DoD Awards IBM $9.7M for AI/ML North Pole Platform Technology
Contract Overview
Contract Amount: $9,738,224 ($9.7M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Defense
Start Date: 2024-05-30
End Date: 2027-07-28
Contract Duration: 1,154 days
Daily Burn Rate: $8.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST NO FEE
Sector: R&D
Official Description: NORTH POLE HUB - DESIGN, VERIFY AND VALIDATE AN ARTIFICIAL INTELLIGENCE (AI) AND MACHINE LEARNING (ML) NORTH POLE PLATFORM TECHNOLOGY THAT WILL BE MOUNTED ON TEST BOARDS
Place of Performance
Location: SAN JOSE, SANTA CLARA County, CALIFORNIA, 95120
Plain-Language Summary
Department of Defense obligated $9.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: NORTH POLE HUB - DESIGN, VERIFY AND VALIDATE AN ARTIFICIAL INTELLIGENCE (AI) AND MACHINE LEARNING (ML) NORTH POLE PLATFORM TECHNOLOGY THAT WILL BE MOUNTED ON TEST BOARDS Key points: 1. Contract focuses on advanced AI/ML platform development for the North Pole. 2. IBM, a major defense contractor, secured this R&D award. 3. Potential risks include technology maturity and integration challenges. 4. Spending falls within the R&D sector, specifically physical and engineering sciences.
Value Assessment
Rating: fair
The contract value of $9.7M for a 3-year R&D effort appears reasonable for developing a novel AI/ML platform. Benchmarking against similar advanced technology development contracts is difficult due to the unique nature of the 'North Pole Platform'.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing, though the specialized nature of AI/ML R&D can make direct price comparisons challenging.
Taxpayer Impact: Taxpayer funds are being invested in cutting-edge defense technology development, with the potential for future national security benefits. The initial investment is modest relative to large-scale procurement.
Public Impact
Advancement of AI/ML capabilities for potential defense applications. Investment in research and development for future technological superiority. Potential for dual-use technology applications beyond the initial defense scope. Job creation and economic activity within the R&D sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Technology maturity and performance risks
- Integration complexity with existing systems
- Potential for scope creep in R&D
Positive Signals
- Investment in critical AI/ML capabilities
- Leveraging established contractor expertise (IBM)
- Competitive award process
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending benchmarks for highly specialized AI/ML platform development are difficult to establish due to the novelty and rapid evolution of the field.
Small Business Impact
The contract was awarded to IBM, a large business. There is no specific indication of small business participation in this award, which is common for large-scale R&D contracts awarded to prime contractors.
Oversight & Accountability
The Department of the Air Force is the awarding agency, indicating oversight within the DoD. Standard contract management and reporting mechanisms should ensure accountability for the R&D effort.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Unclear operational objectives for the platform
- Potential for technology obsolescence in a rapidly evolving field
- Dependence on a single large contractor
- Limited visibility into specific AI/ML validation metrics
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. NORTH POLE HUB - DESIGN, VERIFY AND VALIDATE AN ARTIFICIAL INTELLIGENCE (AI) AND MACHINE LEARNING (ML) NORTH POLE PLATFORM TECHNOLOGY THAT WILL BE MOUNTED ON TEST BOARDS
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $9.7 million.
What is the period of performance?
Start: 2024-05-30. End: 2027-07-28.
What is the specific operational objective of the 'North Pole Platform' and how will the AI/ML technology contribute to it?
The specific operational objective of the 'North Pole Platform' is not detailed in the provided data. However, the AI/ML technology is intended to be mounted on test boards for design, verification, and validation. This suggests the platform aims to enhance data processing, analysis, or decision-making capabilities in a specific, likely sensitive, operational context relevant to the Department of Defense.
What are the key performance metrics for validating the AI/ML technology, and how will success be measured?
Key performance metrics for validating the AI/ML technology are not explicitly stated. Success will likely be measured against predefined benchmarks for accuracy, efficiency, and robustness of the AI/ML algorithms in processing and analyzing data relevant to the 'North Pole Platform's' intended function. This could include metrics related to prediction accuracy, anomaly detection rates, or computational speed.
How does this investment align with broader DoD strategies for AI and machine learning adoption?
This investment aligns with the DoD's broader strategy to accelerate the adoption of AI and ML across various domains. By funding the development and validation of specialized platforms like the 'North Pole Platform,' the DoD aims to enhance its technological edge, improve operational effectiveness, and maintain readiness in an increasingly complex threat environment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Solicitation ID: FA875023S7004
Offers Received: 2
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 650 HARRY RD, SAN JOSE, CA, 95120
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,193,724
Exercised Options: $48,193,724
Current Obligation: $9,738,224
Actual Outlays: $14,701
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $1,271,647
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-05-30
Current End Date: 2027-07-28
Potential End Date: 2027-07-28 00:00:00
Last Modified: 2025-12-18
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