Department of Labor awards $82M contract to Career Systems Development Corp. for Job Corps center operations in California

Contract Overview

Contract Amount: $82,062,138 ($82.1M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2021-07-01

End Date: 2026-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $45.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT PROVIDES OPERATION OF THE SAN JOSE JOB CORPS CENTER WITH OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES.

Place of Performance

Location: SAN JOSE, SANTA CLARA County, CALIFORNIA, 95127

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $82.1 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT PROVIDES OPERATION OF THE SAN JOSE JOB CORPS CENTER WITH OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES. Key points: 1. The contract focuses on vocational training for youth, aiming to improve workforce readiness. 2. Operations include outreach, admissions, and career transition services, indicating a comprehensive approach. 3. The firm fixed-price contract type suggests predictable costs for the government. 4. A duration of five years allows for sustained program delivery and potential for long-term impact. 5. The contract was awarded through full and open competition, implying a robust selection process. 6. The value of the contract is substantial, reflecting the scale of the Job Corps program.

Value Assessment

Rating: good

The contract value of approximately $82 million over five years averages to about $16.4 million annually. Benchmarking this against other Job Corps center operations requires specific data on center size and service scope. However, the firm fixed-price structure provides cost certainty. The award to Career Systems Development Corporation, a known entity in workforce development, suggests a degree of confidence in their ability to deliver services effectively within the allocated budget.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded using full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of five bidders suggests a competitive environment, which typically drives better pricing and service offerings. The level of competition is a positive sign for price discovery and ensures the government receives value for its investment.

Taxpayer Impact: Taxpayers benefit from a competitive process that likely resulted in a more favorable price and a higher quality of services for the Job Corps program.

Public Impact

Young adults aged 16-24 in California will benefit from vocational training and career services. The San Jose Job Corps center will be operated, providing essential educational and employment support. Services include outreach, admissions, and career transition, aiming to place participants in sustainable jobs. The program aims to enhance the skills and employability of the local youth workforce. Successful participants are expected to contribute to the regional economy through increased employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ensuring consistent quality of training across the five-year period.
Monitoring participant outcomes and job placement rates to assess program effectiveness.
Managing the transition of students into meaningful employment opportunities.
Adapting training programs to meet evolving labor market demands.

Positive Signals

The firm fixed-price contract provides budget certainty.
Full and open competition suggests a strong market response and potential for value.
The multi-year duration allows for program stability and long-term impact.
Career Systems Development Corporation's experience in the field is a positive indicator.

Sector Analysis

The vocational training sector is crucial for addressing skills gaps and preparing individuals for employment. Job Corps, a national program, plays a significant role in this space. This contract represents a substantial investment in a specific geographic area (San Jose, CA) within the broader federal workforce development landscape. Comparable spending benchmarks would involve analyzing the operational costs of similar Job Corps centers or other large-scale youth training initiatives funded by the government.

Small Business Impact

The data indicates that small business participation (sb) is marked as false, and there is no specific mention of small business set-asides (ss) for this contract. This suggests that the primary award was not specifically targeted towards small businesses. However, the prime contractor, Career Systems Development Corporation, may engage small businesses as subcontractors to fulfill certain aspects of the contract, which would be detailed in their subcontracting plan. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would likely fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management, which is the specific administrative office awarding the contract. The Inspector General for the Department of Labor would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and ongoing monitoring details may not be publicly available.

Related Government Programs

Job Corps National Program
Workforce Innovation and Opportunity Act (WIOA) Programs
YouthBuild Program
Department of Labor Training Grants

Risk Flags

Potential for scope creep impacting fixed-price budget.
Ensuring consistent training quality over a five-year period.
Measuring and verifying successful job placement outcomes.
Adapting curriculum to rapidly changing labor market demands.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $82.1 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT PROVIDES OPERATION OF THE SAN JOSE JOB CORPS CENTER WITH OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES.

Who is the contractor on this award?

The obligated recipient is CAREER SYSTEMS DEVELOPMENT 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 $82.1 million.

What is the period of performance?

Start: 2021-07-01. End: 2026-06-30.

What is the track record of Career Systems Development Corporation in operating Job Corps centers or similar vocational training programs?

Career Systems Development Corporation (CSDC) has a history of operating Job Corps centers and providing workforce development services. While specific performance metrics for past contracts are not detailed in the provided data, their selection as the awardee for this significant contract suggests they possess the necessary experience and qualifications. A deeper dive into CSDC's past performance reviews, client testimonials, and historical success rates in job placement and participant outcomes would provide a more comprehensive understanding of their capabilities. Examining their financial stability and any past compliance issues would also be crucial for a thorough assessment.

How does the annual cost per participant for this contract compare to national averages for Job Corps centers?

The total contract value is $82,062,137.68 over 1825 days (5 years), which equates to approximately $16,412,427.54 per year. With an estimated number of participants not provided, calculating a precise cost per participant is not feasible. However, historical data from the Department of Labor indicates that the average cost per student year for Job Corps can range significantly, often between $15,000 and $25,000, depending on the center's location, services offered, and student needs. To accurately benchmark, one would need to know the intended enrollment capacity and average daily attendance for the San Jose center and compare that to the annual contract value.

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

While the provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract, typical metrics for Job Corps center operations include: 1) Student enrollment and retention rates, ensuring consistent program participation. 2) Completion rates for vocational training programs, indicating successful skill acquisition. 3) Job placement rates for graduates, measuring their transition into employment. 4) Starting wages of placed graduates, reflecting the economic value of the training. 5) Post-placement employment retention rates, assessing the long-term impact of the program. The Department of Labor would establish specific targets for these KPIs, and contractor performance would be evaluated against them.

What is the historical spending trend for operating the San Jose Job Corps center or similar facilities in California?

The provided data reflects a single contract award for the period of July 1, 2021, to June 30, 2026. To analyze historical spending trends, one would need to access previous contract awards for the San Jose Job Corps center or comparable facilities in California. This would involve querying federal procurement databases for contracts issued by the Department of Labor to other entities for similar services over prior fiscal years. Understanding past funding levels, contract durations, and any fluctuations in spending would provide context for the current $82 million award and help identify any significant changes in investment.

Are there any specific risks associated with the firm fixed-price contract type for this type of service delivery?

Firm Fixed Price (FFP) contracts are generally preferred for their cost certainty. However, for service-based contracts like operating a Job Corps center, there can be risks. If the scope of services or the number of participants significantly deviates from initial projections, the contractor might face challenges in meeting performance standards within the fixed price, potentially leading to quality compromises or financial strain for the contractor. Conversely, if the contractor is highly efficient, they could realize significant profit. The government's risk lies in ensuring the contractor maintains quality and achieves desired outcomes despite potential cost pressures inherent in an FFP structure.

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

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 75 THRUWAY PARK DR STE 100, WEST HENRIETTA, NY, 14586

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

Financial Breakdown

Contract Ceiling: $91,144,655

Exercised Options: $90,954,295

Current Obligation: $82,062,138

Actual Outlays: $73,708,570

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline