detailed in the provided data. Understanding the curriculum and target audience is crucial for assessing the contract's effectiveness and alignment with workforce needs.

How does the per-unit cost of $53,698 compare to industry standards for similar training programs?

The per-unit cost of $53,698 requires comparison with industry benchmarks for comparable technical and trade school programs. Factors like program length, complexity, and certification levels will influence this comparison. Without specific program details, it's difficult to definitively assess if this cost is competitive or represents a premium.

What is the expected outcome or impact of the training provided by Serrato Corporation?

The expected outcome is likely improved workforce skills and employability for participants in technical and trade fields. The effectiveness would be measured by factors such as completion rates, job placement statistics, and the acquisition of in-demand skills relevant to the labor market. The Department of Labor's objectives for this contract would define success metrics.

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: 1605JW-20-R-00002

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 135 WEST COUNCIL ST, TUCSON, AZ, 85701

Business Categories: 8(a) Program Participant, Category Business, Community Developed Corporation Owned Firm, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $104,865,511

Exercised Options: $104,865,511

Current Obligation: $97,998,957

Actual Outlays: $89,487,460

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $1,952,732

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline