ERIC Number: ED417310
Record Type: Non-Journal
Publication Date: 1997-Dec-1
Reference Count: N/A
Is the Price Right? An Analysis of ETP's Fixed Fees.
Moore, Richard W.; Blake, Daniel R.; Honig, Michele L.; Cohen, Michael D.
The Employment Training Panel (ETP) contracted with California State University-Northridge to review the fixed fee structure ETP used to pay contractors for training provided under ETP. Three research questions were investigated: what other institutions use the fixed fee and what they pay for; whether ETP's fixed-fee rates were reasonable in comparison with rates charged by public and private entities; and whether use of one fee for both vendor and in-house training providers was reasonable. Researchers interviewed ETP executive staff, training managers in 15 other state-funded training programs, and training managers in manufacturing firms; analyzed an extensive training program in Illinois; and conducted a pricing survey of private for-profit training providers and higher education institutions. They found no identical fixed-fee models for state-training programs, but ETP's fixed fee appeared to be substantially below the costs of training in a similar Illinois training program. ETP's fixed fee was below the median price for the larger training market; was higher than the median market price in some areas of training and below it in others; and was generally lower than fees charged by private for-profit training providers and generally higher than fees charged by higher education institutions. Of five policy options generated, the project recommended that ETP establish a two-tiered price, a higher price for customized training and a lower price for uncustomized training. (Appendixes include summaries of the state survey and interviews with inhouse trainers.) (YLB)
Publication Type: Reports - Research
Education Level: N/A
Sponsor: California State Employment Training Panel, Sacramento.
Authoring Institution: California State Univ., Northridge.