DoD awards $103.7M contract for PM SPIE/SSL services to EMPOWER AI, Inc
Contract Overview
Contract Amount: $103,730,747 ($103.7M)
Contractor: Empower AI, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-03-24
End Date: 2012-09-27
Contract Duration: 553 days
Daily Burn Rate: $187.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: LABOR - PM SPIE/SSL
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $103.7 million to EMPOWER AI, INC. for work described as: LABOR - PM SPIE/SSL Key points: 1. Contract awarded to EMPOWER AI, Inc. for administrative management and general management consulting services. 2. The contract value is $103.7 million. 3. This is a definitive contract with a Cost Plus Fixed Fee pricing structure. 4. The contract was not competed, raising questions about price discovery.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these services, impacting taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long duration of the contract (553 days) suggests significant ongoing need for these services. The specific nature of 'PM SPIE/SSL' services warrants further clarity on their impact and necessity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
Positive Signals
- Awarded to a specific company for defined services
Sector Analysis
This contract falls under administrative management and general management consulting services. Benchmarks for this sector can vary widely, but non-competitive awards often skew higher than market rates.
Small Business Impact
The data does not indicate whether small businesses were involved in subcontracting opportunities for this award.
Oversight & Accountability
The non-competitive nature of this award suggests a need for robust oversight to ensure the contractor is delivering value and managing costs effectively.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
- Potential for contractor inefficiency
Tags
administrative-management-and-general-ma, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $103.7 million to EMPOWER AI, INC.. LABOR - PM SPIE/SSL
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 $103.7 million.
What is the period of performance?
Start: 2011-03-24. End: 2012-09-27.
What specific factors justified the sole-source award for these critical management consulting services?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without further documentation, it's unclear why competitive bidding was bypassed for these administrative and general management consulting services, potentially impacting the government's ability to secure the most cost-effective solution.
What are the potential risks associated with a Cost Plus Fixed Fee contract awarded without competition?
Cost Plus Fixed Fee contracts carry inherent risks of cost overruns, especially when awarded non-competitively. The government may end up paying more than anticipated if the contractor's costs exceed estimates, and without competitive pressure, there's less incentive for the contractor to control expenses rigorously.
How effectively are the 'PM SPIE/SSL' services being delivered to ensure value for taxpayer money?
Assessing the effectiveness requires performance metrics and deliverables tied to the contract. Given the lack of competition and the cost-plus nature, diligent oversight is crucial to ensure the services align with objectives and provide demonstrable value, preventing potential waste or inefficiency.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Advancemed Corporation (UEI: 824891477)
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: $114,694,042
Exercised Options: $114,694,042
Current Obligation: $103,730,747
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-03-24
Current End Date: 2012-09-27
Potential End Date: 2012-09-27 00:00:00
Last Modified: 2020-01-23
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