Department of Labor's $80M Job Corps Center Operations contract awarded to Eagle Group International LLC
Contract Overview
Contract Amount: $80,055,297 ($80.1M)
Contractor: Eagle Group International LLC
Awarding Agency: Department of Labor
Start Date: 2004-03-01
End Date: 2011-04-30
Contract Duration: 2,616 days
Daily Burn Rate: $30.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: OPERATION OF JOB CORPS CENTER
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032
Plain-Language Summary
Department of Labor obligated $80.1 million to EAGLE GROUP INTERNATIONAL LLC for work described as: OPERATION OF JOB CORPS CENTER Key points: 1. The contract's duration of over 7 years suggests a long-term need for these services. 2. The cost-plus-incentive-fee (CPIF) structure aims to align contractor performance with government objectives. 3. The award was made under full and open competition, indicating a robust bidding process. 4. The contract's value of approximately $80 million over its life warrants scrutiny of cost-effectiveness. 5. The services provided are critical for the operation of Job Corps centers, impacting workforce development. 6. The geographic focus on Washington D.C. highlights a specific regional need for these services.
Value Assessment
Rating: fair
The contract's value of $80 million over more than seven years averages to roughly $11 million annually. Benchmarking this against similar contracts for Job Corps center operations is challenging without more specific service details. However, the CPIF contract type suggests that the government sought to incentivize efficiency, which could lead to better value than a fixed-price contract if managed effectively. The lack of detailed performance metrics in the provided data makes a definitive value assessment difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that multiple bidders were likely considered. The presence of two bids suggests a moderate level of competition. While full and open competition is generally preferred for ensuring fair pricing and access to a wide range of capabilities, the specific number of bidders (two) might suggest that the market for this specialized service is not as broad as it could be, potentially limiting price discovery.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces. A competitive process increases the likelihood that the government secures services at a reasonable price, preventing potential overspending.
Public Impact
The primary beneficiaries are the participants in the Job Corps program, who receive training and support services. The contract directly funds the operation of Job Corps centers, ensuring the delivery of educational and vocational training. The geographic impact is concentrated in Washington D.C., where the specific Job Corps center(s) are located. The contract supports the workforce involved in operating these educational facilities, including administrative, instructional, and support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The long contract duration (over 7 years) could lead to complacency or reduced incentive for continuous improvement if not actively managed.
- Cost-plus contracts, even with incentives, can carry a higher risk of cost overruns compared to fixed-price contracts if not closely monitored.
- The limited number of bids (two) might indicate potential barriers to entry or a concentrated market, which could affect long-term pricing.
- The specific performance metrics and incentive structure are not detailed, making it hard to assess the effectiveness of the CPIF model.
- The contract's focus on a single geographic location (DC) may not reflect broader national needs or best practices.
Positive Signals
- Awarded through full and open competition, suggesting a fair and transparent procurement process.
- The use of a Cost Plus Incentive Fee (CPIF) structure demonstrates an effort to link contractor compensation to performance outcomes.
- The contract's duration implies a stable, long-term commitment to supporting critical workforce development programs.
- The contractor, Eagle Group International LLC, has secured a significant federal contract, indicating a level of established capability.
- The services are essential for the functioning of the Job Corps program, a vital federal initiative.
Sector Analysis
The Facilities Support Services sector (NAICS 561210) encompasses a wide range of services essential for the operation and maintenance of government facilities. This contract falls within the broader government services market, which is substantial. Comparable spending benchmarks would typically involve analyzing other contracts for the operation and management of large educational or training facilities. The market size for such specialized support services can vary, but federal contracts often represent a significant portion due to the scale and complexity of government operations.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Eagle Group International LLC, would determine any subcontracting opportunities based on its own business strategy and the specific needs for fulfilling the contract requirements. Without further information on the contractor's subcontracting plan, the direct impact on the small business ecosystem is minimal.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Labor's Employment and Training Administration (ETA), the contracting agency. The CPIF structure implies performance monitoring to ensure incentives are met. Accountability measures would be tied to the contract's performance work statement and deliverables. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. The Inspector General for the Department of Labor would have jurisdiction to investigate potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Job Corps Program
- Workforce Development Programs
- Federal Facilities Management Contracts
- Educational Services Contracts
- Department of Labor Contracts
Risk Flags
- Long Contract Duration
- Cost-Plus Contract Type
- Limited Competition (2 Bidders)
Tags
facility-support-services, operation-of-job-corps-center, department-of-labor, employment-and-training-administration, definitive-contract, cost-plus-incentive-fee, full-and-open-competition, district-of-columbia, large-contract, workforce-development
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $80.1 million to EAGLE GROUP INTERNATIONAL LLC. OPERATION OF JOB CORPS CENTER
Who is the contractor on this award?
The obligated recipient is EAGLE GROUP INTERNATIONAL LLC.
Which agency awarded this contract?
Awarding agency: Department of Labor (Employment and Training Administration).
What is the total obligated amount?
The obligated amount is $80.1 million.
What is the period of performance?
Start: 2004-03-01. End: 2011-04-30.
What is the track record of Eagle Group International LLC in managing federal contracts, particularly those related to educational facility operations?
Eagle Group International LLC has a history of securing federal contracts, including those involving facility operations and support services. While specific details on their performance for Job Corps center operations are not provided in this data snippet, their ability to win an $80 million contract suggests a demonstrated capacity to meet federal procurement requirements. A deeper analysis would involve reviewing past performance evaluations (CPARS) for this contractor on similar contracts, looking for any patterns of success, challenges, or areas requiring improvement. Understanding their experience with cost-plus incentive fee contracts would also be crucial to assessing their suitability for this specific award.
How does the awarded amount of approximately $80 million compare to the cost of operating similar Job Corps centers or other large educational facilities?
Directly comparing the $80 million award to similar contracts requires detailed knowledge of the scope of services, number of participants served, and geographic location of other Job Corps centers or comparable educational facilities. The provided data indicates a contract duration of over seven years, averaging around $11 million annually. This figure needs to be contextualized by the specific operational requirements, such as staffing levels, facility size, maintenance needs, and the intensity of training programs offered at the center(s) covered by this contract. Without these specifics, it's difficult to definitively state whether this represents a high, low, or average cost. Benchmarking against industry standards for facility management and educational support services would provide a more robust comparison.
What are the key performance indicators (KPIs) and incentive structures within the Cost Plus Incentive Fee (CPIF) model for this contract, and how are they monitored?
The provided data does not specify the key performance indicators (KPIs) or the precise incentive structure within the Cost Plus Incentive Fee (CPIF) model for this contract. Typically, CPIF contracts link a portion of the contractor's profit to achieving specific performance targets, such as cost savings, schedule adherence, or quality standards. For this contract, KPIs might relate to student retention rates, graduation rates, job placement success, facility maintenance compliance, or operational efficiency. Monitoring would involve regular reporting by Eagle Group International LLC, audits by the Department of Labor, and performance reviews against the established metrics. The effectiveness of the CPIF model hinges on well-defined, measurable, and achievable KPIs that genuinely incentivize desired outcomes.
What is the historical spending pattern for Job Corps center operations by the Department of Labor, and how does this contract fit within that trend?
Historical spending data for Job Corps center operations by the Department of Labor would reveal trends in contract values, durations, and the types of contract vehicles used. This $80 million contract, awarded in 2004 and ending in 2011, represents a significant investment over its 7-year period. Analyzing past awards for similar services would indicate whether this contract value is consistent with previous investments, or if it represents an increase or decrease in spending. Understanding the historical context helps assess if this contract aligns with the agency's long-term strategy for workforce development and facility management, and whether spending has been stable, growing, or declining in this area.
What are the potential risks associated with a long-duration contract (over 7 years) for operational services like Job Corps center management?
Long-duration contracts, such as this 7-year award, carry several potential risks. One primary risk is the potential for contractor complacency, where the extended tenure might reduce the incentive for continuous innovation or cost-saving measures. There's also a risk of 'vendor lock-in,' making it difficult and costly to switch providers if performance declines or market conditions change. Furthermore, the longer the contract, the greater the potential impact of unforeseen economic shifts or changes in government priorities on the contract's value and scope. Effective contract management, including regular performance reviews and clear exit strategies, is crucial to mitigate these risks.
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
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 4751 BEST ROAD, ATLANTA, GA, 30337
Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $378,900,052
Exercised Options: $378,900,052
Current Obligation: $80,055,297
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2004-03-01
Current End Date: 2011-04-30
Potential End Date: 2011-04-30 00:00:00
Last Modified: 2021-04-30
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