Department of Labor awards $116M for vocational rehabilitation, serving District of Columbia residents

Contract Overview

Contract Amount: $116,385,848 ($116.4M)

Contractor: Home Builders Institute

Awarding Agency: Department of Labor

Start Date: 2018-04-01

End Date: 2023-07-31

Contract Duration: 1,947 days

Daily Burn Rate: $59.8K/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, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $116.4 million to HOME BUILDERS INSTITUTE for work described as: IGF:CF::IGF Key points: 1. Contract value of $116.4M over nearly 4 years indicates significant investment in vocational services. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract's duration and cost-plus-fixed-fee structure warrant scrutiny for cost control and efficiency. 4. Performance context is crucial to understand the effectiveness of vocational rehabilitation services delivered. 5. This contract positions the Department of Labor as a key provider of workforce development support. 6. The fixed fee component needs to be assessed against the scope of services to ensure value.

Value Assessment

Rating: fair

The contract's total value of $116.4 million over 1947 days (approximately 5.3 years) averages to roughly $22 million per year. Benchmarking this against similar vocational rehabilitation contracts is challenging without more specific service details. However, the cost-plus-fixed-fee (CPFF) pricing structure, while allowing for flexibility, can sometimes lead to higher costs if not tightly managed. The fixed fee of $5.98 million represents about 5.1% of the total contract value, which is within a reasonable range for CPFF contracts, but the overall value for money depends heavily on the outcomes achieved.

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 considered. This approach is generally favorable for price discovery and ensuring a wide range of potential providers can participate. The number of bidders is not specified, but the method suggests a competitive environment was sought. The outcome of this competition, in terms of the number of proposals received and the final awardee, would provide further insight into the level of market interest and the effectiveness of the solicitation.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality. It ensures that the government explores a broad market, potentially finding innovative solutions and the best value for public funds.

Public Impact

Residents of the District of Columbia seeking vocational rehabilitation services are the primary beneficiaries. The contract supports the delivery of essential services aimed at helping individuals with disabilities or other barriers to employment find and maintain jobs. Geographic impact is focused on the District of Columbia, providing localized support for its residents. Workforce implications include potential job placements for individuals and support for the local economy through employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts require diligent oversight to prevent cost overruns and ensure efficiency.
The long duration of the contract necessitates ongoing performance monitoring to ensure continued value.
The specific metrics for success in vocational rehabilitation are critical for assessing the contract's true impact.

Positive Signals

Awarded under full and open competition, suggesting a potentially competitive and fair process.
The fixed fee component provides some cost certainty for the government, provided the scope is well-defined.
The contract addresses a critical social need for vocational rehabilitation services.

Sector Analysis

The vocational rehabilitation services sector is a key component of the broader workforce development and social services industry. This contract falls under the government's efforts to support individuals with barriers to employment, aligning with federal goals for inclusion and economic participation. Comparable spending benchmarks would typically be found within federal and state agencies focused on labor, health, and human services, often involving contracts for training, placement, and support services. The market size for such services is substantial, driven by legislative mandates and societal needs.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem is unclear. However, the prime contractor, HOME BUILDERS INSTITUTE, is an organization that often works with various entities, potentially including small businesses for specific service delivery components, though this is not explicitly stated in the award details. Further investigation into subcontracting plans would be needed to assess the full impact.

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 and performance monitoring is expected. Transparency would be enhanced by public reporting of performance metrics and expenditures. The Inspector General's office within the Department of Labor would have jurisdiction for audits and investigations into potential fraud, waste, or abuse.

Related Government Programs

Department of Labor - Workforce Innovation and Opportunity Act (WIOA) Programs
Vocational Rehabilitation State Grants Program
Services for Individuals with Disabilities
Job Training and Placement Services

Risk Flags

Cost-plus-fixed-fee contracts require vigilant oversight to manage costs.
Long contract duration necessitates continuous performance monitoring.
Effectiveness of vocational rehabilitation services is highly dependent on program execution and participant outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $116.4 million to HOME BUILDERS INSTITUTE. IGF:CF::IGF

Who is the contractor on this award?

The obligated recipient is HOME BUILDERS INSTITUTE.

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 $116.4 million.

What is the period of performance?

Start: 2018-04-01. End: 2023-07-31.

What specific vocational rehabilitation services are being provided under this contract, and what are the key performance indicators (KPIs) for success?

The contract, identified by NAICS code 624310 (Vocational Rehabilitation Services), implies a range of services designed to assist individuals with disabilities or other employment barriers. These typically include assessment, counseling, training, job placement assistance, and ongoing support to maintain employment. Key performance indicators would likely focus on metrics such as the number of individuals served, successful job placements, wage levels achieved post-placement, and job retention rates. Without access to the full contract statement of work, the precise services and KPIs remain unspecified, making a definitive assessment of program effectiveness challenging. However, the Department of Labor's objectives in this area generally aim to improve the employability and economic self-sufficiency of participants.

How does the fixed fee of approximately $5.98 million compare to industry standards for similar large-scale vocational rehabilitation contracts?

The fixed fee of $5.98 million on a contract valued at $116.4 million represents approximately 5.1% of the total contract value. For Cost Plus Fixed Fee (CPFF) contracts, the fixed fee is intended to compensate the contractor for their overhead and profit. Industry standards for fixed fees can vary significantly based on contract complexity, risk, and the nature of the services. For large, complex service contracts like vocational rehabilitation, a fixed fee in the range of 5-10% is often considered reasonable. Therefore, 5.1% appears to be on the lower end but potentially acceptable, provided the scope of work is clearly defined and manageable. The true measure of value lies in whether this fee adequately incentivizes performance and covers the contractor's reasonable costs and profit for delivering the required outcomes.

What is the track record of the HOME BUILDERS INSTITUTE (HBI) in delivering government contracts, particularly in the vocational rehabilitation or workforce development space?

The HOME BUILDERS INSTITUTE (HBI) is a national non-profit organization that provides job training and education for the building industry. While their primary focus is often on construction trades, they have experience in workforce development and training programs. Information regarding HBI's specific track record with government contracts, especially large-scale vocational rehabilitation efforts, would require a deeper dive into federal procurement databases (like FPDS) and potentially their organizational reports. Their mission aligns with the goals of vocational rehabilitation, suggesting a potential capability. However, the scale and specific requirements of this $116 million Department of Labor contract would necessitate a thorough review of their past performance, client satisfaction, and ability to meet complex government standards and reporting requirements.

Given the contract's duration (nearly 5.5 years) and CPFF structure, what are the primary risks associated with cost control and contractor performance?

The primary risks associated with a long-duration CPFF contract like this one are potential cost overruns and performance drift. In a CPFF structure, the government agrees to pay the contractor's allowable costs plus a fixed fee. If the contractor's costs escalate beyond initial projections due to inefficiencies, scope creep not properly managed, or unforeseen challenges, the total contract cost increases. The fixed fee, however, remains constant, meaning the contractor's profit margin shrinks if costs rise significantly. Conversely, the contractor may have less incentive to control costs aggressively if they are confident that all reasonable expenses will be reimbursed. For performance, the long duration requires sustained effort and adaptation to changing needs. Without robust oversight, performance could degrade over time, or the contractor might focus on easily achievable metrics rather than the most impactful outcomes for participants.

How does the total spending of $116.4 million on vocational rehabilitation services for the District of Columbia compare to historical spending patterns for similar services in the region or nationall

Comparing this $116.4 million contract to historical spending requires context on the specific services procured and the population served. Nationally, federal spending on vocational rehabilitation is substantial, often channeled through state agencies via programs like the Rehabilitation Services Administration (RSA). The total federal-state spending on vocational rehabilitation services annually runs into billions of dollars. For a single contract focused on a specific geographic area like the District of Columbia, $116.4 million over nearly five and a half years represents a significant investment. It suggests either a large number of individuals requiring services or a comprehensive, long-term support model. To assess its comparability, one would need to analyze historical contract awards for similar services in DC and other major metropolitan areas, considering population size, unemployment rates, and disability prevalence.

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-00011

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1201 15TH ST NW 6TH FL, WASHINGTON, DC, 20005

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: $116,385,848

Exercised Options: $116,385,848

Current Obligation: $116,385,848

Actual Outlays: $74,193,074

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline