Contractor alleges Army inappropriately used AI to make $450M contract award
Joe Bullinger/U.S. Navy
ByChristian Robles,
Technology Reporter, Nextgov/FCW
August 5, 2026 11:34 AM ET
An industry lawyer anticipates more bid protests will likely allege that agencies misused AI in the procurement process but that could be hard to prove if agencies don’t report their use of AI as “high-impact.”
Trax International Corporation is asking the U.S. Court of Federal Claims to direct the Army to reevaluate bids for mission support services at White Sands Missile Range — in part because the department allegedly misused AI to determine the contract award.
The Army used AI that hallucinated multiple times, creating the false impression that Trax’s bid was weaker than rival Southwest Range Services’ successful bid of roughly $450 million, a complaint filed in late July alleged. The filing comes after the Government Accountability Office denied Trax’s bid protest in May.
But the lawsuit claims that...
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