Labor Dept. awards $178M contract to Career Systems Development Corp. for technical training

Contract Overview

Contract Amount: $178,079,176 ($178.1M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2003-03-15

End Date: 2008-10-31

Contract Duration: 2,057 days

Daily Burn Rate: $86.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Place of Performance

Location: MORGANFIELD, UNION County, KENTUCKY, 42437

State: Kentucky Government Spending

Plain-Language Summary

Department of Labor obligated $178.1 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. Significant value ($178M) for vocational training services. 3. Long duration (2003-2008) suggests a substantial, ongoing need. 4. No small business participation noted.

Value Assessment

Rating: questionable

The contract value of $178M over five years is substantial. Without comparable contract data or detailed cost breakdowns, assessing the value for money is difficult. The 'Other Technical and Trade Schools' NAICS code covers a broad range of services, making direct benchmarking challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Despite being labeled 'full and open competition,' the award went to a single entity, Career Systems Development Corporation. This suggests either a highly specialized service or potential issues in the solicitation or evaluation process that limited broader participation.

Taxpayer Impact: The substantial investment of $178M in workforce development aims to benefit taxpayers through improved employment outcomes, but the efficiency of this spending is unclear without further analysis.

Public Impact

Job training and skill development for citizens. Potential impact on local economies where training is provided. Government investment in human capital development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Limited transparency on competition effectiveness.
High contract value without clear benchmarks.

Positive Signals

Addresses workforce development needs.
Long-term commitment to training services.

Sector Analysis

This contract falls under the 'Other Technical and Trade Schools' category, which is part of the broader education and training sector. Government spending in this area often focuses on workforce development and re-skilling initiatives. Benchmarks for similar large-scale training contracts are not readily available.

Small Business Impact

The contract data indicates that small businesses were not involved in this award (sb: false). This is a missed opportunity to support small business growth and potentially leverage specialized services they might offer in the technical and trade school sector.

Oversight & Accountability

The contract's long duration and significant value warrant robust oversight to ensure performance objectives are met and funds are used efficiently. The 'full and open competition' label, coupled with a single awardee, suggests a need for review of the procurement process.

Related Government Programs

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

Risk Flags

Potential lack of true competition despite 'full and open' designation.
Absence of small business participation.
High contract value without clear performance metrics or benchmarks.
Long contract duration increases performance and vendor risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $178.1 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is CAREER SYSTEMS DEVELOPMENT 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 $178.1 million.

What is the period of performance?

Start: 2003-03-15. End: 2008-10-31.

What specific training outcomes were achieved for the $178M investment, and how do they compare to program goals?

The primary goal of this contract was to provide employment and training services. Quantifying the specific outcomes, such as job placement rates, wage increases, and skill acquisition, is crucial for assessing the return on investment. Without detailed performance reports, it's difficult to determine if the $178M generated sufficient value in terms of improved workforce capabilities and economic impact.

Were there any identified risks associated with the sole awardee's ability to deliver the required training services over the contract's duration?

Given the contract's 'full and open competition' designation but single awardee, a key risk assessment would involve evaluating the vendor's capacity, past performance, and financial stability. The long duration (2003-2008) amplifies these risks. Without access to performance reviews or potential issues flagged during the contract period, it's hard to ascertain if the Department of Labor adequately mitigated risks related to service delivery.

How effective was the 'full and open competition' process in ensuring the government secured the best possible training services at a competitive price?

The effectiveness of the competition is questionable when a 'full and open' process results in a single awardee. This could indicate that the solicitation requirements were overly restrictive, the market research was insufficient, or the evaluation criteria favored a specific vendor. Ensuring true competition is vital for price discovery and obtaining optimal value for taxpayer funds in large procurement actions.

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

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Contractor Details

Parent Company: OWL Companies (UEI: 044437796)

Address: 75 THRUWAY PARK DR 100, WEST HENRIETTA, NY, 14586

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

Financial Breakdown

Contract Ceiling: $1,235,142

Exercised Options: $165,808,290

Current Obligation: $178,079,176

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline