DoD's $20.3M AI/ML Automation Contract Awarded to Seed Innovations, LLC

Contract Overview

Contract Amount: $20,370,503 ($20.4M)

Contractor: Seed Innovations, LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2023-03-10

Contract Duration: 891 days

Daily Burn Rate: $22.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: JCF AI/ML AUTOMATION

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80901

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $20.4 million to SEED INNOVATIONS, LLC for work described as: JCF AI/ML AUTOMATION Key points: 1. Contract value represents a significant investment in AI/ML capabilities for the Defense Department. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The fixed-price contract type aims to control costs and provide predictable spending. 4. The duration of the contract (891 days) indicates a medium-term project. 5. The specific NAICS code (541511) points to custom computer programming services. 6. The contract was awarded as a Delivery Order, suggesting it's part of a larger IDIQ.

Value Assessment

Rating: good

The contract value of $20.37 million for custom computer programming services appears reasonable given the scope of AI/ML automation for a defense agency. Benchmarking against similar large-scale IT service contracts within the DoD suggests this falls within expected ranges for specialized development. The firm fixed-price structure provides cost certainty, which is a positive indicator for value. However, without detailed performance metrics or specific deliverables, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 8 bidders (no) suggests a healthy level of competition for this specialized AI/ML automation service. A competitive bidding process generally leads to better price discovery and encourages contractors to offer their best value propositions to secure the award.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied for the contract, driving down potential costs and improving service offerings.

Public Impact

The primary beneficiaries are the Department of Defense agencies utilizing the AI/ML automation solutions. The contract delivers custom computer programming services focused on advancing automation capabilities. The geographic impact is likely within the operational areas of the Defense Information Systems Agency (DISA) and potentially broader DoD installations. Workforce implications may include the need for specialized AI/ML engineers and developers, both within the contractor and potentially within the government for oversight and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex AI/ML projects if not managed tightly.
Dependence on a single contractor for critical AI/ML automation development.
Ensuring the developed AI/ML solutions align with evolving defense strategies and ethical guidelines.

Positive Signals

Award to a single entity (Seed Innovations, LLC) can streamline project execution and communication.
The firm fixed-price contract type incentivizes efficient project completion.
The competitive award process suggests a strong initial vetting of capabilities.

Sector Analysis

The Information Technology sector, specifically custom computer programming, is a rapidly growing area within federal contracting, driven by the need for advanced capabilities like AI and Machine Learning. The federal government is a major investor in this space, seeking to modernize operations and gain technological advantages. This contract fits within the broader trend of defense agencies leveraging advanced software solutions to enhance efficiency and effectiveness. Comparable spending benchmarks for large-scale IT development contracts within the DoD often run into tens or hundreds of millions of dollars.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Seed Innovations, LLC, is categorized as 'Other' (ST=CO), suggesting it is not a small business for this contract. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This means the direct impact on the small business ecosystem through this specific award is likely minimal, though the prime contractor's own supply chain could involve smaller entities.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a Delivery Order under a larger contract vehicle, oversight may be managed by the contracting officer at the Defense Information Systems Agency (DISA). The firm fixed-price nature provides a degree of financial oversight by limiting cost overruns. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Department of Defense Artificial Intelligence Initiatives
Custom Computer Programming Services Contracts
Federal AI/ML Development Contracts

Risk Flags

Potential for vendor lock-in if solutions are highly proprietary.
Complexity of AI/ML may lead to unforeseen technical hurdles.
Ensuring data privacy and security in AI/ML applications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.4 million to SEED INNOVATIONS, LLC. JCF AI/ML AUTOMATION

Who is the contractor on this award?

The obligated recipient is SEED INNOVATIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $20.4 million.

What is the period of performance?

Start: 2020-09-30. End: 2023-03-10.

What is the track record of Seed Innovations, LLC in delivering AI/ML solutions for the federal government?

The provided data indicates Seed Innovations, LLC was awarded this $20.37 million contract for AI/ML automation. Further investigation into their contract history, past performance reviews, and specific project outcomes would be necessary to fully assess their track record. Examining previous awards, especially those involving similar technologies or defense clients, would provide deeper insight into their capabilities and reliability in delivering complex AI/ML projects. Publicly available contract databases and performance assessment reports are key resources for this analysis.

How does the $20.37 million contract value compare to similar AI/ML automation contracts within the DoD?

The $20.37 million value for this AI/ML automation contract is substantial but falls within the typical range for significant IT development projects within the Department of Defense. Large-scale AI/ML initiatives can easily reach tens or hundreds of millions of dollars, depending on complexity, scope, and duration. Benchmarking against other custom computer programming services (NAICS 541511) contracts awarded by DISA or other DoD agencies for advanced technologies like AI/ML would provide a more precise comparison. The firm fixed-price nature suggests a defined scope, which can influence overall cost compared to cost-plus contracts for more exploratory R&D.

What are the primary risks associated with this AI/ML automation contract?

Key risks include the inherent complexity of AI/ML development, potential for technical challenges, and the possibility of the technology becoming outdated quickly. Ensuring the AI/ML solutions meet evolving defense requirements and ethical standards is crucial. There's also a risk related to contractor performance and timely delivery, although the fixed-price nature incentivizes completion. Integration challenges with existing DoD systems and data security concerns are also significant risks that require robust management and oversight.

How effective is the 'full and open competition' approach for specialized AI/ML contracts?

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 contracts like AI/ML. It allows all qualified vendors to compete, fostering a dynamic market that can drive down costs and improve quality. The fact that 8 bidders participated suggests this approach was successful in attracting interest. However, for highly niche technologies, ensuring that the evaluation criteria adequately capture the specialized expertise required is critical for selecting the best-fit solution, not just the lowest price.

What is the historical spending trend for AI/ML automation services within the DoD?

Historical spending on AI/ML automation services within the DoD has been on a significant upward trajectory over the past decade. Driven by strategic priorities to modernize military capabilities and enhance operational efficiency, the department has increasingly invested in artificial intelligence and machine learning. This includes funding for research, development, and implementation of AI-powered systems across various domains, from intelligence analysis and logistics to autonomous systems and cybersecurity. This specific $20.37 million contract aligns with this broader trend of increasing investment in advanced technologies.

What are the implications of the 'Delivery Order' award type for this contract?

The 'Delivery Order' (AW=DELIVERY ORDER) award type indicates that this contract is likely a task order issued under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means that the underlying contract structure was previously competed, and this specific order represents a defined scope of work with a set price and delivery schedule. This approach allows agencies to procure services more efficiently once the initial IDIQ contract is in place, streamlining the acquisition process for subsequent needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19960 CAPELLA DR, MONUMENT, CO, 80132

Business Categories: Category Business, Limited Liability Corporation, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $20,370,503

Exercised Options: $20,370,503

Current Obligation: $20,370,503

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA830720G0049

IDV Type: BOA

Timeline