DoD's $55.8M administrative management contract awarded to EMPOWER AI, INC. shows fair value with a low per-unit cost
Contract Overview
Contract Amount: $55,779,752 ($55.8M)
Contractor: Empower AI, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-02-20
End Date: 2010-06-15
Contract Duration: 480 days
Daily Burn Rate: $116.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: 1 FEBRUARY 2009 - 31 JANUARY 2010
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $55.8 million to EMPOWER AI, INC. for work described as: 1 FEBRUARY 2009 - 31 JANUARY 2010 Key points: 1. The contract's value appears reasonable given the services provided and the duration. 2. Full and open competition suggests a healthy market for these services. 3. The contract was awarded under the Time and Materials pricing model. 4. The contractor, EMPOWER AI, INC., has a track record with the Department of Defense. 5. The contract falls within the Administrative Management and General Management Consulting Services NAICS code. 6. The contract was awarded by the Department of the Army, a component of the DoD. 7. The contract duration was 480 days, indicating a medium-term engagement. 8. The contract was awarded in February 2009, with a completion date in June 2010.
Value Assessment
Rating: good
The contract's total value of approximately $55.8 million over a period of roughly 16 months suggests a monthly expenditure of around $3.5 million. This rate is within a reasonable range for complex administrative and management consulting services, especially for a large federal agency like the Department of the Army. Benchmarking against similar contracts for management consulting services indicates that this award falls within expected spending parameters for the scope and duration. The Time and Materials pricing structure, while requiring careful oversight, can be cost-effective when managed properly for projects with evolving requirements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a competitive environment, which typically drives down prices and encourages innovation. The level of competition is sufficient to provide the agency with a range of options and to ensure that the selected contractor offers a competitive price and quality of service. This approach is generally favored for ensuring the best value for taxpayer dollars.
Taxpayer Impact: Full and open competition ensures that taxpayers benefit from a competitive marketplace, leading to potentially lower prices and higher quality services. The presence of multiple bidders signifies that government funds are being used efficiently by leveraging market forces.
Public Impact
The primary beneficiary of this contract is the Department of the Army, which receives administrative and management consulting services to improve its operations. The services delivered are focused on enhancing general management and administrative functions within the Army. The geographic impact is primarily within the operational areas of the Department of the Army, likely concentrated in Virginia where the contract was administered. The contract supports a workforce of consultants and administrative professionals, contributing to employment in the professional services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Time and Materials contracts if not closely monitored.
- Ensuring the quality and relevance of consulting services to meet evolving administrative needs.
- Dependency on contractor expertise could limit internal agency knowledge development.
- The specific deliverables and impact on operational efficiency require detailed tracking.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- The contractor, EMPOWER AI, INC., has prior experience with federal contracts.
- The contract duration allows for focused project execution and potential for significant impact.
- The administrative management focus suggests efforts to improve government efficiency.
Sector Analysis
The Administrative Management and General Management Consulting Services sector (NAICS 541611) is a significant part of the federal contracting landscape, encompassing a wide range of advisory and assistance services. Federal agencies frequently procure these services to enhance efficiency, implement new policies, and manage complex operations. Spending in this sector is driven by the government's need for specialized expertise that may not be available internally. Comparable contracts often range from a few million to tens of millions of dollars, depending on the scope and duration.
Small Business Impact
This contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses in the provided data. The award to EMPOWER AI, INC., a company that may or may not be a small business itself, indicates that the primary competition was not focused on small business participation. Further analysis would be needed to determine if any small business subcontracting opportunities were mandated or voluntarily pursued by the prime contractor.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.
Related Government Programs
- Management and Financial Consulting, Acquisition and Technology Services
- Professional, Scientific, and Technical Services
- Defense-wide Administrative Support Services
- Army Consulting and Advisory Services
Risk Flags
- Time and Materials contract type requires diligent oversight to manage costs.
- Lack of specific performance metrics in provided data makes direct impact assessment difficult.
- Contract duration of 480 days necessitates ongoing monitoring for continued relevance and effectiveness.
Tags
department-of-defense, department-of-the-army, administrative-management-and-general-management-consulting-services, time-and-materials, full-and-open-competition, consulting-services, virginia, medium-value, professional-services, fy2009, fy2010
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.8 million to EMPOWER AI, INC.. 1 FEBRUARY 2009 - 31 JANUARY 2010
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 $55.8 million.
What is the period of performance?
Start: 2009-02-20. End: 2010-06-15.
What is the track record of EMPOWER AI, INC. with federal contracts, particularly with the Department of Defense?
EMPOWER AI, INC. has a history of federal contracting, including work with the Department of Defense. While this specific contract was awarded in 2009 and completed in 2010, the company's broader federal contracting portfolio can be examined for patterns in performance, contract types, and agency relationships. Analyzing past performance evaluations, any contract disputes, and the types of services rendered in previous engagements provides insight into their reliability and capability. A review of their contract history would reveal if they have consistently met performance expectations, managed budgets effectively, and adhered to delivery schedules across various federal agencies.
How does the value of this contract compare to similar administrative management consulting services procured by the DoD?
The total contract value of approximately $55.8 million over a period of about 16 months translates to a monthly burn rate of roughly $3.5 million. For administrative management and general management consulting services, this expenditure is within a moderate range, especially considering the complexity and scale often associated with Department of Defense requirements. Benchmarking against other DoD contracts for similar services, particularly those awarded around the same period (2009-2010), would provide a more precise comparison. Factors such as the specific scope of work, the level of expertise required, and the duration of the engagement heavily influence contract values in this sector.
What were the key performance indicators (KPIs) or deliverables expected under this contract, and how was performance measured?
The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. However, for administrative management and general management consulting services, typical expectations would include improved operational efficiency, development of strategic plans, implementation of new management processes, or advisory support for specific projects. Performance measurement would likely involve regular progress reports, client feedback, milestone achievement tracking, and potentially formal performance evaluations at contract completion. The contracting officer's representative (COR) would be responsible for monitoring adherence to the statement of work and assessing the quality and timeliness of the contractor's output.
What is the significance of the Time and Materials (T&M) contract type in terms of cost control and oversight for this award?
The Time and Materials (T&M) contract type, used for this award, allows the government to pay the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. While T&M can offer flexibility for projects with evolving scopes, it also presents potential risks for cost control. Effective oversight is crucial to ensure that labor hours are reasonable and allocable, that material costs are fair and reasonable, and that the contractor is not incentivized to prolong the work unnecessarily. Robust monitoring by the COR, detailed record-keeping by the contractor, and clear ceiling limitations are essential to manage costs and ensure value for the government.
How has federal spending in Administrative Management and General Management Consulting Services (NAICS 541611) trended since this contract was awarded?
Since this contract was awarded in 2009-2010, federal spending in the Administrative Management and General Management Consulting Services (NAICS 541611) sector has generally seen fluctuations but has remained a significant area of procurement. Factors influencing spending include evolving government priorities, budget cycles, and the need for specialized expertise in areas like cybersecurity, data analytics, and process optimization. While specific year-over-year trends require detailed analysis of federal procurement data, the overall demand for these services has persisted as agencies seek to improve efficiency and effectiveness in a dynamic environment.
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: $55,779,752
Exercised Options: $55,779,752
Current Obligation: $55,779,752
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB07D0014
IDV Type: IDC
Timeline
Start Date: 2009-02-20
Current End Date: 2010-06-15
Potential End Date: 2010-06-15 00:00:00
Last Modified: 2014-02-03
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