Labor Department's $80.7M HBI Contract for Apprenticeship Training Awarded Without Competition

Contract Overview

Contract Amount: $80,768,618 ($80.8M)

Contractor: Home Builders Institute

Awarding Agency: Department of Labor

Start Date: 2013-06-01

End Date: 2018-03-31

Contract Duration: 1,764 days

Daily Burn Rate: $45.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF, THIS ACTION ALLOWS FOR THE IMPLEMENTATION OF THE HBI CONTRACT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $80.8 million to HOME BUILDERS INSTITUTE for work described as: IGF::OT::IGF, THIS ACTION ALLOWS FOR THE IMPLEMENTATION OF THE HBI CONTRACT. Key points: 1. Significant spending on apprenticeship training via a single provider. 2. Lack of competition raises questions about price discovery and value. 3. Long contract duration (1764 days) suggests potential for cost overruns. 4. Focus on a specific sector (Apprenticeship Training) with a large sum.

Value Assessment

Rating: questionable

The contract's value is substantial at over $80 million. Without competitive bidding, it's difficult to assess if this price represents fair market value for the apprenticeship training services provided by the Home Builders Institute.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these apprenticeship training services.

Public Impact

Apprenticeship programs are crucial for workforce development, but non-competitive awards limit broader participation. Taxpayers may be overpaying for services due to the absence of competitive bidding. The long duration of the contract could mean sustained, unoptimized spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Sole-Source Award
Long Contract Duration

Positive Signals

Supports Apprenticeship Training
Established Provider

Sector Analysis

This contract falls within the workforce development and training sector, specifically focusing on apprenticeship programs. The benchmark for similar large-scale apprenticeship contracts is difficult to establish without competitive data, but $80.7M is a significant investment.

Small Business Impact

The data indicates this contract was not awarded to small businesses. The sole-source nature of the award likely prevented small businesses from having an opportunity to compete for this significant training contract.

Oversight & Accountability

The non-competitive nature of this award warrants closer oversight to ensure the services are delivered effectively and at a reasonable cost. Accountability for the substantial expenditure is key.

Related Government Programs

Apprenticeship Training
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for inflated costs due to lack of competition.
Limited transparency in pricing and service delivery.
Missed opportunity for small business participation.
Risk of vendor lock-in given the long contract duration.
Questionable value for taxpayer money without competitive benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $80.8 million to HOME BUILDERS INSTITUTE. IGF::OT::IGF, THIS ACTION ALLOWS FOR THE IMPLEMENTATION OF THE HBI CONTRACT.

Who is the contractor on this award?

The obligated recipient is HOME BUILDERS INSTITUTE.

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 $80.8 million.

What is the period of performance?

Start: 2013-06-01. End: 2018-03-31.

What was the justification for awarding this significant contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities or circumstances where only one source can fulfill the requirement. Without further details on the justification, it's presumed the Department of Labor identified specific reasons for selecting the Home Builders Institute. However, the absence of competition means potential cost savings and broader market engagement were forgone.

How does the cost per apprentice or per training hour compare to industry benchmarks, given the lack of competitive pricing?

Without competitive bids, establishing a precise cost benchmark is challenging. A thorough analysis would require comparing the contract's unit costs (if available) against similar government or private sector apprenticeship programs. The current data does not provide sufficient detail to make this comparison, raising concerns about potential overpayment.

What mechanisms are in place to ensure the effectiveness and quality of the apprenticeship training provided under this non-competed contract?

Effectiveness and quality assurance for sole-source contracts rely heavily on the agency's contract management and performance monitoring. The Department of Labor should have robust oversight procedures, including regular performance reviews and outcome tracking, to ensure the Home Builders Institute meets the training objectives and delivers value for the taxpayer investment.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Apprenticeship Training

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: DOL121RP20539

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

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: $250,076,580

Exercised Options: $250,076,580

Current Obligation: $80,768,618

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline