▾ G11 Media Network: | ChannelCity | ImpresaCity | SecurityOpenLab | Italian Channel Awards | Italian Project Awards | Italian Security Awards | ...
InnovationOpenLab

CDAO Awards Red Cell Partners $100M Agreement to Pilot Shared Savings

Red Cell Partners announces a one-year agreement with the Department of War’s Chief Digital and Artificial Intelligence Office (CDAO) with a ceiling of up to $100 million. The agreement pilots share...

Immagine

MCLEAN, Va.: Red Cell Partners announces a one-year agreement with the Department of War’s Chief Digital and Artificial Intelligence Office (CDAO) with a ceiling of up to $100 million. The agreement pilots shared savings, a contracting framework in which vendors are paid only for the costs they eliminate and the outcomes they deliver.

For nearly two years, Red Cell worked with CDAO and the Navy to define how the DoW could significantly reduce costs by improving efficiency through agentic AI. This agreement pilots a shared savings framework in which Red Cell covers all upfront costs and is paid a percentage of the savings it generates. If outcomes are not met and savings are not achieved, Red Cell receives nothing. Similar contracting models have already generated $19.3 billion in federal energy savings and returned $2.5 billion to Medicare in a single year.

Structured as an Other Transaction Authority, the agreement is designed to help the DoW to quickly partner with non-traditional firms. It allows any agency across the entire DoW to access shared savings contracting for AI services and agentic workflows. Pilot services will be provided by companies within the Red Cell portfolio.

What this means:

  • The department pays for performance, not promises. A contract model that pays only for verified results aligns vendor incentives directly with mission outcomes-vendors earn what they deliver, nothing more.
  • Results prevail over incumbency. Sole-source incumbents who have held the same contracts for a decade get replaced by competitors who deliver results, not by being too embedded to displace.
  • Funding is prioritized for the warfighter. Every dollar recovered through shared savings is a dollar available for munitions, platforms and readiness-without requiring a new appropriation or a budget fight.

The agreement is geared toward empowering the department to save on existing contracts and paying for outcomes rather than effort.

Read more about Red Cell's perspective on fixing defense contracting and on shared savings and aligning incentives.

About Red Cell Partners

Red Cell Partners is a venture studio building rapidly scalable technology-led companies that are bringing revolutionary advancements to market in healthcare, cyber, and national security. United by a shared sense of duty and deep belief in the power of innovation, Red Cell is developing powerful tools and solutions to address our Nation’s most pressing problems. Visit us at redcellpartners.com and follow us on social media (LinkedIn, X, Instagram).

Fonte: Business Wire

If you liked this article and want to stay up to date with news from InnovationOpenLab.com subscribe to ours Free newsletter.

Related news

Last News

RSA at Cybertech Europe 2024

Alaa Abdul Nabi, Vice President, Sales International at RSA presents the innovations the vendor brings to Cybertech as part of a passwordless vision for…

Italian Security Awards 2024: G11 Media honours the best of Italian cybersecurity

G11 Media's SecurityOpenLab magazine rewards excellence in cybersecurity: the best vendors based on user votes

How Austria is making its AI ecosystem grow

Always keeping an European perspective, Austria has developed a thriving AI ecosystem that now can attract talents and companies from other countries

Sparkle and Telsy test Quantum Key Distribution in practice

Successfully completing a Proof of Concept implementation in Athens, the two Italian companies prove that QKD can be easily implemented also in pre-existing…

Most read

Sonos Welcomes Beam Ultra and Sonos Ace Ultra to its System

Sonos (Nasdaq: SONO) today introduced Sonos Beam Ultra and Sonos Ace Ultra, expanding its home theater and personal listening portfolios alongside the…

Nebius to participate in upcoming investor conferences

Nebius Group N.V. (“Nebius Group” or the “Company”; Nasdaq: NBIS), the AI cloud company, today announced that members of its management team will take…

Ciena Reports Fiscal Third Quarter 2026 Financial Results

Ciena® Corporation (NYSE: CIEN) today announced financial results for its fiscal third quarter ended August 1, 2026. "Today’s outstanding financial performance…

JFrog Introduces Zero-Touch Remediation to its Self-Healing Software Supply…

$FROG #AI--swampUP 2026 — JFrog Ltd. (Nasdaq: FROG), creators of the JFrog Software Supply Chain Platform, the system of record for trusted software artifacts,…

Newsletter signup

Join our mailing list to get weekly updates delivered to your inbox.

Sign me up!