Department of Labor's Job Corps contract for San Diego center operations sees cost increase by over $88 million

Contract Overview

Contract Amount: $88,455,998 ($88.5M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2019-07-15

End Date: 2023-09-30

Contract Duration: 1,538 days

Daily Burn Rate: $57.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS MODIFICATION INCREASES THE ESTIMATED COST AND FUNDS AVAILABLE TO THE CONTRACT. THIS CONTRACT IS FOR THE OPERATION OF THE SAN DIEGO JOB CORPS CENTER

Place of Performance

Location: IMPERIAL BEACH, SAN DIEGO County, CALIFORNIA, 91932

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $88.5 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS MODIFICATION INCREASES THE ESTIMATED COST AND FUNDS AVAILABLE TO THE CONTRACT. THIS CONTRACT IS FOR THE OPERATION OF THE SAN DIEGO JOB CORPS CENTER Key points: 1. The contract modification significantly increases the total estimated cost and funds available, indicating a substantial expansion or extended need for services. 2. Career Systems Development Corporation has been awarded this definitive contract, suggesting a history of performance or a competitive selection process. 3. The contract's duration spans over 1500 days, pointing to a long-term commitment for operating the San Diego Job Corps center. 4. The fixed-price nature of the contract provides cost certainty for the government, though it may limit flexibility in scope adjustments. 5. The 'Other Technical and Trade Schools' NAICS code suggests the services are specialized vocational training. 6. The contract is categorized under 'Other' for its primary sector, highlighting the diverse nature of federal spending beyond major categories.

Value Assessment

Rating: fair

The total award amount of over $88 million for operating a Job Corps center in San Diego over approximately four years represents a significant investment. Benchmarking this cost requires detailed comparison with other Job Corps center operations, considering variations in student capacity, services offered, and local economic factors. Without specific per-student cost data or comparisons to similar centers, a precise value-for-money assessment is challenging. However, the substantial funding suggests a comprehensive scope of services is expected.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 7 bidders suggests a reasonably competitive environment for this type of service. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

Young individuals aged 16-24 in the San Diego area will benefit from vocational training and job placement services. The contract supports the delivery of essential workforce development programs aimed at improving employability. The geographic impact is focused on San Diego, California, providing local economic and social benefits. The contract implies a need for instructors, administrative staff, and support personnel, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of services expands beyond initial estimates, despite the firm fixed-price structure.
Ensuring the quality and effectiveness of vocational training to meet labor market demands.
Monitoring contractor performance to guarantee adherence to program goals and student support requirements.

Positive Signals

The firm fixed-price contract provides cost predictability for the Department of Labor.
Full and open competition suggests a robust selection process that likely favored the most capable bidder.
The long contract duration indicates a stable provider for a critical youth development program.

Sector Analysis

This contract falls within the broader education and workforce development sector, specifically focusing on vocational training for youth. The Job Corps program is a significant federal initiative aimed at addressing youth unemployment and skill gaps. Comparable spending benchmarks would involve analyzing the operational costs of other Job Corps centers nationwide, as well as other government-funded youth training programs. The market for operating such centers is likely specialized, involving organizations with expertise in education, training, and social services.

Small Business Impact

The provided data does not indicate whether small businesses were specifically targeted for set-asides or subcontracting opportunities. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem within the vocational training sector.

Oversight & Accountability

Oversight is likely conducted by the Department of Labor's Office of the Assistant Secretary for Administration and Management, which awarded the contract. Accountability measures would include performance metrics, reporting requirements, and potential audits. Transparency is generally facilitated through contract award databases, though detailed operational performance data may be less accessible.

Related Government Programs

Workforce Innovation and Opportunity Act Programs
YouthBuild Program
Federal Job Training Programs

Risk Flags

Potential for cost growth beyond initial estimates
Ensuring program effectiveness and student success metrics are met
Contractor performance monitoring and accountability

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $88.5 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS MODIFICATION INCREASES THE ESTIMATED COST AND FUNDS AVAILABLE TO THE CONTRACT. THIS CONTRACT IS FOR THE OPERATION OF THE SAN DIEGO JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is CAREER SYSTEMS DEVELOPMENT 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 $88.5 million.

What is the period of performance?

Start: 2019-07-15. End: 2023-09-30.

What is the historical spending trend for the San Diego Job Corps Center contract under Career Systems Development Corporation?

The provided data reflects a single definitive contract with an initial award and a significant modification that increased the estimated cost to $88,455,997.5. To understand the historical spending trend, one would need to examine prior contracts awarded to Career Systems Development Corporation or other entities for the San Diego Job Corps Center, as well as track the cumulative spending against this current contract's ceiling over its duration. Without access to historical contract data or detailed financial reports for this specific center, a comprehensive trend analysis is not possible based solely on this information. However, the modification suggests an upward trend in allocated funds for this period.

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

Determining the per-student cost requires knowing the number of students served by the San Diego Job Corps Center under this contract and the total operational cost. The provided data gives the total contract value ($88,455,997.5) and duration (1538 days, approximately 4.2 years), but not the student capacity or enrollment figures. Job Corps centers vary significantly in size and the scope of services offered, which directly impacts per-student costs. To make a valid comparison, one would need to gather data on student enrollment and total expenditures for a representative sample of other Job Corps centers. Without this comparative data, assessing whether the per-student cost is competitive or indicative of value for money is not feasible.

What specific vocational training programs are included under this contract?

The contract is for the 'operation of the San Diego Job Corps Center' and falls under the NAICS code '611519 - Other Technical and Trade Schools.' While this indicates the general nature of vocational training, the specific programs are not detailed in the provided data. Job Corps centers typically offer a range of training in high-demand industries such as healthcare, IT, advanced manufacturing, and transportation. The exact curriculum and trade offerings would be outlined in the detailed Statement of Work (SOW) within the contract documents. These programs are designed to equip youth with the skills needed for specific occupations and are often developed in consultation with local employers to ensure relevance.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

Key Performance Indicators (KPIs) for Job Corps center operations contracts typically focus on student outcomes and program efficiency. Common KPIs include student enrollment rates, retention rates, on-time graduation rates, job placement rates in relevant fields, average post-placement wages, and employer satisfaction. The Department of Labor would establish specific metrics within the contract's Performance Work Statement (PWS) that Career Systems Development Corporation must meet. Failure to achieve these KPIs could result in contract deficiencies, penalties, or impact future contract awards. These metrics are crucial for ensuring the program effectively serves its mission of preparing youth for successful careers.

What is the track record of Career Systems Development Corporation in managing federal contracts, particularly in education or workforce development?

Career Systems Development Corporation (CSDC) has a history of managing federal contracts, including those related to Job Corps centers. A thorough assessment of their track record would involve reviewing their performance on past and current contracts, looking for any documented instances of outstanding performance, contract disputes, or terminations. Databases like the Federal Procurement Data System (FPDS) and the Contractor Performance Assessment Reporting System (CPARS) can provide insights into CSDC's past performance ratings, award history, and any reported issues. Their continued involvement in operating Job Corps centers suggests a generally satisfactory performance history, but a deeper dive into specific contract outcomes is necessary for a complete evaluation.

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: 1630J6-19-R-00001

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 75 THRUWAY PARK DR STE 100, WEST HENRIETTA, NY, 14586

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $140,136,930

Exercised Options: $117,565,657

Current Obligation: $88,455,998

Actual Outlays: $87,614,469

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline