Labor Department's $220M Gary JCC Contract with Management & Training Corp. Awarded via Full and Open Competition

Contract Overview

Contract Amount: $220,108,334 ($220.1M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2010-11-01

End Date: 2016-04-30

Contract Duration: 2,007 days

Daily Burn Rate: $109.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE GARY JCC

Place of Performance

Location: SAN MARCOS, HAYS County, TEXAS, 78666

State: Texas Government Spending

Plain-Language Summary

Department of Labor obligated $220.1 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF THE GARY JCC Key points: 1. Significant contract value of $220.1 million over its life. 2. Competition was full and open, suggesting a competitive bidding process. 3. Contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost control. 4. The sector appears to be educational services, specifically 'Other Technical and Trade Schools'.

Value Assessment

Rating: good

The contract's total award of $220.1 million over approximately 5.5 years suggests a substantial investment. Benchmarking against similar large-scale training and facility management contracts would be necessary for a precise value assessment, but the duration and scope indicate a significant program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure the best possible price and performance through a competitive process.

Public Impact

The contract supports the operation of the Gary JCC, likely providing essential services to its users. Management & Training Corporation, the contractor, has a significant role in managing and operating this facility. The CPIF contract structure suggests performance incentives tied to cost targets, potentially benefiting taxpayers if met. The duration of the contract (over 5 years) implies a long-term commitment to the services provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or outcomes in the provided data.
Potential for cost overruns inherent in CPIF contracts if incentives are not well-structured.
The 'Other Technical and Trade Schools' NAICS code is broad and may obscure specific service details.

Positive Signals

Awarded through full and open competition.
Contract type (CPIF) includes incentives for cost efficiency.
Long contract duration suggests stable service provision.

Sector Analysis

The contract falls under the 'Other Technical and Trade Schools' (NAICS 611519) sector, which includes institutions primarily offering vocational or technical training. Spending in this sector can vary widely based on government needs for workforce development and specialized education programs.

Small Business Impact

The provided data does not indicate any specific set-asides for small businesses. Therefore, the extent of small business participation in this large contract is unclear and warrants further investigation.

Oversight & Accountability

The contract's oversight would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management. Robust oversight is crucial for CPIF contracts to ensure cost controls and performance targets are met effectively.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for cost overruns in CPIF contracts.
Lack of detailed performance metrics in the provided data.
Broad NAICS code may obscure specific service details and oversight needs.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $220.1 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF THE GARY JCC

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $220.1 million.

What is the period of performance?

Start: 2010-11-01. End: 2016-04-30.

What specific training or operational services does the Gary JCC contract entail, and how do these align with the Department of Labor's mission?

The provided data classifies the contract under 'Other Technical and Trade Schools' (NAICS 611519). While the specific services are not detailed, this suggests the contract likely involves vocational training, technical education, or operational support for a facility like the Gary JCC. The alignment with the DOL's mission would depend on whether these services contribute to workforce development, re-entry programs, or other labor-related objectives.

How effectively did the Cost Plus Incentive Fee (CPIF) structure manage costs and incentivize performance for this $220 million contract?

Assessing the effectiveness of the CPIF structure requires examining the contractor's performance against the established cost targets and incentive metrics. Without access to performance reports and final cost data, it's impossible to determine if the government achieved optimal value or if costs exceeded initial projections. A review of contract modifications and final payment would be necessary.

What was the competitive landscape like for this 'full and open' contract, and did it result in demonstrably better pricing compared to sole-source or limited competition alternatives?

The 'full and open' designation indicates multiple bidders participated, which generally fosters competitive pricing. However, without knowing the number of bids received or the price range, it's difficult to definitively state if the pricing was 'better' than alternatives. The key benefit of full and open competition is the *potential* for best value, realized through effective evaluation of proposals and negotiation.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: S11F6TX018

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PLACE DR STE 100, CENTERVILLE, UT, 84014

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $334,182,917

Exercised Options: $220,108,334

Current Obligation: $220,108,334

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline