Sec. 810. Ensuring competition in artificial intelligence procurement
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In this section: The terms artificial intelligence and AI have the meaning given the term artificial intelligence in section 5002 of the National Artificial Intelligence Initiative Act of 2020 ( 15 U.S.C. 9401 ). The term cloud computing has the meaning given the term in Special Publication 800–145 of the National Institute of Standards and Technology, or any successor document. The term cloud provider means any company engaged in the provision, sale, or licensing of cloud computing to customers, including individuals and businesses.
The term covered provider means any cloud provider or foundation model provider that has entered into contracts with the Department of Defense totaling at least $50,000,000 in any of the 5 previous fiscal years. The term dual-use foundation model means an artificial intelligence model that— is trained on broad data; generally uses self-supervision; contains at least 1,000,000,000 parameters; and is applicable across a wide range of contexts; or exhibits, or could be easily modified to exhibit, high levels of performance at tasks that pose a serious risk to security, national economic security, national public health, or safety.
The term foundation model developer means any company engaged in the provision, sale, or licensing of foundation models to customers, including individuals and businesses. The term multi-cloud technology means architecture and services that allow for data, application, and program portability, usability, and interoperability between infrastructure, platforms, and hosted applications of multiple cloud providers and between public, private, and edge cloud environments in a manner that securely delivers operational and management consistency, comprehensive visibility, and resiliency.
The Secretary of Defense shall, in contracting provisions with cloud providers, promote security and competition in the procurement of cloud computing by requiring a competitive award process for each procurement of cloud computing services. The competitive process should prioritize security and interoperability requirements. Multi-cloud technology should be considered where feasible and advantageous. The Secretary of Defense shall update or promulgate provisions of the Defense Federal Acquisition Regulations Supplement to ensure that— Government-furnished data, provided for purposes of development and operation of AI products and services to the Department of Defense, is not disclosed or used without proper authorization by the Department of Defense;
Government-furnished data stored on vendor systems, provided for purposes of development and operation of AI products and services to the Department of Defense, is appropriately protected from other data on such systems; violation of these provisions shall be subject to specific penalties, including fines and contract termination; and component acquisition executives may issue exemptions upon— determining that issuing an exemption is not inconsistent with national security; and notifying the Chief Digital and Artificial Intelligence Officer of the specific provisions exempted, the vendor and program being issued the exemption, and the justification for the exemption.
Not later than January 15, 2026, and annually thereafter for four years, the Chairman of the Joint Chiefs of Staff, in coordination with the Under Secretary of Defense for Acquisition and Sustainment, shall submit to the congressional defense committees a report assessing the competition, innovation, barriers to entry, and concentrations of market power or market share in the AI space for each period covered by the report. The report shall also include recommendations of appropriate legislative and administrative action.
The Secretary of Defense, acting through the Assistant to the Secretary of Defense for Public Affairs, shall ensure that the report is made available to the public by— posting a publicly releasable version of the report on a website of the Department of Defense; and upon request, transmitting the report by other means, as long as such transmission is at no cost to the Department.
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Sec. 810
Ensuring competition in artificial intelligence procurement
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