Labor Department's $256M Gary JC Center Contract Awarded to Management & Training Corporation

Contract Overview

Contract Amount: $256,411,050 ($256.4M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2005-11-01

End Date: 2010-10-31

Contract Duration: 1,825 days

Daily Burn Rate: $140.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF GARY JC CENTER

Place of Performance

Location: SAN MARCOS, HAYS County, TEXAS, 78666

State: Texas Government Spending

Plain-Language Summary

Department of Labor obligated $256.4 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF GARY JC CENTER Key points: 1. The contract, valued at $256.4 million, was awarded for the operation of the Gary JC Center. 2. Management & Training Corporation is the sole contractor for this service. 3. The contract duration is 5 years, ending in October 2010. 4. The contract type is Cost Plus Incentive Fee, suggesting performance-based incentives. 5. The North American Industry Classification System (NAICS) code is 611519, indicating 'Other Technical and Trade Schools'.

Value Assessment

Rating: fair

The contract's Cost Plus Incentive Fee structure aims to align contractor performance with government objectives. However, without specific performance metrics and benchmarks, assessing the value for money is challenging. The total award value of $256.4 million over five years requires careful monitoring of costs and outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific details of the bidding process and the number of bidders are not provided, making it difficult to assess the extent of price discovery achieved.

Taxpayer Impact: The use of full and open competition is intended to ensure taxpayer funds are used efficiently. The Cost Plus Incentive Fee structure, if well-managed, can further optimize spending by incentivizing contractor performance.

Public Impact

Operates a correctional education facility, impacting inmate rehabilitation and reintegration. Provides vocational training and educational services to inmates. Potential impact on recidivism rates and workforce readiness for former inmates. Contract performance directly affects the quality and effectiveness of correctional education programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics for the Cost Plus Incentive Fee structure.
Limited information on the competitive landscape and number of bidders.
No clear indication of small business participation.

Positive Signals

Awarded under full and open competition.
Contract duration of 5 years allows for program stability.
Incentive fee structure can drive performance.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' sector, specifically related to correctional education services. Spending in this sector can vary widely based on government priorities for rehabilitation and workforce development. Benchmarking requires comparison with similar correctional education contracts.

Small Business Impact

There is no indication of small business participation in this contract. Further analysis would be needed to determine if opportunities were missed or if the nature of the service inherently limits small business involvement.

Oversight & Accountability

Oversight would focus on ensuring the contractor meets performance standards, manages costs effectively under the incentive fee structure, and delivers quality educational and vocational services. Regular performance reviews and audits are crucial for accountability.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Potential for cost overruns in a Cost Plus contract type.
Lack of transparency on performance metrics for incentive fees.
Absence of small business participation.
Limited data on the competitive bidding process.
Unclear impact on key rehabilitation and reintegration outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $256.4 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF GARY JC CENTER

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $256.4 million.

What is the period of performance?

Start: 2005-11-01. End: 2010-10-31.

What specific performance metrics are tied to the incentive fee structure, and how do they align with the Department of Labor's goals for inmate rehabilitation?

The effectiveness of the Cost Plus Incentive Fee structure hinges on clearly defined and measurable performance metrics. These should directly correlate with the Department of Labor's objectives, such as improved educational attainment, successful completion of vocational programs, and post-release employment rates. Without transparency into these metrics, it's difficult to ascertain if the incentive fee is truly driving desired outcomes or simply rewarding cost management.

How did the 'full and open competition' process ensure competitive pricing, given the significant contract value?

While 'full and open competition' is the preferred method, its effectiveness in ensuring competitive pricing depends on the number and quality of bids received. A thorough analysis would require examining the bid proposals, the evaluation criteria used, and the final negotiated price relative to independent cost estimates. Understanding the market dynamics and potential barriers to entry for other qualified firms is also crucial to confirm robust price discovery.

What is the demonstrated impact of this contract on inmate recidivism rates and successful reintegration into the workforce?

The ultimate measure of success for this contract lies in its tangible impact on reducing recidivism and enhancing workforce readiness among participants. Data on post-release employment, wage levels, and re-arrest rates would be essential to evaluate effectiveness. Without such outcome-based data, the contract's value proposition remains largely theoretical, despite the substantial financial investment.

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: JC-RIV-4-05

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 500 NORTH MARKETPLACE DR, CENTERVILLE, UT, 84014

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $256,411,050

Exercised Options: $256,411,050

Current Obligation: $256,411,050

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline