“To provide for certain requirements relating to cloud, data infrastructure, and foundation model procurement.”
No CRS summary available for this bill.
This section defines terms related to artificial intelligence (AI) procurement—including cloud provider, covered provider (i.e., cloud, data infrastructure, or foundation model providers with Department of Defense contracts totaling at least $50 million in any of the prior five fiscal years), data infrastructure provider, foundation model (i.e., AI model with at least 1 billion parameters using self-supervision or exhibiting high-risk performance capabilities), foundation model provider, and multi-cloud technology—and directs the Secretary of Defense to include contracting provisions with such providers that (1) require competitive awards to promote security, resiliency, and competition; (2) ensure exclusive government rights to government data; and (3) prioritize government intellectual property and data rights, security, interoperability, auditability, modular open systems, mitigation of barriers for small businesses and nontraditional contractors, and multi-cloud technology (unless infeasible or a national security risk). The section further directs the Chief Digital and Artificial Intelligence Officer to update the Defense Federal Acquisition Regulation Supplement to prohibit unauthorized disclosure or use of government-furnished data (including for training commercial products), require protection of such data on vendor systems per Department of Defense data principles, impose penalties for violations (e.g., fines, contract termination), and allow national security exemptions by component acquisition executives with notification. Finally, the section requires the Chairman of the Joint Chiefs of Staff, in coordination with the Under Secretary of Defense for Acquisition and Sustainment, to submit to the congressional defense committees by January 15, 2027, and annually thereafter for four years, a report assessing AI market competition, innovation, entry barriers, and market concentrations; listing exemptions; and providing legislative and administrative recommendations (with public publication required).