Transportation Systems Management and Operations (TSMO) Data Initiative

The Federal Highway Administration is soliciting a Firm-Fixed Price contract for the Transportation Systems Management and Operations (TSMO) Data Initiative, a research and development effort aimed at overcoming data-related barriers to deploying Artificial Intelligence in highway systems management. The initiative, led in partnership with the Intelligent Transportation System Joint Program Office, seeks to identify and prototype high-priority AI solutions that enhance the safety, efficiency, and resilience of transportation networks. The scope includes developing a prioritized list of AI use cases for TSMO, detailed descriptions of at least two representative implementations including AI model types and data requirements, an inventory of national data assets, and prototype algorithms or models addressing critical data challenges, leveraging technologies such as reinforcement learning, deep learning, computer vision, large language models, and predictive analytics. This is a non-personal services contract under FAR subpart 37.001, structured as a Statement of Objectives rather than a detailed statement of work, allowing offerors flexibility in approach while maintaining clear outcome-based expectations. The contract has an 18-month base period of performance, with an optional six-month extension, divided into six months for prioritizing use cases and data challenges and 12 months for prototyping. Proposals must be submitted in a two-phase process: Phase I requires only Technical Capability documentation, and only those recommended after Phase I evaluation proceed to Phase II, which includes a separate Technical Proposal (no cost information) and a Business Proposal. All submissions must adhere to strict formatting rules including Times New Roman or Arial font, 12-point minimum, one-inch margins, no columns, and must be in PDF or Excel format, not zipped, with email submissions limited to 25 MB and sent to specified DOT contacts with a required subject line. Mandatory experience includes five or more years of successfully executed TSMO data processing experience, and proposals rated “Low Confidence” on Technical/Management will be disqualified. Award will be based on best value through a trade-off analysis in which non-price factors are significantly more important than price. Payment is tied to written acceptance by the Contracting Officer’s Representative and electronic submission via the DOT’s Delphi Envicoing portal authenticated through login.gov; proportional payments are permitted through milestone schedules but percentage-of-completion payments are prohibited. Contractors must comply with Section 508 ICT accessibility standards, ensure secure handling and delivery of sensitive data, follow Federal Travel Regulations for any authorized travel, and maintain consistent SAM.gov registration with their SF33 submissions. The contract includes standard clauses covering changes,