U.S. Department of Labor Announces Award of Four Contracts for Job Corps Operations Using New Firm-Fixed Price Approach

WASHINGTON, DC – As part of its new firm-fixed price approach to procuring Job Corps center operations, the U.S. Department of Labor announced that it has awarded contracts to operate four centers in Michigan, Wyoming, and New Hampshire. Administered by the Department’s Employment and Training Administration (ETA), Job Corps is a national residential training and employment program designed to address the multiple barriers to employment faced by at-risk youth.

The Department awarded contracts for operations of the Flint Genesee Job Corps Center in Flint, Michigan; the Detroit Job Corps Center in Detroit, Michigan; the Wind River Job Corps Center in Riverton, Wyoming; and the New Hampshire Job Corps Center in Manchester, New Hampshire.

“Job Corps continues to prioritize the education and training of students and, with the switch to firm-fixed pricing contracts, an increase in oversight ensures centers are providing students with services that meet or exceed Job Corps’ expectations,” Assistant Secretary for Employment and Training John P. Pallasch said. “I commend the work of the Employment and Training Administration, the Office of Contract Management, the Office of the Assistant Secretary for Administration and Management, and the Solicitor’s Office for implementing this new approach.”

The new firm-fixed price approach differs from the cost-reimbursement type contracts Job Corps has used to procure services. Recommended by the Office of Management and Budget, the Government Accountability Office, and the Office of Inspector General, firm-fixed price contracts streamline procurement process requirements and create administrative efficiencies. These efficiencies will allow staff resources to be focused more on program oversight and monitoring to improve outcomes and student services. The approach will also strengthen financial oversight of the Job Corps program by increasing cost certainty.

Job Corps provides comprehensive career development services to at-risk students, including academic, career technical, career success and independent living skills, career readiness training, and support services. The program is intended to prepare youth to obtain and hold gainful employment, pursue further education or training, or satisfy entrance requirements for U.S. military careers. Currently, there are 123 Job Corps residential and non-residential centers in all 50 states, the District of Columbia, and Puerto Rico.  

ETA administers federal government job training and worker dislocation programs, federal grants to states for public employment service programs, and unemployment insurance benefits. State and local workforce development systems primarily provide these services.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.