Labor Department Awards $58.5M to Arbor E & T for Puerto Rico Job Corps Centers

Contract Overview

Contract Amount: $58,474,611 ($58.5M)

Contractor: Arbor E & T LLC

Awarding Agency: Department of Labor

Start Date: 2019-03-01

End Date: 2023-02-28

Contract Duration: 1,460 days

Daily Burn Rate: $40.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: Other

Official Description: OPERATION OF PUERTO RICO JOB CORPS CENTERS INCLUDING OA/CTS

Place of Performance

Location: ARECIBO, ARECIBO County, PUERTO RICO, 00612

Plain-Language Summary

Department of Labor obligated $58.5 million to ARBOR E & T LLC for work described as: OPERATION OF PUERTO RICO JOB CORPS CENTERS INCLUDING OA/CTS Key points: 1. Significant contract value for vocational training services. 2. Arbor E & T LLC is the sole awardee. 3. Potential risk associated with a single provider for essential services. 4. Focus on technical and trade schools in Puerto Rico.

Value Assessment

Rating: fair

The contract value of $58.5M over four years suggests a substantial investment. Benchmarking against similar vocational training contracts would be necessary to fully assess value, but the fixed-price structure provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. However, the single award to Arbor E & T LLC means only one entity will perform the services, limiting immediate price discovery post-award.

Taxpayer Impact: Taxpayer funds are being used to support job training programs in Puerto Rico, aiming to improve workforce development and economic opportunities.

Public Impact

Provides essential job training and career services to individuals in Puerto Rico. Supports the operation of Job Corps centers, a key federal workforce development initiative. Impacts the local economy through employment and service provision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Single awardee for critical services
Geographic concentration of services

Positive Signals

Full and open competition initially
Fixed-price contract type

Sector Analysis

This contract falls within the Other Technical and Trade Schools sector, focusing on vocational training. Spending in this sector is driven by federal workforce development initiatives aimed at equipping individuals with job-ready skills.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The Office of the Assistant Secretary for Administration and Management within the Department of Labor is responsible for this contract. Standard oversight mechanisms for federal contracts would apply.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Reliance on a single contractor
Potential for cost overruns if not managed tightly
Geographic concentration may limit broader impact
Need for robust performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $58.5 million to ARBOR E & T LLC. OPERATION OF PUERTO RICO JOB CORPS CENTERS INCLUDING OA/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 $58.5 million.

What is the period of performance?

Start: 2019-03-01. End: 2023-02-28.

What is the performance history of Arbor E & T LLC with the Department of Labor and other federal agencies?

Assessing Arbor E & T LLC's past performance is crucial for understanding their capability to deliver on this contract. Reviewing previous contract awards, performance evaluations, and any documented issues with the Department of Labor or other federal agencies can provide insights into their reliability and effectiveness in managing similar operations.

How does the cost per participant compare to similar Job Corps centers or vocational training programs nationwide?

Benchmarking the cost per participant against national averages for Job Corps centers and comparable vocational training programs is essential for evaluating cost-effectiveness. Significant deviations could indicate potential inefficiencies or, conversely, a highly effective program tailored to specific regional needs and costs.

What are the key performance indicators (KPIs) for this contract, and how is success measured?

Understanding the specific KPIs and measurement methodologies is vital for assessing the effectiveness of the Job Corps centers. This includes metrics related to participant completion rates, job placement success, starting wages of graduates, and employer satisfaction, which collectively indicate the program's impact on workforce development.

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: 1630J1-18-R-00010

Offers Received: 4

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

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: $58,623,017

Exercised Options: $58,623,017

Current Obligation: $58,474,611

Actual Outlays: $50,780,273

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline