Dynamic Educational Systems Inc. awarded $1.2M contract for youth vocational and academic services

Contract Overview

Contract Amount: $11,996,562 ($12.0M)

Contractor: Dynamic Educational Systems Inc

Awarding Agency: Department of Labor

Start Date: 2003-08-15

End Date: 2008-09-30

Contract Duration: 1,873 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PROVIDE VOCATIONAL AND ACADEMIC SERVICES TO YOUTH AGES 16 TO 24 YEARS OLD.

Place of Performance

Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95832

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $12.0 million to DYNAMIC EDUCATIONAL SYSTEMS INC for work described as: PROVIDE VOCATIONAL AND ACADEMIC SERVICES TO YOUTH AGES 16 TO 24 YEARS OLD. Key points: 1. Contract provides essential vocational and academic services to young adults. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Contract duration of over 5 years indicates a long-term commitment to these services. 4. Services are geographically focused on California. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 6. This contract supports the Department of Labor's mission to enhance workforce development.

Value Assessment

Rating: fair

The contract value of $1.2 million over approximately 5 years for vocational and academic services to youth is moderate. Benchmarking against similar contracts for youth development programs is difficult without more specific service details and geographic scope. The Cost Plus Fixed Fee (CPFF) structure means the government pays allowable costs plus a fixed fee, which can be efficient if costs are well-managed, but also carries risk if costs escalate beyond initial projections. The number of bids (2) suggests some level of competition, but not extensive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bids received, the competition level was limited but present. This suggests that while multiple vendors were aware of and considered the opportunity, the market may not be saturated with providers for this specific service, potentially impacting price discovery.

Taxpayer Impact: A competitive process, even with two bidders, generally leads to better pricing for taxpayers compared to sole-source awards. However, the limited number of bids might mean that the government did not secure the absolute lowest possible price.

Public Impact

Youth aged 16 to 24 years old in California benefit from vocational and academic training. Services aim to improve employability and academic achievement for at-risk young adults. The program is expected to have a positive impact on the California workforce by equipping young people with necessary skills. Potential for job placement and further educational opportunities for participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have resulted in a higher price than if more vendors had participated.
Cost Plus Fixed Fee contracts can lead to cost overruns if not closely monitored by the agency.

Positive Signals

Awarded through full and open competition, ensuring a fair process.
Long contract duration suggests a stable and potentially effective service delivery model.
Focus on vocational and academic services directly addresses workforce development needs.

Sector Analysis

The vocational rehabilitation services sector is crucial for integrating individuals, particularly youth, into the workforce. This contract falls within the broader human services and education industry, which sees significant government spending aimed at skill development and employment assistance. The market for such services is often characterized by a mix of non-profits, educational institutions, and specialized private companies. Benchmarking spending requires comparing per-participant costs for similar training programs, which can vary widely based on intensity and duration.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not provided in the data. As the contract was awarded under full and open competition, it is possible that small businesses could have bid, but there is no specific indication that this was a set-aside contract. Further analysis would be needed to determine if small businesses were involved as prime contractors or subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Employment and Training Administration. The agency is responsible for monitoring performance, ensuring compliance with contract terms, and managing the Cost Plus Fixed Fee structure. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract. Transparency is generally facilitated through contract databases, but detailed performance metrics are often internal.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) Programs
YouthBuild Program
Job Corps

Risk Flags

Limited competition
Potential for cost overruns in CPFF structure

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $12.0 million to DYNAMIC EDUCATIONAL SYSTEMS INC. PROVIDE VOCATIONAL AND ACADEMIC SERVICES TO YOUTH AGES 16 TO 24 YEARS OLD.

Who is the contractor on this award?

The obligated recipient is DYNAMIC EDUCATIONAL SYSTEMS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.0 million.

What is the period of performance?

Start: 2003-08-15. End: 2008-09-30.

What is the historical spending pattern for vocational and academic services for youth by the Department of Labor?

Historical spending data for vocational and academic services for youth by the Department of Labor reveals a consistent commitment to addressing youth unemployment and skill gaps. Programs like Job Corps and those funded under the Workforce Innovation and Opportunity Act (WIOA) have historically received substantial funding. While specific dollar amounts fluctuate annually based on appropriations and program priorities, the overall trend indicates a sustained investment in youth workforce development. This particular contract, valued at $1.2 million over its duration, represents a segment of this broader federal investment. Analyzing past awards for similar services, particularly in California, could provide context on the typical scale and cost-effectiveness of such initiatives. However, without access to detailed historical spending reports specifically for youth vocational services, a precise trend analysis is challenging.

How does the Cost Plus Fixed Fee (CPFF) structure impact the value for money in this contract?

The Cost Plus Fixed Fee (CPFF) contract structure aims to provide value for money by allowing the contractor to recover allowable costs plus a predetermined fixed fee. This structure can be beneficial when the scope of work is not precisely defined or is expected to evolve, as it provides flexibility. For the government, the fixed fee provides a predictable profit margin for the contractor, which can help in cost control compared to purely cost-reimbursement contracts. However, the 'value for money' is highly dependent on the agency's ability to effectively monitor and control the contractor's costs. If the agency's oversight is weak, the contractor may have less incentive to minimize costs, potentially leading to higher overall expenditures than anticipated. In this case, the effectiveness of the Department of Labor's oversight will be critical in ensuring that the $1.2 million investment yields optimal outcomes in vocational and academic services for the youth.

What is the track record of Dynamic Educational Systems Inc. in delivering similar government contracts?

Assessing the track record of Dynamic Educational Systems Inc. requires a review of their past performance on government contracts, particularly those involving vocational and academic services for youth. Information on contract databases like SAM.gov or FPDS can provide details on previous awards, contract values, performance ratings, and any past performance issues. Without specific data on Dynamic Educational Systems Inc.'s history with the Department of Labor or similar agencies, it is difficult to definitively assess their reliability and effectiveness. A thorough analysis would involve examining the quality of services delivered, adherence to schedules and budgets, and any disputes or corrective actions. A positive track record would indicate a lower risk for this current contract, while a history of issues might raise concerns about potential performance problems and impact the overall value for money.

How does the number of bidders (2) affect the price competitiveness of this contract?

A limited number of bidders, such as the two received for this contract, generally suggests a less competitive market for the specific services required. In a market with numerous potential providers, a higher number of bids typically drives down prices as contractors compete more aggressively for the award. With only two bidders, the government may not have benefited from the full spectrum of competitive pricing available. This could mean that the final negotiated price, while potentially fair given the circumstances, might be higher than what could have been achieved with more robust competition. The agency's negotiation strategy and its understanding of the market rates become particularly important in such scenarios to ensure reasonable pricing for taxpayers.

What are the potential risks associated with a Cost Plus Fixed Fee contract for vocational services?

Cost Plus Fixed Fee (CPFF) contracts, while offering flexibility, carry inherent risks, especially in service-oriented programs like vocational training. A primary risk is that the contractor might not have a strong incentive to control costs rigorously, as all allowable expenses are reimbursed. If the agency's oversight is insufficient, costs could escalate beyond initial projections, diminishing the value for money. Another risk is the potential for scope creep, where the services provided expand beyond the original intent, leading to increased costs without a proportional increase in benefit. For vocational services, ensuring the quality and effectiveness of training while managing costs under a CPFF structure requires diligent monitoring of both expenditures and program outcomes by the contracting agency.

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: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Exodyne Inc. (UEI: 073512048)

Address: 8433 N BLACK CANYON HWY #, PHOENIX, AZ, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,990,790

Exercised Options: $11,784,069

Current Obligation: $11,996,562

Timeline