{"id":48953,"topic":"ai","source":"Bloomberg Law News","title":"AI Hallucinations Tainted Army’s Missile Test Award, Suit Says - Bloomberg Law News","url":"https://news.bloomberglaw.com/federal-contracting/ai-hallucinations-tainted-armys-missile-test-award-suit-says","url_hash":"ee35bc41e4c3c7308004add3199b11c83757088b","author":"","summary":"AI Hallucinations Tainted Army’s Missile Test Award, Suit Says Bloomberg Law News","content":"The US Army improperly relied on an artificial intelligence tool to review bids before awarding Southwest Range Services LLC a $449 million US Army contract for mission services at New Mexicoâs White Sands Missile Range, a rival bidder says.\nThe US Court of Federal Claims should force the Army to make a new award decision because hallucinations from the Armyâs AI tool erroneously created a false appearance that Southwest Rangeâs bid was technically superior and Trax International Corp.'s was weaker, the company said in a complaint made pubic Tuesday.\nSouthwest Range is a joint venture between Systems Application & Technologies Inc., \nTrax, which submitted a $420 million bid, filed an unsuccessful protest at the Government Accountability Office. It then filed its court complaint under seal in May.\nThe record before the GAO doesnât explain whether Southwest Rangeâs technical strengths came from a member of the Armyâs source election evaluation board, or the Armyâs AI tool, Trax says. The court âdefers to agency judgments and discretion, not algorithms,â the complaint says.\nTrax also says the Army conceded that it assigned its bid a weakness that the record didnât support, but the Army didnât explain how the error occurred. The weakness seems to be a âclassic AI hallucination, with made-up referencesâ to Traxâs bid that Army evaluators didnât check, the complaint says.\nThis improperly assigned weakness calls into question other evaluation findings the record similarly canât support, Trax says.\nThe complaint further alleges that Southwest Range is ineligible for the contract because it lacks an adequate accounting system, and that the Army erred in concluding that Southwest wouldnât have an organizational conflict of interest if it won the award.\nThe Justice Department didnât immediately respond to a request for comment. Counsel for Southwest Range declined to comment.\nMcDermott Will & Schulte LLP represented Trax. Arnold & Porter Kaye Scholer LLP represent Southwest Range.\nThe case is TRAX Intâl Corp. v. United States, Fed. Cl., No. 26-cv-896, complaint 7/28/26.\nLearn more about Bloomberg Law or Log In to keep reading:\nSee Breaking News in Context\nBloomberg Law provides trusted coverage of current events enhanced with legal analysis.\nAlready a subscriber?\nLog in to keep reading or access research tools and resources.","image_url":"https://bwrite-static.bloombergindustry.com/dims4/default/c0f9aee/2147483647/crop/4000x1542+0+862/resize/960x370%3E/quality/90/?url=https%3A%2F%2Fbloomberg-bna-brightspot.s3.us-east-1.amazonaws.com%2F89%2Fed%2F9c40788341409605cd14fdb7f748%2Farmy-generic.jpg","lang":"en","published_at":"2026-07-29T13:48:00+00:00","fetched_at":"2026-07-29T14:15:05+00:00","status":"read","starred":0,"extract_state":"ok","summary_auto":"The US Army improperly relied on an artificial intelligence tool to review bids before awarding Southwest Range Services LLC a $449 million US Army contract for mission services at New Mexicoâs White Sands Missile Range, a rival bidder says. The US Court of Federal Claims should force the Army to make a new award decision because hallucinations from the Armyâs AI tool erroneously created a false appearance that Southwest Rangeâs bid was technically superior and Trax International Corp.'s was weaker, the company said in a complaint made pubic Tuesday.","cluster_id":null,"extract_retries":0,"extract_error":null,"contract_version":"news_item.v1","format_contract_version":"news_item_formats.v1","dedup_url":"https://news.bloomberglaw.com/federal-contracting/ai-hallucinations-tainted-armys-missile-test-award-suit-says","quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 2355 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":2355,"summary_length":556,"usable_text_length":2355,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":2355,"summary_length":556}},"news_item":{"id":48953,"canonical_url":"https://news.bloomberglaw.com/federal-contracting/ai-hallucinations-tainted-armys-missile-test-award-suit-says","source_url":"https://news.bloomberglaw.com/federal-contracting/ai-hallucinations-tainted-armys-missile-test-award-suit-says","title":"AI Hallucinations Tainted Army’s Missile Test Award, Suit Says - Bloomberg Law News","source_name":"Bloomberg Law News","author":null,"published_at":"2026-07-29T13:48:00+00:00","locale":"en","topic":"ai","tags":[],"rss_summary":"AI Hallucinations Tainted Army’s Missile Test Award, Suit Says Bloomberg Law News","full_text":"The US Army improperly relied on an artificial intelligence tool to review bids before awarding Southwest Range Services LLC a $449 million US Army contract for mission services at New Mexicoâs White Sands Missile Range, a rival bidder says.\nThe US Court of Federal Claims should force the Army to make a new award decision because hallucinations from the Armyâs AI tool erroneously created a false appearance that Southwest Rangeâs bid was technically superior and Trax International Corp.'s was weaker, the company said in a complaint made pubic Tuesday.\nSouthwest Range is a joint venture between Systems Application & Technologies Inc., \nTrax, which submitted a $420 million bid, filed an unsuccessful protest at the Government Accountability Office. It then filed its court complaint under seal in May.\nThe record before the GAO doesnât explain whether Southwest Rangeâs technical strengths came from a member of the Armyâs source election evaluation board, or the Armyâs AI tool, Trax says. The court âdefers to agency judgments and discretion, not algorithms,â the complaint says.\nTrax also says the Army conceded that it assigned its bid a weakness that the record didnât support, but the Army didnât explain how the error occurred. The weakness seems to be a âclassic AI hallucination, with made-up referencesâ to Traxâs bid that Army evaluators didnât check, the complaint says.\nThis improperly assigned weakness calls into question other evaluation findings the record similarly canât support, Trax says.\nThe complaint further alleges that Southwest Range is ineligible for the contract because it lacks an adequate accounting system, and that the Army erred in concluding that Southwest wouldnât have an organizational conflict of interest if it won the award.\nThe Justice Department didnât immediately respond to a request for comment. Counsel for Southwest Range declined to comment.\nMcDermott Will & Schulte LLP represented Trax. Arnold & Porter Kaye Scholer LLP represent Southwest Range.\nThe case is TRAX Intâl Corp. v. United States, Fed. Cl., No. 26-cv-896, complaint 7/28/26.\nLearn more about Bloomberg Law or Log In to keep reading:\nSee Breaking News in Context\nBloomberg Law provides trusted coverage of current events enhanced with legal analysis.\nAlready a subscriber?\nLog in to keep reading or access research tools and resources.","excerpt":"The US Army improperly relied on an artificial intelligence tool to review bids before awarding Southwest Range Services LLC a $449 million US Army contract for mission services at New Mexicoâs White Sands Missile Range, a rival bidder says. The US Court of Federal Claims should force the Army to make a new award decision because hallucinations from the Armyâs AI tool erroneously created a false appearance that Southwest Rangeâs bid was technically superior and Trax International Corp.'s was weaker, the company said in a complaint made pubic Tuesday.","extraction":{"state":"ok","confidence":0.9,"error":null,"explanation":"High confidence: full text extraction produced 2355 characters.","diagnostics_url":"/api/diagnose?url=https%3A//news.bloomberglaw.com/federal-contracting/ai-hallucinations-tainted-armys-missile-test-award-suit-says","quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 2355 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":2355,"summary_length":556,"usable_text_length":2355,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":2355,"summary_length":556}}},"display_formats":["compact","card","full","digest_section","json"]},"daily_stack_record":{"title":"AI Hallucinations Tainted Army’s Missile Test Award, Suit Says - Bloomberg Law News","url":"https://news.bloomberglaw.com/federal-contracting/ai-hallucinations-tainted-armys-missile-test-award-suit-says","summary":"The US Army improperly relied on an artificial intelligence tool to review bids before awarding Southwest Range Services LLC a $449 million US Army contract for mission services at New Mexicoâs White Sands Missile Range, a rival bidder says. The US Court of Federal Claims should force the Army to make a new award decision because hallucinations from the Armyâs AI tool erroneously created a false appearance that Southwest Rangeâs bid was technically superior and Trax International Corp.'s was weaker, the company said in a complaint made pubic Tuesday.","source":"Bloomberg Law News","date":"2026-07-29T13:48:00+00:00","content":"The US Army improperly relied on an artificial intelligence tool to review bids before awarding Southwest Range Services LLC a $449 million US Army contract for mission services at New Mexicoâs White Sands Missile Range, a rival bidder says.\nThe US Court of Federal Claims should force the Army to make a new award decision because hallucinations from the Armyâs AI tool erroneously created a false appearance that Southwest Rangeâs bid was technically superior and Trax International Corp.'s was weaker, the company said in a complaint made pubic Tuesday.\nSouthwest Range is a joint venture between Systems Application & Technologies Inc., \nTrax, which submitted a $420 million bid, filed an unsuccessful protest at the Government Accountability Office. It then filed its court complaint under seal in May.\nThe record before the GAO doesnât explain whether Southwest Rangeâs technical strengths came from a member of the Armyâs source election evaluation board, or the Armyâs AI tool, Trax says. The court âdefers to agency judgments and discretion, not algorithms,â the complaint says.\nTrax also says the Army conceded that it assigned its bid a weakness that the record didnât support, but the Army didnât explain how the error occurred. The weakness seems to be a âclassic AI hallucination, with made-up referencesâ to Traxâs bid that Army evaluators didnât check, the complaint says.\nThis improperly assigned weakness calls into question other evaluation findings the record similarly canât support, Trax says.\nThe complaint further alleges that Southwest Range is ineligible for the contract because it lacks an adequate accounting system, and that the Army erred in concluding that Southwest wouldnât have an organizational conflict of interest if it won the award.\nThe Justice Department didnât immediately respond to a request for comment. Counsel for Southwest Range declined to comment.\nMcDermott Will & Schulte LLP represented Trax. Arnold & Porter Kaye Scholer LLP represent Southwest Range.\nThe case is TRAX Intâl Corp. v. United States, Fed. Cl., No. 26-cv-896, complaint 7/28/26.\nLearn more about Bloomberg Law or Log In to keep reading:\nSee Breaking News in Context\nBloomberg Law provides trusted coverage of current events enhanced with legal analysis.\nAlready a subscriber?\nLog in to keep reading or access research tools and resources.","confidence":0.9,"diagnostics_url":"/api/diagnose?url=https%3A//news.bloomberglaw.com/federal-contracting/ai-hallucinations-tainted-armys-missile-test-award-suit-says","quality_bucket":"high","failure_kind":"none","retryable":false,"quality_reason":"High confidence: full text extraction produced 2355 characters.","quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 2355 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":2355,"summary_length":556,"usable_text_length":2355,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":2355,"summary_length":556}},"tags":[]},"fallback_formats":["markdown","json","html"],"actions":{"read":"/item/48953","export_markdown":"/api/items/48953/export?format=markdown","export_json":"/api/items/48953/export?format=json","diagnose":"/api/diagnose?url=https%3A//news.bloomberglaw.com/federal-contracting/ai-hallucinations-tainted-armys-missile-test-award-suit-says"},"formats":{"full":{"id":48953,"title":"AI Hallucinations Tainted Army’s Missile Test Award, Suit Says - Bloomberg Law News","url":"https://news.bloomberglaw.com/federal-contracting/ai-hallucinations-tainted-armys-missile-test-award-suit-says","source":"Bloomberg Law News","author":null,"published_at":"2026-07-29T13:48:00+00:00","locale":"en","topic":"ai","tags":[],"excerpt":"The US Army improperly relied on an artificial intelligence tool to review bids before awarding Southwest Range Services LLC a $449 million US Army contract for mission services at New Mexicoâs White Sands Missile Range, a rival bidder says. The US Court of Federal Claims should force the Army to make a new award decision because hallucinations from the Armyâs AI tool erroneously created a false appearance that Southwest Rangeâs bid was technically superior and Trax International Corp.'s was weaker, the company said in a complaint made pubic Tuesday.","full_text":"The US Army improperly relied on an artificial intelligence tool to review bids before awarding Southwest Range Services LLC a $449 million US Army contract for mission services at New Mexicoâs White Sands Missile Range, a rival bidder says.\nThe US Court of Federal Claims should force the Army to make a new award decision because hallucinations from the Armyâs AI tool erroneously created a false appearance that Southwest Rangeâs bid was technically superior and Trax International Corp.'s was weaker, the company said in a complaint made pubic Tuesday.\nSouthwest Range is a joint venture between Systems Application & Technologies Inc., \nTrax, which submitted a $420 million bid, filed an unsuccessful protest at the Government Accountability Office. It then filed its court complaint under seal in May.\nThe record before the GAO doesnât explain whether Southwest Rangeâs technical strengths came from a member of the Armyâs source election evaluation board, or the Armyâs AI tool, Trax says. The court âdefers to agency judgments and discretion, not algorithms,â the complaint says.\nTrax also says the Army conceded that it assigned its bid a weakness that the record didnât support, but the Army didnât explain how the error occurred. The weakness seems to be a âclassic AI hallucination, with made-up referencesâ to Traxâs bid that Army evaluators didnât check, the complaint says.\nThis improperly assigned weakness calls into question other evaluation findings the record similarly canât support, Trax says.\nThe complaint further alleges that Southwest Range is ineligible for the contract because it lacks an adequate accounting system, and that the Army erred in concluding that Southwest wouldnât have an organizational conflict of interest if it won the award.\nThe Justice Department didnât immediately respond to a request for comment. Counsel for Southwest Range declined to comment.\nMcDermott Will & Schulte LLP represented Trax. Arnold & Porter Kaye Scholer LLP represent Southwest Range.\nThe case is TRAX Intâl Corp. v. United States, Fed. Cl., No. 26-cv-896, complaint 7/28/26.\nLearn more about Bloomberg Law or Log In to keep reading:\nSee Breaking News in Context\nBloomberg Law provides trusted coverage of current events enhanced with legal analysis.\nAlready a subscriber?\nLog in to keep reading or access research tools and resources.","reading_time_min":2,"extraction":{"state":"ok","confidence":0.9,"error":null,"explanation":"High confidence: full text extraction produced 2355 characters.","diagnostics_url":"/api/diagnose?url=https%3A//news.bloomberglaw.com/federal-contracting/ai-hallucinations-tainted-armys-missile-test-award-suit-says","quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 2355 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":2355,"summary_length":556,"usable_text_length":2355,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":2355,"summary_length":556}}},"quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 2355 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":2355,"summary_length":556,"usable_text_length":2355,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":2355,"summary_length":556}},"actions":{"read":"/item/48953","export_markdown":"/api/items/48953/export?format=markdown","export_json":"/api/items/48953/export?format=json","diagnose":"/api/diagnose?url=https%3A//news.bloomberglaw.com/federal-contracting/ai-hallucinations-tainted-armys-missile-test-award-suit-says"}},"digest":{"id":48953,"title":"AI Hallucinations Tainted Army’s Missile Test Award, Suit Says - Bloomberg Law News","url":"https://news.bloomberglaw.com/federal-contracting/ai-hallucinations-tainted-armys-missile-test-award-suit-says","source":"Bloomberg Law News","topic":"ai","published_at":"2026-07-29T13:48:00+00:00","excerpt":"The US Army improperly relied on an artificial intelligence tool to review bids before awarding Southwest Range Services LLC a $449 million US Army contract for mission services at New Mexicoâs White Sands Missile Range, a rival bidder says. The US Court of Federal Claims should…","quality_bucket":"high","quality_reason":"High confidence: full text extraction produced 2355 characters.","reading_time_min":2,"cluster_id":null},"card":{"display_title":"AI Hallucinations Tainted Army’s Missile Test Award, Suit Says - Bloomberg Law News","subtitle":"Bloomberg Law News · 2026-07-29","summary":"The US Army improperly relied on an artificial intelligence tool to review bids before awarding Southwest Range Services LLC a $449 million US Army contract for mission services at New Mexicoâs White Sands Missile…","badges":["quality:high"],"links":{"read":"/item/48953","original":"https://news.bloomberglaw.com/federal-contracting/ai-hallucinations-tainted-armys-missile-test-award-suit-says","diagnose":"/api/diagnose?url=https%3A//news.bloomberglaw.com/federal-contracting/ai-hallucinations-tainted-armys-missile-test-award-suit-says"},"quality_warning":null},"export":{"title":"AI Hallucinations Tainted Army’s Missile Test Award, Suit Says - Bloomberg Law News","url":"https://news.bloomberglaw.com/federal-contracting/ai-hallucinations-tainted-armys-missile-test-award-suit-says","summary":"The US Army improperly relied on an artificial intelligence tool to review bids before awarding Southwest Range Services LLC a $449 million US Army contract for mission services at New Mexicoâs White Sands Missile Range, a rival bidder says. The US Court of Federal Claims should force the Army to make a new award decision because hallucinations from the Armyâs AI tool erroneously created a false appearance that Southwest Rangeâs bid was technically superior and Trax International Corp.'s was weaker, the company said in a complaint made pubic Tuesday.","source":"Bloomberg Law News","date":"2026-07-29T13:48:00+00:00","content":"The US Army improperly relied on an artificial intelligence tool to review bids before awarding Southwest Range Services LLC a $449 million US Army contract for mission services at New Mexicoâs White Sands Missile Range, a rival bidder says.\nThe US Court of Federal Claims should force the Army to make a new award decision because hallucinations from the Armyâs AI tool erroneously created a false appearance that Southwest Rangeâs bid was technically superior and Trax International Corp.'s was weaker, the company said in a complaint made pubic Tuesday.\nSouthwest Range is a joint venture between Systems Application & Technologies Inc., \nTrax, which submitted a $420 million bid, filed an unsuccessful protest at the Government Accountability Office. It then filed its court complaint under seal in May.\nThe record before the GAO doesnât explain whether Southwest Rangeâs technical strengths came from a member of the Armyâs source election evaluation board, or the Armyâs AI tool, Trax says. The court âdefers to agency judgments and discretion, not algorithms,â the complaint says.\nTrax also says the Army conceded that it assigned its bid a weakness that the record didnât support, but the Army didnât explain how the error occurred. The weakness seems to be a âclassic AI hallucination, with made-up referencesâ to Traxâs bid that Army evaluators didnât check, the complaint says.\nThis improperly assigned weakness calls into question other evaluation findings the record similarly canât support, Trax says.\nThe complaint further alleges that Southwest Range is ineligible for the contract because it lacks an adequate accounting system, and that the Army erred in concluding that Southwest wouldnât have an organizational conflict of interest if it won the award.\nThe Justice Department didnât immediately respond to a request for comment. Counsel for Southwest Range declined to comment.\nMcDermott Will & Schulte LLP represented Trax. Arnold & Porter Kaye Scholer LLP represent Southwest Range.\nThe case is TRAX Intâl Corp. v. United States, Fed. Cl., No. 26-cv-896, complaint 7/28/26.\nLearn more about Bloomberg Law or Log In to keep reading:\nSee Breaking News in Context\nBloomberg Law provides trusted coverage of current events enhanced with legal analysis.\nAlready a subscriber?\nLog in to keep reading or access research tools and resources.","confidence":0.9,"diagnostics_url":"/api/diagnose?url=https%3A//news.bloomberglaw.com/federal-contracting/ai-hallucinations-tainted-armys-missile-test-award-suit-says","quality_bucket":"high","failure_kind":"none","retryable":false,"quality_reason":"High confidence: full text extraction produced 2355 characters.","quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 2355 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":2355,"summary_length":556,"usable_text_length":2355,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":2355,"summary_length":556}},"tags":[],"format_contract_version":"news_item_formats.v1"}}}