DoD awards $38.6M task order for Computer Systems Design Services to EMPOWER AI, INC
Contract Overview
Contract Amount: $38,590,995 ($38.6M)
Contractor: Empower AI, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-09-29
End Date: 2021-07-21
Contract Duration: 1,026 days
Daily Burn Rate: $37.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::CL,CT::IGF AWARD OF FDED-DHA TASK ORDER W9128Z-11-D-0006/W9128Z-18-F-0006
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $38.6 million to EMPOWER AI, INC. for work described as: IGF::CL,CT::IGF AWARD OF FDED-DHA TASK ORDER W9128Z-11-D-0006/W9128Z-18-F-0006 Key points: 1. The award represents a significant investment in IT services for the Department of the Army. 2. EMPOWER AI, INC. secured this contract through full and open competition. 3. The contract duration is over 1000 days, indicating a substantial project. 4. The use of Cost Plus Fixed Fee pricing warrants scrutiny for cost control.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly. Benchmarking CPFF contracts for similar services is difficult without detailed cost breakdowns.
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 generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The $38.6 million award represents taxpayer funds allocated for critical IT support services.
Public Impact
Ensures continued IT support for Department of the Army operations. Supports a private sector company, EMPOWER AI, INC., through government contracting. The duration of the task order suggests a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee pricing requires diligent oversight to prevent cost escalation.
- Lack of specific performance metrics in the provided data.
- Potential for scope creep in complex IT service contracts.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- The contract addresses a clear need for Computer Systems Design Services.
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is substantial across federal agencies, supporting modernization and operational needs.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, it did not directly benefit small business contractors.
Oversight & Accountability
The Inspector General (IG) designation suggests potential for oversight. However, the effectiveness of oversight depends on specific audit plans and monitoring activities related to this task order.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee pricing structure.
- Long contract duration (1026 days).
- Lack of detailed performance metrics in the provided summary.
- No small business participation noted.
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.6 million to EMPOWER AI, INC.. IGF::CL,CT::IGF AWARD OF FDED-DHA TASK ORDER W9128Z-11-D-0006/W9128Z-18-F-0006
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 $38.6 million.
What is the period of performance?
Start: 2018-09-29. End: 2021-07-21.
What specific computer systems design services are being procured, and how do they align with current Army IT modernization goals?
The provided data only specifies 'Computer Systems Design Services' (NAICS 541512). A deeper dive into the task order's statement of work is necessary to understand the precise services. These services likely support the Army's ongoing efforts to update and maintain its complex IT infrastructure, potentially including software development, system integration, or network design, crucial for operational effectiveness and modernization.
How effectively was the Cost Plus Fixed Fee structure managed to ensure value for money, given the potential for cost overruns?
The Cost Plus Fixed Fee (CPFF) structure necessitates robust government oversight to control costs. Without access to detailed financial reports and performance reviews for this specific task order, it's difficult to definitively assess its effectiveness. Agencies must actively monitor expenditures, ensure contractor efficiency, and manage scope changes meticulously to mitigate the inherent risks of CPFF contracts and achieve value.
What is the long-term strategic impact of this $38.6 million investment on the Department of the Army's technological capabilities?
This significant investment likely aims to enhance or maintain critical IT infrastructure and capabilities within the Department of the Army. The specific impact depends on the nature of the computer systems design services procured. It could range from improving cybersecurity posture, enabling advanced data analytics, supporting new operational platforms, or streamlining existing IT systems, ultimately contributing to the Army's overall mission readiness and technological advantage.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: HIG Capital Management, 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: $44,969,058
Exercised Options: $38,590,995
Current Obligation: $38,590,995
Actual Outlays: $5,342
Subaward Activity
Number of Subawards: 53
Total Subaward Amount: $34,486,438
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128Z11D0006
IDV Type: IDC
Timeline
Start Date: 2018-09-29
Current End Date: 2021-07-21
Potential End Date: 2021-07-21 12:07:00
Last Modified: 2022-04-02
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