Labor Department's $24.6M contract for technical schools awarded to Alutiiq Management Services, Inc

Contract Overview

Contract Amount: $24,632,588 ($24.6M)

Contractor: Alutiiq Management Services, LLC

Awarding Agency: Department of Labor

Start Date: 2017-01-27

End Date: 2021-02-28

Contract Duration: 1,493 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF ROSWELL JCC

Place of Performance

Location: ROSWELL, CHAVES County, NEW MEXICO, 88202

State: New Mexico Government Spending

Plain-Language Summary

Department of Labor obligated $24.6 million to ALUTIIQ MANAGEMENT SERVICES, LLC for work described as: IGF::OT::IGF ROSWELL JCC Key points: 1. The contract's cost-plus-incentive-fee structure allows for performance-based adjustments, potentially driving efficiency. 2. Awarded under full and open competition after exclusion of sources, indicating a deliberate selection process. 3. The duration of 1493 days suggests a long-term need for the services provided. 4. The contract's value of $24.6 million places it in the mid-tier range for technical training services. 5. Performance context is crucial for understanding the value derived from this significant investment. 6. Sector positioning within 'Other Technical and Trade Schools' highlights a niche but important service area.

Value Assessment

Rating: good

The contract's value of $24.6 million for technical and trade school services appears reasonable given the 1493-day duration. While specific benchmarks for 'Other Technical and Trade Schools' are not readily available, the cost-plus-incentive-fee (CPIF) pricing model suggests an effort to align contractor performance with government objectives, potentially leading to better value than fixed-price contracts if managed effectively. Further analysis would require comparing the specific services delivered and their outcomes against similar training programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through 'full and open competition after exclusion of sources.' This indicates that while the competition was open, certain sources were intentionally excluded, possibly due to specific requirements or prior performance issues. The presence of four bidders suggests a competitive environment, but the exclusion clause warrants further investigation into the rationale behind it to ensure maximum price discovery.

Taxpayer Impact: The competitive process, even with exclusions, likely resulted in a more favorable price for taxpayers than a sole-source award. Understanding the reasons for source exclusion is key to confirming that the best possible value was achieved.

Public Impact

Benefits individuals seeking technical and trade skills, enhancing their employability. Delivers educational and training services essential for workforce development. Geographic impact is focused on New Mexico, where the contract is managed. Workforce implications include potential job creation within the contractor's organization and improved skills for trainees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition method requires scrutiny to ensure it did not unduly limit competition and potentially inflate costs.
The CPIF contract type can lead to cost overruns if not closely monitored, necessitating robust oversight.
Lack of specific performance metrics in the provided data makes it difficult to assess the true effectiveness and value for money.
The 'NM' designation for the contract's status (likely New Mexico) suggests a localized operational focus, which may limit broader applicability or impact.

Positive Signals

Awarded under full and open competition, indicating a broad search for qualified contractors.
The CPIF structure incentivizes the contractor to perform efficiently and meet cost targets.
The contract duration of over four years suggests a stable, long-term need for these services.
The contractor, Alutiiq Management Services, LLC, has experience in government contracting, implying a level of operational capability.

Sector Analysis

This contract falls within the broader education and training sector, specifically focusing on technical and trade schools. The market for government-funded vocational training is significant, driven by the need to equip citizens with in-demand skills for various industries, including defense, healthcare, and technology. Comparable spending benchmarks would involve analyzing other federal contracts for similar vocational training programs across different agencies.

Small Business Impact

The data indicates that small business participation (sb) was false and the contract was not set aside for small businesses (ss). This suggests the contract was awarded to a large business or a joint venture. There is no information on subcontracting plans for small businesses, which is a missed opportunity to leverage the small business ecosystem for specialized training components.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). The CPIF structure necessitates diligent monitoring of costs and performance against established targets. Transparency would be enhanced by public reporting of performance metrics and cost breakdowns. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Labor Workforce Development Programs
Federal Vocational Training Initiatives
Department of Defense Training Contracts
Department of Veterans Affairs Education Benefits

Risk Flags

Competition Method Concerns
Lack of Specific Performance Metrics
Potential for Cost Overruns (CPIF)
Limited Small Business Subcontracting Visibility

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $24.6 million to ALUTIIQ MANAGEMENT SERVICES, LLC. IGF::OT::IGF ROSWELL JCC

Who is the contractor on this award?

The obligated recipient is ALUTIIQ MANAGEMENT SERVICES, 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 $24.6 million.

What is the period of performance?

Start: 2017-01-27. End: 2021-02-28.

What specific technical and trade skills are being taught under this contract, and how do they align with current labor market demands?

The provided data classifies the contract under NAICS code 611519, 'Other Technical and Trade Schools.' This broad category encompasses a wide range of vocational training, from automotive repair and welding to specialized IT certifications and healthcare support roles. Without access to the contract's statement of work, it is impossible to determine the precise skills being imparted. To assess alignment with labor market demands, a detailed analysis of the curriculum against current job postings, industry skill gap reports, and projected workforce needs in relevant sectors (e.g., advanced manufacturing, renewable energy, cybersecurity) would be necessary. The Department of Labor's own labor market information and workforce development strategies would be key resources for this assessment.

How does the performance of Alutiiq Management Services, LLC on this contract compare to their historical performance on similar government contracts?

Assessing Alutiiq Management Services, LLC's performance requires access to historical contract data, including past performance evaluations, any contract modifications, and dispute resolutions. A review of their track record with the Department of Labor and other federal agencies would reveal patterns of success or challenges in delivering technical training and management services. Key indicators to examine would include on-time delivery, adherence to budget, quality of training outcomes (e.g., completion rates, job placement rates of trainees), and any instances of contract disputes or penalties. Without this specific historical data, a direct comparison is not feasible, but a general search of federal procurement databases and contractor performance systems could provide relevant insights.

What is the cost-plus-incentive-fee (CPIF) structure for this contract, and what are the key performance indicators (KPIs) tied to the incentive fees?

The CPIF contract type means the contractor is reimbursed for allowable costs plus a fixed fee, but the fee is adjusted based on performance against pre-determined targets. To understand the CPIF structure, one would need to examine the contract's 'Incentive Fee Determination' clause. This clause details the base fee, the target cost, the maximum allowable cost, and the incentive sharing ratio between the government and the contractor. Crucially, it outlines the specific Key Performance Indicators (KPIs) that trigger fee adjustments. These KPIs could relate to trainee completion rates, job placement success, cost savings achieved, or adherence to training schedules. Without the specific contract details, the exact financial incentives and performance metrics remain unknown.

How does the total contract value of $24.6 million compare to other federal spending on technical and trade school services?

The $24.6 million contract value for technical and trade school services is a significant investment. To benchmark this against other federal spending, one would need to analyze the total annual outlays across all federal agencies for similar NAICS codes (e.g., 611519). This would involve querying federal procurement data systems like FPDS or USASpending.gov for contracts related to vocational training, technical education, and workforce development. Comparing the per-trainee cost, the scope of services, and the duration of this contract against a portfolio of similar awards would provide context on whether this represents a typical, high, or low investment for the services rendered. Factors like geographic location, specialized skill sets, and the scale of training operations would influence these comparisons.

What are the potential risks associated with the 'full and open competition after exclusion of sources' award method, and how were they mitigated?

The 'full and open competition after exclusion of sources' method presents a unique risk profile. While intended to ensure broad competition, the 'exclusion' aspect implies that certain potential bidders were deliberately disqualified. The primary risk is that this exclusion may have been arbitrary or improperly justified, thereby limiting the pool of qualified offerors and potentially leading to a less competitive outcome and higher prices for the government. Mitigation strategies would involve a clear, documented justification for the exclusion criteria, ensuring these criteria were directly related to essential performance requirements and not used to unfairly disadvantage specific companies. A thorough review of the solicitation and award documentation would be necessary to confirm the legitimacy of the exclusion and assess the level of competition achieved.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOL-ETA-16-R-00023

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corporation

Address: 3909 ARCTIC BLVD, STE 500, ANCHORAGE, AK, 99503

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,915,883

Exercised Options: $27,316,802

Current Obligation: $24,632,588

Actual Outlays: $9,218,396

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline