DoD's $52.7M Wired Telecommunications Contract to Empower AI, Inc. Awarded in 2004

Contract Overview

Contract Amount: $52,719,372 ($52.7M)

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: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Place of Performance

Location: SCOTT AFB, ST. CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $52.7 million to EMPOWER AI, INC. for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2738 days (over 7 years) indicates a long-term service requirement. 3. The North American Industry Classification System (NAICS) code 517110 points to services within the telecommunications sector. 4. The contract was awarded to Empower AI, Inc., a specific vendor for wired telecommunications. 5. The contract's value of $52.7 million over its life suggests significant investment in telecommunications infrastructure or services. 6. Awarded by the Department of Defense (DoD) via USTRANSCOM, highlighting a critical defense-related need.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details or comparable contract data. The total award amount of $52.7 million over nearly 7.5 years averages to approximately $7 million annually. This figure needs to be assessed against the specific scope of wired telecommunications services provided to USTRANSCOM. Without more granular data on the services rendered, it's difficult to definitively assess value for money or compare pricing against market rates or similar government contracts.

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 a bid. This suggests a robust bidding process where multiple vendors likely had the opportunity to compete for the contract. The level of competition is not explicitly stated in terms of the number of bidders, but the designation implies a market where several companies could potentially meet the government's requirements.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service quality due to vendor rivalry.

Public Impact

The primary beneficiary is the Department of Defense, specifically USTRANSCOM, which receives essential wired telecommunications services. The services delivered likely support military logistics, communication, and operational command and control. The geographic impact is primarily within Illinois (ST='IL'), where the contract was administered or services were potentially based. Workforce implications include employment opportunities for individuals skilled in telecommunications installation, maintenance, and support, both within the contractor's organization and potentially in related supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality and effectiveness of the telecommunications services provided over the contract's long duration.
The significant duration of the contract (over 7 years) raises questions about the adaptability to evolving telecommunications technologies and potential for vendor lock-in.
Without detailed service descriptions, it's hard to ascertain if the $52.7M award represents optimal value for the taxpayer.
The absence of data on the number of bidders limits the ability to fully gauge the intensity of competition and its impact on pricing.
The contract's age (awarded in 2004) means current market conditions and technological standards may differ significantly from those at the time of award.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
The long contract duration indicates a stable and potentially reliable provision of critical telecommunications services to a key military command (USTRANSCOM).
The contract's value of $52.7M over its term suggests a substantial commitment to ensuring robust communication capabilities for defense operations.
The award to a single entity (Empower AI, Inc.) implies a focused relationship for delivering specific telecommunications solutions.

Sector Analysis

The contract falls within the Wired Telecommunications Carriers industry (NAICS 517110), a sector characterized by the provision of telecommunications services via wired networks. This includes services like local and long-distance voice and data transmission. The market is typically dominated by large providers, but government contracts can be awarded through competitive processes to specialized firms. Government spending in this sector is crucial for maintaining secure and reliable communication infrastructure for national security and operational needs. Comparable spending benchmarks would typically involve analyzing other large-scale telecommunications service contracts awarded by federal agencies.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as 'ss' (small business set-aside) is false and 'sb' (small business) is false. This suggests the contract was not specifically set aside for small businesses, nor does it appear to have had explicit small business subcontracting goals mandated within the provided data. Consequently, the direct impact on the small business ecosystem for this specific award is likely minimal, unless Empower AI, Inc. voluntarily engaged small businesses as subcontractors.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of Defense's contracting officers and potentially the USTRANSCOM's program management office. Accountability measures would be tied to the contract's performance work statement and delivery requirements. Transparency is generally facilitated through contract award databases like FPDS, where basic information is publicly available. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arose during the contract's performance.

Related Government Programs

DoD Telecommunications Services Contracts
USTRANSCOM Logistics and IT Support
Wired Network Infrastructure Procurement
Federal Government Communications Services
Long-Term Service Contracts

Risk Flags

Contract awarded in 2004; current relevance and technology may differ.
Lack of specific performance metrics hinders value assessment.
Limited information on the number of bidders in the competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.7 million to EMPOWER AI, INC.. See the official description on USAspending.

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 $52.7 million.

What is the period of performance?

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

What specific wired telecommunications services were provided under this contract?

The provided data identifies the North American Industry Classification System (NAICS) code as 517110, which corresponds to 'Wired Telecommunications Carriers.' This category typically includes services such as local and long-distance voice and data transmission, internet access, and private line services delivered over wired infrastructure. However, the specific details of the services procured by USTRANSCOM under this particular contract (e.g., bandwidth requirements, types of circuits, network management, installation, maintenance) are not available in the provided data. Understanding the precise scope is crucial for evaluating the contract's value and performance.

How does the $52.7 million award compare to similar DoD telecommunications contracts awarded around 2004?

Comparing the $52.7 million award to similar DoD telecommunications contracts from 2004 requires access to historical contract databases and specific service details. Contracts in this sector can vary widely in scope, duration, and technological requirements. A $52.7 million award over approximately 7.5 years (2004-2011) averages to about $7 million annually. This figure needs to be contextualized against the specific needs of USTRANSCOM, which likely involve robust, secure, and high-capacity communication lines essential for military operations. Without knowing if this contract covered global network backbone services, regional connectivity, or specific facility build-outs, a direct comparison is speculative. However, for a major command like USTRANSCOM, such an investment in core telecommunications infrastructure would not be unusual.

What were the key performance indicators (KPIs) or service level agreements (SLAs) for this contract?

The provided summary data does not include details on the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) associated with this contract. Typically, for telecommunications services, SLAs would define metrics such as network uptime, latency, bandwidth availability, response times for outages, and repair times. KPIs would measure the contractor's overall performance against these standards. The absence of this information makes it difficult to objectively assess whether Empower AI, Inc. met the government's performance expectations throughout the contract's duration. These details are usually found within the contract's Performance Work Statement (PWS).

What is the track record of Empower AI, Inc. with federal government contracts, particularly in telecommunications?

The provided data indicates Empower AI, Inc. was awarded this $52.7 million contract by the Department of Defense. To assess their track record, one would need to examine their complete contract history within federal agencies. This includes looking at the number of contracts awarded, their values, the agencies involved, contract types (e.g., fixed-price, cost-plus), and performance ratings if available (e.g., through the Contractor Performance Assessment Reporting System - CPARS). A comprehensive review would reveal if Empower AI, Inc. has a history of successful delivery, any past performance issues, or a specialization in wired telecommunications services relevant to defense needs.

How has federal spending on wired telecommunications services evolved since this contract was awarded in 2004?

Federal spending on wired telecommunications services has likely seen significant evolution since 2004, driven by technological advancements and changing security requirements. While this contract represented a substantial investment at the time, the landscape has shifted towards increased reliance on broadband, cloud services, and more sophisticated network security protocols. Agencies now often procure integrated communication solutions rather than just basic wired services. Spending patterns may have also shifted towards more flexible, as-needed service models and potentially away from very long-term, fixed infrastructure contracts, although core network backbone services remain critical. Analyzing aggregate federal IT and telecommunications spending trends over the past two decades would provide a broader context for this contract's place in historical spending.

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: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: NCI, Inc. (UEI: 195313866)

Address: 11730 PLAZA AMERICA DR STE 700, RESTON, VA, 11

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Indian (Subcontinent) American Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ04D0001

IDV Type: IDC

Timeline