DoD awards $94.6M for wired telecommunications, with Empower AI Inc. as prime contractor
Contract Overview
Contract Amount: $94,640,792 ($94.6M)
Contractor: Empower AI, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-02-22
End Date: 2011-12-31
Contract Duration: 677 days
Daily Burn Rate: $139.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: AWARD OF 9010
Place of Performance
Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $94.6 million to EMPOWER AI, INC. for work described as: AWARD OF 9010 Key points: 1. Contract value represents a significant investment in telecommunications infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this award. 3. Performance period spans over a year, indicating a need for sustained service. 4. The contract falls within the broader IT and telecommunications sector. 5. Geographic focus on Arizona suggests a regional deployment of services.
Value Assessment
Rating: good
The award of $94.6 million for wired telecommunications services appears reasonable given the duration and scope. Benchmarking against similar large-scale telecommunications infrastructure contracts would provide a more precise value-for-money assessment. The Time and Materials pricing structure, while flexible, warrants scrutiny to ensure cost efficiency over the contract's life.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With 3 bidders identified, this suggests a healthy level of competition, which typically drives more competitive pricing and better service offerings for the government.
Taxpayer Impact: A competitive bidding process for this contract likely resulted in cost savings for taxpayers compared to a sole-source or limited competition award.
Public Impact
The Department of the Army is the primary beneficiary, receiving essential telecommunications services. Services delivered are expected to include wired telecommunications infrastructure and support. The contract has a geographic impact primarily within Arizona. Workforce implications may include specialized technical roles for telecommunications installation and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Time and Materials pricing if not closely managed.
- Ensuring adequate performance and service quality throughout the contract duration.
- Dependency on contractor's ability to deliver specialized telecommunications expertise.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Contractor has experience in delivering services to government entities.
- Clear performance period and delivery order structure provide defined expectations.
Sector Analysis
This contract falls within the telecommunications services sector, specifically focusing on wired infrastructure. The market for government telecommunications services is substantial, with agencies constantly seeking reliable and advanced connectivity solutions. This award aligns with the government's ongoing need for robust communication networks to support operations.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract. Therefore, the primary contractor, Empower AI, Inc., is likely a larger entity. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award notice.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Performance monitoring, quality assurance, and financial oversight are standard mechanisms to ensure accountability and transparency. The Inspector General's office may also conduct audits or investigations if concerns arise.
Related Government Programs
- Department of Defense IT Services
- Army Network Modernization Programs
- Federal Telecommunications Infrastructure Contracts
- Wired Network Services
Risk Flags
- Potential for cost overruns due to Time and Materials pricing structure.
- Ensuring adequate performance and service quality throughout the contract duration.
- Dependency on contractor's ability to deliver specialized telecommunications expertise.
Tags
department-of-defense, department-of-the-army, wired-telecommunications-carriers, it-services, delivery-order, time-and-materials, full-and-open-competition, arizona, large-contract, telecommunications-infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $94.6 million to EMPOWER AI, INC.. AWARD OF 9010
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 $94.6 million.
What is the period of performance?
Start: 2010-02-22. End: 2011-12-31.
What is Empower AI, Inc.'s track record with the Department of Defense and similar telecommunications contracts?
Empower AI, Inc. has a history of performing contracts for the Department of Defense and other federal agencies. While specific details on their telecommunications contract performance require deeper analysis of contract databases and performance reports, their selection for this significant award suggests a demonstrated capability. Further investigation into past performance reviews, any past performance issues, and the types of telecommunications services they have previously provided would offer a more comprehensive understanding of their suitability and reliability for this specific contract.
How does the $94.6 million award compare to similar wired telecommunications contracts awarded by the DoD in the past year?
The $94.6 million award for wired telecommunications services over a period of approximately two years (from February 2010 to December 2011) is a substantial sum. To benchmark its value, one would compare it to other large-scale telecommunications infrastructure awards by the DoD or other federal agencies. Factors such as the scope of services (e.g., fiber optic installation, maintenance, bandwidth provision), geographic coverage, and contract duration are critical for a fair comparison. Without specific comparable contract data, it's difficult to definitively state if this represents excellent or fair value, but the amount indicates a significant investment in critical infrastructure.
What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?
The primary risk associated with a Time and Materials (T&M) contract of this magnitude is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. This can lead to increased costs if the project scope expands, inefficiencies arise, or if the contractor does not manage resources effectively. For the government, robust oversight, detailed tracking of labor hours and material costs, and clear definition of 'materials' are crucial to mitigate these risks and ensure the contract remains within budget and delivers value.
How effective is full and open competition in ensuring competitive pricing for telecommunications services?
Full and open competition is generally considered the most effective method for ensuring competitive pricing for telecommunications services. By allowing all responsible sources to submit bids, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. This process drives down prices as contractors vie for the award. In this case, with 3 bidders, the competition level suggests that pricing was likely influenced by market forces, benefiting the taxpayer by securing services at a potentially more economical rate than if the contract had been awarded through limited or sole-source means.
What is the historical spending trend for wired telecommunications carriers by the Department of the Army?
Analyzing the historical spending trend for wired telecommunications carriers by the Department of the Army requires access to comprehensive federal procurement data over multiple fiscal years. This specific award of $94.6 million in 2010-2011 provides a data point, but a trend analysis would involve examining annual spending patterns, the number and value of contracts awarded in this category, and the primary contractors utilized. Such an analysis could reveal whether spending has been increasing, decreasing, or remaining stable, and identify any shifts in technology or service providers over time.
What are the implications of this contract award for the telecommunications market in Arizona?
This contract award of $94.6 million for wired telecommunications services in Arizona could have several implications for the local telecommunications market. It signifies a significant investment in infrastructure within the state, potentially leading to job creation in installation, maintenance, and support roles. The presence of a large federal contract could also stimulate competition among local providers seeking subcontracting opportunities or aiming to secure future government contracts. Furthermore, the deployment of advanced telecommunications infrastructure could enhance connectivity for military operations and potentially spill over into benefits for the broader civilian infrastructure in the region.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
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: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: NCI, Inc. (UEI: 195313866)
Address: 11730 PLAZA AMERICA DRIVE, RESTON, VA, 20190
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $96,385,583
Exercised Options: $94,640,792
Current Obligation: $94,640,792
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128Z06D0002
IDV Type: IDC
Timeline
Start Date: 2010-02-22
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 12:12:00
Last Modified: 2015-12-08
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