DoD awards $8.1M for AI/ML tool development to University of Maryland, a sole-source contract

Contract Overview

Contract Amount: $8,149,104 ($8.1M)

Contractor: University of Maryland, College Park

Awarding Agency: Department of Defense

Start Date: 2024-04-15

End Date: 2027-04-14

Contract Duration: 1,094 days

Daily Burn Rate: $7.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DHP- DEVELOPMENT OF AI/ML TOOLS

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $8.1 million to UNIVERSITY OF MARYLAND, COLLEGE PARK for work described as: DHP- DEVELOPMENT OF AI/ML TOOLS Key points: 1. Contract focuses on research and development in social sciences and humanities, potentially impacting human-computer interaction and behavioral analysis. 2. Sole-source award raises questions about competition and potential for cost efficiencies. 3. Long duration of 1094 days suggests a complex, multi-phase research project. 4. Fixed-fee structure on a cost-plus award type may incentivize cost control but requires careful monitoring. 5. Geographic concentration in Maryland for both agency and contractor. 6. No small business set-aside indicates a focus on specialized research capabilities.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its specialized R&D nature and sole-source award. Without competitive bids, it's difficult to assess if the $8.1 million represents a fair market price for the development of AI/ML tools in social sciences and humanities. The cost-plus fixed-fee structure requires diligent oversight to ensure costs remain reasonable and the fixed fee is justified by the scope of work. Comparison to similar R&D contracts in this niche would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, the University of Maryland, College Park, was solicited. This approach is typically used when a unique capability or specialized knowledge is required that cannot be obtained through full and open competition. The lack of multiple bidders means there was no direct price competition, potentially leading to higher costs than if multiple firms had vied for the contract.

Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through competitive bidding. The justification for the sole-source award needs to be robust to ensure public funds are used efficiently.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Health Agency, which will receive advanced AI/ML tools. The services delivered will focus on research and development, potentially leading to new insights and capabilities in areas like behavioral analysis or human-computer interaction within defense contexts. The geographic impact is primarily within Maryland, where both the contracting agency and the awardee are located. Workforce implications may include opportunities for researchers and developers at the University of Maryland, contributing to specialized scientific and technical expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing and innovation.
Cost-plus fixed-fee contract type requires stringent oversight to manage costs effectively.
Lack of small business participation may limit broader economic impact.
Specialized R&D focus makes direct value-for-money comparisons difficult.

Positive Signals

Award to a reputable university suggests access to specialized research talent and expertise.
Focus on AI/ML aligns with critical modernization efforts within the DoD.
Long contract duration allows for in-depth research and development.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on the application of Artificial Intelligence and Machine Learning in social sciences and humanities. This is a rapidly evolving area within the broader technology and defense R&D landscape. The market for AI/ML development services is competitive, but specialized academic research capabilities, as possessed by the University of Maryland, can command unique positions. Comparable spending benchmarks for highly specialized, academic-led R&D in AI/ML are scarce, making direct comparisons difficult.

Small Business Impact

This contract does not include a small business set-aside, nor is there an indication of subcontracting requirements for small businesses. The award to a large university suggests a focus on advanced research capabilities that may not typically be subcontracted to small businesses. This approach prioritizes specialized expertise over broad small business engagement for this particular R&D effort.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Health Agency's contracting and program management offices. Accountability measures will be tied to the achievement of research milestones and deliverables outlined in the Cost Plus Fixed Fee (CPFF) contract. Transparency may be limited due to the sole-source nature and the proprietary research involved, though standard government reporting requirements would apply.

Related Government Programs

DoD AI Strategy
Defense Health Agency Research Programs
University Research Partnerships
AI/ML Development Contracts

Risk Flags

Sole-source award may limit competition and potentially increase costs.
Cost-plus contract type requires diligent oversight to manage expenditures.
Specialized R&D focus makes direct value benchmarking difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.1 million to UNIVERSITY OF MARYLAND, COLLEGE PARK. DHP- DEVELOPMENT OF AI/ML TOOLS

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF MARYLAND, COLLEGE PARK.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $8.1 million.

What is the period of performance?

Start: 2024-04-15. End: 2027-04-14.

What is the specific research focus and expected outcome of the AI/ML tools being developed under this contract?

The contract data indicates the research and development (R&D) is in 'Social Sciences and Humanities' (NAICS 541720), with the project title 'DEVELOPMENT OF AI/ML TOOLS' (DHP). While the specific application is not detailed, this suggests the AI/ML tools are intended to analyze or interact with human behavior, social structures, or humanities-related data. Potential outcomes could include enhanced predictive modeling for social trends, improved human-computer interaction interfaces for defense personnel, or advanced analytical tools for understanding complex societal factors relevant to national security. The Defense Health Agency's involvement might imply a focus on behavioral health, medical decision support, or operational psychology applications of AI/ML.

Why was this contract awarded on a sole-source basis instead of through full and open competition?

Sole-source awards are typically justified when a unique capability, specialized expertise, or proprietary technology is required that cannot be reasonably obtained from multiple sources. In this case, the University of Maryland, College Park, may possess unique research facilities, intellectual property, or a team of experts with specific knowledge in applying AI/ML to social sciences and humanities that is not readily available elsewhere. The Defense Health Agency would have had to provide a justification, such as 'only one responsible source' or 'urgent and compelling need,' to the contracting officer to proceed with a sole-source award, demonstrating that competition was not feasible or practical.

How does the $8.1 million contract value compare to similar R&D investments in AI/ML by the DoD or other federal agencies?

Directly comparing the $8.1 million value is challenging without knowing the precise scope and deliverables. However, federal investments in AI/ML R&D are substantial and growing across various agencies, including DoD, NSF, and NIH. Contracts for AI/ML development can range from a few million for specific tool development to hundreds of millions for large-scale platform integration or foundational research. Given the sole-source nature and specialized academic focus, this $8.1 million award appears to be a moderate investment for a targeted R&D project. Broader AI/ML initiatives within the DoD often involve larger sums, but this contract seems focused on a specific niche within social sciences and humanities.

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

A Cost Plus Fixed Fee (CPFF) contract reimburses the contractor for allowable costs incurred, plus a fixed fee representing profit. For AI/ML development, risks include potential cost overruns if research proves more complex or time-consuming than anticipated, as the government bears the cost risk. The fixed fee, while providing some cost certainty for the contractor's profit, needs to be carefully negotiated to reflect the scope and risk. The primary risk for the government is ensuring that the 'cost' component remains reasonable and that the fixed fee is justified. Robust oversight is crucial to monitor expenditures, validate costs, and ensure the contractor is diligently working towards the project objectives to avoid inefficiencies.

What is the track record of the University of Maryland, College Park, in securing and executing federal R&D contracts, particularly in AI/ML?

The University of Maryland, College Park, is a major research institution with a significant history of securing federal funding and executing R&D contracts across various disciplines, including STEM fields relevant to AI/ML. As a large public research university, it has established infrastructure and experienced research personnel. While specific details of their AI/ML contract portfolio require deeper database searches, universities of this caliber typically have a strong track record in areas like computer science, engineering, and data science, often collaborating with federal agencies on cutting-edge research. Their ability to win this sole-source award suggests a recognized expertise and capability relevant to the DoD's needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HT942524R0019

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3112 LEE BUILDING, COLLEGE PARK, MD, 20742

Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $8,149,104

Exercised Options: $8,149,104

Current Obligation: $8,149,104

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline