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Awarded contract·City of Mobile·Alabama

PERSONNEL PAYROLL/STAFFING SERVICES

Won by Blue Arbor Inc$120kSingle Award
Contract source

Awarded vendors

  • Blue Arbor Inc

Description

The City of Mobile solicited sealed‑bid proposals to provide full payroll and staffing services for its “Youth Empowered for Success” (YES) summer internship program. The contractor becomes the employer of up to 150 interns (ages 16‑24), handling hiring, payroll processing, workers’ compensation, I‑9 verification, on‑site training, and all related HR compliance. Payment is made on a bi‑weekly basis at an hourly rate equal to the City‑set intern wage plus a percentage markup submitted by the vendor, with a ceiling of $120,000 per program year. The contract term covers the summer 2019 program (June–July) and may be renewed for two additional one‑year periods (2020 and 2021) if both parties agree. The award was granted to Blue Arbor Inc following a competitive sealed‑bid process. • Scope: payroll processing, staffing, compliance, training, and reporting for up to 150 short‑term interns. • Payment: hourly rate = City‑set wage + vendor markup; maximum contract value $120k per year, invoiced bi‑weekly, net 30. • Requirements: Alabama business registration, City license, E‑Verify enrollment, Child‑Labor Certificate, ≥5 years relevant experience, and specified insurance coverages.

Attached files

Key dates

Bids closed
1/15/2019
Starts
6/1/2019
Ends
7/1/2019Renews
Duration
1 year

Last updated

Details

Award type
Single Award
Procurement
Full and Open Competition
Industry
Staff Augmentation
NAICS
541612
Solicitation №
5235

Contract value

$120,000

The solicitation specifies a maximum contract ceiling of $120,000 per program year. Since the contract is for a single summer program (June‑July 2019) and the City will only pay for actual intern hours plus the vendor’s markup, the actual spend is likely to be below the ceiling. Assuming the City employs ~150 interns at the federal minimum wage ($7.25/hr) for an average of 40 hours/week over 6 weeks, total labor hours ≈ 150 × 40 × 6 = 36,000 hours. At $7.25/hr that equals $261,000 in wages, but the City only reimburses the vendor’s markup on top of the wage (the wage itself is a cost to the City, not to the vendor). The vendor’s revenue would be the markup portion; with a typical markup of 15‑20%, the vendor’s earnings would be roughly $39,000‑$52,000. Adding required insurance and overhead, the total contract value likely falls between $80,000 and $120,000. A conservative estimate places the contract value at the ceiling of $120,000.

AI estimate from the award documents

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