DoD's $620M IT Services Contract Awarded to NCI Information Systems, Inc. for Facility Operations

Contract Overview

Contract Amount: $85,850,676 ($85.9M)

Contractor: Empower AI, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-06-01

End Date: 2011-11-30

Contract Duration: 2,738 days

Daily Burn Rate: $31.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: 200412!000372!97AS!0000 !DLA SUPPORT SERVICES !W91QUZ04D0001 !A!N! !Y!YK01 ! !20040930!20040930!620864504!620864504!620864504!N!NCI INFORMATION SYSTEMS, INC !11730 PLAZA AMERICA DRIVE !RESTON !VA!20190!68328!163!17!SCOTT AFB !ST. CLAIR !ILLINOIS !+000003204941!N!N!000000000000!D301!ADP FACILITY OPERATION & MAINTENANCE SERVICES !S1 !SERVICES !000 !* !541519!E! !5!B!M! !A!B!20111231!B!E!Y!A! !A!N!J!1!001!B! !Z!N!Z! ! !N!A!N!N!F! ! ! !A!A!00 !A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $85.9 million to EMPOWER AI, INC. for work described as: 200412!000372!97AS!0000 !DLA SUPPORT SERVICES !W91QUZ04D0001 !A!N! !Y!YK01 ! !20040930!20040930!620864504!620864504!620864504!N!NCI INFORMATION SYSTEMS, INC !11730 PLAZA AMERICA DRIVE !RESTON !VA!20190!68328!163!17!SCOTT AFB !ST. … Key points: 1. The contract, valued at $620.8 million, covers ADP Facility Operation & Maintenance Services. 2. Awarded to NCI Information Systems, Inc., the contract spans from 2004 to 2011. 3. The primary sector is Information Technology, with a specific focus on facility operations. 4. Competition was full and open, suggesting a competitive bidding process. 5. The contract was awarded as a Delivery Order under a larger contract.

Value Assessment

Rating: good

The contract value of $620.8 million over approximately 7.5 years suggests a significant but potentially reasonable annual spend for comprehensive IT facility operations and maintenance services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'FULL AND OPEN COMPETITION' indicates that multiple vendors were allowed to bid, which typically drives competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The competitive nature of the award is expected to have resulted in a cost-effective solution for taxpayers, maximizing value for the services rendered.

Public Impact

Ensures continued operation and maintenance of critical ADP facilities for the Department of Defense. Supports military logistics and transportation operations through reliable IT infrastructure. Provides essential IT services that underpin national defense capabilities. The long duration of the contract suggests a stable, long-term need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential cost inefficiencies if not managed proactively.
Reliance on a single vendor for critical facility operations over an extended period.
Potential for scope creep or unmanaged changes over the contract's lifecycle.

Positive Signals

Full and open competition likely ensured competitive pricing.
Award to an established IT services provider suggests capability and experience.
Clear service description (ADP Facility Operation & Maintenance) indicates well-defined requirements.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on the operation and maintenance of data processing facilities. Spending benchmarks in this area can vary widely based on the scale and criticality of the facilities.

Small Business Impact

The data does not explicitly indicate the extent of small business participation in this contract. Further analysis would be needed to determine if small businesses were subcontracted or if the prime contractor has a strong small business utilization plan.

Oversight & Accountability

The award was made under a Delivery Order, implying it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. Oversight would typically involve monitoring performance against the delivery order and the parent IDIQ contract.

Related Government Programs

Wired Telecommunications Carriers
Department of Defense Contracting
USTRANSCOM Programs

Risk Flags

Long contract duration (over 7 years) increases risk of cost escalation and vendor lock-in.
Potential for performance degradation over time if not actively managed and monitored.
Lack of specific performance metrics in the provided data makes objective assessment difficult.
Reliance on a single vendor for critical infrastructure operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $85.9 million to EMPOWER AI, INC.. 200412!000372!97AS!0000 !DLA SUPPORT SERVICES !W91QUZ04D0001 !A!N! !Y!YK01 ! !20040930!20040930!620864504!620864504!620864504!N!NCI INFORMATION SYSTEMS, INC !11730 PLAZA AMERICA DRIVE !RESTON !VA!20190!68328!163!17!SCOTT AFB !ST. CLAIR !ILLINOIS !+000003204941!N!N!000000000000!D301!ADP FACILITY OPERATION & MAINTENANCE SERVICES !S1 !SERVICES !000 !* !541519!E! !5!B!M! !A!B!201

Who is the contractor on this award?

The obligated recipient is EMPOWER AI, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $85.9 million.

What is the period of performance?

Start: 2004-06-01. End: 2011-11-30.

What was the average annual cost for these services?

The total contract value was $620,864,504 over a period of approximately 7.5 years (from June 1, 2004, to November 30, 2011). This averages out to roughly $82.8 million per year. This figure represents the total obligated amount and should be compared against similar facility operation and maintenance contracts for comparable government facilities to assess value.

What were the key performance indicators (KPIs) for this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for facility operations and maintenance, KPIs would include uptime percentages, response times for incidents, system availability, and adherence to security protocols. Effective oversight would involve tracking these KPIs to ensure service delivery meets requirements.

How did the pricing compare to market rates at the time of award?

Given the 'FULL AND OPEN COMPETITION' designation, it is presumed that the pricing was vetted against market rates through the bidding process. However, without access to the specific bid details or independent market analysis conducted at the time, a definitive comparison to market rates is not possible from this data alone.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

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: 2

Pricing Type: LABOR HOURS (Z)

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, Small Business, Indian (Subcontinent) American Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ04D0001

IDV Type: IDC

Timeline