Department of Labor awards $132.7M contract for Job Corps Center Operations in Texas

Contract Overview

Contract Amount: $132,693,127 ($132.7M)

Contractor: Arbor E & T LLC

Awarding Agency: Department of Labor

Start Date: 2023-02-28

End Date: 2026-06-30

Contract Duration: 1,218 days

Daily Burn Rate: $108.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JOB CORPS CENTER CTR OPS, O/A, CTS

Place of Performance

Location: SAN MARCOS, HAYS County, TEXAS, 78667

State: Texas Government Spending

Plain-Language Summary

Department of Labor obligated $132.7 million to ARBOR E & T LLC for work described as: JOB CORPS CENTER CTR OPS, O/A, CTS Key points: 1. Contract value represents significant investment in workforce development services. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration of over three years indicates a long-term need for these services. 4. Performance context is critical for ensuring effective delivery of Job Corps programs. 5. Sector positioning places this contract within the broader federal education and training landscape.

Value Assessment

Rating: good

The contract value of $132.7 million over approximately three years for Job Corps Center Operations appears to be within a reasonable range for such large-scale workforce development programs. Benchmarking against similar contracts for comprehensive center operations would provide a more precise assessment of value for money. The firm-fixed-price structure suggests that the contractor bears the primary risk for cost overruns, which can be favorable for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely encouraged to participate. This method generally promotes a wider range of offers and can lead to more competitive pricing. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment was sought.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it increases the likelihood of obtaining the best possible price and quality through a diverse pool of potential contractors.

Public Impact

Benefits low-income and at-risk youth by providing vocational training and education. Delivers comprehensive services including academic instruction, career training, and job placement assistance. Geographic impact is focused on Texas, serving communities within the state. Workforce implications include job creation for instructors, support staff, and administrative personnel at the Job Corps centers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ensuring consistent quality of training across all centers.
Monitoring contractor performance to meet program goals and student outcomes.
Managing potential cost fluctuations within the firm-fixed-price structure.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Long-term contract duration allows for sustained program delivery and impact.
Focus on Job Corps, a proven model for youth workforce development.

Sector Analysis

This contract falls within the Education and Training sector, specifically focusing on workforce development programs like Job Corps. The market for such services involves educational institutions, non-profit organizations, and private companies specializing in vocational training and career services. Federal spending in this area aims to address skills gaps and improve employment outcomes for targeted populations. Comparable spending benchmarks would involve looking at other large-scale federal or state-funded training initiatives.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, ARBOR E & T LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses, which would be a key area to assess the impact on the small business ecosystem. Without specific subcontracting goals, the direct benefit to small businesses from this particular award is unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management, which awarded the contract. Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance metrics and financial reports may not always be publicly accessible. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) Programs
Adult Education and Literacy Programs
Youth Training Programs
Federal Job Training Contracts

Risk Flags

Contract duration exceeds standard service periods, requiring careful performance monitoring.
Firm-fixed-price contracts can sometimes lead to reduced flexibility if scope changes are needed.
Reliance on contractor performance for critical youth development outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $132.7 million to ARBOR E & T LLC. JOB CORPS CENTER CTR OPS, O/A, CTS

Who is the contractor on this award?

The obligated recipient is ARBOR E & T 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 $132.7 million.

What is the period of performance?

Start: 2023-02-28. End: 2026-06-30.

What is the track record of ARBOR E & T LLC in managing large-scale federal training contracts?

ARBOR E & T LLC has a history of managing government contracts, including those related to workforce development and training. While specific details on their performance for Job Corps operations are not provided in this data snippet, their ability to secure a significant contract like this suggests prior experience and capability. A deeper dive into their past performance reviews, contract modifications, and any past performance issues or successes would be necessary for a comprehensive assessment. Examining their financial stability and capacity to manage a contract of this magnitude is also crucial. Their track record will be a key indicator of their likelihood to successfully deliver on the objectives of this Job Corps center operations contract.

How does the awarded amount compare to previous Job Corps center operations contracts in Texas or similar regions?

To assess the value for money, comparing this $132.7 million award to historical spending on similar Job Corps center operations in Texas or comparable states is essential. Factors such as the number of centers operated, the scope of services provided (academic, vocational, support services), and the duration of previous contracts would need to be standardized for a fair comparison. For instance, if previous contracts for similar scope and duration in Texas were in the range of $30-40 million annually, this award of approximately $44 million annually ($132.7M / 3 years) might indicate an increase due to inflation, expanded services, or a more competitive market. Conversely, if previous contracts were significantly higher, this award could represent cost savings or a reduction in scope. Without specific historical data, it's difficult to definitively benchmark this award.

What are the primary performance metrics and risk indicators associated with this Job Corps contract?

Key performance metrics for this Job Corps center operations contract would likely revolve around student enrollment, retention rates, completion of training programs, and successful job placement outcomes. Other indicators might include the quality of vocational training provided, student satisfaction, and adherence to program standards set by the Department of Labor. Risk indicators could include contractor's financial stability, historical performance issues on similar contracts, potential for cost overruns (though mitigated by firm-fixed-price), and the complexity of managing multiple service components. The government will likely monitor these metrics closely through regular reporting and site visits to ensure the contractor is meeting its obligations and delivering effective services to the youth enrolled in the program.

What is the expected impact of this contract on the overall effectiveness of the Job Corps program in Texas?

This contract is expected to ensure the continued and potentially enhanced delivery of Job Corps services in Texas, aiming to improve educational attainment and employability for at-risk youth. By securing a significant funding stream for center operations, the Department of Labor signals a commitment to the program's objectives in the region. The effectiveness will depend on ARBOR E & T LLC's ability to manage the centers efficiently, provide high-quality training aligned with local labor market demands, and foster strong connections with employers for job placement. Positive outcomes would include increased numbers of skilled graduates entering the workforce, contributing to both individual economic mobility and the state's labor supply. Conversely, challenges in program management or service delivery could hinder these positive impacts.

How has federal spending on Job Corps programs evolved over the past five years, and where does this contract fit in?

Federal spending on Job Corps programs has generally remained a significant component of the Department of Labor's budget, reflecting its ongoing importance in youth workforce development. While specific year-over-year figures fluctuate based on appropriations and program priorities, the overall commitment has been consistent. This $132.7 million contract represents a substantial portion of the funding allocated to Job Corps operations within Texas for the contract period. It fits into the broader pattern of federal investment in training initiatives designed to address unemployment and underemployment among young people. Understanding the trend in overall Job Corps funding can provide context for the scale and significance of individual awards like this one.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 805 N WHITTINGTON PKWY, LOUISVILLE, KY, 40222

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

Financial Breakdown

Contract Ceiling: $156,547,393

Exercised Options: $156,547,393

Current Obligation: $132,693,127

Actual Outlays: $110,660,097

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1605JE22D0017

IDV Type: IDC

Timeline