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Pentagon’s central AI office wants to standardize its acquisition process

The Pentagon’s top artificial intelligence office released a request for information Aug. 28 outlining interest in establishing a new acquisition approach for standardizing the development and procurement process for AI tools.

According to the solicitation, the Joint Artificial Intelligence Center is “considering” starting a competition for a 501(c) nonprofit manager or managers of its prototype “Artificial Intelligence Acquisition Business Model” that looks to use other transaction authorities to more quickly purchase AI products.

The JAIC’s prototype business model could deliver “AI capabilities through meaningful market research/front-end collaboration and optimal teaming arrangements of both traditional and non-traditional companies for AI product procurement,” the RFI said.  If the plan moves forward, the JAIC would also “explore the possibilities of using the model to enable agile AI acquisition processes to the DoD at scale.”

The JAIC is the Defense Department’s main hub for artificial intelligence and is responsible for increasing adoption of AI across the department. It works with the services and combatant commands to develop AI tools that have practical use.

To meet the military’s needs, the JAIC uses the traditional government contracting process, known as Federal Acquisition Regulation-based contracts, and works with the General Services Administration, the Defense Information Systems Agency and the Defense Innovation Unit.  The traditional acquisition strategy currently being used is unlikely sufficient enough to help the JAIC carry out its mission, the RFI stated.

Keep reading this article at: https://www.c4isrnet.com/artificial-intelligence/2020/09/01/pentagons-central-ai-office-wants-to-standardize-its-acquisition-process/

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DoD’s AI center setting itself up to be a more agile buyer, use of OTAs

The Pentagon’s entity for injecting artificial intelligence into the military is considering adopting a new acquisition model that has been championed by the Defense Department for its speed over the past few years, but also concerns government watchdogs for its lack of accountability.

The Joint Artificial Intelligence Center (JAIC) may use a consortium of companies and academic institutions to procure technologies and services needed to make AI a ubiquitous force within the military. The model pays a consortium manager to oversee a group of companies that pay a small fee to be part of the club.

The advantage of the consortium is it allows JAIC to exercise other transaction authority (OTA), a contracting method that has gained considerable steam since Congress expanded its use for the military.  OTAs let DoD skip federal acquisition regulations to research, tests, prototype and even produce weapons at a faster speed.  OTAs also put an emphasis on partnering with companies that DoD does not usually do business with.

“Up to now, JAIC has primarily worked through traditional defense contractors and traditional Federal Acquisition Regulation-based contracts,” Chris Cornillie, federal market analyst at Bloomberg Government, told Federal News Network. “Given some of the challenges that it’s facing with COVID, and the need to start to scale its production to the Pentagon’s requirements, it’s considering a change in its business model.”

Keep reading this article at: https://federalnewsnetwork.com/defense-main/2020/09/dods-ai-center-setting-itself-up-to-be-a-more-agile-buyer-use-of-otas/

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DoD’s AI center seeks own acquisition authorities

Having its own mechanism for purchasing artificial intelligence will increase speed, according to the Joint Artificial Intelligence Center’s chief.

In the two years since its conception, the Pentagon’s Joint Artificial Intelligence Center has built out its staff from four people to 175 and now commands an annual budget of approximately $240 million.

And while the JAIC has been able to meet the Defense Department’s mission demands so far, its chief — Lt. Gen. Jack Shanahan — believes that the JAIC will need its own acquisition authorities to meet future technological demands.

“What I need honestly is our own acquisition authorities in the JAIC, I don’t have them right now,” Shanahan said Thursday, speaking at a virtual event held by AFCEA. “If I project another year or two forward, we are going to have to come up with different models.”

Keep reading this article at: https://www.nextgov.com/emerging-tech/2020/05/defense-departments-ai-center-seeks-own-acquisition-authorities/165657/

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OTAs: Best practices to enable success

Imagine this. The Defense Department had an urgent need for armored vehicles to protect warfighters from new threats during a time of war.
The Mine Resistant Ambush Protected (MRAP) family of vehicles — procured through “other transaction authority” — provides protection from improvised explosive devices, rocket-propelled grenades, explosively formed penetrators, underbody mines and small arms fire threats.  Photo credit: U.S. Army

By applying a unique and tailored acquisition approach with specific attention to time and similar solutions already available in the commercial marketplace, it successfully started fielding new vehicles only 18 months after identifying the warfighter need.

The program referenced here was the mine-resistant ambush protected vehicle program, which began in 2006.  Was the program a success?  Absolutely.  Was it a risk-free or perfect solution?  No.  Although the MRAP program was timely in helping mitigate the threat and associated warfighter casualties, there were challenges related to operating field conditions, training, sustainment, transportation and costs.  The program, however, ultimately enabled the creation of other military vehicles that are still widely used today and supports how tailored acquisition approaches can produce successful outcomes.

A popular and continuously growing phenomenon within the department is the other transaction authority, or OTA.  It permits Defense Department entities to award OTA agreements for research, prototyping and production efforts critical to national security.  They are not an acquisition approach or strategy; however, they are flexible options that can support an acquisition approach or strategy.

Given leadership’s priorities for the increased application of adaptive acquisition methods, it is highly likely OTAs will be a key ingredient for success.

Keep reading this article at: https://www.nationaldefensemagazine.org/articles/2020/4/15/other-transactions-best-practices-to-enable-success

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OTAs given greater flexibility to foster innovation in coronavirus response

Defense Department leaders and agencies have been granted much-needed flexibility to respond to the coronavirus pandemic. 
Click on image above to open memorandum.

Last week, Under Secretary of Defense for Acquisition & Sustainment Ellen Lord delegated approval authority for Other Transaction Agreements (OTAs) related to the coronavirus response, consistent with Section 13006 of the CARES Act.

In an April 5 memorandum, Under Secretary Lord designated approval authorities for OTA prototype projects and follow-on production contracts and agreements as follows:

  • Above $100 million, and up to $500 million, to the Directors of Defense Agencies/Field Activities with contracting authority, as well as the Director of the Defense Innovation Unit. This authority was otherwise vested in the Senior Procurement Executives (SPEs) of the Military Departments, the Director of the Defense Advanced Research Projects Agency (“DARPA”), and the Director of the Missile Defense Agency (MDA).
  • Above $500 million, to the SPEs of the Military Departments, and the Directors of DARPA and the MDA. This authority was otherwise restricted to the Under Secretaries for Acquisition & Sustainment and Research & Engineering. Approval authority for OT prototype actions between $100 million and $500 million may now be further delegated by the SPE or Director.

In addition, in lieu of providing 30 days’ advance notice to congressional defense committees of OTAs above $500 million that are related to COVID-19, Section 13006 permits Under Secretary Lord or the Under Secretary of Defense for Research & Engineering to provide notice as soon as practicable after the OTA’s commencement.

Keep reading this article at: https://www.insidegovernmentcontracts.com/2020/04/other-transaction-authorities-given-greater-flexibility-to-foster-innovation-in-coronavirus-response/

The Contracting Education Academy at Georgia Tech has established a webpage where all contract-related developments related to the coronavirus (COVID-19) are summarized.  Find the page at: https://contractingacademy.gatech.edu/coronavirus-information-for-contracting-officers-and-contractors/

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