DoD's $26.5M Management Support Services contract with Empower AI, Inc. awarded under full and open competition
Contract Overview
Contract Amount: $26,526,578 ($26.5M)
Contractor: Empower AI, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-05-01
End Date: 2008-04-30
Contract Duration: 365 days
Daily Burn Rate: $72.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: MANAGEMENT SUPPORT SERVICES
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $26.5 million to EMPOWER AI, INC. for work described as: MANAGEMENT SUPPORT SERVICES Key points: 1. Contract awarded for administrative and general management consulting services. 2. Significant contract value suggests a substantial need for management expertise. 3. Awarded under full and open competition, indicating broad market access. 4. Contract duration of 365 days with a Time and Materials pricing structure. 5. The North American Industry Classification System (NAICS) code 541611 points to a focus on consulting. 6. The contract was awarded by the Department of the Army, a major component of the DoD. 7. The contractor, Empower AI, Inc., is a key player in this service area.
Value Assessment
Rating: fair
The contract's value of $26.5 million for a one-year period suggests a high per-day cost for management support services. Without specific deliverables or performance metrics, it is difficult to benchmark the value for money. The Time and Materials pricing structure can sometimes lead to cost overruns if not closely managed. Comparing this to similar large-scale management consulting contracts within the Department of Defense or other federal agencies would be necessary for a more precise assessment of its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 3 bids indicates a moderate level of competition for this significant contract. While full and open competition is generally preferred for ensuring fair pricing and access to the best solutions, the relatively low number of bidders for a contract of this size might warrant further investigation into potential barriers to entry or market concentration.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages a wider range of innovative solutions, potentially leading to better value.
Public Impact
The Department of the Army benefits from specialized management support services to enhance operational efficiency. Services delivered likely include strategic planning, organizational analysis, and process improvement. The geographic impact is primarily within the Department of the Army's operational areas, potentially worldwide. Workforce implications may involve the integration of external consultants with government personnel to achieve project goals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost escalation due to Time and Materials pricing structure.
- Limited number of bidders (3) for a contract of this magnitude could indicate market concentration or barriers to entry.
- Lack of specific performance metrics in the provided data makes value assessment challenging.
Positive Signals
- Awarded through full and open competition, maximizing potential for diverse solutions.
- Contract awarded to a known entity (Empower AI, Inc.) suggesting established capabilities.
- The contract addresses a clear need for management support services within a major federal agency.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The federal government is a significant consumer of these services to improve efficiency and effectiveness across various agencies. The market for management consulting is large and competitive, with numerous firms offering specialized expertise. This contract represents a substantial investment in such services by the Department of the Army, aligning with broader trends of federal agencies seeking external expertise for complex challenges.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Empower AI, Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases and public reporting, although specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Management Consulting Services
- Administrative Management and General Management Consulting Services
- Federal Management Support Contracts
- Army Consulting Services
Risk Flags
- Potential for cost overruns due to T&M pricing.
- Limited competition (3 bidders) for a large contract.
- Lack of detailed performance metrics for value assessment.
Tags
department-of-defense, department-of-the-army, management-support-services, administrative-management-consulting, general-management-consulting, full-and-open-competition, time-and-materials, large-contract, consulting-services, federal-contract, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.5 million to EMPOWER AI, INC.. MANAGEMENT SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is EMPOWER AI, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $26.5 million.
What is the period of performance?
Start: 2007-05-01. End: 2008-04-30.
What is the track record of Empower AI, Inc. in delivering similar management support services to the federal government?
Empower AI, Inc. has a history of providing various services to the federal government, including IT, data analytics, and management consulting. Their experience with the Department of Defense and other agencies suggests a familiarity with government contracting processes and requirements. To fully assess their track record for this specific contract, a deeper dive into past performance evaluations, client feedback, and the successful completion of projects with similar scope and complexity would be necessary. Examining their financial stability and any past performance issues or disputes would also provide a more comprehensive view of their capabilities and reliability as a contractor.
How does the $26.5 million contract value compare to similar management support services contracts awarded by the Department of the Army?
The $26.5 million contract value for a one-year duration is substantial for management support services. To benchmark this effectively, we would need to compare it against other contracts for NAICS code 541611 awarded by the Department of the Army or similar large federal agencies over the past few years. Factors such as the specific services required, the level of expertise needed, and the duration of the contract would influence comparability. If similar contracts for comparable services are significantly lower in value, it might suggest this contract is priced at a premium or covers a broader scope. Conversely, if it aligns with or is lower than benchmarks, it could indicate competitive pricing.
What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?
The primary risk with a Time and Materials (T&M) contract, especially one valued at $26.5 million, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. If not managed diligently with strict oversight, labor hour tracking, and material cost controls, the total cost can exceed initial estimates. This can lead to a less predictable budget outcome for the government. Additionally, there's a risk that the contractor may not be as incentivized to complete the work efficiently as they would be under a fixed-price arrangement, potentially extending timelines or increasing resource utilization.
What specific management challenges is the Department of the Army likely addressing with this contract?
Given the NAICS code 541611 (Administrative Management and General Management Consulting Services), the Department of the Army is likely seeking assistance with complex organizational challenges. This could include improving operational efficiency, streamlining administrative processes, developing strategic plans, enhancing program management, or implementing organizational change initiatives. The substantial value suggests a significant undertaking, possibly related to large-scale modernization efforts, resource allocation optimization, or addressing systemic issues within a major command or functional area. The contract aims to leverage external expertise to gain insights and solutions that may not be readily available internally.
How has federal spending on management support services evolved over the past five years, and where does this contract fit in?
Federal spending on management support services has generally seen a steady increase over the past five years, driven by agencies' needs to adapt to evolving technological landscapes, improve efficiency, and manage complex programs. This $26.5 million contract for the Department of the Army is a significant allocation within this category. It reflects the ongoing reliance of large federal organizations on external consultants for strategic guidance and operational improvements. While specific year-over-year trends would require detailed spending data analysis, contracts of this size are typical for major federal departments undertaking substantial management reform or support initiatives.
What is the significance of the contract being awarded in May 2007 for a period ending in April 2008?
The award date of May 1, 2007, and an end date of April 30, 2008, indicate this was a one-year contract. This duration is relatively short for a contract of this value, suggesting it was intended to address a specific, time-bound need or project rather than a long-term, ongoing requirement. Such shorter durations can be used to pilot new approaches, address immediate operational needs, or provide support during a transitional period. The fact that it was awarded under full and open competition suggests that the Army sought the best available solution for that specific period, and the contract was likely fulfilled within its intended timeframe.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91CRB06R0047
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: NCI, Inc. (UEI: 195313866)
Address: 11730 PLAZA AMERICA DR STE 700, RESTON, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Indian (Subcontinent) American Owned Business
Financial Breakdown
Contract Ceiling: $26,526,578
Exercised Options: $26,526,578
Current Obligation: $26,526,578
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB07D0014
IDV Type: IDC
Timeline
Start Date: 2007-05-01
Current End Date: 2008-04-30
Potential End Date: 2008-04-30 00:00:00
Last Modified: 2012-04-20
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