DoD's Army Spent $84.7M on Consulting Services from Empower AI, Inc. over 5 Years
Contract Overview
Contract Amount: $84,737,154 ($84.7M)
Contractor: Empower AI, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-05-01
End Date: 2011-04-22
Contract Duration: 356 days
Daily Burn Rate: $238.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: 1 MAY 2007 - 30 APRIL 2012
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $84.7 million to EMPOWER AI, INC. for work described as: 1 MAY 2007 - 30 APRIL 2012 Key points: 1. The contract awarded to Empower AI, Inc. totaled $84.7 million over its 5-year duration. 2. This contract was awarded under full and open competition, indicating a competitive bidding process. 3. The services provided fall under Administrative Management and General Management Consulting Services. 4. The contract utilized a Time and Materials pricing structure, which can pose cost control challenges.
Value Assessment
Rating: fair
The total award value of $84.7 million over approximately 5 years suggests a significant investment. Without specific deliverables or performance metrics, it's difficult to definitively assess value for money compared to similar contracts. The Time and Materials pricing model can lead to cost overruns if not closely managed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which generally promotes competitive pricing. However, the Time and Materials pricing structure might limit the government's ability to secure fixed pricing and could lead to higher overall costs if not managed effectively.
Taxpayer Impact: The competitive award process is positive for taxpayers. However, the Time and Materials contract type introduces a risk of increased costs if not diligently overseen, potentially impacting the overall value for taxpayer dollars.
Public Impact
Taxpayers funded $84.7 million for administrative and management consulting services over five years. The Department of the Army utilized a competitive process to award this contract. The use of Time and Materials pricing raises questions about cost efficiency and potential for overspending. Empower AI, Inc. was the recipient of this significant federal contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure
- Lack of specific performance metrics for value assessment
- Potential for cost overruns due to T&M pricing
Positive Signals
- Awarded under full and open competition
- Contract duration of 5 years suggests ongoing need
Sector Analysis
The Administrative Management and General Management Consulting Services sector is broad and often involves strategic advice, operational improvements, and organizational development. Spending in this area can vary widely depending on agency needs and the complexity of the challenges addressed. Benchmarks are difficult without specific service details.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or partners in this contract. The prime contractor, Empower AI, Inc., is not identified as a small business in this context.
Oversight & Accountability
Oversight would focus on ensuring that the Time and Materials contract was managed effectively to prevent cost creep and that the services delivered met the Army's requirements. Regular reviews of hours billed and work performed are crucial for accountability.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Time and Materials pricing structure
- Potential for cost overruns
- Lack of detailed service description
- No indication of small business participation
Tags
administrative-management-and-general-ma, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $84.7 million to EMPOWER AI, INC.. 1 MAY 2007 - 30 APRIL 2012
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 $84.7 million.
What is the period of performance?
Start: 2010-05-01. End: 2011-04-22.
What specific management consulting services were provided, and how did they contribute to the Department of the Army's mission objectives?
The contract falls under NAICS code 541611 (Administrative Management and General Management Consulting Services). While the specific services are not detailed, they likely encompassed areas such as strategic planning, organizational efficiency, process improvement, or program management support. To assess value, one would need to examine project reports, performance evaluations, and evidence of achieved outcomes directly linked to the Army's operational goals and mission success.
What measures were in place to control costs and ensure efficiency given the Time and Materials contract type?
With a Time and Materials (T&M) contract, robust oversight is critical. The Department of the Army should have implemented strict monitoring of labor hours, rates, and direct costs. This includes requiring detailed timesheets, verifying the necessity of all hours billed, and establishing ceiling prices or CLINs (Contract Line Item Numbers) to cap expenditures. Regular performance reviews and audits would also be essential to ensure the contractor was operating efficiently and cost-effectively.
How did the full and open competition process impact the final pricing and overall value received by the Department of the Army?
Full and open competition typically drives down prices as multiple vendors compete. This process likely resulted in a more competitive initial bid from Empower AI, Inc. compared to a sole-source award. However, the ultimate value is also determined by the quality of services rendered and the effectiveness of contract management, particularly given the T&M structure which allows costs to fluctuate based on effort expended.
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: $96,091,582
Exercised Options: $96,091,582
Current Obligation: $84,737,154
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB07D0014
IDV Type: IDC
Timeline
Start Date: 2010-05-01
Current End Date: 2011-04-22
Potential End Date: 2011-04-22 00:00:00
Last Modified: 2014-02-03
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