EOP Spends $8.4M on MAX Application Support via Empower AI, Inc. under Full and Open Competition
Contract Overview
Contract Amount: $8,444,882 ($8.4M)
Contractor: Empower AI, Inc.
Awarding Agency: Executive Office of the President
Start Date: 2022-08-20
End Date: 2026-08-31
Contract Duration: 1,472 days
Daily Burn Rate: $5.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: BUDGET SYSTEM AND DEVELOPER AND PROCESS APPLICATION SUPPORT (OMB MAX)
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20503
Plain-Language Summary
Executive Office of the President obligated $8.4 million to EMPOWER AI, INC. for work described as: BUDGET SYSTEM AND DEVELOPER AND PROCESS APPLICATION SUPPORT (OMB MAX) Key points: 1. The contract focuses on essential IT systems support for the Executive Office of the President. 2. Empower AI, Inc. is the sole awardee for this delivery order. 3. The contract duration is over 3 years, indicating a need for sustained support. 4. The primary service category is Computer Systems Design Services.
Value Assessment
Rating: fair
The contract is a labor hours type, which can lead to cost overruns if not managed carefully. Benchmarking against similar IT support contracts is difficult without more detailed service descriptions and performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, as a delivery order, the specific pricing was determined through negotiation with the selected vendor.
Taxpayer Impact: Taxpayer funds are being used for critical IT infrastructure support. The full and open competition aims to ensure reasonable pricing, but the labor hours model requires diligent oversight to control costs.
Public Impact
Ensures continuity of critical government IT systems. Supports the operational needs of the Executive Office of the President. Provides employment for IT professionals through Empower AI, Inc. The use of taxpayer funds for IT services is subject to public scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Labor hours contract type can lead to cost uncertainty.
- Limited transparency on specific performance metrics.
- Potential for scope creep without strict management.
Positive Signals
- Awarded under full and open competition.
- Supports a critical government function.
- Long-term contract provides stability for services.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for similar government IT support contracts vary widely based on scope and complexity, but $8.4M over three years for application support is within a typical range for federal agencies.
Small Business Impact
The prime contractor is Empower AI, Inc. Information regarding small business subcontracting is not provided in the data, making it difficult to assess small business participation.
Oversight & Accountability
The contract is managed by the Executive Office of the President. Oversight would involve monitoring performance, managing the labor hours, and ensuring adherence to the contract terms to maintain accountability for taxpayer funds.
Related Government Programs
- Computer Systems Design Services
- Executive Office of the President Contracting
- Executive Office of the President Programs
Risk Flags
- Potential for cost overruns due to labor hours.
- Lack of detailed performance metrics.
- Limited information on small business utilization.
- Dependency on a single vendor for critical support.
Tags
computer-systems-design-services, executive-office-of-the-president, dc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Executive Office of the President awarded $8.4 million to EMPOWER AI, INC.. BUDGET SYSTEM AND DEVELOPER AND PROCESS APPLICATION SUPPORT (OMB MAX)
Who is the contractor on this award?
The obligated recipient is EMPOWER AI, INC..
Which agency awarded this contract?
Awarding agency: Executive Office of the President (Executive Office of the President).
What is the total obligated amount?
The obligated amount is $8.4 million.
What is the period of performance?
Start: 2022-08-20. End: 2026-08-31.
What is the estimated cost per labor hour, and how does it compare to industry benchmarks for similar IT support services?
The provided data does not specify the cost per labor hour. To assess value, this information would be crucial. Comparing it to industry benchmarks for computer systems design services, considering factors like clearance levels and specific skill sets required, would reveal if the government is receiving competitive rates for the labor provided.
What are the key performance indicators (KPIs) for this contract, and how is Empower AI, Inc. being measured against them?
The data does not detail specific KPIs. Effective oversight requires clearly defined performance metrics related to system uptime, response times, issue resolution rates, and user satisfaction. Without these, it's challenging to assess the contractor's effectiveness and the overall value delivered to the EOP.
What is the process for managing scope changes and preventing cost overruns in this labor-hours contract?
Labor-hours contracts inherently carry a risk of cost overruns if not managed tightly. The EOP's contracting officers must have robust processes for approving any changes, closely monitoring hours expended against estimates, and regularly reporting on progress to ensure the project stays within budget and scope.
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 › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 11730 PLAZA AMERICA DR, 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: $20,029,674
Exercised Options: $10,723,180
Current Obligation: $8,444,882
Actual Outlays: $10,048,031
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $5,617,846
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200035W
IDV Type: GWAC
Timeline
Start Date: 2022-08-20
Current End Date: 2026-08-31
Potential End Date: 2027-08-31 00:00:00
Last Modified: 2026-01-29
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