DoD's $130M Engineering Services Contract with EMPOWER AI, Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $130,276,163 ($130.3M)
Contractor: Empower AI, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-08-07
End Date: 2016-01-12
Contract Duration: 1,253 days
Daily Burn Rate: $104.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: BASE PERIOD - LABOR - PM SWAR
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $130.3 million to EMPOWER AI, INC. for work described as: BASE PERIOD - LABOR - PM SWAR Key points: 1. Significant contract value of $130.3M for engineering services. 2. Awarded to EMPOWER AI, INC. under a Definitive Contract. 3. Competition was full and open, suggesting a competitive bidding process. 4. Contract duration spans from August 2012 to January 2016.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. The benchmark for similar contracts is difficult to ascertain without more specific service details, but the overall value suggests a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating multiple bidders were considered. This method generally promotes price discovery and competitive pricing, although the CPFF structure requires vigilant oversight to control costs.
Taxpayer Impact: Taxpayer funds are utilized for engineering services. The competitive award aims for value, but the CPFF structure necessitates careful management to ensure efficient use of funds.
Public Impact
Supports Department of the Army's engineering needs. Contract duration of over 3 years indicates a long-term requirement. Potential for technological advancements through engineering services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize higher costs.
- Lack of specific performance metrics makes value assessment challenging.
- Limited information on the specific engineering services provided.
Positive Signals
- Awarded through full and open competition.
- Significant contract value suggests critical need.
- Long contract duration indicates sustained support.
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector critical for defense and infrastructure projects. Spending in this sector can vary widely based on government needs, but large contracts like this often support major defense initiatives.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors. The primary awardee is EMPOWER AI, INC., and there is no information provided regarding their small business status or subcontracting plans.
Oversight & Accountability
The CPFF contract type requires robust oversight from the Department of Defense to ensure costs are reasonable and fixed fees are justified. Monitoring performance and expenditures is crucial for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Potential for cost overruns without strong oversight.
- Lack of detailed service description.
- Limited insight into performance metrics.
Tags
engineering-services, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $130.3 million to EMPOWER AI, INC.. BASE PERIOD - LABOR - PM SWAR
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 $130.3 million.
What is the period of performance?
Start: 2012-08-07. End: 2016-01-12.
What specific engineering services were provided under this contract, and how did they contribute to the Department of the Army's mission?
The provided data lacks specifics on the engineering services rendered. To assess value, details on the nature of the engineering work, such as design, analysis, testing, or system integration, and their direct impact on Army objectives are needed. Understanding the scope would clarify if the $130.3M investment yielded critical capabilities or addressed essential requirements effectively.
What mechanisms were in place to control costs and ensure efficiency given the Cost Plus Fixed Fee (CPFF) contract structure?
With a CPFF contract, the government pays costs plus a fixed fee. Effective oversight would involve rigorous auditing of incurred costs, clear definition of allowable expenses, and performance metrics tied to the fixed fee. Without details on the specific controls and monitoring employed by the Department of the Army, it's difficult to ascertain the level of risk associated with potential cost overruns.
How did the full and open competition process ensure the best value was achieved for the taxpayer, considering the CPFF structure?
Full and open competition theoretically drives down prices by allowing multiple vendors to bid. However, the CPFF structure inherently shifts some cost risk to the government. The effectiveness of the competition in securing best value would depend on the clarity of the statement of work, the evaluation criteria used, and the government's ability to negotiate favorable terms and manage the contract post-award to control costs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91CRB11R0047
Offers Received: 6
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: $158,310,007
Exercised Options: $158,310,007
Current Obligation: $130,276,163
Actual Outlays: $380,693
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $11,659,003
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-08-07
Current End Date: 2016-01-12
Potential End Date: 2016-01-12 00:00:00
Last Modified: 2022-09-30
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