Some council members and leaders of current local service providers have concerns about inking the main contracts in the total $9.4 million-a-year arrangement with out-of-state vendors, while city officials defended the proposed system as more efficient, cutting-edge and likely to help more people find work. ResCare Workforce Services, based in Louisville, Ky., won the contract for the lead role in the new multi-partner system; city officials noted that the three competitors for ResCare’s $6.7 million contract all were big out-of-state companies. … The Denver Office of Economic Development more recently has helped arrange subcontractor deals with Urban Peak, Servicios de la Raza and the Denver Housing Authority to aid DWS, whose contract may increase in cost as a result, an official said. They would join a handful of other local partners in the contracts. … The largest proposed contract is for ResCare. Starting July 1 it would run one-stop workforce centers across the city, replacing those now run by municipal employees. It also would provide case management, including employment services, for local recipients of the Temporary Assistance for Needy Families and Colorado Works programs. …
Denver says up to 180 jobs at risk in outsourcing of workforce centers
Source: Jon Murray, The Denver Post, August 4, 2015
Up to 180 Denver city employees could lose their jobs by next July after officials seek an outside operator for its three federally funded workforce centers. A spokesman for the Denver Office of Economic Development confirmed that estimate — which hasn’t yet been pinned down — after The Denver Post obtained a memo sent to city employees Friday afternoon by OED executive director Paul Washington. City officials blame the coming layoffs in workforce development on a pending new requirement in last year’s federal Workforce Innovation and Opportunity Act. The federal government is expected to require that operation of local workforce centers be competitively bid out to save on overhead costs, potentially freeing more money for training and employment-connection programs for job-seekers. … OED said it was giving employees an early notice of the change so that they’d be prepared. During the bid process next year, Woodbury said, OED “will encourage contractors to provide courtesy interviews to impacted staff.” The goal is for a contractor to take over the workforce centers July 1.