DoD awards $16.8M for electronic computer manufacturing, with EMPOWER AI, INC. securing the contract
Contract Overview
Contract Amount: $16,869,945 ($16.9M)
Contractor: Empower AI, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-03-08
End Date: 2016-03-31
Contract Duration: 2,215 days
Daily Burn Rate: $7.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 16
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TASK ORDER AWARD
Place of Performance
Location: FORT STEWART, LIBERTY County, GEORGIA, 31314
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $16.9 million to EMPOWER AI, INC. for work described as: TASK ORDER AWARD Key points: 1. The contract's value of $16.8 million represents a significant investment in electronic computer manufacturing capabilities. 2. Competition dynamics for this contract are characterized by a full and open approach, suggesting a broad market engagement. 3. The firm fixed-price contract type indicates a defined cost structure, potentially mitigating cost overrun risks. 4. Performance is benchmarked against similar contracts within the Department of the Army's procurement history. 5. The contract falls under the Electronic Computer Manufacturing sector, a critical area for defense technology. 6. The duration of 2215 days suggests a long-term need for the specified goods or services.
Value Assessment
Rating: good
The award of $16.8 million for electronic computer manufacturing appears reasonable given the contract's scope and duration. Benchmarking against similar contracts within the Department of the Army would provide a clearer picture of value for money. The firm fixed-price structure is generally favorable for cost control. Further analysis of the specific deliverables and their market value is needed for a comprehensive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bids received (16) suggests a healthy level of interest and competition within the market for electronic computer manufacturing services. This broad competition is generally expected to drive competitive pricing and innovation.
Taxpayer Impact: A full and open competition ensures that taxpayer dollars are likely being used efficiently by fostering a competitive environment that can lead to better pricing and quality.
Public Impact
The Department of Defense is the primary beneficiary, receiving essential electronic computer manufacturing capabilities. The contract supports the production or enhancement of electronic computer systems vital for military operations. The geographic impact is centered around the contractor's operations, likely within Georgia (ST), but the end-use of the equipment could be global. Workforce implications include potential job creation and skill development within the electronic computer manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if specific technologies are mandated.
- Ensuring the long-term viability and support of the manufactured components.
- Managing the complexity of integrating new electronic computer systems into existing defense infrastructure.
Positive Signals
- Full and open competition promotes a wide range of potential suppliers.
- Firm fixed-price contract type provides cost certainty.
- The award to EMPOWER AI, INC. suggests confidence in their capabilities.
- A significant number of bids (16) indicates a robust market.
Sector Analysis
The electronic computer manufacturing sector is a cornerstone of modern technological advancement, particularly within defense. This contract, valued at $16.8 million, fits within the broader landscape of government procurement for specialized hardware. Comparable spending benchmarks in this sector often vary widely based on the complexity and scale of the electronic components required. The industry is characterized by rapid innovation and a need for secure, reliable supply chains.
Small Business Impact
This contract does not appear to have a small business set-aside (sb: false). There is no explicit information regarding subcontracting plans for small businesses. The focus on a large contract award suggests prime contractors are likely larger entities, with potential downstream opportunities for small businesses as suppliers or service providers if they are part of the supply chain.
Oversight & Accountability
The contract is subject to standard federal procurement oversight mechanisms. As a Department of Defense contract, it likely falls under the purview of the Department of Defense Inspector General for audits and investigations. Transparency is generally maintained through contract databases like FPDS. The firm fixed-price nature of the award provides a degree of accountability regarding cost.
Related Government Programs
- Defense Information Technology Procurement
- Electronic Equipment Manufacturing
- Department of the Army Contracts
- Information Technology Services
Risk Flags
- Potential for obsolescence in electronic components over the contract's long duration.
- Supply chain vulnerabilities for critical electronic parts.
- Ensuring compliance with evolving cybersecurity standards for manufactured hardware.
Tags
department-of-defense, department-of-the-army, it-sector, electronic-computer-manufacturing, firm-fixed-price, full-and-open-competition, delivery-order, large-contract, georgia, empower-ai-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.9 million to EMPOWER AI, INC.. TASK ORDER AWARD
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 $16.9 million.
What is the period of performance?
Start: 2010-03-08. End: 2016-03-31.
What is the specific nature of the electronic computer manufacturing services or products being procured under this contract?
The provided data indicates the contract falls under NAICS code 334111, 'Electronic Computer Manufacturing.' This typically encompasses the production of electronic computers, servers, and related components. However, the specific task order details are not available in the provided snippet. Further investigation into the contract's Statement of Work (SOW) would be necessary to understand if this involves the manufacturing of new systems, upgrades to existing hardware, or the production of specialized electronic parts for defense applications. The duration of the contract (2215 days) suggests a substantial and ongoing requirement.
How does the awarded amount of $16.8 million compare to historical spending on similar electronic computer manufacturing contracts by the Department of the Army?
Without access to a comprehensive database of historical contract awards for identical or highly similar electronic computer manufacturing services by the Department of the Army, a precise comparison is challenging. However, $16.8 million is a substantial sum, indicating a significant procurement. To benchmark effectively, one would need to analyze contracts with similar NAICS codes (334111), contract types (Firm Fixed Price), and durations (over 2000 days) awarded by the Army over the past 5-10 years. Factors like inflation, technological advancements, and specific project scope would need to be considered for a meaningful comparison of value for money.
What are the key performance indicators (KPIs) or quality standards associated with this contract, and how is EMPOWER AI, INC.'s performance being measured?
The provided data does not detail the specific Key Performance Indicators (KPIs) or quality standards for this contract. Typically, for manufacturing contracts, KPIs would revolve around production timelines, defect rates, adherence to technical specifications, delivery schedules, and warranty performance. The Department of the Army would have established metrics within the contract's Statement of Work (SOW) and Quality Assurance Surveillance Plan (QASP). Performance would likely be monitored through regular inspections, acceptance testing of manufactured goods, and periodic performance reviews of EMPOWER AI, INC. Failure to meet these standards could result in penalties or contract termination.
What is the risk profile of EMPOWER AI, INC. as a contractor, considering their track record with the federal government?
The provided data does not include information on EMPOWER AI, INC.'s specific track record, past performance ratings, or any history of contract disputes or performance issues with the federal government. A thorough risk assessment would require accessing past performance databases (e.g., Contractor Performance Assessment Reporting System - CPARS) to evaluate their reliability, quality of work, and adherence to schedule on previous contracts. Without this information, it's impossible to definitively assess their risk profile beyond the inherent risks associated with any large-scale manufacturing contract.
Given the 'full and open competition' and 16 bidders, what does this imply about the market competitiveness and potential for price savings for taxpayers?
The fact that this contract was awarded under 'full and open competition' with 16 bidders is a strong positive signal for market competitiveness. A large number of bidders typically indicates a healthy and accessible market for the goods or services being procured. This level of competition generally exerts downward pressure on prices, as contractors vie to offer the most attractive bid. For taxpayers, this suggests that the government likely secured a competitive price for the electronic computer manufacturing requirements, maximizing the value of the allocated funds and minimizing the risk of overpayment compared to a sole-source or limited competition scenario.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 16
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: NCI, Inc. (UEI: 195313866)
Address: 11730 PLAZA AMERICA DR, RESTON, VA, 20190
Business Categories: Category Business, Minority Owned Business, Not Designated a Small Business, Indian (Subcontinent) American Owned Business
Financial Breakdown
Contract Ceiling: $18,602,031
Exercised Options: $18,602,031
Current Obligation: $16,869,945
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ07D0004
IDV Type: IDC
Timeline
Start Date: 2010-03-08
Current End Date: 2016-03-31
Potential End Date: 2016-03-31 00:00:00
Last Modified: 2017-03-22
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