Department of Labor's $93.5M Job Corps contract awarded to Home Builders Institute for national home building trades training

Contract Overview

Contract Amount: $93,558,413 ($93.6M)

Contractor: Home Builders Institute

Awarding Agency: Department of Labor

Start Date: 2008-01-01

End Date: 2013-05-31

Contract Duration: 1,977 days

Daily Burn Rate: $47.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: JOB CORPS NATIONAL TRAINING CONTRACT TO TRAIN JC STUDENTS ACROSS THE NATION IN HOME BUILDING TRADES.

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 $93.6 million to HOME BUILDERS INSTITUTE for work described as: JOB CORPS NATIONAL TRAINING CONTRACT TO TRAIN JC STUDENTS ACROSS THE NATION IN HOME BUILDING TRADES. Key points: 1. The contract focuses on vocational training in home building trades for Job Corps students nationwide. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but also carries risk. 4. The sector is vocational training, a key component of workforce development.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain reasonable and the fixed fee is justified. Benchmarking against similar large-scale vocational training programs would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically leads to better price discovery and value for the government. The fixed fee component should be assessed for reasonableness against the scope of work.

Taxpayer Impact: Taxpayer funds are used to provide vocational training, aiming to improve employment outcomes for participants and contribute to a skilled workforce.

Public Impact

Provides essential skills training for individuals seeking careers in the home building trades. Aims to address potential labor shortages in the construction industry. Supports the mission of the Job Corps program to help young people improve their lives through career training.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type requires diligent oversight to manage costs.
Long contract duration (5 years) may lead to scope creep or evolving needs.
Lack of specific performance metrics in provided data.

Positive Signals

Full and open competition promotes value.
Focus on in-demand vocational skills.
Supports a national workforce development initiative.

Sector Analysis

This contract falls within the workforce development and vocational training sector. Spending benchmarks for similar national-level training programs are difficult to ascertain without more specific details on curriculum and student volume.

Small Business Impact

The provided data does not indicate if small businesses were involved as subcontractors. Further investigation would be needed to determine small business participation.

Oversight & Accountability

Oversight would focus on ensuring the contractor meets training objectives, manages costs effectively under the CPFF structure, and adheres to program requirements set by the Department of Labor.

Related Government Programs

Vocational Rehabilitation Services
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly.
Long contract duration may not adapt well to changing labor market demands.
Lack of specific performance metrics in the provided data hinders assessment.
Potential for scope creep given the broad nature of national training.
No indication of small business subcontracting participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $93.6 million to HOME BUILDERS INSTITUTE. JOB CORPS NATIONAL TRAINING CONTRACT TO TRAIN JC STUDENTS ACROSS THE NATION IN HOME BUILDING TRADES.

Who is the contractor on this award?

The obligated recipient is HOME BUILDERS INSTITUTE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $93.6 million.

What is the period of performance?

Start: 2008-01-01. End: 2013-05-31.

What is the cost per student trained, and how does it compare to industry benchmarks?

The total contract value is $93.5 million over approximately 5 years. Without the number of students trained or the specific services provided, calculating a precise cost per student is impossible. However, a rough estimate suggests a significant investment per trainee, necessitating a comparison with similar vocational programs to ensure cost-effectiveness and value for taxpayer money.

What are the key performance indicators (KPIs) for this contract, and how is contractor performance being measured?

The provided data lacks specific KPIs. Effective oversight requires clearly defined metrics such as student completion rates, job placement rates post-training, average starting wages, and employer satisfaction. The Department of Labor should have established these KPIs to ensure the contractor is delivering on the contract's objectives and providing value.

How does the fixed fee component of the CPFF contract align with the complexity and risk of the training services provided?

The fixed fee in a CPFF contract represents the contractor's profit. Its reasonableness should be assessed against the scope of work, the level of effort required, and the inherent risks. For a large, national training program, the fixed fee should reflect the complexity of managing diverse training sites and curricula while ensuring quality and cost control.

Industry Classification

NAICS: Health Care and Social Assistance › Vocational Rehabilitation Services › Vocational Rehabilitation Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1201 15TH ST NW FL 6, WASHINGTON, DC, 20005

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $219,383,973

Exercised Options: $93,591,471

Current Obligation: $93,558,413

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline