DoD Awards $106.6M Contract for Services Delivery Bridge to Empower AI, Inc

Contract Overview

Contract Amount: $106,558,220 ($106.6M)

Contractor: Empower AI, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-03-30

End Date: 2026-01-29

Contract Duration: 670 days

Daily Burn Rate: $159.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SERVICES DELIVERY BRIDGE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $106.6 million to EMPOWER AI, INC. for work described as: SERVICES DELIVERY BRIDGE Key points: 1. Significant contract value of $106.6 million awarded. 2. Empower AI, Inc. is the sole awardee. 3. Contract falls under Administrative Management and General Management Consulting Services. 4. Potential for high impact on defense information systems delivery.

Value Assessment

Rating: fair

The contract value is substantial, but without specific performance metrics or benchmarks for similar services, a precise value assessment is difficult. The firm fixed-price structure provides cost certainty.

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. This method is generally expected to yield fair market prices.

Taxpayer Impact: Taxpayer funds are being utilized for critical defense information system support services.

Public Impact

Enhances critical defense information system capabilities. Supports administrative and management consulting services for the DoD. Impacts the operational efficiency of the Defense Information Systems Agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the professional services sector, specifically management consulting. Benchmarks for similar large-scale consulting contracts can vary widely based on scope and duration.

Small Business Impact

The data indicates that small business participation was not a specific consideration for this award, as the 'sb' field is false. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

Oversight will be managed by the Defense Information Systems Agency (DISA). The firm fixed-price contract type provides a degree of accountability for the awarded amount.

Related Government Programs

Risk Flags

Tags

administrative-management-and-general-ma, department-of-defense, dc, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $106.6 million to EMPOWER AI, INC.. SERVICES DELIVERY BRIDGE

Who is the contractor on this award?

The obligated recipient is EMPOWER AI, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $106.6 million.

What is the period of performance?

Start: 2024-03-30. End: 2026-01-29.

What specific deliverables and performance standards are outlined in the contract to ensure effective service delivery and value for money?

The contract details are not fully provided in the summary data. However, a comprehensive Services Delivery Bridge contract typically includes specific deliverables such as project management, system integration, technical support, and operational assistance. Performance standards would likely be defined through Service Level Agreements (SLAs) and key performance indicators (KPIs) to measure the quality, timeliness, and effectiveness of the services provided, ensuring accountability and value for taxpayer funds.

What are the potential risks associated with a single award for a critical service like the Defense Information Systems Agency's bridge?

A single award for a critical service like the Defense Information Systems Agency's bridge carries risks of vendor lock-in, reduced leverage for future negotiations, and potential disruption if the vendor fails to perform or faces financial instability. It can also limit the infusion of innovative solutions that might come from a more competitive environment. Ensuring robust contract management and performance monitoring is crucial to mitigate these risks.

How does this contract contribute to the overall effectiveness and modernization goals of the Department of Defense's information systems?

This contract is intended to support the ongoing operations and potentially the modernization of critical defense information systems. By providing administrative management and general management consulting services, it aims to ensure the efficient functioning and strategic alignment of these systems with evolving defense needs. The effectiveness will depend on the quality of the consulting provided and its ability to address current challenges and future requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11730 PLAZA AMERICA DR, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $134,878,835

Exercised Options: $107,919,331

Current Obligation: $106,558,220

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $37,792,651

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F263CA

IDV Type: FSS

Timeline

Start Date: 2024-03-30

Current End Date: 2026-01-29

Potential End Date: 2026-06-29 00:00:00

Last Modified: 2025-12-22

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