Department of Labor awards $109M contract to Management & Training Corporation for Clearfield Job Corps Center operations

Contract Overview

Contract Amount: $108,928,243 ($108.9M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2022-11-01

End Date: 2026-10-31

Contract Duration: 1,460 days

Daily Burn Rate: $74.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE AWARD FOR THE OPERATION OF THE CLEARFIELD JOB CORPS CENTER

Place of Performance

Location: CENTERVILLE, DAVIS County, UTAH, 84014

State: Utah Government Spending

Plain-Language Summary

Department of Labor obligated $108.9 million to MANAGEMENT & TRAINING CORPORATION for work described as: BASE AWARD FOR THE OPERATION OF THE CLEARFIELD JOB CORPS CENTER Key points: 1. The contract's base value of approximately $109 million over four years suggests a significant investment in vocational training and workforce development. 2. Competition dynamics indicate a full and open process, potentially leading to competitive pricing and a wider pool of qualified bidders. 3. The firm-fixed-price contract type shifts performance risk to the contractor, incentivizing efficient service delivery. 4. The award to Management & Training Corporation, a known entity in workforce development, provides performance context based on their prior experience. 5. This contract falls within the 'Other Technical and Trade Schools' NAICS code, positioning it within the broader education and training sector. 6. The duration of 1460 days (approximately 4 years) allows for sustained program operations and impact.

Value Assessment

Rating: good

The base award of $109 million over four years for operating a Job Corps center appears to be within a reasonable range for such large-scale educational and vocational programs. Benchmarking against similar Job Corps center contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure generally promotes cost control by the contractor. Without specific per-student cost data or comparisons to other centers of similar size and scope, a definitive value judgment is challenging, but the scale of the award is consistent with the complexity of managing such a facility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 5 bidders suggests a healthy level of competition for this significant contract. A competitive process like this is generally expected to drive down costs and encourage innovation as contractors vie for the award. The number of bidders provides a positive signal regarding the market's interest and capacity to serve the Department of Labor's needs.

Taxpayer Impact: A full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of securing the best possible price and service quality, preventing potential overspending associated with less competitive solicitations.

Public Impact

The primary beneficiaries are students seeking vocational training and career development opportunities at the Clearfield Job Corps Center. The contract ensures the continued operation of essential services including career training, education, and job placement assistance. The geographic impact is concentrated in Utah, specifically serving the Clearfield area and surrounding communities. Workforce implications include the creation and maintenance of jobs for instructors, administrative staff, and support personnel at the center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in if performance is adequate but not exceptional, making future re-competition challenging.
Reliance on a single contractor for a critical workforce development function could pose risks if the contractor's capacity or commitment wavers.
The effectiveness of the training programs and job placement rates will be crucial indicators of success beyond the financial award.

Positive Signals

Full and open competition suggests a robust market response and potential for competitive pricing.
Firm-fixed-price contract type incentivizes contractor efficiency and cost management.
The award to an experienced contractor like Management & Training Corporation provides a degree of confidence in operational continuity.
The contract duration allows for long-term planning and program stability.

Sector Analysis

The contract falls within the broader education and training sector, specifically focusing on vocational and technical education. The Job Corps program is a significant federal initiative aimed at providing disadvantaged youth with the skills and education needed to secure employment. The market for operating such centers involves specialized educational service providers. Comparable spending benchmarks would involve analyzing other Job Corps center contracts awarded by the Department of Labor or similar government agencies managing large-scale training programs.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (sb: false). While the primary award is to a large corporation, there may be opportunities for small businesses to participate as subcontractors to Management & Training Corporation. The extent of subcontracting to small businesses will be a key factor in assessing the contract's impact on the small business ecosystem. Further investigation into the subcontracting plan would be necessary to determine the specific benefits to small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's Office of the Assistant Secretary for Administration and Management. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract award databases and public reporting. The Inspector General for the Department of Labor would likely have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

Department of Labor Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Vocational Training Initiatives
Adult Education and Literacy Programs

Risk Flags

Contract duration is substantial, requiring ongoing performance monitoring.
Firm-fixed-price contracts can sometimes lead to contractor cost-cutting that impacts quality if not closely monitored.
Success is heavily dependent on student engagement and successful job placement, metrics that require robust tracking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $108.9 million to MANAGEMENT & TRAINING CORPORATION. BASE AWARD FOR THE OPERATION OF THE CLEARFIELD JOB CORPS CENTER

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 $108.9 million.

What is the period of performance?

Start: 2022-11-01. End: 2026-10-31.

What is Management & Training Corporation's track record in operating Job Corps centers?

Management & Training Corporation (MTC) is a well-established private operator of correctional facilities and Job Corps centers. They have a long history of managing government contracts, including numerous Job Corps centers across the United States. Their experience suggests a familiarity with the operational requirements, performance metrics, and regulatory environment associated with the Job Corps program. While specific performance data for each center they operate is not detailed here, their continued success in securing and retaining such contracts indicates a generally positive track record with federal agencies. Evaluating their past performance would involve reviewing specific contract outcomes, student success rates, and any documented compliance issues or successes across their portfolio of managed facilities.

How does the per-student cost of this contract compare to other Job Corps centers?

Determining the precise per-student cost requires knowing the projected number of students served by the Clearfield Job Corps Center under this contract. The base award is $108,928,242.79 over approximately 1460 days. If we assume an average daily student enrollment (which is not provided), we could estimate a daily or annual cost. For example, if the center serves 500 students consistently, the annual cost would be roughly $29.5 million, or about $59,000 per student per year. This figure needs to be benchmarked against national averages for Job Corps centers, which can vary significantly based on location, program offerings, and student demographics. Without specific enrollment figures and a direct comparison dataset, it's difficult to definitively state if this contract represents superior or inferior value on a per-student basis.

What are the primary risks associated with this contract for the Department of Labor?

The primary risks for the Department of Labor (DOL) revolve around contractor performance and program effectiveness. A key risk is that Management & Training Corporation (MTC) may not deliver the expected quality of training or achieve satisfactory job placement rates for students, thereby failing to meet the program's objectives. Performance risk is somewhat mitigated by the firm-fixed-price contract, which places financial responsibility on MTC for cost overruns, but DOL still bears the risk of suboptimal service delivery. Another risk is potential non-compliance with federal regulations or reporting requirements. Finally, there's a reputational risk if the center underperforms or faces significant public criticism, reflecting poorly on the DOL's oversight and program management.

What historical spending patterns exist for the Clearfield Job Corps Center?

Historical spending data for the Clearfield Job Corps Center prior to this award is not directly provided in the summarized data. However, the award of a new definitive contract suggests a continuation or renewal of services. To understand historical spending patterns, one would need to examine previous contracts awarded for the operation of this specific center. This would involve looking at the duration, value, and type of previous awards to Management & Training Corporation or any prior operators. Analyzing trends in award amounts, contract modifications, and the number of bidders over time would reveal whether spending has been consistent, increasing, or decreasing, and whether competition levels have changed.

How does the 'Other Technical and Trade Schools' NAICS code influence the contract's scope and oversight?

The classification under NAICS code 611519 ('Other Technical and Trade Schools') signifies that the contract's primary purpose is to provide vocational and technical education and training. This scope dictates the expected services, such as curriculum development, instruction, student support, and career placement. Federal oversight for contracts within this NAICS code typically focuses on educational quality, student outcomes (e.g., graduation rates, job placement), compliance with educational standards, and adherence to program-specific regulations (like those for Job Corps). The Department of Labor's oversight mechanisms would be tailored to ensure these educational and training objectives are met effectively and efficiently, distinguishing it from oversight for, say, construction or IT services.

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-22-R-00005

Offers Received: 5

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: $161,478,115

Exercised Options: $129,326,655

Current Obligation: $108,928,243

Actual Outlays: $90,991,842

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,088,849

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline