DoD awards $41.3M for Computer Systems Design Services to Empower AI, Inc. under full and open competition
Contract Overview
Contract Amount: $41,258,508 ($41.3M)
Contractor: Empower AI, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-11-03
End Date: 2015-06-30
Contract Duration: 2,430 days
Daily Burn Rate: $17.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BASE PERIOD (3 MAR 09 - 30 SEP 09)
Place of Performance
Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $41.3 million to EMPOWER AI, INC. for work described as: BASE PERIOD (3 MAR 09 - 30 SEP 09) Key points: 1. Contract awarded to Empower AI, Inc. for computer systems design. 2. Significant contract value of over $41 million. 3. Procurement method was full and open competition. 4. Contract duration spans multiple years, indicating a long-term need. 5. The contract is for services within the IT sector.
Value Assessment
Rating: good
The contract value of $41.3M for a 2430-day period suggests a reasonable price for comprehensive computer systems design services. Benchmarking against similar large-scale IT service contracts would provide a more precise assessment.
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. This competitive process generally leads to better price discovery and value for the government.
Taxpayer Impact: Taxpayers benefit from competitive bidding, which aims to secure services at the most advantageous price.
Public Impact
Ensures the Department of Defense receives advanced computer systems design capabilities. Supports technological advancements within the Air Force's operational framework. Potential for job creation within the IT services sector. Empower AI, Inc. gains significant government contract experience.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is extensive, requiring ongoing monitoring for performance and cost efficiency.
- Reliance on a single awardee for a large sum necessitates strong oversight.
Positive Signals
- Awarded through full and open competition, maximizing potential for value.
- Clear service description (Computer Systems Design Services) indicates a defined need.
Sector Analysis
This contract falls within the Information Technology sector, specifically computer systems design. Spending in this area is crucial for modernizing government operations and maintaining technological superiority. Benchmarks for similar large-scale IT service contracts can vary widely based on scope and complexity.
Small Business Impact
The contract was awarded to Empower AI, Inc. and does not explicitly mention subcontracting goals for small businesses. Further analysis would be needed to determine if small businesses are involved in fulfilling this contract.
Oversight & Accountability
The contract's duration and value necessitate robust oversight from the Department of the Air Force to ensure performance standards are met and funds are used efficiently. Regular performance reviews and audits are critical.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration may lead to scope creep or evolving technological needs.
- Potential for vendor lock-in if integration is highly specialized.
- Need for continuous monitoring of performance and cost-effectiveness.
- Cybersecurity risks associated with sensitive defense systems design.
Tags
computer-systems-design-services, department-of-defense, il, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.3 million to EMPOWER AI, INC.. BASE PERIOD (3 MAR 09 - 30 SEP 09)
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 $41.3 million.
What is the period of performance?
Start: 2008-11-03. End: 2015-06-30.
What specific computer systems design services are included in this contract, and how do they align with current Air Force technological needs?
The contract specifies 'Computer Systems Design Services' (NAICS 541512). While the exact deliverables are not detailed here, these services typically encompass designing, developing, and integrating computer systems, including hardware, software, and network infrastructure. For the Air Force, this likely involves modernizing command and control systems, data management platforms, or cybersecurity infrastructure to meet evolving operational and threat landscapes.
What are the key performance indicators (KPIs) for this contract, and how will Empower AI, Inc.'s performance be measured against them?
Key performance indicators for such a contract would likely focus on system functionality, reliability, security compliance, timely delivery of milestones, and adherence to budget. Performance measurement would involve regular technical reviews, user feedback, system uptime reports, and potentially independent audits to ensure the designed systems meet the Air Force's stringent requirements and operational readiness.
How does the firm-fixed-price contract type mitigate cost risks for the government, given the long duration and significant value?
A firm-fixed-price (FFP) contract establishes a ceiling price that the contractor must not exceed. For the government, this mitigates cost overrun risks, as the contractor assumes most of the financial risk. However, for complex, long-term IT projects, FFP can sometimes lead to less flexibility for scope changes or innovation, potentially requiring careful negotiation of contract modifications if requirements evolve significantly.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA445208R0006
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: NCI, Inc.
Address: 11730 PLAZA AMERICA DR STE 700, 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: $41,258,508
Exercised Options: $41,258,508
Current Obligation: $41,258,508
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2008-11-03
Current End Date: 2015-06-30
Potential End Date: 2015-06-30 00:00:00
Last Modified: 2023-05-10
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