(Wilkes-Barre, PA, May 20, 2010) – The Luzerne/Schuylkill Workforce Investment Board of Directors today awarded contracts to The ReDCo Group, Educational Data Systems and Arbor E&T, L.L.C., to deliver employment and training programs for Luzerne and Schuylkill counties.
EDSI, Inc. was awarded contracts to provide Employment, Advancement and Retention Network (EARN) services for both Luzerne and Schuylkill counties. The company will deliver services worth approximately $2 million per year in Luzerne County and about $1 million per year in Schuylkill County. Their contract begins July 1, 2010 and runs through June 30, 2014.
The ReDCo Group was awarded contracts to provide Adult and Dislocated Worker services for both counties. That contract will run from July 1, 2010 through June 30, 2013 and provides approximately $875,000 in funding for Luzerne County and $415,000 in funding for Schuylkill County.
Workforce Investment Act (WIA) Youth Services contracts were awarded to Arbor Employment & Training for Luzerne County and the ReDCo Group for Schuylkill County. Luzerne County funding is approximately $665,649 and Schuylkill County’s funding is about $313,247. Both contracts for these services run from July 1, 2010 through June 30, 2013.
“Today’s action ends a long process that began last year when state and federal audits of past workforce program practices in Luzerne County revealed serious deficiencies,” said Lucyann Vierling, executive director of the L/S WIB. “Both the Pennsylvania Department of Labor and Industry and the Pennsylvania Department of Pubic Welfare told the WIB board that corrective action needed to be taken immediately or nearly $11 million in funding for our counties could be in jeopardy.”
Three committees made up of county-appointed WIB board members and representatives from the Department of Labor and Industry and Department of Public Welfare carefully reviewed proposals from four different companies before recommending the three companies chosen at today’s meeting.
WIB administrators will now begin working with the companies on the transition. Each of the companies told the WIB that they will give first preference for jobs to current employees of the Luzerne County Workforce Investment Development Agency (LCWIDA). That company currently provides the services for Luzerne County but was not successful in its bid to retain the services.
“Our committees carefully reviewed each and every proposal. LCWIDA’s proposal did not fulfill many of the requirements of the RFP and left the committee with no choice but to award the contracts to the other companies that submitted complete plans for administering the programs and provided more of the funds to be used for services that will reach the residents of Luzerne County,” said Robert Williams, a WIB director who chaired one of the three committees. “Also, LCWIDA’s administrative costs for running the programs were much higher than the other companies which would result in fewer funds being spent on the programs that benefit the residents of our counties.”
As part of the Adult, Dislocated Worker program for Luzerne County, LCWIDA said it would use 17.1 percent of the funding for administering the program while the ReDCo Group said it would require only 5 percent of the funds for administration.
For administering the youth programs in Luzerne County, LCWIDA asked for 9.6 percent of the funding for administration while Arbor said it would use only 4.67 percent of the funds for administration.
“By chosing the ReDCo Group and Arbor Employment & Training we will be able to utilize more of the money to fund programs and direct services that provide training and help our residents find jobs,” Vierling said.
LCWIDA only bid on providing services for Luzerne County.
“Our board of directors questioned each of the committees at length about the selection process and about LCWIDA’s proposal and everyone who served on the committees was in agreement that the choices made were done solely in the best interest of the clients served by these programs,” Vierling said.
“Even the Department of Labor and Industry and the Department of Public Welfare said they were in agreement and supported the actions of our board of directors,” she said.
“This was a very difficult process and a very difficult decision,” said Karen Kenderdine, co-chair of the WIB board. “We hope that many of the current employees at LCWIDA will be able to be employed by the new providers. They are a source of institutional knowledge and have served the residents of Luzerne County for many years. For the individuals being served and currently in a training programs, the WIB expects a smooth transition from the current providers to the new providers in both counties.”
