Labor Department's $16.1M contract for outreach and career services awarded to Dynamic Educational Systems Inc

Contract Overview

Contract Amount: $16,138,307 ($16.1M)

Contractor: Dynamic Educational Systems Inc

Awarding Agency: Department of Labor

Start Date: 2006-07-01

End Date: 2014-08-20

Contract Duration: 2,972 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: ILLINOIS/WISCONSIN OUTREACH, ADMISSIONS AND CAREER TRANSITION SERVICES

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60628

State: Illinois Government Spending

Plain-Language Summary

Department of Labor obligated $16.1 million to DYNAMIC EDUCATIONAL SYSTEMS INC for work described as: ILLINOIS/WISCONSIN OUTREACH, ADMISSIONS AND CAREER TRANSITION SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee, which can incentivize cost savings but also carries inherent risks. 3. A duration of 2972 days (over 8 years) indicates a long-term commitment for these services. 4. The contract was awarded in 2006 and completed in 2014, providing historical context for current spending. 5. The North American Industry Classification System (NAICS) code 561990 suggests a broad range of support services. 6. The contract value of $16.1 million over its lifespan warrants scrutiny for value for money. 7. The absence of small business set-aside flags indicates this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable service contracts. The Cost Plus Incentive Fee structure means the final cost could have varied from initial estimates. However, the total award of $16.1 million over nearly eight years suggests a significant investment in these services. Further analysis would require understanding the specific deliverables and outcomes achieved to assess true value for money compared to alternative service delivery models or providers.

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 4 bids suggests a moderate level of competition. While four bidders is better than a sole-source award, the extent to which this competition effectively drove down costs or ensured the best value is not immediately apparent without more detailed bid information.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by encouraging lower prices and better service quality. The fact that four bids were received suggests that the government likely received a reasonably competitive price for the services rendered.

Public Impact

Individuals seeking employment assistance, admissions guidance, and career transition services likely benefited from this contract. The services were delivered in Illinois and Wisconsin, indicating a regional focus for the program. The contract supported workforce development initiatives by providing essential transition and support services. The duration of the contract suggests a sustained effort to assist participants over an extended period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contracts can lead to cost overruns if not managed carefully.
The long duration of the contract (over 8 years) may present challenges in adapting to evolving needs or market conditions.
Lack of specific performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified contractors.
The contract provided essential career transition and support services, addressing a critical need.
The sustained funding over a long period suggests a commitment to the program's objectives.

Sector Analysis

This contract falls under the 'Other Support Services' category within the broader professional, scientific, and technical services sector. This sector is characterized by a wide array of specialized services. The market for employment and career transition services is often driven by government funding, particularly during economic downturns or for specific demographic groups. Benchmarking this specific contract's value is difficult without comparable data on similar outreach and career transition service contracts, but the $16.1 million over eight years represents a substantial investment in human capital development.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem through this specific contract may be limited unless Dynamic Educational Systems Inc. actively engaged small businesses as subcontractors.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the Department of Labor's Employment and Training Administration. Accountability measures would be tied to the Cost Plus Incentive Fee structure, performance metrics (if defined), and contractual reporting requirements. Transparency is generally facilitated through contract databases like FPDS, which provide basic award information. Specific Inspector General jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified within the contract's execution.

Related Government Programs

Workforce Investment Act Programs
Job Training and Placement Services
Adult Education and Literacy Programs
Dislocated Worker Assistance Programs

Risk Flags

Potential for cost overruns due to CPIF structure.
Difficulty in measuring and incentivizing performance in human services.
Long contract duration may lead to outdated service models.
Lack of publicly available performance outcome data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $16.1 million to DYNAMIC EDUCATIONAL SYSTEMS INC. ILLINOIS/WISCONSIN OUTREACH, ADMISSIONS AND CAREER TRANSITION SERVICES

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 $16.1 million.

What is the period of performance?

Start: 2006-07-01. End: 2014-08-20.

What was the specific performance of Dynamic Educational Systems Inc. under this contract?

Detailed performance metrics and outcomes for Dynamic Educational Systems Inc. under this specific contract are not publicly available in the provided data. As a Cost Plus Incentive Fee (CPIF) contract, performance would ideally be tied to achieving certain cost and performance targets, with financial incentives or penalties applied accordingly. Without access to contract performance reports, reviews, or final outcome data, it is impossible to definitively assess the contractor's success in delivering outreach, admissions, and career transition services effectively and efficiently. Future analysis would require accessing contract close-out reports or performance evaluations from the Department of Labor.

How does the $16.1 million award compare to similar career transition service contracts?

Comparing the $16.1 million award for outreach, admissions, and career transition services to similar contracts is challenging without more specific data points. The contract's duration of over eight years (2972 days) means the average annual spending was approximately $2 million. The effectiveness of this spending depends heavily on the scope of services, the number of individuals served, and the geographic reach (Illinois and Wisconsin). To benchmark effectively, one would need to identify contracts with similar objectives, target populations, and service delivery models, and then compare their total values, annual expenditures, and, crucially, their demonstrated outcomes in terms of job placement rates, wage increases, and participant satisfaction.

What were the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for these services?

The primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for outreach, admissions, and career transition services include potential cost overruns and difficulties in precisely defining and measuring performance incentives. While CPIF aims to motivate cost efficiency, the government bears the risk of increased costs if the contractor's actual expenses exceed targets, even if incentives are met. Furthermore, designing effective incentive metrics for complex human services like career transition can be challenging. If incentives are poorly defined or easily manipulated, they may not accurately reflect true value or desired outcomes, potentially leading to suboptimal service delivery or a focus on easily achievable metrics rather than impactful results.

What was the historical spending trend for similar services by the Department of Labor?

The provided data focuses on a single contract awarded in 2006 and completed in 2014. It does not offer a broader historical spending trend for similar services by the Department of Labor. To understand historical spending patterns, one would need to analyze contract data over multiple fiscal years, identifying all contracts related to employment and training services, career counseling, and workforce development. This would involve examining trends in award values, the number of contracts awarded, and the types of services procured to identify shifts in priorities, funding levels, and contracting strategies over time.

How did the competition level (4 bidders) impact the final price and service quality?

With four bidders participating in the full and open competition, there was a moderate level of competition for this contract. Generally, a higher number of bidders correlates with increased price competition, potentially leading to lower costs for the government and better value. However, the impact is not solely determined by the number of bids but also by the nature of the competition, the clarity of the solicitation requirements, and the evaluation criteria used. While four bidders suggest some market interest, it's difficult to definitively state the precise impact on price and quality without knowing the bid amounts, the government's cost estimates, and the qualitative aspects of the proposals submitted. The Cost Plus Incentive Fee structure also plays a role, as it shifts some cost risk to the government.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOLJ06RA00011

Offers Received: 4

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: $16,138,307

Exercised Options: $16,138,307

Current Obligation: $16,138,307

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline