GSA Awards $328.7M Digit Award to Empower AI for Digital Transformation
Contract Overview
Contract Amount: $328,668,473 ($328.7M)
Contractor: Empower AI, Inc.
Awarding Agency: General Services Administration
Start Date: 2021-01-05
End Date: 2026-07-04
Contract Duration: 2,006 days
Daily Burn Rate: $163.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: DIGIT AWARD. TO ENABLE GSA IDT TO LEVERAGE INFRASTRUCTURE-LED DISRUPTION TO DRIVE DIGITAL TRANSFORMATION AND DELIVER CONTINUOUS IMPROVEMENT AND CONTINUOUS BUSINESS VALUE TO ITS CUSTOMERS.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405
Plain-Language Summary
General Services Administration obligated $328.7 million to EMPOWER AI, INC. for work described as: DIGIT AWARD. TO ENABLE GSA IDT TO LEVERAGE INFRASTRUCTURE-LED DISRUPTION TO DRIVE DIGITAL TRANSFORMATION AND DELIVER CONTINUOUS IMPROVEMENT AND CONTINUOUS BUSINESS VALUE TO ITS CUSTOMERS. Key points: 1. The Digit Award aims to drive digital transformation and continuous improvement for GSA customers. 2. Empower AI, Inc. is the contractor for this significant IT services contract. 3. The contract is structured as a Cost Plus Award Fee, indicating performance-based incentives. 4. This award falls under Computer Systems Design Services, a key area for government IT modernization.
Value Assessment
Rating: good
The contract value of $328.7M over its period is substantial for IT services. Benchmarking against similar large-scale digital transformation contracts is necessary to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.
Taxpayer Impact: The use of full and open competition is positive for taxpayers, as it encourages multiple bidders to offer competitive rates.
Public Impact
Enhances GSA's digital capabilities, potentially improving citizen services. Supports government-wide efforts in digital transformation and modernization. Focuses on leveraging infrastructure for continuous business value delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure requires careful monitoring of performance and costs.
- Long contract duration (until 2026) necessitates ongoing performance evaluation.
Positive Signals
- Awarded under full and open competition.
- Focus on digital transformation aligns with government priorities.
Sector Analysis
This contract is within the IT sector, specifically Computer Systems Design Services. Government spending in this area is substantial, driven by the need for modernization and digital service delivery.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was incorporated through subcontracting.
Oversight & Accountability
The General Services Administration (GSA) is responsible for overseeing this contract. Standard GSA oversight mechanisms should be in place to ensure performance and accountability.
Related Government Programs
- Computer Systems Design Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Cost Plus Award Fee structure requires diligent oversight.
- Long-term contract duration necessitates sustained performance monitoring.
- Potential for scope creep in digital transformation projects.
- Reliance on a single contractor for a critical transformation effort.
Tags
computer-systems-design-services, general-services-administration, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $328.7 million to EMPOWER AI, INC.. DIGIT AWARD. TO ENABLE GSA IDT TO LEVERAGE INFRASTRUCTURE-LED DISRUPTION TO DRIVE DIGITAL TRANSFORMATION AND DELIVER CONTINUOUS IMPROVEMENT AND CONTINUOUS BUSINESS VALUE TO ITS CUSTOMERS.
Who is the contractor on this award?
The obligated recipient is EMPOWER AI, INC..
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $328.7 million.
What is the period of performance?
Start: 2021-01-05. End: 2026-07-04.
What specific digital transformation initiatives will Empower AI undertake, and how will their success be measured against the award fee criteria?
The Digit Award aims to leverage infrastructure-led disruption for digital transformation and continuous improvement. Specific initiatives are not detailed in the provided data, but success will be measured against predefined performance metrics tied to the Cost Plus Award Fee structure. These metrics likely focus on delivering tangible business value to GSA customers and enhancing operational efficiency through digital means.
Given the Cost Plus Award Fee structure, what are the primary risks associated with cost overruns and how are they mitigated?
The primary risk with a Cost Plus Award Fee (CPAF) contract is potential cost overruns if performance targets are aggressively pursued without strict cost controls. Mitigation strategies typically involve detailed baseline cost estimates, regular audits, robust performance monitoring, and clear award fee criteria that incentivize both performance and cost efficiency. GSA's oversight is crucial in managing these risks.
How does this $328.7M award contribute to the broader effectiveness of GSA's IT infrastructure and service delivery?
This award is intended to significantly enhance GSA's IT infrastructure by driving digital transformation. By focusing on continuous improvement and leveraging infrastructure, it aims to make GSA's services more efficient, accessible, and responsive to customer needs. The effectiveness will be gauged by the successful implementation of digital solutions and the resulting improvements in GSA's operational and service delivery capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 47QFCA20R0020
Offers Received: 4
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: $629,953,953
Exercised Options: $629,953,953
Current Obligation: $328,668,473
Actual Outlays: $-117,156
Subaward Activity
Number of Subawards: 73
Total Subaward Amount: $316,235,952
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0055
IDV Type: GWAC
Timeline
Start Date: 2021-01-05
Current End Date: 2026-07-04
Potential End Date: 2026-07-04 00:00:00
Last Modified: 2026-03-20
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