DoD awards $3.78M contract for AI modeling and simulation to Accelint AI, LLC

Contract Overview

Contract Amount: $3,775,655 ($3.8M)

Contractor: Accelint AI, LLC

Awarding Agency: Department of Defense

Start Date: 2023-12-08

End Date: 2026-06-06

Contract Duration: 911 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ARTIFICIAL INTELLIGENCE FOR MODELING AND SIMULATION

Place of Performance

Location: ANN ARBOR, WASHTENAW County, MICHIGAN, 48105

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $3.8 million to ACCELINT AI, LLC for work described as: ARTIFICIAL INTELLIGENCE FOR MODELING AND SIMULATION Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The period of performance is over two years, indicating a substantial project duration. 4. The North American Industry Classification System (NAICS) code 541715 points to R&D in physical, engineering, and life sciences. 5. The award is a definitive contract, implying a firm commitment from the government. 6. The contractor, Accelint AI, LLC, is a new entity in federal contracting, raising potential performance risks. 7. The contract value is relatively small in the context of large federal R&D procurements.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the limited information available on Accelint AI, LLC's track record and the specific nature of the AI modeling and simulation services. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk, as costs can escalate beyond initial estimates. Without comparable contracts for similar AI R&D services, it's difficult to definitively assess if the pricing represents good value for money. The fixed fee component, however, provides some incentive for the contractor to manage costs efficiently.

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 a bid. The specific number of bidders is not provided, but the designation suggests a robust competitive environment. This approach is generally favored as it promotes price discovery and potentially leads to more favorable pricing for the government.

Taxpayer Impact: Full and open competition aims to ensure that taxpayer dollars are used efficiently by fostering a marketplace where contractors vie for the best price and performance.

Public Impact

The Department of the Army will benefit from advanced artificial intelligence capabilities for modeling and simulation. This contract supports research and development in advanced technological areas critical for defense applications. The services delivered are expected to enhance the Army's ability to model complex scenarios and test strategies. The geographic impact is primarily within the United States, supporting domestic technological advancement. Workforce implications may include specialized roles in AI development, data science, and simulation engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contractor is a new entity with no prior federal contracting history, posing performance risks.
Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
Specific details on the AI modeling and simulation capabilities are not publicly detailed, making performance assessment difficult.
Limited public information on Accelint AI, LLC's technical expertise and past performance in similar R&D areas.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should drive value.
The contract supports critical R&D in artificial intelligence, a key area for future technological advancement.
The definitive contract award indicates a firm commitment to the project's objectives.
The fixed fee component of the CPFF contract provides some cost control incentive for the contractor.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on artificial intelligence for modeling and simulation. The federal government is a significant investor in AI R&D, with spending across various agencies including Defense, Energy, and Science & Technology. Comparable spending benchmarks are difficult to establish without more specific details on the AI applications, but federal R&D spending in IT and defense-related technologies often runs into billions of dollars annually.

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 for small businesses stemming from a small business set-aside. The prime contractor, Accelint AI, LLC, is also not identified as a small business in the provided data. Analysis of potential subcontracting opportunities would require further investigation into the prime contractor's procurement practices.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and program management offices. Accountability measures will be tied to the Cost Plus Fixed Fee structure, requiring detailed cost reporting and performance metrics. Transparency is facilitated by the contract award being publicly available, though specific project details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Artificial Intelligence Research
Modeling and Simulation Technologies
Department of Defense Research and Development
Advanced Technology Development
Cost Plus Fixed Fee Contracts

Risk Flags

New Contractor Performance Risk
Cost Overrun Potential (CPFF)
Limited Public Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.8 million to ACCELINT AI, LLC. ARTIFICIAL INTELLIGENCE FOR MODELING AND SIMULATION

Who is the contractor on this award?

The obligated recipient is ACCELINT AI, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.8 million.

What is the period of performance?

Start: 2023-12-08. End: 2026-06-06.

What is the track record of Accelint AI, LLC in federal contracting?

Accelint AI, LLC appears to be a relatively new entity in the federal contracting landscape, with this award being one of its initial significant contracts. As of the data provided, there is limited public information available regarding its past performance, previous contract awards, or established track record with government agencies. This lack of historical data makes it challenging to assess their reliability, efficiency, and ability to successfully execute complex R&D projects. Further due diligence would be required to understand their operational capacity, technical expertise, and financial stability before making definitive judgments on their capabilities.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other R&D contract vehicles in terms of value for money?

The Cost Plus Fixed Fee (CPFF) contract type is common for R&D efforts where the scope of work is not fully defined at the outset, allowing for flexibility as research progresses. While it provides flexibility, it also carries a higher risk of cost overruns compared to fixed-price contracts, as the government reimburses the contractor's actual costs plus a predetermined fixed fee. For value for money, CPFF can be effective if costs are rigorously monitored and managed, and the fixed fee is appropriately negotiated. However, if cost controls are lax, it can be less cost-effective than fixed-price contracts. Other R&D vehicles like Firm-Fixed-Price (FFP) contracts offer more cost certainty but less flexibility, while Cost-Plus-Incentive-Fee (CPIF) contracts can better align contractor incentives with government cost and performance goals.

What are the potential risks associated with a new contractor like Accelint AI, LLC performing R&D for the Department of Defense?

The primary risk associated with a new contractor like Accelint AI, LLC is the uncertainty surrounding their ability to deliver on the contract's objectives. This includes potential risks related to technical proficiency, project management capabilities, adherence to security protocols, financial stability, and timely delivery. For the Department of Defense, which often deals with critical and complex R&D requirements, a lack of proven performance history can translate into schedule delays, cost overruns, or failure to meet performance specifications. Mitigation strategies often involve enhanced oversight, phased performance reviews, and clear performance metrics within the contract.

How does this contract fit within the broader landscape of federal spending on Artificial Intelligence?

This $3.78 million contract for AI modeling and simulation is a relatively small component within the vast landscape of federal AI spending. The U.S. government, particularly the Department of Defense, has been significantly increasing its investments in artificial intelligence across various domains, including research, development, procurement, and implementation. Federal AI spending spans numerous agencies and initiatives, often totaling billions of dollars annually. This specific contract contributes to the foundational R&D efforts, aiming to enhance capabilities in modeling and simulation, which are crucial for testing and validating AI systems and military strategies. It represents a targeted investment within a much larger strategic push towards AI adoption.

What are the implications of awarding a CPFF contract for R&D in a rapidly evolving field like AI?

Awarding a Cost Plus Fixed Fee (CPFF) contract for R&D in a rapidly evolving field like AI offers flexibility, which is crucial given the inherent uncertainties and potential for discovery in AI research. It allows the contractor to adapt to new findings and pivot research directions as needed without requiring formal contract modifications for every change. However, the 'cost-plus' nature means the government bears the financial risk of cost increases, which can be substantial in fast-paced R&D where unforeseen challenges or breakthroughs can significantly alter project expenses. The fixed fee provides some predictability for contractor profit, but the overall cost to the government remains variable. Effective oversight is paramount to ensure costs are reasonable and allocable to the contract's objectives.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911QY20R0022

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Soar Technology, Inc.

Address: 3600 GREEN CT STE 600, ANN ARBOR, MI, 48105

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

Financial Breakdown

Contract Ceiling: $9,996,132

Exercised Options: $3,998,542

Current Obligation: $3,775,655

Actual Outlays: $385,190

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline