Transportation Systems Management and Operations (TSMO) Data Initiative

The Federal Highway Administration seeks a Firm-Fixed Price contract to develop artificial intelligence solutions addressing data-related challenges in Transportation Systems Management and Operations (TSMO), with Phase I proposals due August 3, 2026 at 9:00 AM ET and questions due July 20, 2026. This is a full and open competition with no set-aside.

Work is performed at the contractor's facilities. The base period is 18 months with an optional 6-month extension, divided into a 6-month phase for prioritizing use cases and data challenges followed by a 12-month prototyping phase. The estimated contract value for the base period is $750 thousand, with government award targeted for the first quarter of fiscal year 2027. NAICS code is 541715 (Research and Development in Physical, Engineering, and Life Sciences), and PSC code is AS12 (Transportation R&D Services; Surface Transportation, Public Transit, and Rail; Applied Research).

Offerors must demonstrate five or more years of TSMO data processing experience, which may be satisfied in whole or in part through proposed subcontractors; the requirement need not be met through a single continuous five-year period. The contractor must identify highest-priority data-related challenges limiting AI use in TSMO for at least two use cases and develop at least two prototype solutions addressing data gaps. All ICT deliverables must comply with Section 508 accessibility standards. Educational institution subcontractors are subject to TAR 1252.242-70 rather than TAR 1252.242-72. The government retains unlimited rights only to software first produced under the contract; pre-existing, commercial, or privately developed software is provided in accordance with FAR 52.227-14(g)/52.227-19 with restricted rights or applicable commercial license terms.

Evaluation applies best-value criteria with non-price factors deemed significantly more important than price, assessing technical capability and understanding, corporate experience, technical approach, management approach, and past performance. Phase II submission dates will be provided following Phase I evaluation results.