# USDOT Selects Derq for Texas-Virginia AI Tests

On October 22, 2026, the U.S. Department of Transportation selected Derq as one of three teams for Phase 1 of its Intersection Safety Systems initiative, which will develop and test AI-based systems to detect and mitigate intersection hazards at sites in Texas and Virginia. USDOT allocated $5.5 million collectively for Phase 1 and anticipates another $11.5 million for Phase 2, bringing anticipated program funding to $17 million. Derq’s individual award amount and details of any future solicitation have not been disclosed.

- **Funding:** The Phase 1 amount is shared among three selected teams; the anticipated Phase 2 funding is not yet a confirmed award to Derq or a published solicitation.
- The tests at Texas’s RELLIS Proving Grounds and Virginia Smart Roads indicate demand for AI-enabled traffic safety systems that can be developed and evaluated in real-world conditions.
- Companies offering intersection sensing, AI hazard detection, communications, or deployment capabilities can assess how their products and services align with the initiative’s prototype and testing needs; the signals provide no specific follow-on procurement timeline.

**Jurisdictions:** federal
**Industries:** Transportation, Information Technology
**Topics:** Artificial Intelligence
**Published:** October 23, 2026

### Government Entities
- U.S. Department of Transportation (USDOT)
- Texas Department of Transportation (TxDOT)
- Virginia Department of Transportation (VDOT)

### Vendors
- Derq (Awardee)

### Sources
- [Derq Awarded USDOT Contract to Demonstrate AI-Powered Intersection Safety System ](https://www.businesswire.com/news/home/20261022539184/en/Derq-Awarded-USDOT-Contract-to-Demonstrate-AI-Powered-Intersection-Safety-System) - Business Wire
- [Derq Wins U.S. Department Of Transportation Contract To Test AI-Powered Intersection Safety Technology](https://pulse2.com/derq-wins-u-s-department-of-transportation-contract-to-test-ai-powered-intersection-safety-technology) - Pulse 2.0