DoD's $220M PEO Soldier SETA Contract Awarded to EMPOWER AI, Inc. via Full and Open Competition
Contract Overview
Contract Amount: $220,499,712 ($220.5M)
Contractor: Empower AI, Inc.
Awarding Agency: Department of Defense
Start Date: 2015-08-03
End Date: 2020-09-30
Contract Duration: 1,885 days
Daily Burn Rate: $117.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::CT::IGF SYSTEMS ENGINEERING AND TECHNICAL ASSITANCE (SETA) SUPPORT SERVICES FOR PEO SOLDIER AND PM SUBORDINATES.
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $220.5 million to EMPOWER AI, INC. for work described as: IGF::CT::IGF SYSTEMS ENGINEERING AND TECHNICAL ASSITANCE (SETA) SUPPORT SERVICES FOR PEO SOLDIER AND PM SUBORDINATES. Key points: 1. The contract, valued at $220.5 million, provides critical Systems Engineering and Technical Assistance (SETA) support to PEO Soldier. 2. EMPOWER AI, Inc. secured this award through a full and open competition, indicating a competitive bidding process. 3. The contract's duration of 1885 days (approx. 5 years) suggests a long-term need for these specialized engineering services. 4. The Cost Plus Fixed Fee (CPFF) pricing structure may present cost control challenges if not managed diligently.
Value Assessment
Rating: good
The contract's CPFF structure requires careful monitoring to ensure costs remain reasonable and aligned with the fixed fee. Benchmarking against similar SETA contracts would be beneficial to validate pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting multiple bidders participated. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, maximizing the value of taxpayer funds for essential engineering support.
Public Impact
Ensures continued technical expertise for PEO Soldier programs, crucial for soldier modernization. Supports advanced engineering and technical services, potentially leading to improved soldier equipment and capabilities. The large contract value signifies significant investment in soldier systems development and sustainment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with CPFF contract type.
- Reliance on a single contractor for critical SETA support.
Positive Signals
- Awarded through full and open competition.
- Supports a vital program for soldier readiness.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting program executive offices and project managers. Spending in this area is critical for defense acquisition and modernization efforts.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the prime contractor is not listed as a small business. Opportunities for small business participation may exist through subcontracting.
Oversight & Accountability
Standard DoD oversight mechanisms for contract performance and financial management are expected to be in place. The duration of the contract necessitates ongoing monitoring to ensure continued value and adherence to terms.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) pricing can lead to cost overruns if not managed tightly.
- Long contract duration (approx. 5 years) increases risk of contractor performance degradation or changing requirements.
- Lack of small business set-aside may limit broader economic participation.
- Reliance on a single entity for critical SETA support.
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 $220.5 million to EMPOWER AI, INC.. IGF::CT::IGF SYSTEMS ENGINEERING AND TECHNICAL ASSITANCE (SETA) SUPPORT SERVICES FOR PEO SOLDIER AND PM SUBORDINATES.
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 $220.5 million.
What is the period of performance?
Start: 2015-08-03. End: 2020-09-30.
What specific technical areas does EMPOWER AI, Inc. specialize in that made them the best value for this SETA support?
The provided data does not detail EMPOWER AI, Inc.'s specific technical specializations. Further analysis would require reviewing the contract's statement of work and the contractor's proposal to understand their unique qualifications and how they aligned with PEO Soldier's technical requirements, justifying their selection as the best value.
How will the CPFF structure be managed to mitigate risks of cost overruns and ensure taxpayer value?
Effective management of the CPFF structure will involve rigorous cost tracking, regular performance reviews, and clear communication between the government and EMPOWER AI, Inc. The government contracting officer and technical team must actively monitor expenditures against the fixed fee and the overall contract ceiling, ensuring all costs are reasonable, allocable, and necessary for contract performance.
What mechanisms are in place to ensure the long-term effectiveness and adaptability of the SETA support provided by EMPOWER AI, Inc.?
Mechanisms for ensuring long-term effectiveness include performance metrics within the contract, regular progress reports, and potential for contract modifications to adapt to evolving PEO Soldier needs. The government's oversight team will play a crucial role in assessing the contractor's performance against objectives and ensuring the support remains relevant and impactful throughout the contract's duration.
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: W91CRB15R0005
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $233,261,274
Exercised Options: $233,261,274
Current Obligation: $220,499,712
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $48,863,574
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-08-03
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2025-12-31
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