Department of Labor awards $53.2M contract to Management & Training Corporation for Los Angeles Job Corps Center operations

Contract Overview

Contract Amount: $53,244,903 ($53.2M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2024-05-01

End Date: 2026-04-30

Contract Duration: 729 days

Daily Burn Rate: $73.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS CONTRACT IS FOR THE OPERATION OF LOS ANGELES JOB CORPS CENTER WITH OUTREACH & ADMISSIONS AND CAREER TRANSITION SERVICES (OA/CTS).

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90015

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $53.2 million to MANAGEMENT & TRAINING CORPORATION for work described as: THIS CONTRACT IS FOR THE OPERATION OF LOS ANGELES JOB CORPS CENTER WITH OUTREACH & ADMISSIONS AND CAREER TRANSITION SERVICES (OA/CTS). Key points: 1. Contract focuses on essential Job Corps center operations, including outreach, admissions, and career transition services. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 729 days (2 years) provides a stable period for service delivery. 4. The firm-fixed-price contract type shifts performance risk to the contractor. 5. The contractor, Management & Training Corporation, has experience in managing similar educational and training programs. 6. The contract's scope is geographically focused on Los Angeles, California.

Value Assessment

Rating: good

The contract value of approximately $53.2 million over two years for operating a Job Corps center appears reasonable given the scope of services. Benchmarking against similar Job Corps center contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure incentivizes cost control by the contractor. However, without specific performance metrics and historical cost data for this center, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 7 bidders suggests a healthy level of competition for this service. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are young individuals in the Los Angeles area seeking vocational training and career development opportunities. The contract ensures the continued operation of the Los Angeles Job Corps Center, providing critical educational and employment services. Services include outreach, admissions, and career transition support, aiming to place participants in sustainable employment. The contract has a direct impact on the local workforce development ecosystem in Southern California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if contractor's operational efficiency is lower than anticipated.
Risk of service quality degradation if contractor prioritizes cost savings over program effectiveness.
Dependence on a single contractor for a critical workforce development program in a specific region.

Positive Signals

Firm-fixed-price contract aligns contractor incentives with cost control.
Full and open competition suggests a robust selection process.
Contractor's experience in managing similar programs may lead to efficient operations.
Defined contract period provides clear expectations for service delivery.

Sector Analysis

The Job Corps program is a significant component of the U.S. Department of Labor's workforce development initiatives, aimed at providing education and vocational training to at-risk youth. This contract falls within the broader education and training services sector, specifically focusing on vocational schools and career development. Comparable spending benchmarks would involve analyzing other Job Corps center contracts awarded by the Department of Labor or similar federal agencies managing workforce development programs.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the primary award was not directed towards small businesses, the prime contractor, Management & Training Corporation, may engage small businesses as subcontractors for specialized services. The impact on the small business ecosystem would depend on the extent of any subcontracting opportunities created by this award.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). The firm-fixed-price nature of the contract provides a degree of accountability by fixing the total cost. Performance monitoring and compliance checks would be key oversight mechanisms. Transparency is generally maintained through contract award databases, though detailed operational performance data may not always be publicly accessible.

Related Government Programs

Department of Labor Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Vocational Rehabilitation Services
Adult Education and Literacy Programs

Risk Flags

Potential for underperformance in student outcomes (placement, retention).
Risk of operational cost overruns impacting contractor profitability.
Dependence on a single contractor for a critical community service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $53.2 million to MANAGEMENT & TRAINING CORPORATION. THIS CONTRACT IS FOR THE OPERATION OF LOS ANGELES JOB CORPS CENTER WITH OUTREACH & ADMISSIONS AND CAREER TRANSITION SERVICES (OA/CTS).

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 $53.2 million.

What is the period of performance?

Start: 2024-05-01. End: 2026-04-30.

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

Management & Training Corporation (MTC) has a significant history of operating Job Corps centers for the U.S. Department of Labor. They are one of the largest private operators of these facilities nationwide. MTC's experience includes managing various aspects of center operations, from student recruitment and training to career placement and facility management. Their performance record can be assessed through historical contract awards, any reported performance issues or successes, and potentially through reviews by the Department of Labor's Inspector General. While specific details of their performance on all contracts are not always public, their continued selection for numerous Job Corps contracts suggests a generally satisfactory performance history in meeting program objectives and regulatory requirements.

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

Calculating a precise per-student cost requires knowing the projected number of students served by the Los Angeles Job Corps Center under this contract and the total contract value. The contract value is approximately $53.2 million over 729 days (2 years). If we assume an average daily student enrollment of, for example, 500 students, the daily cost would be roughly $146,000 ($53.2M / 729 days). This would translate to about $292 per student per day ($146,000 / 500 students). However, Job Corps center costs can vary significantly based on location, student demographics, the intensity of training programs offered, and facility overhead. A comprehensive comparison would necessitate accessing data on the average daily enrollment and total operating costs for a range of similar Job Corps centers across the country to establish a reliable benchmark.

What are the primary performance risks associated with this contract?

The primary performance risks for this contract revolve around the contractor's ability to effectively deliver the promised educational and vocational training services while managing costs. Key risks include potential shortfalls in student recruitment and retention, leading to underutilization of the center's capacity and potentially impacting funding or future contract renewals. There's also a risk of failing to meet student performance outcomes, such as graduation rates, credential attainment, and successful job placement, which are critical measures of the Job Corps program's success. Furthermore, operational inefficiencies or inadequate facility maintenance could lead to disruptions in service delivery. The firm-fixed-price nature, while beneficial for budget certainty, places the onus on the contractor to manage these risks and maintain quality within the agreed-upon price.

How does the competition level (7 bidders) impact the value received by the government?

A competition level of seven bidders for this contract is generally considered robust and is likely to have a positive impact on the value received by the government. A higher number of bidders typically intensifies competition, pressuring each offeror to submit their most competitive pricing and technically sound proposals to win the contract. This scenario increases the likelihood that the Department of Labor secured a fair market price and a high-quality service offering. It reduces the risk of the government overpaying or receiving substandard services that might occur in a less competitive environment with fewer bidders. The extensive competition suggests that the market has sufficient capacity and interest to support the Job Corps program's operational needs in Los Angeles.

What is the historical spending trend for operating the Los Angeles Job Corps Center?

Historical spending data specifically for the Los Angeles Job Corps Center is not provided in the current data extract. To analyze historical spending trends, one would need to access previous contract awards for this specific center, potentially going back several years or even decades, as Job Corps centers are long-standing facilities. This would involve reviewing past contract values, durations, and any modifications or task orders issued. Comparing these historical figures to the current $53.2 million award over two years would reveal whether spending has increased, decreased, or remained relatively stable, adjusted for inflation. Such an analysis would also help identify any significant shifts in program scope or operational costs over time.

Are there specific performance metrics tied to this contract that ensure accountability?

While the provided data does not detail specific performance metrics, federal contracts for Job Corps centers invariably include stringent performance requirements and metrics. These typically cover areas such as student recruitment and enrollment targets, retention rates, academic and vocational training completion rates, credential attainment, and post-program employment placement rates and wages. The Department of Labor monitors these metrics closely to assess contractor performance. Failure to meet these key performance indicators (KPIs) can result in contractual remedies, including financial penalties, corrective action plans, or even contract termination. The firm-fixed-price nature of this contract further incentivizes the contractor to meet these metrics to ensure profitability.

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-23-R-00009

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PLACE DR, 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: $148,255,853

Exercised Options: $56,454,997

Current Obligation: $53,244,903

Actual Outlays: $45,361,838

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline