DoD's $2.44M AI Model Sharing Contract Awarded to CACI, Inc. for R&D

Contract Overview

Contract Amount: $2,444,064 ($2.4M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2024-05-21

End Date: 2028-07-20

Contract Duration: 1,521 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PLANNING AND ARTIFICIAL INTELLIGENCE MODEL SHARING

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $2.4 million to CACI, INC. - FEDERAL for work described as: PLANNING AND ARTIFICIAL INTELLIGENCE MODEL SHARING Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. Performance period spans over 4 years, indicating a long-term research objective. 5. The specific NAICS code (541715) points to a specialized area of scientific research. 6. The contract is managed by the Department of the Air Force, a major DoD component.

Value Assessment

Rating: fair

Benchmarking the value of this $2.44 million contract is challenging without more specific details on the deliverables and the research scope. However, given the Cost Plus Fixed Fee structure, there is an inherent risk of costs exceeding initial estimates if the research proves more complex than anticipated. Comparing this to similar R&D contracts in AI model sharing would require access to a broader dataset of comparable awards, but the duration and the nature of the work suggest a significant undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically fosters a competitive environment, which can lead to better pricing and innovation. The presence of two bids suggests a moderate level of competition for this specialized R&D effort.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and technical solutions, potentially leading to a more cost-effective outcome for this AI research.

Public Impact

The Department of Defense, specifically the Department of the Air Force, is the primary beneficiary, aiming to advance its capabilities in artificial intelligence. The contract will deliver research and development services related to artificial intelligence model sharing. The geographic impact is primarily within the United States, supporting domestic R&D efforts. Workforce implications may include the employment of scientists, engineers, and AI specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs without strict adherence to a budget, potentially leading to higher final costs than anticipated.
The long performance period of over 4 years increases the risk of scope creep or evolving research needs that may not be fully captured in the initial contract.
Limited public information on the specific AI models or sharing mechanisms makes it difficult to assess the true innovation and long-term value.
The specialized nature of AI R&D means that success is not guaranteed, and the return on investment may be uncertain.

Positive Signals

Awarded through full and open competition, which generally promotes competitive pricing and access to a wide range of potential solutions.
The contract is with CACI, Inc. - Federal, a known entity in the federal contracting space, suggesting a degree of established capability.
The focus on AI model sharing aligns with critical modernization efforts within the Department of Defense, potentially enhancing national security capabilities.
The research and development nature of the contract aims to foster innovation and advance cutting-edge technologies.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced technologies like artificial intelligence. The market for AI R&D is rapidly growing, with significant investment from both government and private sectors. Comparable spending benchmarks would depend on the specific sub-field of AI and the scale of the research, but government investment in AI is a strategic priority across various agencies.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the specialized nature of AI research and development, it is possible that larger, more established firms like CACI, Inc. - Federal are better positioned to compete. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed reporting of costs and progress. Transparency may be limited due to the sensitive nature of AI research, but standard contract reporting mechanisms should apply.

Related Government Programs

Department of Defense AI Strategy
Air Force Research Laboratory Programs
Advanced Technology Development Contracts
Federal R&D Spending

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risks.
Long performance period increases potential for scope creep.
Limited competition (2 bidders) may impact price discovery.
Nature of R&D makes success and ROI uncertain.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.4 million to CACI, INC. - FEDERAL. PLANNING AND ARTIFICIAL INTELLIGENCE MODEL SHARING

Who is the contractor on this award?

The obligated recipient is CACI, INC. - FEDERAL.

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 $2.4 million.

What is the period of performance?

Start: 2024-05-21. End: 2028-07-20.

What is CACI, Inc. - Federal's track record with similar AI R&D contracts within the Department of Defense?

CACI, Inc. - Federal has a significant history of performing IT and R&D services for the Department of Defense. While specific details on their AI model sharing R&D contracts are not publicly itemized in this data, their broader portfolio includes work on advanced technologies, data analytics, and software development for military applications. Their experience in complex system integration and research environments suggests a capacity to undertake such projects. Further analysis would involve reviewing their past performance evaluations and contract awards related to AI and machine learning initiatives to fully assess their suitability and past success rates in comparable endeavors.

How does the $2.44 million value of this contract compare to other AI R&D efforts within the DoD?

The $2.44 million value for this specific AI model sharing R&D contract appears to be on the moderate to lower end for significant R&D initiatives within the Department of Defense. Larger, more comprehensive AI development programs can range from tens of millions to billions of dollars. However, for a focused effort on model sharing research and development over a roughly four-year period, this funding level is plausible. It suggests a targeted research objective rather than a broad platform development. Benchmarking requires comparing it to contracts with similar scopes, durations, and specific AI sub-disciplines, which are not detailed here.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for AI R&D?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially in a field as dynamic and uncertain as AI R&D, is the potential for cost overruns. While the 'fixed fee' component provides a defined profit margin for the contractor, the 'cost plus' element means the government reimburses the contractor's allowable costs. If the research encounters unforeseen technical challenges, requires more extensive experimentation, or if the scope expands (scope creep), the total cost to the government can increase significantly beyond initial projections. This structure can incentivize contractors to incur costs without the same level of cost-consciousness as a fixed-price contract, necessitating robust government oversight to manage expenditures effectively.

How effective is the 'full and open competition' approach for specialized R&D contracts like this one?

Full and open competition is generally considered the most effective method for ensuring fair pricing and access to the widest range of innovative solutions for specialized R&D contracts. It allows any responsible source to submit a proposal, fostering a competitive environment that can drive down costs and encourage technological advancement. For AI R&D, this approach can bring diverse perspectives and cutting-edge approaches to the table. However, the effectiveness is contingent on the clarity of the solicitation, the ability of smaller, specialized firms to navigate the bidding process, and the government's capacity to evaluate highly technical proposals accurately. In this case, with two bids received, the competition level was moderate, suggesting that while the process was open, the pool of highly qualified bidders for this specific niche might be limited.

What are the potential long-term implications of this AI model sharing R&D for the Department of Defense?

The long-term implications of this AI model sharing R&D contract could be significant for the Department of Defense. Successful development and implementation of AI model sharing capabilities can lead to enhanced interoperability between different AI systems, faster deployment of AI-driven insights, and improved decision-making across various military operations. It could also foster a more collaborative AI ecosystem within the DoD, reducing redundant research efforts and accelerating the adoption of advanced AI technologies. Furthermore, it may contribute to establishing standards for AI model development and sharing, promoting efficiency and security in the long run. The ultimate impact will depend on the specific outcomes of the research and how effectively the developed models and sharing mechanisms are integrated into operational systems.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA875021S7003

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc

Address: 14370 NEWBROOK DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,326,621

Exercised Options: $6,872,393

Current Obligation: $2,444,064

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline