DOL's $17.3M Outreach Services Contract Awarded to Insight Training Group, LLC

Contract Overview

Contract Amount: $17,362,535 ($17.4M)

Contractor: Insights Training Group, LLC

Awarding Agency: Department of Labor

Start Date: 2007-03-01

End Date: 2014-12-15

Contract Duration: 2,846 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES FOR STATE OF VA

Place of Performance

Location: ELLICOTT CITY, HOWARD County, MARYLAND, 21043

State: Maryland Government Spending

Plain-Language Summary

Department of Labor obligated $17.4 million to INSIGHTS TRAINING GROUP, LLC for work described as: OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES FOR STATE OF VA Key points: 1. Contract awarded to a single entity, Insight Training Group, LLC. 2. The contract spans over 7 years, indicating a long-term need. 3. The contract type is Cost Plus Incentive Fee (CPIF), which can lead to cost overruns if not managed carefully. 4. The NAICS code 561990 suggests a broad range of support services. 5. The contract was awarded under Full and Open Competition after Exclusion of Sources, suggesting a specific justification for excluding other potential bidders.

Value Assessment

Rating: fair

The contract's Cost Plus Incentive Fee structure requires careful monitoring to ensure costs remain reasonable. Benchmarking against similar outreach and career transition services contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This implies that while competition was sought, specific criteria or circumstances led to the exclusion of certain potential bidders, which warrants further investigation into the rationale.

Taxpayer Impact: The long duration and CPIF structure suggest potential for cost growth, impacting taxpayer investment. Transparency in performance and cost management is crucial.

Public Impact

Veterans and transitioning service members benefit from career transition and outreach services. The long contract duration suggests a sustained program impacting a significant number of individuals. The specific exclusion of sources in the competition process may limit the diversity of service providers. The CPIF contract type could incentivize cost efficiency but also carries inherent risks of overspending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to CPIF structure.
Exclusion of sources in competition needs clear justification.
Long contract duration may not reflect evolving needs.
Lack of small business participation.

Positive Signals

Addresses critical need for veteran transition services.
Competition was sought, even with exclusions.
Contract has a defined period of performance.

Sector Analysis

This contract falls under 'All Other Support Services,' a broad category. Benchmarking is challenging without more specific service details. The Department of Labor's focus on employment and training aligns with the contract's purpose.

Small Business Impact

The data indicates the contractor is not a small business (sb: false) and there is no specific mention of small business subcontracting goals. This suggests limited direct opportunity for small businesses within this prime contract.

Oversight & Accountability

The 'Exclusion of Sources' clause requires careful oversight to ensure fairness and prevent potential impropriety. The CPIF structure necessitates robust monitoring of costs and performance against established incentives.

Related Government Programs

All Other Support Services
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Contract awarded under 'Exclusion of Sources'.
Cost Plus Incentive Fee (CPIF) contract type.
Long contract duration (over 7 years).
No indication of small business participation.
Broad NAICS code may obscure specific service costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $17.4 million to INSIGHTS TRAINING GROUP, LLC. OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES FOR STATE OF VA

Who is the contractor on this award?

The obligated recipient is INSIGHTS TRAINING GROUP, 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 $17.4 million.

What is the period of performance?

Start: 2007-03-01. End: 2014-12-15.

What specific criteria led to the exclusion of sources during the full and open competition, and how was the fairness of this process ensured?

The exclusion of sources typically occurs when only one or a limited number of sources are capable of meeting the government's needs due to unique capabilities, proprietary information, or specific security requirements. The contracting officer must document the justification thoroughly and ensure that the exclusion does not unduly restrict competition. Oversight would involve reviewing this documentation and ensuring the process adhered to federal acquisition regulations.

How does the Cost Plus Incentive Fee (CPIF) structure incentivize Insight Training Group, LLC to achieve optimal cost and performance outcomes for veteran outreach?

A CPIF contract establishes target costs and target profits. If the final cost is below the target, both the contractor and the government share in the savings. Conversely, if costs exceed the target, both share in the overruns, up to a ceiling. Incentive fees are adjusted based on performance metrics, encouraging the contractor to meet or exceed quality, timeliness, or other objectives while managing costs effectively.

What is the projected long-term value and effectiveness of these career transition services, considering the $17.3 million investment over seven years?

The long-term value hinges on the successful reintegration of service members and veterans into the civilian workforce, measured by employment rates, job retention, and earning potential. Effectiveness is gauged by program completion rates, participant satisfaction, and the achievement of specific career goals. Continuous evaluation and adaptation of services based on outcomes are crucial to maximizing the return on this significant investment.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 4669 DAPPLE COURT, ELLICOTT CITY, MD, 21043

Business Categories: Category Business, Educational Institution, Higher Education, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $284,480,819

Exercised Options: $192,027,370

Current Obligation: $17,362,535

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline