Dod's $41.4M Ai/Ml T&E Contract Awarded to Morsecorp, Inc. for R&D

Contract Overview

Contract Amount: $41,434,075 ($41.4M)

Contractor: Morsecorp, Inc

Awarding Agency: Department of Defense

Start Date: 2022-08-26

End Date: 2026-03-31

Contract Duration: 1,313 days

Daily Burn Rate: $31.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: ADVANCED TEST AND EVALUATION (T&E) FOR THE EXPONENTIAL PACE OF ARTIFICIAL INTELLIGENCE / MACHINE LEARNING (AI/ML) PROGRESS.

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02142

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $41.4 million to MORSECORP, INC for work described as: ADVANCED TEST AND EVALUATION (T&E) FOR THE EXPONENTIAL PACE OF ARTIFICIAL INTELLIGENCE / MACHINE LEARNING (AI/ML) PROGRESS. Key points: 1. Contract focuses on advanced testing and evaluation for rapidly evolving AI/ML technologies. 2. The firm-fixed-price structure aims to control costs for the Department of the Army. 3. Competition was full and open, suggesting a potentially competitive bidding process. 4. The contract duration extends over three years, indicating a significant R&D effort. 5. The North American Industry Classification System (NAICS) code 541715 points to R&D in physical, engineering, and life sciences. 6. The award value of $41.4 million positions this as a substantial investment in AI/ML capabilities.

Value Assessment

Rating: good

The contract value of $41.4 million for advanced AI/ML testing and evaluation appears reasonable given the specialized nature of the work and the rapid pace of technological advancement. Benchmarking against similar R&D contracts in AI/ML is challenging due to the novelty and proprietary nature of much of this work. However, the firm-fixed-price contract type suggests an effort to establish a clear cost ceiling, which is a positive indicator for value for money. The duration of the contract also allows for in-depth research and development.

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 specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The Department of the Army likely sought to leverage the broadest possible market to find the best technical solutions and value for this critical AI/ML research.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, maximizing the return on investment for federal funds.

Public Impact

The Department of Defense, specifically the Department of the Army, will benefit from enhanced capabilities in testing and evaluating advanced AI/ML systems. Services delivered include crucial research and development to ensure the effectiveness and reliability of AI/ML technologies. The geographic impact is primarily within the defense sector, supporting national security objectives. Workforce implications may include the need for specialized AI/ML researchers, engineers, and testers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The rapid evolution of AI/ML could outpace the testing methodologies developed under this contract.
Ensuring the security and integrity of AI/ML systems under test is a constant challenge.
The specialized nature of AI/ML talent may lead to recruitment and retention difficulties for the contractor.

Positive Signals

Focus on advanced AI/ML testing addresses a critical and growing need within the defense sector.
The firm-fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a robust market response and potential for innovative solutions.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on Artificial Intelligence and Machine Learning. The market for AI/ML R&D is rapidly expanding, driven by both commercial and defense applications. Comparable spending benchmarks are difficult to establish due to the nascent and highly specialized nature of AI/ML T&E, but significant government investment is being channeled into this area to maintain technological superiority.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, MORSECORP, INC., is likely a large business. There is no explicit information on subcontracting plans for small businesses. This means the direct impact on the small business ecosystem for this specific contract may be limited unless MORSECORP, INC. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified R&D outcomes within the agreed budget. Transparency is facilitated through contract award databases, though specific technical details of the R&D may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense AI Strategy
Army Futures Command Initiatives
Advanced Technology Development Programs
Machine Learning Research Grants
AI Ethics and Safety Research

Risk Flags

Rapid technological evolution in AI/ML
Complexity of AI/ML system testing
Potential for R&D cost overruns
Need for specialized AI/ML expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.4 million to MORSECORP, INC. ADVANCED TEST AND EVALUATION (T&E) FOR THE EXPONENTIAL PACE OF ARTIFICIAL INTELLIGENCE / MACHINE LEARNING (AI/ML) PROGRESS.

Who is the contractor on this award?

The obligated recipient is MORSECORP, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $41.4 million.

What is the period of performance?

Start: 2022-08-26. End: 2026-03-31.

What is MORSECORP, INC.'s track record with Department of Defense AI/ML contracts?

Information regarding MORSECORP, INC.'s specific track record with Department of Defense AI/ML contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar projects. Generally, for R&D contracts, especially in cutting-edge fields like AI/ML, the focus is on technical capability and innovation. The award of this $41.4 million contract suggests that the Department of the Army found MORSECORP, INC. to possess the requisite expertise and potential to meet their advanced testing and evaluation needs for AI/ML.

How does the $41.4 million award value compare to similar AI/ML R&D contracts?

The $41.4 million award value for AI/ML R&D is substantial, reflecting the complexity and strategic importance of this field. Direct comparisons are challenging due to the rapidly evolving nature of AI/ML and the proprietary aspects of research. However, major defense and technology initiatives often involve contract values in the tens to hundreds of millions of dollars. This contract's value appears aligned with significant R&D efforts aimed at developing and testing advanced capabilities. The firm-fixed-price structure provides a degree of cost control, making the value proposition clearer than cost-plus contracts.

What are the primary risks associated with this AI/ML T&E contract?

Key risks include the rapid obsolescence of AI/ML technologies, potentially rendering testing methodologies outdated before the contract concludes. Technical risks involve the inherent unpredictability of R&D outcomes and the difficulty in ensuring the reliability and safety of AI/ML systems. Contractor-related risks could include challenges in recruiting and retaining highly specialized AI/ML talent, and potential cost overruns if unforeseen technical hurdles arise, despite the firm-fixed-price structure. Furthermore, ensuring the security of sensitive AI/ML data and systems under test is a critical risk.

How effective is the firm-fixed-price (FFP) contract type for AI/ML R&D?

The firm-fixed-price (FFP) contract type is generally preferred for its cost certainty, as it shifts the risk of cost overruns to the contractor. For AI/ML R&D, FFP can be effective if the scope of work is well-defined and the technical challenges are understood, allowing for a realistic price to be set. However, in highly innovative R&D where outcomes are uncertain, FFP might incentivize the contractor to cut corners on quality or innovation to meet cost targets, or it could lead to overly conservative bids. The success of FFP here will depend on the clarity of the T&E objectives and the contractor's ability to manage R&D risks within the fixed price.

What is the historical spending trend for AI/ML R&D within the Department of Defense?

Historical spending on AI/ML R&D within the Department of Defense has shown a significant upward trend over the past decade. Driven by the recognition of AI/ML as a critical warfighting capability, DoD investments have grown substantially across various branches and research agencies. This includes funding for basic research, applied research, and advanced technology development. The $41.4 million awarded to MORSECORP, INC. is indicative of this ongoing strategic investment, reflecting a broader commitment to integrating AI/ML across defense systems and operations.

What does the 'MA' state code (MASSACHUSETTS) signify in relation to this contract?

The 'MA' state code likely indicates the primary location of performance or the state where the contractor, MORSECORP, INC., is registered or has a significant operational presence. While the Department of Defense is the awarding agency, contracts can be performed at various locations. In this context, it suggests that a portion of the advanced test and evaluation for AI/ML will likely occur in or be managed from Massachusetts, a state known for its strong technology and research ecosystem, particularly in areas like AI and robotics.

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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: W911NF17S0003

Offers Received: 999

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 MAIN ST FL 14, CAMBRIDGE, MA, 02142

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,890,537

Exercised Options: $41,434,075

Current Obligation: $41,434,075

Actual Outlays: $1,597,846

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline