Army metering program support contract awarded to Empower AI, Inc. for over $30 million

Contract Overview

Contract Amount: $30,208,485 ($30.2M)

Contractor: Empower AI, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-19

End Date: 2026-09-18

Contract Duration: 364 days

Daily Burn Rate: $83.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: U.S. ARMY INFORMATION SYSTEMS ENGINEERING COMMAND (ISEC) MISSION ENGINEERING DIRECTORATE (MED) ARMY METERING PROGRAM (AMP) SUPPORT.

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $30.2 million to EMPOWER AI, INC. for work described as: U.S. ARMY INFORMATION SYSTEMS ENGINEERING COMMAND (ISEC) MISSION ENGINEERING DIRECTORATE (MED) ARMY METERING PROGRAM (AMP) SUPPORT. Key points: 1. Contract value of $30.2 million for a one-year period suggests a significant investment in IT support services. 2. The 'Cost Plus Award Fee' contract type indicates performance-based incentives, aiming for high-quality delivery. 3. Full and open competition was utilized, implying a robust bidding process and potential for competitive pricing. 4. The contract is for Computer Systems Design Services, a critical area for modern military operations. 5. Awarded to Empower AI, Inc., the contract's success will depend on the contractor's ability to meet performance metrics. 6. The duration of 364 days allows for focused execution of the mission engineering support. 7. The contract's geographic focus in Arizona may indicate specific operational needs or existing infrastructure.

Value Assessment

Rating: good

The contract value of $30.2 million for a one-year period for Computer Systems Design Services appears to be within a reasonable range for complex IT support. Benchmarking against similar contracts for mission engineering and IT support within the Department of Defense would provide a more precise value-for-money assessment. The 'Cost Plus Award Fee' structure suggests an effort to incentivize performance, which can lead to better outcomes if managed effectively. However, without specific performance metrics and historical data for this contractor on similar projects, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This method generally fosters a competitive environment, which can lead to more favorable pricing and innovative solutions for the government. The presence of 3 bidders suggests a moderate level of competition for this specific requirement. A higher number of bidders typically correlates with stronger price discovery and a greater likelihood of securing the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices, preventing potential overspending and ensuring that government funds are used efficiently.

Public Impact

The U.S. Army benefits from enhanced mission engineering and IT support, crucial for operational effectiveness. Services delivered will likely improve the performance and reliability of Army IT systems. The geographic impact is primarily within Arizona, where the Army's Information Systems Engineering Command (ISEC) is likely located or has significant operations. Workforce implications may include the need for specialized IT professionals, potentially creating or sustaining jobs in the tech sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if performance incentives in the Cost Plus Award Fee structure are not tightly managed.
Reliance on a single contractor for critical IT support could pose risks if the contractor faces financial or operational difficulties.
The specific nature of 'metering program support' requires clear definition of deliverables to avoid scope creep.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
The Cost Plus Award Fee structure incentivizes high performance, potentially leading to superior service delivery.
The contract supports critical Army IT infrastructure, contributing to national defense capabilities.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a vital component of the broader Information Technology industry. This sector is characterized by rapid innovation and a high demand for specialized skills. The market size for IT services supporting government agencies is substantial, with significant spending allocated to maintaining and upgrading complex systems. This contract represents a specific instance of federal spending within this domain, contributing to the overall IT services market and supporting the Army's technological infrastructure.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this contract was awarded through full and open competition, there is no explicit information regarding subcontracting plans with small businesses. The impact on the small business ecosystem would depend on whether Empower AI, Inc. voluntarily engages small businesses for subcontracting opportunities. Without specific set-aside goals or reported subcontracting, the direct impact on small businesses is not quantifiable from this data alone.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Army Information Systems Engineering Command (ISEC) Mission Engineering Directorate (MED). Accountability measures are embedded within the 'Cost Plus Award Fee' structure, which ties a portion of the contractor's compensation to performance outcomes. Transparency is generally facilitated through the Federal Procurement Data System (FPDS), where contract awards are reported. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Army IT Modernization Programs
Defense Information Systems Agency (DISA) Contracts
IT Services for Military Branches
Mission Support Services
Computer Systems Design and Related Services

Risk Flags

Cost Plus Award Fee contract type requires careful performance monitoring to control costs.
Potential for scope creep if deliverables are not clearly defined in the Performance Work Statement.
Reliance on contractor's technical expertise necessitates robust government oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.2 million to EMPOWER AI, INC.. U.S. ARMY INFORMATION SYSTEMS ENGINEERING COMMAND (ISEC) MISSION ENGINEERING DIRECTORATE (MED) ARMY METERING PROGRAM (AMP) SUPPORT.

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 $30.2 million.

What is the period of performance?

Start: 2025-09-19. End: 2026-09-18.

What is the historical performance record of Empower AI, Inc. with the Department of Defense, particularly on similar IT support contracts?

A review of Empower AI, Inc.'s contract history with the Department of Defense is necessary to assess their track record. Specifically, examining past performance on contracts involving Computer Systems Design Services and mission engineering support would provide valuable insights. Key metrics to consider include on-time delivery, adherence to budget, quality of deliverables, and any past performance issues or awards. Without access to detailed performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), it is difficult to definitively gauge their reliability and capability for this specific Army contract. However, the award itself suggests they met initial qualification criteria.

How does the awarded amount of $30.2 million compare to the estimated cost or budget for this Army Metering Program (AMP) support?

The provided data shows the awarded amount ($30,208,484.98) but does not include the government's estimated cost or the initial budget allocated for this contract. To assess value for money, a comparison between the awarded price and the government's estimate is crucial. If the awarded amount is significantly lower than the estimate, it could indicate successful competition. Conversely, if it's close to or exceeds the estimate, further scrutiny of the bidding process and the contractor's pricing structure would be warranted. The 'Cost Plus Award Fee' (CPAF) type also means the final cost could fluctuate based on performance, making a direct comparison to a fixed budget more complex.

What are the specific performance metrics and award fee criteria that Empower AI, Inc. must meet under this contract?

The contract type is 'Cost Plus Award Fee' (CPAF), which implies that the contractor's fee is composed of a base cost plus an award amount determined by performance against pre-defined criteria. These criteria are typically detailed in the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO). For this Army Metering Program (AMP) support contract, the metrics likely relate to the effectiveness, efficiency, and reliability of the IT systems and engineering services provided. Examples could include system uptime, response times for technical support, successful implementation of upgrades, or achievement of specific mission engineering goals. The government will evaluate performance against these metrics to determine the award fee.

What is the historical spending trend for Army Metering Program (AMP) support or similar IT engineering services within the Department of the Army?

Analyzing historical spending for the Army Metering Program (AMP) or comparable IT engineering services within the Department of the Army is essential for context. This involves reviewing past contract awards for similar services over several fiscal years. Trends in spending can reveal whether investment in this area is increasing, decreasing, or remaining stable. It also helps in understanding the typical contract values, durations, and types of contractors involved. Significant year-over-year changes might indicate shifts in strategic priorities, technological advancements, or evolving operational requirements. Without specific historical data for AMP, comparisons to broader IT support contracts for Army engineering directorates can provide a baseline.

What are the potential risks associated with the 'Cost Plus Award Fee' (CPAF) contract type for this specific IT support requirement?

The primary risk with a CPAF contract is the potential for costs to escalate beyond initial projections if the award fee criteria are not tightly defined or if the government's oversight is insufficient. While CPAF incentivizes performance, it can also lead to 'gold plating' or contractors focusing on easily achievable metrics rather than the most critical needs if the PWS is not robust. There's also a risk that the government may not have the expertise to accurately assess performance against complex technical criteria, potentially leading to unwarranted award fees. For IT support, ensuring that the award fee structure truly aligns with mission success and cost efficiency is paramount to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 11730 PLAZA AMERICA DR, 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: $218,079,353

Exercised Options: $38,090,401

Current Obligation: $30,208,485

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128Z22D0003

IDV Type: IDC

Timeline