DoD's $27.8M contract with AI SIGNAL RESEARCH INC for AI development shows long-term engagement

Contract Overview

Contract Amount: $27,777,926 ($27.8M)

Contractor: AI Signal Research Inc

Awarding Agency: Department of Defense

Start Date: 2000-05-01

End Date: 2007-11-06

Contract Duration: 2,745 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35802

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $27.8 million to AI SIGNAL RESEARCH INC for work described as: Key points: 1. Contract duration of 2745 days suggests sustained need and potential for deep integration. 2. Cost-plus-fixed-fee structure may incentivize cost escalation if not closely monitored. 3. Full and open competition indicates a broad market search, potentially leading to better pricing. 4. The contract's value, while significant, needs benchmarking against similar AI development projects. 5. Performance period spans over 7 years, offering insights into long-term AI capabilities. 6. The award to AI SIGNAL RESEARCH INC highlights a specific contractor's role in DoD AI initiatives.

Value Assessment

Rating: fair

The contract's total value of $27.8 million over its 7-year period averages approximately $4 million per year. Without specific deliverables or performance metrics, it is difficult to definitively benchmark this against similar AI development contracts. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D, carries inherent risks of cost overruns if not managed with rigorous oversight. Further analysis would require understanding the scope of work and the specific AI technologies developed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it was 'after exclusion of sources' suggests an initial phase or consideration of other vendors before the final award. The level of competition is generally positive for price discovery, but the specific number of bids received is not provided, which would offer a clearer picture of the competitive landscape.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

The primary beneficiary is the Department of Defense, which gains access to advanced AI capabilities. Services delivered likely include research, development, and potentially integration of artificial intelligence technologies. The geographic impact is primarily within the defense sector, with potential applications across various military operations. Workforce implications may involve specialized AI engineers and researchers, both within the contractor and potentially within the DoD.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to higher costs if not managed effectively.
The long duration of the contract may indicate a lack of agile development or evolving requirements.
Lack of specific performance metrics makes it hard to assess true value for money.
The 'exclusion of sources' clause warrants further investigation into the competitive process.

Positive Signals

Awarded through full and open competition, suggesting a robust market search.
The sustained funding over 7 years indicates a critical and ongoing need for the developed AI capabilities.
The contractor, AI SIGNAL RESEARCH INC, has a long-term engagement, potentially signifying expertise and reliability in AI development.

Sector Analysis

This contract falls within the broader Artificial Intelligence and Machine Learning sector, a rapidly growing area within the defense industry. The market for AI in defense is expanding significantly, driven by the need for enhanced intelligence, autonomous systems, and data analysis. Comparable spending benchmarks are difficult to establish without knowing the specific AI applications, but multi-year R&D contracts of this magnitude are common for advanced technology development within the DoD.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific contract award. There is no indication of small business set-asides or explicit subcontracting requirements for small businesses in the summary data. This suggests that the prime contractor is likely a larger entity, and the impact on the small business ecosystem would depend on whether they engage small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. Accountability measures would be tied to the milestones and deliverables outlined in the Cost Plus Fixed Fee contract. Transparency is often limited in defense R&D contracts due to security and proprietary concerns, but contract awards and basic details are usually publicly available through systems like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Artificial Intelligence Development Contracts
Advanced Technology Development
Military AI Applications
Cost Plus Fixed Fee Contracts

Risk Flags

Cost-plus-fixed-fee pricing structure
Long contract duration without clear performance metrics
Potential for cost overruns
Limited transparency on specific deliverables

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.8 million to AI SIGNAL RESEARCH INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is AI SIGNAL RESEARCH 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 $27.8 million.

What is the period of performance?

Start: 2000-05-01. End: 2007-11-06.

What specific AI technologies or capabilities were developed under this contract?

The provided data does not specify the exact AI technologies or capabilities developed. Contracts of this nature often involve research and development in areas such as machine learning algorithms, natural language processing, computer vision, or autonomous systems tailored for defense applications. To understand the specific deliverables, one would need to consult the contract's Statement of Work (SOW) or technical documentation, which are typically not publicly disclosed in detail for national security reasons. The duration and value suggest a significant R&D effort rather than a simple procurement of off-the-shelf AI solutions.

How does the $27.8 million cost compare to similar AI development contracts within the DoD?

Benchmarking this $27.8 million contract requires comparing it to AI development contracts with similar scope, duration, and technological complexity within the Department of Defense. Without detailed information on the specific AI applications (e.g., predictive maintenance, intelligence analysis, unmanned systems control), direct comparison is challenging. However, for a multi-year R&D effort spanning over 7 years, this value is within a plausible range for advanced technology development. Contracts for foundational AI research might be lower, while those for integrating AI into complex weapon systems could be significantly higher. A comprehensive analysis would involve querying contract databases for similar projects and adjusting for inflation and technological advancements.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for AI development?

The primary risk with a CPFF contract for AI development is the potential for cost overruns. While the 'fixed fee' provides some predictability for the contractor's profit, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the project scope is not well-defined or if unforeseen technical challenges arise (common in R&D), costs can escalate significantly. Effective oversight, stringent cost controls, and clear performance metrics are crucial to mitigate these risks. The government bears the financial risk if costs exceed initial estimates, while the contractor is incentivized to complete the work within the agreed-upon fee.

What is the track record of AI SIGNAL RESEARCH INC in delivering AI solutions for the government?

AI SIGNAL RESEARCH INC has a long-standing relationship with the Department of Defense, as evidenced by this 7-year contract. This sustained engagement suggests a level of competence and reliability in delivering services or products relevant to the government's needs, particularly in the AI domain. While this specific contract's success metrics are not detailed, the repeated or extended funding implies satisfactory performance or critical need fulfillment. Further investigation into their contract history, past performance evaluations, and other awards would provide a more comprehensive view of their track record.

How has spending on AI development by the Department of Defense evolved over the period of this contract (2000-2007)?

The period of this contract (2000-2007) predates the most significant surge in AI investment and application within the DoD. While AI research was ongoing, the scale and focus were different compared to the post-2010 era, which saw rapid advancements in machine learning and big data analytics. Spending during this time likely focused on more foundational research, expert systems, and early-stage machine learning applications rather than the widespread deployment of deep learning or autonomous systems seen today. This contract, therefore, represents an earlier phase of DoD's AI development efforts, potentially laying groundwork for current capabilities.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 3411 TRIANA BLVD, HUNTSVILLE, AL, 05

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline