Department of Labor Spends $26.3M on Vocational Rehabilitation Services via Cost Plus Fixed Fee Contract

Contract Overview

Contract Amount: $26,279,240 ($26.3M)

Contractor: International Union of Operating Engineers National Training Fund

Awarding Agency: Department of Labor

Start Date: 2013-06-01

End Date: 2018-02-28

Contract Duration: 1,733 days

Daily Burn Rate: $15.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $26.3 million to INTERNATIONAL UNION OF OPERATING ENGINEERS NATIONAL TRAINING FUND for work described as: IGF::OT::IGF Key points: 1. Contract awarded to INTERNATIONAL UNION OF OPERATING ENGINEERS NATIONAL TRAINING FUND for $26.3M. 2. Services provided are Vocational Rehabilitation Services. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is primarily related to workforce development and training.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award amount of $26.3M over nearly 5 years suggests a significant investment, but without competitive bidding, it's difficult to assess if this represents fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitively bid contract.

Taxpayer Impact: The lack of competition suggests potential for overpayment, impacting taxpayer funds negatively.

Public Impact

Taxpayers may have paid more than necessary due to the absence of competition. The effectiveness of vocational rehabilitation services is crucial for workforce development. Lack of transparency in the procurement process can erode public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type

Positive Signals

Services provided are essential for workforce development

Sector Analysis

This contract falls within the broader sector of government services, specifically focusing on workforce development and vocational training. Benchmarks for similar services are difficult to establish without competitive data, but the significant award amount warrants scrutiny.

Small Business Impact

The contract was awarded to a large national training fund, with no indication of small business participation. This suggests a missed opportunity to support small businesses in the vocational rehabilitation sector.

Oversight & Accountability

The non-competitive nature of this award raises questions about the oversight processes within the Department of Labor's Office of the Assistant Secretary for Administration and Management. Robust oversight is needed to ensure fair pricing and effective service delivery.

Related Government Programs

Vocational Rehabilitation Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for overpricing due to lack of competition.
Risk of cost overruns inherent in Cost Plus Fixed Fee contracts.
Lack of transparency in the procurement process.
Limited opportunity for small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $26.3 million to INTERNATIONAL UNION OF OPERATING ENGINEERS NATIONAL TRAINING FUND. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL UNION OF OPERATING ENGINEERS NATIONAL TRAINING FUND.

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 $26.3 million.

What is the period of performance?

Start: 2013-06-01. End: 2018-02-28.

Was the sole-source justification for this contract adequately documented and reviewed?

The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require access to the contract file to determine if a valid justification for sole-source procurement was established and approved according to federal acquisition regulations. Without this documentation, it's impossible to definitively assess the adequacy of the justification.

What performance metrics were used to evaluate the effectiveness of the vocational rehabilitation services provided?

The data does not specify performance metrics. Effective oversight would necessitate clear, measurable outcomes for vocational rehabilitation, such as job placement rates, participant skill development, and long-term employment retention. The Department of Labor should have established these metrics to ensure the $26.3M investment yielded tangible results for beneficiaries.

How does the fixed fee component of this Cost Plus Fixed Fee contract compare to industry standards for similar services?

Determining a fair fixed fee requires benchmarking against similar contracts and industry standards. Without access to the contract's fee structure and detailed cost breakdowns, a precise comparison is not possible. However, the lack of competition makes it harder to ensure this fee was optimized for taxpayer value.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: DOL131RP20611

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1125 17TH ST NW, WASHINGTON, DC, 20036

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,378,360

Exercised Options: $30,044,400

Current Obligation: $26,279,240

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline