DoD awards $25.6M R&D contract to Forward Edge AI for AI advancements, with no competition

Contract Overview

Contract Amount: $25,615,937 ($25.6M)

Contractor: Forward Edge AI Inc

Awarding Agency: Department of Defense

Start Date: 2023-08-14

End Date: 2026-08-13

Contract Duration: 1,095 days

Daily Burn Rate: $23.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: PKS-HILL-BOOKER- BMA SBIR

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $25.6 million to FORWARD EDGE AI INC for work described as: PKS-HILL-BOOKER- BMA SBIR Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential value for money. 2. The contract focuses on research and development in physical, engineering, and life sciences, excluding specific subfields. 3. A firm-fixed-price structure aims to control costs, but the lack of competition limits benchmarking. 4. The duration of 1095 days suggests a significant, multi-year research effort. 5. The awardee, Forward Edge AI Inc., is based in the District of Columbia. 6. This contract represents a specific investment within the broader DoD R&D portfolio.

Value Assessment

Rating: questionable

Benchmarking the value of this $25.6 million contract is challenging due to its sole-source nature. Without competitive bids, it's difficult to assess if the pricing reflects market rates or represents a fair value for the research and development services. The firm-fixed-price contract type provides some cost certainty, but the absence of competition means there's no direct comparison to similar contracts or market benchmarks to definitively gauge cost-effectiveness. Further analysis would require understanding the specific deliverables and the contractor's proposed cost structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple potential vendors. The justification for this approach is not provided in the data, but sole-source awards typically occur when only one vendor possesses the unique capabilities or technology required, or in cases of urgent need. The lack of competition means there were no other bidders to compare against, potentially limiting price discovery and the government's ability to secure the most advantageous terms.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the opportunity for the government to benefit from a wider range of innovative solutions and potentially more cost-effective approaches.

Public Impact

The primary beneficiary is the Department of Defense, which will receive advancements in AI research. The contract aims to deliver research and development outcomes in physical, engineering, and life sciences. The geographic impact is primarily within the District of Columbia, where the contractor is located. Workforce implications may include specialized R&D roles within Forward Edge AI Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source award limits visibility into alternative technological solutions.
Research and Development contracts inherently carry risks of not achieving desired outcomes.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Focus on AI research aligns with critical national security needs.
Contract awarded to a specific company suggests specialized expertise.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for AI-related R&D is highly dynamic and competitive, with significant investment from both government and private entities. Comparable spending benchmarks in this niche are difficult to establish without more specific details on the research objectives, but R&D contracts of this magnitude are common within the Department of Defense to foster technological superiority.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus is on a larger, potentially specialized, prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Transparency is limited by the sole-source nature of the award. Accountability measures would be tied to the achievement of research milestones outlined in the contract. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Artificial Intelligence Research Initiatives
Advanced Technology Development Contracts

Risk Flags

Sole-source award lacks competitive justification.
Limited transparency on specific research deliverables and outcomes.
Potential for inflated costs due to absence of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.6 million to FORWARD EDGE AI INC. PKS-HILL-BOOKER- BMA SBIR

Who is the contractor on this award?

The obligated recipient is FORWARD EDGE AI INC.

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 $25.6 million.

What is the period of performance?

Start: 2023-08-14. End: 2026-08-13.

What specific AI capabilities is Forward Edge AI Inc. expected to develop or advance under this contract?

The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' with the North American Industry Classification System (NAICS) code 541715. While the contract number 'PKS-HILL-BOOKER- BMA SBIR' might suggest a link to Small Business Innovation Research (SBIR) programs, the award details do not specify the exact AI capabilities. Forward Edge AI Inc. is likely tasked with advancing foundational or applied AI research relevant to defense applications within the specified scientific domains. This could encompass areas such as machine learning algorithms, data analysis techniques, intelligent automation, or novel AI architectures. The precise nature of the AI advancements would be detailed in the contract's statement of work, which is not publicly available in this dataset.

How does the $25.6 million contract value compare to typical R&D investments in AI by the Department of Defense?

The $25.6 million contract value is a significant investment for a single R&D effort. The Department of Defense invests billions annually in research, development, testing, and evaluation (RDT&E). While this specific award is substantial, it represents a portion of the overall DoD R&D budget, which is allocated across numerous projects and technologies. For context, the DoD's RDT&E budget often exceeds $100 billion annually. Contracts focused on cutting-edge areas like Artificial Intelligence are prioritized and can command substantial funding. Without knowing the specific research objectives and deliverables, it's challenging to definitively benchmark this $25.6 million against other AI R&D contracts, but it signifies a considerable commitment to advancing AI capabilities within the specified scientific fields.

What are the potential risks associated with awarding a $25.6 million R&D contract on a sole-source basis?

Awarding a $25.6 million R&D contract on a sole-source basis carries several potential risks. Firstly, the lack of competition means the government may not have explored alternative solutions or technologies that other vendors might offer, potentially missing out on more innovative or cost-effective approaches. Secondly, without competitive bids, there is a reduced ability to benchmark pricing, increasing the risk of paying a premium for the services. This can lead to a perception of lower value for taxpayer money. Thirdly, sole-source awards can sometimes indicate a lack of market research or an over-reliance on a single contractor, which could create future dependencies. Finally, the justification for the sole-source award needs to be robust to ensure it aligns with federal procurement regulations and serves the best interests of the government.

What is Forward Edge AI Inc.'s track record with federal contracts, particularly within the Department of Defense?

The provided data indicates that Forward Edge AI Inc. is the awardee of this $25.6 million contract. However, the dataset does not include historical contract information for Forward Edge AI Inc., such as previous awards, performance history, or past performance ratings. To assess their track record, one would typically need to consult federal procurement databases like SAM.gov or FPDS, which provide details on awarded contracts, including the agencies involved, contract values, and performance information. Without this additional data, it is not possible to evaluate Forward Edge AI Inc.'s specific track record with the Department of Defense or other federal agencies.

How does the 'Research and Development in the Physical, Engineering, and Life Sciences' classification (NAICS 541715) relate to AI development?

NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' broadly encompasses scientific inquiry and experimentation aimed at advancing knowledge and capabilities within these fundamental scientific domains. Artificial Intelligence (AI) development is intrinsically linked to these fields. For instance, AI algorithms often rely on principles from computer science (an engineering field), statistical modeling (physical sciences), and can be applied to analyze complex biological systems (life sciences). Therefore, R&D contracts classified under 541715 can very well include significant work on AI, particularly when AI is used as a tool for discovery, analysis, or automation within these scientific areas, or when the AI itself is the subject of fundamental research.

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 › Space R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10108 CARTER CYN, SAN ANTONIO, TX, 78255

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,192,528

Exercised Options: $25,615,937

Current Obligation: $25,615,937

Actual Outlays: $1,691,317

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline