DoD awards $8.9M for Fiber Optics Installation Support, with Empower AI Inc. as prime

Contract Overview

Contract Amount: $8,949,109 ($8.9M)

Contractor: Empower AI, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-04-01

End Date: 2026-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: IT

Official Description: FIBER OPTICS INSTALLATION SUPPORT SERVICE

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $8.9 million to EMPOWER AI, INC. for work described as: FIBER OPTICS INSTALLATION SUPPORT SERVICE Key points: 1. Contract value of $8.95M over 5 years. 2. Competition type is Full and Open. 3. Risk appears moderate given the service nature. 4. Sector is IT services, specifically Computer Systems Design.

Value Assessment

Rating: fair

The contract's total value is $8.95M over five years. Without specific unit pricing or detailed task orders, a direct comparison to similar contracts is challenging. However, the duration suggests a steady, ongoing need for support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a broad solicitation process. This method generally promotes competitive pricing and allows for a wide range of potential contractors to bid, leading to better price discovery.

Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by encouraging multiple bids and potentially driving down costs through market forces.

Public Impact

Ensures critical fiber optic infrastructure is maintained and supported. Supports Department of the Navy's operational readiness. Potential for technology upgrades and modernization through service provider expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of detailed performance metrics in provided data.
  • Potential for scope creep in long-term service contracts.

Positive Signals

  • Awarded under full and open competition.
  • Long-term contract provides stability.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services (NAICS 541512). Spending in this area is substantial across government, supporting essential digital infrastructure and operations. Benchmarks for similar services vary widely based on complexity and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the prime contractor, Empower AI, Inc., is not explicitly identified as an SMB. Further analysis would be needed to determine if small businesses participated as subcontractors.

Oversight & Accountability

The Department of the Navy is the awarding agency, implying established oversight mechanisms. However, the specific oversight procedures for this delivery order are not detailed in the provided data, necessitating review of the contract's performance management plan.

Related Government Programs

  • Computer Systems Design Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Lack of detailed service scope.
  • Absence of specific performance metrics.
  • Limited insight into subcontractor utilization.
  • Potential for cost overruns if not managed tightly, despite 'COST NO FEE' structure.

Tags

computer-systems-design-services, department-of-defense, va, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.9 million to EMPOWER AI, INC.. FIBER OPTICS INSTALLATION SUPPORT SERVICE

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 Navy).

What is the total obligated amount?

The obligated amount is $8.9 million.

What is the period of performance?

Start: 2021-04-01. End: 2026-03-31.

What is the specific breakdown of services provided under this contract and how do they align with the stated need for fiber optics installation support?

The provided data categorizes the contract under NAICS 541512 (Computer Systems Design Services) and identifies the service as 'FIBER OPTICS INSTALLATION SUPPORT SERVICE'. While the broad category is clear, specific details regarding installation, maintenance, troubleshooting, or upgrades are not itemized. Understanding the precise tasks is crucial for assessing value and performance effectiveness.

How does the awarded amount of $8.95 million compare to industry benchmarks for similar five-year fiber optics support contracts, considering the scope and complexity?

Benchmarking this $8.95 million contract requires more granular data on the specific services rendered, geographic coverage, and required expertise. Without this, a direct comparison is difficult. However, the five-year duration suggests a significant, ongoing requirement. The 'COST NO FEE' pricing structure also needs context to evaluate its efficiency against other pricing models.

What mechanisms are in place to ensure the effectiveness and efficiency of Empower AI, Inc.'s performance throughout the contract's five-year term?

Effectiveness is typically ensured through performance work statements (PWS), service level agreements (SLAs), and regular performance reviews. The Department of the Navy, as the awarding agency, would be responsible for monitoring these aspects. The 'COST NO FEE' structure implies costs are fixed, but oversight is still needed to ensure quality and timely completion of tasks.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6893620R0086

Offers Received: 2

Pricing Type: COST NO FEE (S)

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: $13,420,485

Exercised Options: $13,420,485

Current Obligation: $8,949,109

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $5,822,610

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0055

IDV Type: GWAC

Timeline

Start Date: 2021-04-01

Current End Date: 2026-03-31

Potential End Date: 2026-03-31 00:00:00

Last Modified: 2026-01-12

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