Air Force's $620M IT Operations Contract Awarded to NCI Information Systems, Inc. in 2004

Contract Overview

Contract Amount: $11,508,371 ($11.5M)

Contractor: Empower AI, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-10-01

End Date: 2008-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: IT

Official Description: 200505!000075!5700!FA4407!375CONS/LGC !GS35F4014G !C!N! !N!FA440705F6017! !20041001!20090930!620864504!620864504!620864504!N!NCI INFORMATION SYSTEMS, INC !11730 PLAZA AMERICA DRIVE !RESTON !VA!20190!68328!163!17!SCOTT AFB !ST. CLAIR !ILLINOIS !+000002607349!N!N!000000000000!D301!ADP FACILITY OPERATION & MAINTENANCE SERVICES !S1 !SERVICES !000 !* !541519!E! !6! ! ! ! ! !20200930!B!E!Y! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !000! ! ! ! ! ! ! ! !FA4407!0001! !

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to EMPOWER AI, INC. for work described as: 200505!000075!5700!FA4407!375CONS/LGC !GS35F4014G !C!N! !N!FA440705F6017! !20041001!20090930!620864504!620864504!620864504!N!NCI INFORMATION SYSTEMS, INC !11730 PLAZA AMERICA DRIVE !RESTON !VA!20190!68328!163!17!SCOTT AFB !ST. … Key points: 1. Contract focused on ADP Facility Operation & Maintenance Services, indicating a need for robust IT infrastructure support. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 5 years (1460 days) allowed for sustained service delivery. 4. The primary service category was IT, specifically custom computer programming services. 5. The contract was awarded to NCI Information Systems, Inc., a significant player in the federal IT services market. 6. The geographic location of the service delivery was Scott Air Force Base, Illinois.

Value Assessment

Rating: fair

The total award amount was $620,864,504. Benchmarking this against similar IT operations and maintenance contracts is challenging without more specific service details and market data from the period. However, the scale of the contract suggests a significant investment in maintaining critical Air Force IT infrastructure. The per-unit cost is not readily calculable from the provided data, making direct price assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The absence of specific bidder numbers limits a deeper analysis of the competitive intensity.

Taxpayer Impact: A full and open competition generally benefits taxpayers by promoting a level playing field for contractors, which can drive down costs and improve the quality of services through competitive pressures.

Public Impact

The primary beneficiary of this contract was the Department of the Air Force, ensuring the operational readiness of its IT systems. Services delivered included ADP Facility Operation & Maintenance, crucial for the functioning of military command and control systems. The geographic impact was centered at Scott Air Force Base, Illinois, supporting local operations. The contract likely supported a workforce involved in IT operations, maintenance, and potentially custom programming.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's effectiveness beyond contract completion.
The provided data does not detail the specific services rendered under 'ADP Facility Operation & Maintenance,' limiting a granular value assessment.
No information is available on potential subcontracting, which could impact small business participation.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
The contract was awarded to a known entity in the federal IT services space, NCI Information Systems, Inc.
The contract duration of 5 years provided stability for both the government and the contractor.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT infrastructure operations and maintenance. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their digital capabilities. Contracts like this are essential for ensuring the continuity of operations for critical government functions. Comparable spending benchmarks would typically involve analyzing other large-scale IT operations and maintenance contracts awarded by the Department of Defense or other federal agencies during the mid-2000s.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (sb: false) and does not mention any small business subcontracting goals or achievements. Therefore, the direct impact on the small business ecosystem from this specific award appears limited, though larger prime contractors often engage small businesses for specialized services not detailed here.

Oversight & Accountability

Oversight mechanisms for such contracts typically involve contract officers, program managers, and potentially Inspector General offices within the Department of Defense. Transparency is usually managed through contract award databases like FPDS-NG (Federal Procurement Data System - Next Generation). Accountability measures would be tied to performance metrics and delivery schedules outlined in the contract's statement of work.

Related Government Programs

IT Operations and Maintenance Services
Custom Computer Programming Services
Federal IT Infrastructure Support
Department of Defense IT Spending
Air Force IT Contracts

Risk Flags

Potential for cost overruns due to the long duration and complexity of IT operations.
Risk of technological obsolescence impacting the effectiveness of services over the contract period.
Cybersecurity vulnerabilities inherent in managing critical IT facilities.
Dependence on a single contractor for essential operational support.
Challenges in measuring and verifying contractor performance without detailed metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to EMPOWER AI, INC.. 200505!000075!5700!FA4407!375CONS/LGC !GS35F4014G !C!N! !N!FA440705F6017! !20041001!20090930!620864504!620864504!620864504!N!NCI INFORMATION SYSTEMS, INC !11730 PLAZA AMERICA DRIVE !RESTON !VA!20190!68328!163!17!SCOTT AFB !ST. CLAIR !ILLINOIS !+000002607349!N!N!000000000000!D301!ADP FACILITY OPERATION & MAINTENANCE SERVICES !S1 !SERVICES !000 !* !541519!E! !6! ! ! ! ! !202

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 Air Force).

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2004-10-01. End: 2008-09-30.

What was the specific nature of the 'ADP Facility Operation & Maintenance Services' provided under this contract?

The provided data categorizes the service under 'ADP FACILITY OPERATION & MAINTENANCE SERVICES' and PSC code '541519' (Other Computer Related Services), with a more specific NAICS code of '541511' (Custom Computer Programming Services). This suggests a broad scope encompassing the management, maintenance, and potentially enhancement of data processing facilities and related IT infrastructure. Services could have included hardware maintenance, network operations, data center management, system administration, and potentially software development or integration to support the Air Force's specific operational needs at Scott AFB.

How did NCI Information Systems, Inc.'s performance on this contract compare to industry standards at the time?

Assessing NCI Information Systems, Inc.'s performance against industry standards for this specific contract is not possible with the provided data. Performance evaluations are typically documented in contract performance reports, which are not included. Factors like on-time delivery, quality of service, adherence to budget, and customer satisfaction would be key metrics. NCI Information Systems, Inc. was an established federal contractor, suggesting they had the experience to meet DoD requirements, but specific performance outcomes require access to detailed contract administration records.

What were the primary risks associated with this large IT operations contract, and how were they mitigated?

Primary risks for a contract of this magnitude and type typically include technological obsolescence, cybersecurity threats, contractor performance failures, cost overruns, and disruptions to critical Air Force operations. Mitigation strategies would have been embedded in the contract through performance standards, service level agreements (SLAs), security protocols, contingency planning, and regular oversight by the contracting officer. The choice of a full and open competition might also have been intended to mitigate risk by selecting a contractor with a proven track record and competitive pricing.

Can we compare the value proposition of this contract to other similar federal IT operations contracts awarded around the same period?

Direct value comparison is difficult without detailed service breakdowns and market data from 2004-2008. However, the contract's total value of over $620 million for a 5-year period indicates a significant investment in maintaining essential IT infrastructure. The fact that it was competed suggests an effort to achieve value for money. To perform a robust comparison, one would need to analyze similar-sized contracts for IT operations and maintenance services awarded by DoD or other agencies during that timeframe, considering factors like scope of work, technology involved, and specific performance requirements.

What was the historical spending trend for ADP Facility Operation & Maintenance Services by the Department of the Air Force leading up to this award?

The provided data does not include historical spending trends for this specific service category by the Air Force. To analyze this, one would need to access historical federal procurement data (e.g., from FPDS) for prior years, filtering by the Department of the Air Force, relevant PSC codes (like 541519 or related IT maintenance codes), and potentially keywords related to facility operations. This would reveal whether spending in this area was increasing, decreasing, or stable, providing context for the size and timing of this $620M award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: NCI, Inc. (UEI: 195313866)

Address: 8260 GREENSBORO DR # 400, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4014G

IDV Type: FSS

Timeline