DoD Awards $620M+ Contract to NCI Information Systems for RDTE/Other Defense Demo/Valid Services
Contract Overview
Contract Amount: $83,875,065 ($83.9M)
Contractor: Empower AI, Inc.
Awarding Agency: Department of Defense
Start Date: 1997-03-21
End Date: 2012-01-25
Contract Duration: 5,423 days
Daily Burn Rate: $15.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: 199706!2100!0156!AD07 !USA MATERIEL COMMAND ACQUISITION!DAAD0797C0109 !A!*!* !19970321!20060331!620864504!620864504!620864504!N!0MX49!NCI INFORMATION SYSTEMS INC !8260 GREENSBORO DR !MC LEAN !VA!22102!84880!013!35!WHITE SANDS MSL RGE !DONA ANA !NEW MEXICO!0001!+000001200000!N!N!000000000000!AD94!RDTE/OTHER DEFENSE-DEMO/VALID !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8731!3!*!*!*!B!A!*!A !N!R!2!002!K!* !C!N!Z!* !* !N!A!*!*!*!A!B!A!*!* !A!N!A!B!N!*!*!*!*!*!
Place of Performance
Location: WHITE SANDS MISSILE RANGE, DOÑA ANA County, NEW MEXICO, 88002
Plain-Language Summary
Department of Defense obligated $83.9 million to EMPOWER AI, INC. for work described as: 199706!2100!0156!AD07 !USA MATERIEL COMMAND ACQUISITION!DAAD0797C0109 !A!*!* !19970321!20060331!620864504!620864504!620864504!N!0MX49!NCI INFORMATION SYSTEMS INC !8260 GREENSBORO DR !MC LEAN !VA!22102!84880!013!35!WHITE SANDS MSL RGE !DONA A… Key points: 1. Significant contract value exceeding $620 million highlights substantial investment in defense research, development, testing, and evaluation. 2. Competition was conducted under 'Full and Open Competition After Exclusion of Sources,' suggesting a specific justification for limiting initial bidders. 3. The contract type is 'Cost Plus Award Fee,' which can incentivize contractor performance but may lead to higher overall costs if not managed carefully. 4. The primary sector is IT services supporting defense demonstration and validation, indicating a focus on advanced technological capabilities.
Value Assessment
Rating: good
The total contract value is over $620 million. While specific pricing details are not fully elaborated, the Cost Plus Award Fee structure suggests performance-based incentives that could influence the final cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This method implies that while competition was sought, certain sources were excluded, potentially impacting price discovery and the breadth of competitive offers.
Taxpayer Impact: The substantial value of this contract means taxpayer funds are significantly allocated to defense R&D. The effectiveness of the competition and contract management will determine the value for money.
Public Impact
Taxpayers are funding advanced defense technology development and validation. The contract supports critical research and development within the Department of Defense. The long duration of the contract (from 1997 to 2012) suggests a sustained need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Limited competition method could reduce cost savings.
- Cost Plus Award Fee contracts can be complex to manage and may exceed initial estimates.
- Long contract duration might indicate a lack of agile acquisition strategies.
Positive Signals
- Significant investment in critical defense R&D.
- Potential for high-quality service delivery through award fee incentives.
- Contract supports national security objectives.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically for Research, Development, Testing, and Evaluation (RDTE) services. Spending in this area is crucial for maintaining technological superiority but requires careful oversight to ensure efficiency.
Small Business Impact
There is no explicit indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine their participation.
Oversight & Accountability
The contract's long duration and Cost Plus Award Fee structure necessitate robust oversight to ensure performance targets are met and costs remain justified. Accountability would hinge on performance metrics and financial audits.
Related Government Programs
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Limited competition may have resulted in a higher price.
- Lack of transparency regarding specific performance metrics for award fee.
- Long contract duration raises questions about adaptability and potential for outdated technology.
Tags
department-of-defense, nm, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $83.9 million to EMPOWER AI, INC.. 199706!2100!0156!AD07 !USA MATERIEL COMMAND ACQUISITION!DAAD0797C0109 !A!*!* !19970321!20060331!620864504!620864504!620864504!N!0MX49!NCI INFORMATION SYSTEMS INC !8260 GREENSBORO DR !MC LEAN !VA!22102!84880!013!35!WHITE SANDS MSL RGE !DONA ANA !NEW MEXICO!0001!+000001200000!N!N!000000000000!AD94!RDTE/OTHER DEFENSE-DEMO/VALID !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8731!3!*!*!*!B!A!*!A !N!R!2!0
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 $83.9 million.
What is the period of performance?
Start: 1997-03-21. End: 2012-01-25.
What specific technological advancements or demonstrations were achieved under this contract?
The contract was for 'RDTE/OTHER DEFENSE-DEMO/VALID' services. While the specific outcomes are not detailed in the provided data, such contracts typically aim to develop, test, and validate new defense technologies, potentially including software, hardware, or integrated systems to enhance military capabilities and operational effectiveness.
How did the 'Full and Open Competition After Exclusion of Sources' impact the final contract price?
This procurement method suggests that while the competition was intended to be broad, specific sources were excluded based on defined criteria. This exclusion could limit the number of competitive bids received, potentially leading to a higher price than if a truly unrestricted full and open competition had occurred. The impact depends on the justification for exclusion and the competitiveness among the remaining bidders.
What were the key performance indicators (KPIs) for the 'Award Fee' component of this contract?
The data does not specify the key performance indicators (KPIs) used to determine the award fee. Typically, for Cost Plus Award Fee contracts, KPIs are tied to project milestones, technical performance, schedule adherence, and overall customer satisfaction. The contractor would earn additional fee based on exceeding predefined performance targets.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: NCI, Inc. (UEI: 195313866)
Address: 8260 GREENSBORO DR, MC LEAN, VA, 90
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 1997-03-21
Current End Date: 2012-01-25
Potential End Date: 2012-01-25 00:00:00
Last Modified: 2012-03-02
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