Mentioned:Empower AI$205M · Contract Award
Empower AI has won a potential $205.1 million task order from the Defense Counterintelligence and Security Agency for enterprise IT customer support services. The award carries a base value of $36.9 million with options, and includes $26.1 million obligated at the time of award.
What's happening
- Empower AI will provide service desk, knowledge center, IT service management and end-user support to DCSA starting Sept. 21, 2026.
- Work takes place in Quantico, Virginia with a base period running through June 20, 2027 under a hybrid firm-fixed-price, labor-hour and time-and-materials structure.
- The task order supports DCSA's 2025-2030 IT Strategic Plan focused on cloud capabilities, IT modernization and enhanced data management.
- DCSA obligated $26.1 million at award using fiscal 2026 operations and maintenance and defense working capital fund appropriations.
Why it matters
- DCSA's IT modernization initiative requires sustained vendor capacity to maintain service desk and knowledge center operations during transition to cloud infrastructure.
- Empower AI's task order adds to a growing portfolio of federal IT services work, following a $145.6 million GSA DIGIT XGen award in July.
- The contract demonstrates demand for hybrid pricing models that combine fixed-price, labor-hour and time-and-materials terms across federal IT modernization efforts.
Financial impact
- Empower AI recognizes $26.1 million in obligated revenue in fiscal 2026, with remaining $179 million recognized as options are exercised, timing subject to option period execution.
- Base period revenue of $36.9 million runs from Q4 2026 through Q2 2027, with additional revenue from option periods contingent on DCSA exercising options.
The fine print
- The $205.1 million figure is the potential ceiling value if all options are exercised; the base face value is $36.9 million.
- Only $26.1 million was obligated at award; remaining funds depend on option exercise by DCSA.
Source: GovCon Wire · Sep 18, 2026 · Drafted with Claude, reviewed by Industrial Base Alpha.