Department of Labor awards $86.9M contract for Job Corps center operation to Management & Training Corporation

Contract Overview

Contract Amount: $86,926,045 ($86.9M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2021-10-01

End Date: 2026-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $47.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

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 IS FOR THE OPERATION OF THE TONGUE POINT JOB CORPS CENTER WITH OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES LOCATED IN ASTORIA, OREGON.

Place of Performance

Location: ASTORIA, CLATSOP County, OREGON, 97103

State: Oregon Government Spending

Plain-Language Summary

Department of Labor obligated $86.9 million to MANAGEMENT & TRAINING CORPORATION for work described as: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT IS FOR THE OPERATION OF THE TONGUE POINT JOB CORPS CENTER WITH OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES LOCATED IN ASTORIA, OREGON. Key points: 1. The contract focuses on vocational training for youth aged 16-24. 2. Management & Training Corporation is the incumbent operator. 3. The contract is a Firm Fixed Price type, indicating price certainty. 4. This award falls under 'Other Technical and Trade Schools' NAICS code.

Value Assessment

Rating: good

The contract value of $86.9M over 5 years suggests a significant investment in vocational training. Benchmarking against similar large-scale training center operations would be necessary for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which generally promotes competitive pricing. The presence of multiple bids (no: 3) suggests a healthy price discovery process.

Taxpayer Impact: The investment aims to equip young individuals with job skills, potentially leading to increased employment and reduced reliance on social services, thus benefiting taxpayers long-term.

Public Impact

Provides essential vocational training to young adults, enhancing their employability. Supports economic development in Astoria, Oregon, through job creation and local spending. Addresses a critical need for skilled labor in various industries. The program's success can be measured by participant graduation and job placement rates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if operational efficiencies are not maintained.
Dependence on government funding and policy changes.
Ensuring program relevance to current labor market demands.

Positive Signals

Direct investment in youth development and workforce readiness.
Competitive bidding process likely secured a reasonable price.
Long-term contract provides stability for program operations.

Sector Analysis

This contract falls within the education and training sector, specifically vocational services. Spending benchmarks for similar youth training programs would provide context for the $86.9M award over five years.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management oversees this contract. Regular performance reviews and audits are crucial for ensuring accountability and effective use of funds.

Related Government Programs

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

Risk Flags

Potential for incumbent advantage despite full and open competition.
Ensuring program effectiveness and participant success metrics are met.
Long-term contract duration may reduce flexibility for future adjustments.
Dependence on specific geographic location for participant recruitment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $86.9 million to MANAGEMENT & TRAINING CORPORATION. JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT IS FOR THE OPERATION OF THE TONGUE POINT JOB CORPS CENTER WITH OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES LOCATED IN ASTORIA, OREGON.

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING 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 $86.9 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-09-30.

What is the historical performance of Management & Training Corporation in operating Job Corps centers, and how does it compare to industry standards?

Assessing MTC's past performance is crucial. Reviewing their track record with other Job Corps centers, including graduation rates, job placement success, and cost-efficiency metrics, will provide insight into their capability. Comparing these metrics against national averages and other operators can highlight strengths and areas for improvement, informing the overall value assessment of this specific contract.

How does the per-student cost of this Job Corps center compare to other similar federally funded vocational training programs?

Calculating the per-student cost by dividing the total contract value by the expected number of participants annually will allow for a direct comparison. Benchmarking this figure against other Job Corps centers and similar vocational training initiatives funded by federal agencies can reveal cost efficiencies or potential areas of overspending. This analysis is key to understanding the fiscal responsibility of the contract.

What mechanisms are in place to ensure the vocational training provided remains relevant to current and future labor market demands?

Effective oversight should include regular reviews of the curriculum and training programs to align with industry needs. This involves collaboration with local employers and industry advisory boards to identify in-demand skills. The contract should stipulate flexibility in adapting training modules and incorporating new technologies to ensure graduates are well-prepared for employment opportunities.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PL DR STE 100, CENTERVILLE, UT, 84014

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

Financial Breakdown

Contract Ceiling: $99,753,522

Exercised Options: $99,353,522

Current Obligation: $86,926,045

Actual Outlays: $77,569,102

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $4,509,046

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline