DoD Awards $31.3M C4I/IT Contract to Empower AI for U.S. Korea Command Support

Contract Overview

Contract Amount: $31,267,274 ($31.3M)

Contractor: Empower AI, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-09-19

End Date: 2021-09-18

Contract Duration: 1,825 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF AWARD OF TASK ORDER FOR LABOR, MATERIALS, TRAVEL, ODCS AND DBA IN SUPPORT OF THE U.S. ARMY INFORMATION SYSTEMS ENGINEERING COMMAND (USAISEC), FORT HUACHUCA ENGINEERING DIRECTORATE (FHED) THAT WILL PROVIDE COMMAND, CONTROL, COMMUNICATION, COMPUTER AND INTELLIGENCE/INFORMATION TECHNOLOGY (C4I/IT) INFRASTRUCTURE AND SYSTEMS WITHIN THE U.S. KOREA COMMAND OPERATIONS CENTER (KORCOM OPS), U.S. ARMY 2ND INFANTRY DIVISION,

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $31.3 million to EMPOWER AI, INC. for work described as: IGF::OT::IGF AWARD OF TASK ORDER FOR LABOR, MATERIALS, TRAVEL, ODCS AND DBA IN SUPPORT OF THE U.S. ARMY INFORMATION SYSTEMS ENGINEERING COMMAND (USAISEC), FORT HUACHUCA ENGINEERING DIRECTORATE (FHED) THAT WILL PROVIDE COMMAND, CONTROL, COMMUNICATION, COMPUTER AND INTELLIGENCE/INF… Key points: 1. This contract focuses on critical C4I/IT infrastructure for U.S. Forces in Korea. 2. Empower AI, Inc. secured the award through full and open competition. 3. The contract spans five years, indicating a long-term need for these services. 4. The IT sector, specifically computer systems design, is a key area of focus.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee structure may still allow for costs to exceed initial expectations.

Taxpayer Impact: Taxpayer funds are being used to support critical military IT infrastructure, ensuring operational readiness for U.S. forces in a key strategic location.

Public Impact

Ensures vital C4I/IT systems are operational for U.S. Forces Korea Command. Supports the U.S. Army's mission in a strategically important region. Provides essential technology infrastructure for command and control operations. The contract's duration suggests ongoing reliance on these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can increase risk of cost overruns.
Limited visibility into specific cost components for detailed analysis.
Potential for scope creep in complex IT infrastructure projects.

Positive Signals

Awarded through full and open competition, promoting market efficiency.
Supports critical national security infrastructure.
Long-term contract indicates sustained government need.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across the government, supporting everything from basic IT operations to advanced cyber capabilities. Benchmarks for similar large-scale IT infrastructure projects vary widely based on scope and complexity.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as the prime contractor is Empower AI, Inc. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve program managers and contracting officers within the Army, ensuring adherence to contract terms and performance standards.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration (5 years).
Critical infrastructure in a high-risk geopolitical region.
Potential for technology obsolescence.
Lack of small business participation as prime.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.3 million to EMPOWER AI, INC.. IGF::OT::IGF AWARD OF TASK ORDER FOR LABOR, MATERIALS, TRAVEL, ODCS AND DBA IN SUPPORT OF THE U.S. ARMY INFORMATION SYSTEMS ENGINEERING COMMAND (USAISEC), FORT HUACHUCA ENGINEERING DIRECTORATE (FHED) THAT WILL PROVIDE COMMAND, CONTROL, COMMUNICATION, COMPUTER AND INTELLIGENCE/INFORMATION TECHNOLOGY (C4I/IT) INFRASTRUCTURE AND SYSTEMS WITHIN THE U.S. KOREA COMMAND OPERATIONS CENTER (KORCOM OPS), U.S. ARMY 2ND INFANTRY DIVISION,

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 $31.3 million.

What is the period of performance?

Start: 2016-09-19. End: 2021-09-18.

What is the estimated total cost of ownership for this contract over its full duration, considering potential cost increases?

The total award amount is $31.3 million over five years. However, as a Cost Plus Fixed Fee contract, actual costs could exceed this if the contractor incurs higher expenses than anticipated. Without detailed cost breakdowns and performance metrics, estimating the total cost of ownership is challenging. Robust oversight is crucial to manage expenditures and prevent significant cost overruns.

What are the primary risks associated with the C4I/IT infrastructure in the U.S. Korea Command Operations Center?

Key risks include cybersecurity threats targeting sensitive command and control systems, potential for system obsolescence given the rapid pace of IT advancement, and operational disruptions due to hardware or software failures. Geopolitical instability in the region also presents a risk factor that could impact the demand for or security of these IT systems.

How effectively does this contract support the U.S. Army's strategic objectives in the Indo-Pacific region?

This contract is crucial for maintaining reliable and secure C4I/IT infrastructure, which is fundamental to the U.S. Army's operational effectiveness in South Korea. It directly supports command, control, and intelligence functions, enabling seamless communication and coordination for U.S. forces. The effectiveness hinges on the contractor's ability to deliver robust, up-to-date systems and maintain high availability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Advancemed Corporation (UEI: 824891477)

Address: 11730 PLAZA AMERICA DR STE 700, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $57,780,415

Exercised Options: $56,914,595

Current Obligation: $31,267,274

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $11,413,939

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128Z11D0006

IDV Type: IDC

Timeline