DOL awards $22.7M for Gulfport JCC operations to Dynamic Educational Systems Inc

Contract Overview

Contract Amount: $22,735,325 ($22.7M)

Contractor: Dynamic Educational Systems Inc

Awarding Agency: Department of Labor

Start Date: 2003-01-01

End Date: 2014-06-26

Contract Duration: 4,194 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATE GULFPORT JCC

Place of Performance

Location: GULFPORT, HARRISON County, MISSISSIPPI, 39501

State: Mississippi Government Spending

Plain-Language Summary

Department of Labor obligated $22.7 million to DYNAMIC EDUCATIONAL SYSTEMS INC for work described as: OPERATE GULFPORT JCC Key points: 1. Contract value of $22.7M over 11 years. 2. Dynamic Educational Systems Inc. is the sole awardee. 3. No small business participation noted. 4. Services fall under Facilities Support Services sector.

Value Assessment

Rating: fair

The contract's duration of over 11 years and Cost Plus Incentive Fee structure suggest potential for cost overruns. Benchmarking against similar facilities support contracts is difficult without more granular cost data.

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 long duration and incentive fee structure may have influenced the final pricing.

Taxpayer Impact: Over $22 million allocated for facility operations over more than a decade represents a significant taxpayer investment in employment and training infrastructure.

Public Impact

Supports job seekers and employers through the operation of a Job Corps Center. Ensures the physical infrastructure of the Gulfport JCC is maintained and functional. Contributes to the Department of Labor's mission of workforce development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (11+ years)
Cost Plus Incentive Fee structure
No small business participation

Positive Signals

Awarded under full and open competition
Supports critical workforce development mission

Sector Analysis

This contract falls under Facilities Support Services, a broad category encompassing maintenance, operation, and management of physical spaces. Spending in this sector is generally driven by government facility needs and operational requirements.

Small Business Impact

The data indicates no small business participation in this contract. This could be an oversight or a reflection of the specific requirements of operating a Job Corps Center, which may favor larger, specialized firms.

Oversight & Accountability

The long-term nature of this contract necessitates ongoing oversight to ensure performance standards are met and costs remain justified. Regular reviews of the incentive fee structure and operational efficiency are crucial.

Related Government Programs

Facilities Support Services
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Long contract duration may lead to complacency or reduced urgency.
Cost Plus Incentive Fee structure requires careful monitoring to prevent cost overruns.
Lack of small business participation could indicate missed opportunities for economic inclusion.
Absence of specific performance metrics makes it hard to gauge true value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $22.7 million to DYNAMIC EDUCATIONAL SYSTEMS INC. OPERATE GULFPORT JCC

Who is the contractor on this award?

The obligated recipient is DYNAMIC EDUCATIONAL SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $22.7 million.

What is the period of performance?

Start: 2003-01-01. End: 2014-06-26.

What was the competitive landscape like for this full and open competition, and did the number of bids influence the final price?

While awarded under full and open competition, the provided data does not specify the number of bids received. A higher number of bids typically suggests a more competitive environment, potentially leading to lower prices. Without this information, it's difficult to definitively assess the price discovery impact of the competition.

How does the Cost Plus Incentive Fee structure compare to industry standards for similar facility operations contracts, and what are the associated risks?

Cost Plus Incentive Fee (CPIF) contracts aim to incentivize contractor efficiency by linking profit to performance against cost targets. For facility operations, CPIF can be effective if targets are well-defined and achievable. However, risks include potential for cost escalation if targets are too lenient or poorly monitored, and the administrative burden of tracking performance metrics.

What is the long-term value proposition of this 11-year contract for operating the Gulfport JCC, considering its cost and duration?

The long-term value lies in providing stable, continuous operation of a critical Job Corps Center. The $22.7M over 11 years suggests an average annual cost of approximately $2M. This duration offers continuity for services but requires robust oversight to ensure cost-effectiveness and alignment with evolving workforce needs.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Offers Received: 7

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Exodyne Inc. (UEI: 073512048)

Address: 8433 N BLACK CANYON HWY STE 184, PHOENIX, AZ, 85021

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

Financial Breakdown

Contract Ceiling: $22,735,325

Exercised Options: $22,735,325

Current Obligation: $22,735,325

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline