Department of Labor awards $47M for vocational rehabilitation, with a 5-year duration

Contract Overview

Contract Amount: $46,973,449 ($47.0M)

Contractor: International Union of Operating Engineers National Training Fund

Awarding Agency: Department of Labor

Start Date: 2018-03-01

End Date: 2023-07-31

Contract Duration: 1,978 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF:CF::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $47.0 million to INTERNATIONAL UNION OF OPERATING ENGINEERS NATIONAL TRAINING FUND for work described as: IGF:CF::IGF Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. The duration of nearly 2,000 days indicates a long-term need for these services. 4. The awardee, International Union of Operating Engineers National Training Fund, suggests a specialized focus. 5. The contract value is substantial, requiring robust performance monitoring. 6. Geographic focus on Washington D.C. impacts local workforce development.

Value Assessment

Rating: fair

The contract value of approximately $47 million over five years for vocational rehabilitation services appears to be within a reasonable range for such a long-term, specialized program. Benchmarking against similar large-scale vocational training and rehabilitation contracts is difficult without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure means the final cost is subject to actual expenses plus a negotiated fee, which can lead to variations. The fixed fee component provides some predictability, but the overall value hinges on the efficiency and effectiveness of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a single award suggests that either the competition resulted in a clear winner based on technical merit and price, or that the specific requirements narrowed the field significantly. A competitive process generally benefits taxpayers by driving down prices and encouraging innovation among bidders.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly approach, as it maximizes the chances of securing the best value by allowing all qualified sources to compete. This process helps ensure that the government is not overpaying for services.

Public Impact

Individuals seeking vocational rehabilitation services in the Washington D.C. area will benefit from this contract. The contract supports the delivery of vocational rehabilitation services, aiming to improve employment outcomes for participants. The geographic impact is concentrated in the District of Columbia. The contract likely has implications for the workforce development sector, potentially creating or sustaining jobs within the awarded organization and its partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified by performance.
The long contract duration necessitates ongoing performance monitoring to ensure continued relevance and effectiveness of services.
The specific nature of vocational rehabilitation services means that measuring outcomes and impact requires robust data collection and analysis.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract addresses a critical government function: vocational rehabilitation.
The long-term nature of the contract suggests a stable and ongoing need for these services, providing continuity for beneficiaries.

Sector Analysis

The vocational rehabilitation sector is a critical component of workforce development, focusing on assisting individuals with disabilities or other barriers to employment. This contract fits within the broader landscape of government-funded training and employment services. Spending in this area is often driven by legislative mandates and social policy goals. Comparable spending benchmarks would typically be found within the Department of Labor's overall budget for workforce programs and similar state-level vocational rehabilitation initiatives.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large, definitive contract awarded through full and open competition, it is possible that subcontracting opportunities may exist for small businesses within the scope of the awarded work. However, without further details on subcontracting plans or goals, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure the fixed fee is earned. Performance metrics and reporting requirements, likely detailed in the contract's statement of work, would be key accountability measures. The Inspector General's office for the Department of Labor would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) programs
Department of Labor Training and Employment Services
Vocational Rehabilitation State Grants
Federal Employment Services

Risk Flags

Long contract duration may require flexibility to adapt to changing needs.
CPFF structure necessitates robust cost monitoring.
Performance measurement is critical for assessing program effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $47.0 million to INTERNATIONAL UNION OF OPERATING ENGINEERS NATIONAL TRAINING FUND. IGF:CF::IGF

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL UNION OF OPERATING ENGINEERS NATIONAL TRAINING FUND.

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 $47.0 million.

What is the period of performance?

Start: 2018-03-01. End: 2023-07-31.

What is the specific nature of the vocational rehabilitation services being provided under this contract?

The provided data identifies the contract's National Item Identification Number (NIIN) as 624310, which corresponds to 'Vocational Rehabilitation Services'. However, the specific details of these services are not elaborated upon in the summary data. Typically, vocational rehabilitation services encompass a range of support aimed at helping individuals with disabilities or other barriers to employment achieve their employment goals. This can include assessment, counseling, training, job placement assistance, and ongoing support. The International Union of Operating Engineers National Training Fund's involvement suggests a potential focus on skills training relevant to trades or specific industries where their expertise lies. A deeper dive into the contract's statement of work would be necessary to understand the precise scope, target population, and expected outcomes of these services.

How does the Cost Plus Fixed Fee (CPFF) structure impact the government's cost control for this contract?

The Cost Plus Fixed Fee (CPFF) contract structure involves the government reimbursing the contractor for all allowable costs incurred, plus a predetermined fixed fee. This fee represents the contractor's profit and is not subject to change unless the contract scope is formally modified. For cost control, the CPFF structure incentivizes the contractor to manage costs efficiently because any savings below the estimated cost do not reduce the fixed fee. However, it also means the government bears the risk of cost overruns if actual costs exceed estimates. Effective oversight by the contracting agency is paramount to scrutinize allowable costs, ensure they are reasonable and allocable to the contract, and verify that the fixed fee is commensurate with the work performed. Without robust oversight, there is a risk of inflated costs.

What is the track record of the International Union of Operating Engineers National Training Fund with federal contracts, particularly with the Department of Labor?

Information regarding the specific track record of the International Union of Operating Engineers National Training Fund (IUOE NTF) with federal contracts, especially with the Department of Labor, is not detailed in the provided summary data. To assess their track record, one would need to examine historical contract awards, performance evaluations (such as past performance questionnaires or CPARS reports), and any documented issues or successes. Given that this is a significant award ($47 million), it suggests the IUOE NTF likely has experience in delivering relevant training or services. However, a comprehensive review of their federal contracting history, including any prior work with DOL or similar agencies on vocational rehabilitation or workforce development programs, would be necessary for a thorough assessment of their capabilities and reliability.

Are there any specific performance metrics or key performance indicators (KPIs) associated with this vocational rehabilitation contract?

The provided summary data does not explicitly list the specific performance metrics or Key Performance Indicators (KPIs) for this contract. However, for a vocational rehabilitation services contract, especially one awarded under full and open competition and lasting nearly five years, it is highly probable that such metrics are defined within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Common KPIs in this domain often include: successful job placement rates for participants, retention rates in employment after a certain period (e.g., 90 or 180 days), participant satisfaction surveys, achievement of individualized training goals, and timely delivery of support services. The Department of Labor would be responsible for monitoring the contractor's performance against these metrics to ensure the program's effectiveness and value for taxpayer money.

How does the $46,973,449.45 award compare to historical spending on vocational rehabilitation services by the Department of Labor?

Comparing the $46.97 million award to historical spending requires access to the Department of Labor's historical budget and contract data for vocational rehabilitation services. This single award represents a significant investment over its 1978-day (approximately 5.4-year) duration. To contextualize this amount, one would need to analyze trends in DOL's spending on similar programs, such as WIOA-funded initiatives or specific vocational rehabilitation grants. It would be important to determine if this contract represents a new initiative, an expansion of existing services, or a replacement for previous contracts. Understanding the average annual spending on vocational rehabilitation and the typical contract values within this sector would provide a clearer picture of whether this award is unusually large, average, or small in comparison to historical patterns.

Industry Classification

NAICS: Health Care and Social Assistance › Vocational Rehabilitation Services › Vocational Rehabilitation Services

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: 1630DC-17-R-00018

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1125 17TH ST NW, WASHINGTON, DC, 20036

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

Financial Breakdown

Contract Ceiling: $46,973,449

Exercised Options: $46,973,449

Current Obligation: $46,973,449

Actual Outlays: $26,180,343

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline