Department of Labor awards $102M contract for Job Corps vocational training in Los Angeles

Contract Overview

Contract Amount: $102,127,472 ($102.1M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2017-04-11

End Date: 2024-04-30

Contract Duration: 2,576 days

Daily Burn Rate: $39.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::CT::IGF JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS IS THE INITIAL CONTRACT TO OPERATE THE LOS ANGELES JOB CORPS CENTER.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $102.1 million to MANAGEMENT & TRAINING CORPORATION for work described as: IGF::CT::IGF JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS IS THE INITIAL CONTRACT TO OPERATE THE LOS ANGELES JOB CORPS CENTER. Key points: 1. Contract aims to provide vocational training for youth aged 16-24. 2. Operates the Los Angeles Job Corps Center, a key facility. 3. Awarded via full and open competition, suggesting broad market engagement. 4. Cost Plus Incentive Fee (CPIF) contract type allows for performance-based adjustments. 5. Long duration of 2576 days indicates a significant, ongoing service requirement. 6. Contractor, Management & Training Corporation, has experience in similar operations.

Value Assessment

Rating: fair

The contract value of $102.1 million over approximately 7 years represents a significant investment in youth vocational training. Benchmarking this specific contract's value-for-money is challenging without detailed performance metrics and comparable center operating costs. The CPIF structure suggests an attempt to incentivize efficiency, but the ultimate cost-effectiveness will depend on the achieved outcomes and the contractor's ability to manage costs within the incentive framework. Further analysis of per-student cost and placement rates would be needed for a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that multiple vendors were likely invited to bid. This approach generally promotes a competitive environment, potentially leading to better pricing and service offerings. The presence of two bids suggests a moderate level of competition for this specific requirement. A higher number of bidders could potentially drive prices lower and foster greater innovation.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and ensures that the government explores a wide range of potential service providers.

Public Impact

Benefits young individuals aged 16-24 by providing vocational skills and training. Delivers essential services for workforce development and career readiness. Geographic impact is focused on the Los Angeles area. Implications for the local workforce include training for in-demand trades and potential job placement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if not closely managed.
Ensuring consistent quality of training and student outcomes across the contract duration.
Measuring the long-term success and return on investment for the vocational training provided.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contract structure includes incentives, aiming to drive contractor performance.
Long contract duration allows for sustained program delivery and impact.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' sector (NAICS 611519), which encompasses institutions providing vocational and technical training. The federal government, through programs like Job Corps, invests significantly in this sector to address workforce development needs and provide pathways to employment for underserved populations. The market for operating such centers involves specialized education and training providers, often competing for government contracts. Benchmarking would involve comparing operating costs and student outcomes with other Job Corps centers or similar vocational training initiatives.

Small Business Impact

The provided data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. While the prime contractor is Management & Training Corporation, a larger entity, there may be opportunities for small businesses to participate as subcontractors. Further investigation into the subcontracting plan would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would likely fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management, and potentially the Job Corps program office. The Inspector General's office for the Department of Labor would have jurisdiction for audits and investigations. Transparency is typically facilitated through contract award databases and reporting requirements, though specific performance data may not always be publicly accessible. Accountability measures would be tied to the CPIF contract terms and performance metrics.

Related Government Programs

Job Corps Program
Vocational Education and Training
Workforce Investment Act Programs
Department of Labor Contracts

Risk Flags

Cost Overrun Potential
Performance Measurement Difficulty
Long-Term Program Sustainability

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $102.1 million to MANAGEMENT & TRAINING CORPORATION. IGF::CT::IGF JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS IS THE INITIAL CONTRACT TO OPERATE THE LOS ANGELES 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 $102.1 million.

What is the period of performance?

Start: 2017-04-11. End: 2024-04-30.

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

The provided data details a single contract awarded in 2017 for $102,127,472, with an end date of April 30, 2024, spanning approximately 7 years. This represents the primary federal spending for the operation of the Los Angeles Job Corps Center during this period. Without access to prior contract awards or historical operational data for this specific center, it is difficult to establish a long-term spending trend. However, the significant value of this contract suggests a consistent and substantial federal commitment to the center's operations. Future spending would depend on subsequent contract awards and program funding levels.

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

To accurately compare the per-student cost, we would need the total number of students served annually by the Los Angeles Job Corps Center under this contract, as well as the total cost incurred each year. The contract value is $102,127,472 over roughly 2576 days (approx. 7 years). If we assume an average daily operating cost, it would be approximately $39,646 per day. However, without knowing the student enrollment figures and the actual expenditures against the contract (as it's a CPIF), a precise per-student cost benchmark is not feasible. Generally, Job Corps center operating costs can vary based on location, services offered, and student demographics, making direct comparisons complex without standardized reporting.

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

Management & Training Corporation (MTC) is a significant federal contractor with a substantial history of operating Job Corps centers and other workforce development programs for various government agencies. They have managed numerous Job Corps sites across the country. Their track record generally indicates experience in delivering vocational training and support services. Performance reviews and past performance evaluations from previous contracts would provide a more detailed assessment of their effectiveness, efficiency, and compliance. Agencies typically consider past performance heavily in the source selection process for such long-term operational contracts.

What are the key performance indicators (KPIs) used to evaluate the success of this Job Corps center contract?

While specific KPIs are not detailed in the provided data, Job Corps contracts typically evaluate performance based on several critical metrics. These often include student enrollment and retention rates, timely completion of training programs, successful placement of graduates into employment or further education, and average wages of placed graduates. Additionally, compliance with program regulations, budget management, and student satisfaction surveys are usually part of the performance assessment. The Cost Plus Incentive Fee (CPIF) structure implies that specific, measurable outcomes tied to these KPIs would be used to determine incentive payments to the contractor.

What is the risk associated with the Cost Plus Incentive Fee (CPIF) contract type for this Job Corps operation?

The primary risk associated with a CPIF contract is the potential for costs to exceed initial estimates if the incentive structure is not carefully designed or if the contractor's cost control measures are insufficient. While the 'incentive fee' aims to reward the contractor for achieving specific performance targets (potentially including cost savings or efficiencies), the 'cost plus' element means the government pays the allowable costs incurred by the contractor. If performance targets are not met or are poorly defined, the government might end up paying higher costs without realizing the intended benefits. Effective oversight and clear, measurable performance metrics are crucial to mitigate these risks and ensure value for money.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOL-ETA-16-R-00007

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $230,178,414

Exercised Options: $170,788,905

Current Obligation: $102,127,472

Actual Outlays: $95,712,480

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,011,785

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline