About $1.49M to CTG Federal — the Defense Advanced Research Projects Agency procuring AI compute capability over eighty-six days, buying capacity rather than results
A delivery order awarded by the Defense Advanced Research Projects Agency, described as artificial intelligence compute capability. Obligations are about $1,489,831 over a period from 2024-09-25 to 2024-12-20, eighty-six days. What is bought is the capacity to compute rather than a research result.
Contract key facts
- RecipientCTG FEDERAL, LLC
- Contract value$1,489,831 (≈$1.5M)
- Awarding agencyDepartment of Defense
- Awarding sub-agencyDefense Advanced Research Projects Agency
- Award typeDELIVERY ORDER
- Period of performance2024-09-25 〜 2024-12-20
- Contract ID (PIID)HR001124F0451
Contract scope (original)
ARTIFICIAL INTELLIGENCE COMPUTE CAPABILITY
Key points
- The description reads artificial intelligence compute capability, so what is bought is capacity rather than a result or a product.
- The period runs from 2024-09-25 to 2024-12-20, eighty-six days.
- Across the 222 federal spending records this site holds as of 2026-09-01, 53 run for less than a year, about a quarter of the whole.
- Beginning on 25 September coincides with the turn of the United States federal fiscal year.
- The 207 Department of Defense contracts this site holds as of 2026-09-01 have a median of 10.7 years, a minimum of 1.4 and none under a year.
- What is bought is neither a research result nor a product but the computing capacity that AI work requires.
1What is bought is the capacity to compute
What the description names is neither a research result nor a manufactured product but the capacity to compute. Developing and running AI takes a great deal of arithmetic, so that capacity itself becomes a thing to procure.
To an agency advancing research, computing resource is a tool. Holding equipment in-house or procuring it from outside is a choice, and this record is the latter. At what scale, and in what form, the resource is used is not written in the record.
2A period of eighty-six days
The period runs from 2024-09-25 to 2024-12-20, eighty-six days. Across the 222 federal spending records this site holds as of 2026-09-01, 53 run for less than a year, about a quarter of the whole.
Beginning on 25 September coincides with the United States federal fiscal year ending at the close of that month. It starts across the boundary and ends near the close of the first quarter of the next year. Things whose nature is to secure a quantity when it is needed, as computing resource is, tend to be cut into short periods.
3The distribution differs from equipment procurement
Across the 222 federal spending records this site holds as of 2026-09-01, the median period is 2.00 years, the shortest twenty days and the longest 6.88 years. Across the 207 Department of Defense contracts this site holds as of 2026-09-01, the median is 10.7 years, the shortest 1.4 years, and not one runs under a year.
Building ships and aircraft carries a long sequence from design through trials. Securing labour, services or resource needs only the period required. Inside the same frame of federal procurement sit two layers of entirely different character.
4Buying a result, or buying a capacity
What this contract procures is of a different kind from the other research awards.
Developing and running AI takes a great deal of computation, so that capacity itself becomes an object of procurement. For an agency carrying out research, compute is a tool, and whether to hold facilities or procure from outside is a choice; this record is the latter. Resources secured in the quantity needed when needed tend to be bounded by short periods.
Why it matters
Whether to hold computing resource in-house or procure it is the same choice for a research agency as for a company. Procured, it can be secured for exactly the period needed, while continuity is reopened with every contract. Public data shows that choice appearing as short awards.
FAQ
What is being bought?
Why is the period short?
How does this differ from equipment contracts?
Sources (primary)
This article is an independent organization based on the U.S. official spending data below. Verify the exact, latest details with the official source.
- USAspending (award details)
- Contract ID (PIID):HR001124F0451