DoD's $27.7M consulting contract with EMPOWER AI, Inc. awarded in 2008 for administrative management services
Contract Overview
Contract Amount: $27,677,178 ($27.7M)
Contractor: Empower AI, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-03-31
End Date: 2009-03-31
Contract Duration: 365 days
Daily Burn Rate: $75.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: 1 APRIL 2008 - 31 MARCH 2009
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $27.7 million to EMPOWER AI, INC. for work described as: 1 APRIL 2008 - 31 MARCH 2009 Key points: 1. The contract's value of approximately $27.7 million over one year represents a significant investment in administrative management consulting. 2. Awarded under full and open competition, the contract suggests a competitive bidding process was utilized. 3. The 'Administrative Management and General Management Consulting Services' (NAICS 541611) category indicates a focus on improving organizational efficiency and strategic planning. 4. The contract duration of one year with a March 2009 end date suggests a defined scope of work for the period. 5. The 'VA' (Virginia) state code for the contractor may indicate a concentration of operations or administrative presence in that region. 6. The 'DO' award type typically signifies a direct award, though the 'full and open competition' designation is key here. 7. The relatively high benchmark of $75,828 for this contract warrants scrutiny against similar engagements.
Value Assessment
Rating: fair
The contract's total value of $27.7 million for a one-year period for administrative management consulting services appears substantial. Benchmarking against similar contracts is crucial to determine value for money. The provided benchmark of $75,828 (potentially a unit or period cost) seems high and requires further investigation against industry standards for consulting services of this nature. Without more granular data on deliverables and specific services rendered, a definitive value assessment is challenging.
Cost Per Unit: $75,828 (benchmark)
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this contract. While multiple bidders are positive, the specific number (3) may not represent the maximum possible competition for a contract of this size and scope, potentially impacting price discovery.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers, potentially driving down costs compared to less competitive methods.
Public Impact
The Department of the Army benefits from enhanced administrative management and general management consulting services. The services delivered are expected to improve operational efficiency, strategic planning, and overall organizational effectiveness within the Army. The geographic impact is primarily within the Department of the Army's operational areas, potentially with a concentration in Virginia where the contractor is registered. Workforce implications could include the utilization of specialized consulting expertise to augment internal capabilities or address specific management challenges.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The benchmark cost of $75,828 appears high and requires validation against comparable consulting engagements.
- The limited number of bids (3) in a full and open competition might suggest potential limitations in market reach or contractor interest.
- The 'Time and Materials' contract type can sometimes lead to cost overruns if not closely monitored and managed.
- The specific deliverables and outcomes of the administrative management consulting services are not detailed, making performance assessment difficult.
Positive Signals
- Awarded under full and open competition, which generally promotes competitive pricing and wider access to qualified contractors.
- The contract addresses a critical need for administrative management and general management consulting services, aiming to improve efficiency.
- The contractor, EMPOWER AI, INC., is a registered entity, implying a level of established business operations.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is vital for government agencies seeking to optimize operations, implement new strategies, and improve overall performance. The market for such services is competitive, with numerous firms offering expertise in areas like organizational design, process improvement, and strategic planning. Government spending in this area often fluctuates based on agency needs for modernization, efficiency drives, and specialized project support.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if EMPOWER AI, INC. chose to engage them. Without explicit subcontracting plans or data, it's difficult to assess the direct benefit to the small business ecosystem from this particular award.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program managers 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, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.
Related Government Programs
- Management and Consulting Services
- Administrative Support Services
- Department of Defense IT and Professional Services
- Army Consulting Contracts
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Benchmark cost requires further validation against industry standards.
- Limited number of bids (3) may indicate suboptimal competition.
- Lack of specific performance metrics in summary data hinders effectiveness assessment.
Tags
department-of-defense, department-of-the-army, administrative-management, consulting-services, time-and-materials, full-and-open-competition, virginia, fy2008, fy2009, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.7 million to EMPOWER AI, INC.. 1 APRIL 2008 - 31 MARCH 2009
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 $27.7 million.
What is the period of performance?
Start: 2008-03-31. End: 2009-03-31.
What specific administrative management and general management consulting services were delivered under this contract?
The provided data indicates the contract was for 'Administrative Management and General Management Consulting Services' (NAICS 541611) awarded to EMPOWER AI, INC. by the Department of the Army. However, the specific services rendered, such as strategic planning, organizational restructuring, process improvement initiatives, or policy development, are not detailed in the summary data. To understand the precise deliverables, one would need to review the contract's Statement of Work (SOW) or task orders issued against it. These documents would outline the scope, objectives, and expected outcomes of the consulting engagement, providing clarity on how the $27.7 million investment was utilized.
How does the benchmark cost of $75,828 compare to industry standards for similar consulting services?
The benchmark cost of $75,828 requires context to be accurately assessed. If this figure represents an average hourly rate, a daily rate, or a project-specific cost, its comparison to industry standards will vary significantly. For high-level strategic consulting or specialized project management, rates can range from hundreds to over a thousand dollars per hour. If $75,828 represents a total project cost or a significant milestone payment, it would need to be evaluated against the scope, duration, and complexity of the services provided. Without knowing what this benchmark specifically measures (e.g., average consultant hour, total project value, specific deliverable cost), it's difficult to definitively state if it is high or low relative to industry norms for administrative management consulting.
What was the track record of EMPOWER AI, INC. prior to or during this contract award?
The provided data identifies EMPOWER AI, INC. as the contractor but does not include information about their prior track record, past performance evaluations, or any other contracts they may have held before or during this specific award. A comprehensive assessment of their track record would involve reviewing their performance on previous government contracts, client testimonials, and any available performance metrics. This information is typically found in government contract databases, past performance questionnaires submitted during the bidding process, or through agency performance review systems. Understanding their history would provide insight into their reliability and capability to deliver on the contracted services.
What were the key performance indicators (KPIs) used to measure the success of this consulting engagement?
The summary data does not specify the Key Performance Indicators (KPIs) established for this contract. Typically, consulting contracts include metrics to evaluate the effectiveness and success of the services provided. These KPIs could relate to improvements in operational efficiency, cost savings achieved, successful implementation of new strategies, enhanced organizational structure, or client satisfaction. The absence of this information in the provided data means that an objective assessment of the contract's effectiveness and value realization is not possible without accessing the full contract documentation or performance reports.
How did the Department of the Army manage the 'Time and Materials' aspect of this contract to control costs?
Contracts awarded on a 'Time and Materials' (T&M) basis, like this one, require diligent oversight to manage costs effectively. The Department of the Army would have implemented specific controls, likely detailed in the contract's terms and conditions. These controls often include establishing ceiling prices, requiring detailed timesheets and expense reports, defining labor categories with associated rates, and implementing regular reviews of contractor effort. The contracting officer and program managers would be responsible for monitoring the hours billed and ensuring that the work performed aligns with the contract's objectives and budget. Without specific oversight reports, it's presumed that standard government procurement regulations and best practices for T&M contracts were followed.
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: $27,677,178
Exercised Options: $27,677,178
Current Obligation: $27,677,178
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB07D0014
IDV Type: IDC
Timeline
Start Date: 2008-03-31
Current End Date: 2009-03-31
Potential End Date: 2009-03-31 00:00:00
Last Modified: 2014-02-03
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