Department of Labor awards $32.8M for Cleveland Job Corps Center construction

Contract Overview

Contract Amount: $32,873,819 ($32.9M)

Contractor: Fort Mojave / Hummel Joint Venture

Awarding Agency: Department of Labor

Start Date: 2005-11-09

End Date: 2007-11-19

Contract Duration: 740 days

Daily Burn Rate: $44.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: THE GENERAL CONTRACTOR WILL PROVIDE CONSTRUCTION AND OTHER RELATED SERVICES REQUIRED TO RELOCATE AND CONSTRUCT A NEW FACILITY AT THE CLEVELAND JOB CORPS CENTER, CLEVELAND, OHIO.

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44110

State: Ohio Government Spending

Plain-Language Summary

Department of Labor obligated $32.9 million to FORT MOJAVE / HUMMEL JOINT VENTURE for work described as: THE GENERAL CONTRACTOR WILL PROVIDE CONSTRUCTION AND OTHER RELATED SERVICES REQUIRED TO RELOCATE AND CONSTRUCT A NEW FACILITY AT THE CLEVELAND JOB CORPS CENTER, CLEVELAND, OHIO. Key points: 1. Construction project aims to relocate and build a new facility. 2. Contract awarded by the Department of Labor's Employment and Training Administration. 3. Fixed-price contract with a duration of 740 days. 4. Competition method was 'Full and Open Competition After Exclusion of Sources'.

Value Assessment

Rating: fair

The contract value of $32.8 million for commercial and institutional building construction appears within a reasonable range for a project of this scope. However, without specific details on the facility's size and complexity, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition After Exclusion of Sources' suggests some limitations on the pool of eligible bidders, potentially impacting price discovery. While not sole-source, it's not fully open.

Taxpayer Impact: Taxpayer funds are being used for infrastructure development at a Job Corps center, which aims to provide vocational training. The efficiency of the competition method will influence the ultimate value for taxpayers.

Public Impact

Enhances vocational training infrastructure for young adults. Potential for local job creation during the construction phase. Modernized facility could improve training program delivery and outcomes. Investment in a federal program designed to boost workforce development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have inflated costs.
Contract duration is substantial, increasing risk of cost overruns.
Fixed-price contract can be risky if unforeseen issues arise.

Positive Signals

Addresses critical infrastructure needs for Job Corps.
Awarded to a joint venture, potentially leveraging diverse expertise.
Clear objective: construct a new, functional facility.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on project scale, location, and economic conditions. Federal construction projects often face scrutiny for cost-effectiveness and timely completion.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this large construction project.

Oversight & Accountability

The Department of Labor's Employment and Training Administration is responsible for overseeing this contract. Standard oversight mechanisms for federal construction projects should be in place to ensure compliance and quality.

Related Government Programs

Commercial and Institutional Building Construction
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Limited competition.
Long contract duration.
Fixed-price contract risk.
Potential for cost overruns.
Lack of small business participation data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $32.9 million to FORT MOJAVE / HUMMEL JOINT VENTURE. THE GENERAL CONTRACTOR WILL PROVIDE CONSTRUCTION AND OTHER RELATED SERVICES REQUIRED TO RELOCATE AND CONSTRUCT A NEW FACILITY AT THE CLEVELAND JOB CORPS CENTER, CLEVELAND, OHIO.

Who is the contractor on this award?

The obligated recipient is FORT MOJAVE / HUMMEL JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $32.9 million.

What is the period of performance?

Start: 2005-11-09. End: 2007-11-19.

What specific factors led to the exclusion of certain sources in the 'Full and Open Competition After Exclusion of Sources' method, and how did this impact the final price?

The exclusion of sources typically occurs when specific capabilities, security clearances, or past performance are required that only a limited number of contractors possess. This can reduce the number of bidders, potentially leading to less competitive pricing than a truly open competition. Understanding the precise criteria for exclusion is key to assessing if the price achieved reflects fair market value under the circumstances.

Given the 740-day duration and fixed-price nature, what contingency plans are in place to manage potential cost overruns due to unforeseen construction challenges or material price fluctuations?

Fixed-price contracts aim to transfer cost risk to the contractor. However, significant overruns can still occur due to scope creep, unforeseen site conditions, or major market shifts. Robust oversight is crucial to monitor progress and identify potential issues early. The contract may include clauses for change orders, but these should be rigorously justified and approved to protect taxpayer interests.

How will the effectiveness of the new facility be measured in terms of improving Job Corps training program delivery and student outcomes?

Effectiveness measurement should involve tracking key performance indicators related to the facility's operational efficiency, capacity, and impact on training. This could include metrics like reduced downtime, increased student enrollment, improved completion rates, and post-graduation employment success. Establishing baseline data before the move and comparing it with post-occupancy data is essential for a comprehensive assessment.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: DOL051RB20042

Offers Received: 4

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 127 E MAIN ST, RAVENNA, OH, 44266

Business Categories: Category Business, Emerging Small Business, Minority Owned Business, Native American Owned Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $32,873,920

Exercised Options: $32,873,820

Current Obligation: $32,873,819

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline