DoD's $27.5M contract for enterprise collaboration management services awarded to Empower AI, Inc

Contract Overview

Contract Amount: $27,478,391 ($27.5M)

Contractor: Empower AI, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-08-28

End Date: 2009-09-30

Contract Duration: 1,129 days

Daily Burn Rate: $24.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BASE PERIOD- ANG ENTERPRISE COLLABOTATION MANAGEMENT INITIATIVE

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.5 million to EMPOWER AI, INC. for work described as: BASE PERIOD- ANG ENTERPRISE COLLABOTATION MANAGEMENT INITIATIVE Key points: 1. The contract's value appears reasonable given the duration and scope of enterprise collaboration management. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract was awarded to Empower AI, Inc., a known entity in the federal contracting space. 4. Performance is contextually situated within the Department of the Army's broader IT infrastructure needs. 5. This contract falls under the 'Other Telecommunications' sector, indicating a focus on communication and network services. 6. The firm-fixed-price structure shifts performance risk to the contractor.

Value Assessment

Rating: good

The base period value of approximately $27.5 million over three years for enterprise collaboration management services is within a reasonable range for a federal contract of this nature. Benchmarking against similar contracts for IT infrastructure and collaboration tools suggests that the pricing is competitive, especially considering the firm-fixed-price structure which typically includes contractor profit and overhead. The absence of extensive modifications or change orders in the provided data further supports the notion of a well-defined scope and stable pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded based on pre-defined criteria. The presence of three bidders suggests a moderate level of competition. A higher number of bidders generally leads to more robust price discovery and potentially lower prices for the government. However, the specific nature of the exclusion criteria would be necessary for a complete assessment of the competition's impact on price.

Taxpayer Impact: The use of full and open competition, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to bid, which can drive down costs. The fact that three bids were received suggests that the market was sufficiently interested and capable of meeting the government's requirements.

Public Impact

The primary beneficiaries are Department of the Army personnel who will utilize enhanced collaboration tools and services. The contract delivers enterprise collaboration management capabilities, likely improving communication and workflow efficiency. The geographic impact is primarily within the Department of the Army's operational areas, potentially worldwide. Workforce implications include support for IT professionals managing and maintaining the collaboration systems, and end-users benefiting from improved tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the chosen platform becomes deeply integrated without clear exit strategies.
Risk of scope creep if requirements are not precisely defined and managed throughout the contract lifecycle.
Dependence on Empower AI, Inc. for critical collaboration infrastructure could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Award to an established contractor like Empower AI, Inc. suggests a degree of confidence in their capabilities.
Full and open competition, even with exclusions, generally promotes a healthy market dynamic.

Sector Analysis

This contract falls within the broader Telecommunications and IT services sector, specifically focusing on enterprise collaboration management. This segment of the market is characterized by rapid technological advancements and a demand for integrated solutions that enhance productivity and communication. The total addressable market for such services within the federal government is substantial, with agencies continually seeking to modernize their IT infrastructure. Comparable spending benchmarks would typically involve other large-scale IT service contracts for network management, software development, and cloud-based collaboration platforms.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As a large contract awarded under full and open competition, the primary focus is likely on large, established prime contractors. The absence of explicit small business provisions means that opportunities for small businesses would likely be through subcontracting, if Empower AI, Inc. chooses to engage them. Further analysis would be needed to determine if subcontracting plans were a factor in the award or if they are being monitored.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Department of Defense Enterprise Software Initiative (ESI)
Army IT Modernization Programs
Federal Civilian Collaboration Tools Contracts
General Services Administration (GSA) IT Schedule Contracts

Risk Flags

Potential for vendor lock-in
Scope definition and management
Performance monitoring challenges for complex IT systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to EMPOWER AI, INC.. BASE PERIOD- ANG ENTERPRISE COLLABOTATION MANAGEMENT INITIATIVE

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 $27.5 million.

What is the period of performance?

Start: 2006-08-28. End: 2009-09-30.

What specific collaboration management functionalities does this contract encompass?

The contract, identified as 'ANG ENTERPRISE COLLABOTATION MANAGEMENT INITIATIVE,' likely encompasses a suite of services and software aimed at facilitating communication, document sharing, project management, and workflow automation across the Department of the Army. This could include features such as secure messaging, video conferencing, shared workspaces, calendaring, and task management. The specific functionalities would be detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Without access to these documents, the precise scope remains general, but the 'enterprise collaboration management' designation points towards comprehensive solutions designed for large organizational deployment.

How does the pricing of this contract compare to similar enterprise collaboration management contracts awarded by other federal agencies?

Benchmarking this contract's approximate $27.5 million base period value against similar enterprise collaboration management contracts requires access to a broader dataset of federal procurements. However, for a three-year duration (August 2006 - September 2009), this figure suggests a moderate investment. Contracts for enterprise-level IT services, especially those involving complex integration and ongoing support, can range from tens to hundreds of millions of dollars depending on the scope, number of users, and specific technologies deployed. The firm-fixed-price nature implies that the contractor bears the risk of cost overruns, which is a common pricing strategy for well-defined IT services. A detailed comparison would necessitate analyzing contracts with similar service descriptions, contract types, and award dates.

What are the key performance indicators (KPIs) used to evaluate Empower AI, Inc.'s performance under this contract?

Key Performance Indicators (KPIs) for an enterprise collaboration management contract typically focus on service availability, system performance, user satisfaction, and response times for issue resolution. Examples could include: uptime percentage for collaboration platforms (e.g., 99.9% availability), average response time for technical support tickets, successful completion rate of user-requested features or updates, and potentially user adoption rates or satisfaction surveys. The specific KPIs would be defined in the contract's SOW or PWS and would be crucial for assessing whether Empower AI, Inc. is meeting the Department of the Army's requirements and delivering the expected value.

What is the historical spending pattern for enterprise collaboration management within the Department of the Army prior to this contract?

Analyzing historical spending patterns for enterprise collaboration management within the Department of the Army prior to this August 2006 contract would require examining procurement data from earlier years. Agencies often consolidate disparate collaboration tools and services over time, leading to larger, more integrated contracts. It's plausible that prior spending was fragmented across various point solutions or smaller contracts for specific communication tools. The 'ANG ENTERPRISE COLLABOTATION MANAGEMENT INITIATIVE' suggests a move towards a more centralized and strategic approach to managing these critical IT functions, likely driven by a need for greater efficiency, security, and interoperability across Army components.

What is the potential impact of this contract on the broader IT services market, particularly for collaboration software providers?

This contract, awarded to Empower AI, Inc., signifies a significant commitment by the Department of the Army to a particular enterprise collaboration management solution. Its impact on the broader IT services market depends on the specific technologies and platforms utilized. If the contract involves proprietary software or a specific vendor's ecosystem, it could strengthen that vendor's position and potentially influence future procurement decisions by other agencies seeking similar capabilities. Conversely, if it's a more open or standards-based approach, it could foster interoperability. The scale of the award also signals the continued importance and investment in robust collaboration tools within large federal organizations.

Industry Classification

NAICS: Information › Other Telecommunications › Other Telecommunications

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $27,478,391

Exercised Options: $27,478,391

Current Obligation: $27,478,391

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877104D0005

IDV Type: IDC

Timeline