DoD's $56.8M NCI ITES Contract Awarded to EMPOWER AI, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $56,799,373 ($56.8M)
Contractor: Empower AI, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-09-01
End Date: 2010-09-17
Contract Duration: 2,207 days
Daily Burn Rate: $25.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NCI ITES
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $56.8 million to EMPOWER AI, INC. for work described as: NCI ITES Key points: 1. Contract value of $56.8 million over its duration. 2. Awarded to EMPOWER AI, INC. through full and open competition. 3. Potential risks associated with long-term IT service contracts. 4. Sector: Information Technology (Wired Telecommunications Carriers).
Value Assessment
Rating: fair
The contract value of $56.8 million over approximately 6 years suggests a moderate annual spend. Benchmarking against similar large-scale IT service contracts would be necessary for a precise pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through a competitive bidding process.
Public Impact
Ensures the Department of Defense has access to essential wired telecommunications services. Supports military operations and administrative functions through IT infrastructure. The long duration of the contract implies a significant impact on the IT services market for telecommunications carriers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to vendor lock-in or reduced flexibility.
- Potential for cost overruns if scope creep occurs.
- Reliance on a single vendor for critical IT infrastructure.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Supports critical defense operations.
- Established contract with a defined end date.
Sector Analysis
This contract falls within the IT sector, specifically Wired Telecommunications Carriers. Spending in this area is crucial for government operations, and benchmarks vary widely based on service scope and duration.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The award was managed by the Defense Contract Management Agency, suggesting established oversight. However, ongoing monitoring of performance and costs is essential throughout the contract's life.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration potentially leading to outdated technology or services.
- Lack of specific performance metrics or value realization data.
- Potential for vendor lock-in.
- Limited insight into small business participation.
Tags
wired-telecommunications-carriers, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.8 million to EMPOWER AI, INC.. NCI ITES
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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $56.8 million.
What is the period of performance?
Start: 2004-09-01. End: 2010-09-17.
What specific telecommunications services are covered under this NCI ITES contract, and how do they align with current DoD technological needs?
The contract, classified under NAICS code 517110 (Wired Telecommunications Carriers), likely covers a range of services including network infrastructure, data transmission, and voice communication systems. Alignment with current DoD needs requires a detailed review of the contract's statement of work and any subsequent modifications, considering the rapid evolution of telecommunications technology and cybersecurity requirements.
Given the contract's duration (2004-2010), what was the process for ensuring the pricing remained competitive and reflected market changes over time?
For a contract awarded in 2004 with an end date in 2010, pricing competitiveness would typically be managed through contract clauses allowing for adjustments based on economic price indices or through periodic reviews and potential renegotiations. The firm fixed-price structure provides some cost certainty, but market shifts could still impact the vendor's profitability and the government's value proposition over the contract's lifespan.
How effectively did the full and open competition process for this contract translate into demonstrable value for the taxpayer compared to other procurement methods?
Full and open competition is generally considered the most effective method for maximizing taxpayer value by fostering a competitive environment that drives down prices and encourages innovation. While specific metrics for this contract are not provided, the process itself suggests a strong effort to obtain competitive bids, which historically leads to better cost outcomes and service quality for the government.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Indian (Subcontinent) American Owned Business
Financial Breakdown
Contract Ceiling: $62,193,906
Exercised Options: $62,148,906
Current Obligation: $56,799,373
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ04D0001
IDV Type: IDC
Timeline
Start Date: 2004-09-01
Current End Date: 2010-09-17
Potential End Date: 2010-09-17 00:00:00
Last Modified: 2016-08-18
More Contracts from Empower AI, Inc.
- Digit Award. to Enable GSA IDT to Leverage Infrastructure-Led Disruption to Drive Digital Transformation and Deliver Continuous Improvement and Continuous Business Value to ITS Customers — $328.7M (General Services Administration)
- Systems Engineering and Technical Assitance (seta) Support Services for PEO Soldier and PM Subordinates — $220.5M (Department of Defense)
- JSP Service Delivery — $212.7M (Department of Defense)
- THE Cert Program Calculates Bi-Annual Improper Payment Rates Based on the Results of the Reviews Conducted. These Rates Include an Overall National Medicare FFS Improper Payment Rate and Improper Payment Rates for Each Claim Type [part a Inpatient Hospital Prospective Payment System (PPS); Part a Excluding Inpatient Hospital PPS; Part B; and Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (dmepos)]. the Cert Program Ensures a Statistically Valid Random Sample; Therefore, the Improper Payment Rate Calculated From This Sample IS Considered to BE Reflective of ALL of Claims Processed by Medicare FFS Program During the Report Period. CMS Also Uses the Cert Program to Perform Special Studies and Supplemental Measurements to Determine the Improper Payment Rates of Particular Claim Types. Calculations of These Rates Facilitate CMS Ability to Take Appropriate Corrective Actions to Reduce Improper Payments — $206.7M (Department of Health and Human Services)
- National Capital Region (NCR) IT Support Services — $150.1M (Department of the Interior)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)