Department of Labor's Job Corps Training Contract Awarded to Home Builders Institute for $54.8M

Contract Overview

Contract Amount: $54,794,739 ($54.8M)

Contractor: Home Builders Institute

Awarding Agency: Department of Labor

Start Date: 2004-08-04

End Date: 2011-06-30

Contract Duration: 2,521 days

Daily Burn Rate: $21.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: JOB CORPS VOCATIONAL TRAINING PROGRAM

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $54.8 million to HOME BUILDERS INSTITUTE for work described as: JOB CORPS VOCATIONAL TRAINING PROGRAM Key points: 1. The contract, valued at $54.8 million, supports vocational training. 2. Competition was limited, with the award going to Home Builders Institute. 3. The contract's long duration and cost-plus-fixed-fee structure warrant scrutiny. 4. Spending in administrative management consulting services is a key sector.

Value Assessment

Rating: fair

The contract's cost-plus-fixed-fee structure can lead to cost overruns if not managed tightly. Benchmarking against similar vocational training programs is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces the incentive for the contractor to offer the most competitive pricing.

Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a fully competed contract.

Public Impact

Job Corps provides essential vocational training to disadvantaged youth. The long contract duration suggests a sustained need for these services. The specific services provided by Home Builders Institute are critical for workforce development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus-fixed-fee pricing
Long contract duration

Positive Signals

Supports critical vocational training program
Long-term commitment to service delivery

Sector Analysis

This contract falls under Administrative Management and General Management Consulting Services. Spending in this sector often supports program management and operational efficiency for government agencies.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as both the prime contractor and the contract itself do not specify small business participation.

Oversight & Accountability

Oversight of this sole-source, cost-plus-fixed-fee contract is crucial to ensure funds are used efficiently and program goals are met. The Department of Labor's Office of the Assistant Secretary for Administration and Management is responsible.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Sole-source award limits competition.
Cost-plus-fixed-fee structure may incentivize higher costs.
Long contract duration (over 6 years) increases exposure to potential inefficiencies.
Lack of clear performance metrics in the provided data.
No indication of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $54.8 million to HOME BUILDERS INSTITUTE. JOB CORPS VOCATIONAL TRAINING PROGRAM

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 $54.8 million.

What is the period of performance?

Start: 2004-08-04. End: 2011-06-30.

What is the specific value proposition of the Home Builders Institute's services compared to potential alternatives?

The value proposition lies in the specialized vocational training provided by the Home Builders Institute, likely tailored to the construction trades. However, without a competitive bidding process, it's difficult to ascertain if this represents the best value for taxpayer dollars or if alternative providers could offer similar or superior training at a lower cost.

What are the primary risks associated with a sole-source, cost-plus-fixed-fee contract for vocational training?

The primary risks include potential cost overruns due to the cost-plus structure, where the contractor is reimbursed for allowable costs plus a fixed fee. The sole-source nature eliminates competitive pressure, potentially leading to inflated prices and reduced innovation. There's also a risk that the training quality might not be optimized if there's no external benchmark.

How effectively does this contract contribute to the overall goals of the Job Corps program?

The effectiveness hinges on the quality and outcomes of the training provided by the Home Builders Institute. While the contract supports the program's existence, its true effectiveness in preparing participants for employment and achieving program objectives requires performance metrics and outcome data, which are not detailed here. The long duration suggests a perceived effectiveness or necessity.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: DOL041RP00040

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1201 15TH ST NW, 6TH FL, WASHINGTON, DC, 98

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

Financial Breakdown

Contract Ceiling: $54,974,739

Exercised Options: $54,974,739

Current Obligation: $54,794,739

Timeline