DoD Awards $30.7M Task Order to Empower AI for Computer Services
Contract Overview
Contract Amount: $30,684,210 ($30.7M)
Contractor: Empower AI, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-09-28
End Date: 2023-09-30
Contract Duration: 1,097 days
Daily Burn Rate: $28.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: AWARD OF FDED-DHA TASK ORDER W52P1J-18-D-A094-W9128Z-20-F-0030
Place of Performance
Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $30.7 million to EMPOWER AI, INC. for work described as: AWARD OF FDED-DHA TASK ORDER W52P1J-18-D-A094-W9128Z-20-F-0030 Key points: 1. The award is a delivery order under a larger contract, indicating a specific need within the Department of the Army. 2. Empower AI, Inc. secured this contract, suggesting a competitive landscape for AI and computer-related services within the defense sector. 3. The contract type is Cost Plus Fixed Fee, which can sometimes lead to cost overruns if not managed carefully. 4. The duration of over 1000 days suggests a significant, long-term project requiring substantial resources and expertise.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which offers less price certainty compared to fixed-price contracts. Benchmarking against similar 'Other Computer Related Services' contracts is difficult without more detailed scope information.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the specific task order nature means the final price is influenced by the negotiated fixed fee and actual costs incurred.
Taxpayer Impact: Taxpayers are impacted by the $30.7 million expenditure, with the effectiveness of the spending dependent on the successful delivery of the contracted computer services.
Public Impact
This award signifies continued investment by the Department of Defense in advanced computer and AI-related services. The duration of the contract suggests a critical and ongoing need for these services within the Army. The use of a Cost Plus Fixed Fee contract type warrants scrutiny to ensure cost efficiency and value for taxpayer money. Empower AI, Inc.'s win highlights the growing role of specialized technology firms in government contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Full and open competition
- Award to a specialized AI firm
Sector Analysis
The 'Other Computer Related Services' sector (NAICS 541519) is a broad category encompassing a wide range of IT support and consulting. Spending in this area by the DoD is substantial, driven by modernization efforts and the increasing reliance on data analytics and AI.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors. The primary awardee, Empower AI, Inc., is not explicitly identified as a small business in this data, suggesting larger firms are competing for these significant contracts.
Oversight & Accountability
The award is a delivery order under a larger contract, implying that oversight mechanisms are likely in place through the parent contract. However, the Cost Plus Fixed Fee structure necessitates diligent monitoring of costs and performance to ensure accountability.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type may lead to cost overruns.
- Lack of specific service details hinders full value assessment.
- Long contract duration requires sustained oversight.
- Potential for contractor profit to exceed value delivered if not managed tightly.
Tags
other-computer-related-services, department-of-defense, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.7 million to EMPOWER AI, INC.. AWARD OF FDED-DHA TASK ORDER W52P1J-18-D-A094-W9128Z-20-F-0030
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 $30.7 million.
What is the period of performance?
Start: 2020-09-28. End: 2023-09-30.
What specific computer-related services are being procured under this task order, and how do they align with the Department of the Army's strategic objectives?
The provided data only specifies the NAICS code 'Other Computer Related Services' (541519) and the awardee, Empower AI, Inc. Without further details on the Statement of Work, it's impossible to determine the exact services. However, given the awardee's name and the DoD's focus, it likely involves AI, data analytics, software development, or IT infrastructure support crucial for military operations and modernization.
What are the potential risks associated with the Cost Plus Fixed Fee contract type for this $30.7 million award, and how are they being mitigated?
Cost Plus Fixed Fee contracts carry inherent risks of cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation strategies typically involve robust oversight, detailed performance metrics, and clear definitions of allowable costs. The Department of Defense must actively monitor expenditures and contractor performance to ensure the fixed fee remains appropriate and costs are controlled.
How does the $30.7 million expenditure for 'Other Computer Related Services' compare to benchmarks for similar IT procurements within the Department of Defense?
Benchmarking this specific award is challenging without a detailed scope of work and comparison to contracts with similar objectives and complexities. However, $30.7 million is a significant sum, reflecting the substantial investment the DoD makes in advanced IT and AI capabilities. It aligns with trends of increasing federal spending on technology to maintain a strategic advantage.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: 9
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 11730 PLAZA AMERICA DR STE 400, 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: $41,630,305
Exercised Options: $30,684,210
Current Obligation: $30,684,210
Actual Outlays: $2,409,011
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $12,996,555
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J18DA094
IDV Type: IDC
Timeline
Start Date: 2020-09-28
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 12:09:00
Last Modified: 2025-06-24
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