Sec. 876. Protecting AI and cloud competition in defense contracts
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The Secretary of Defense shall, when entering into a contract for cloud computing, data infrastructure, and artificial intelligence capabilities— promote security, resiliency, and competition in the procurement of such capabilities by requiring the use of competitive procedures under section 3012 of title 10, United States Code; ensure that the Government retains exclusive access to and use of all Government-furnished data; ensure that such competitive procedures— prioritize appropriate Government roles in intellectual property, data rights, security, interoperability, and auditability; incorporate modular open systems approaches (as defined in section 4401 of title 10, United States Code (as amended by section 1833 of this Act)) and technical boundaries; use best practices in streamlined procurement as set forth in the Federal Acquisition Streamlining Act of 1994 ( Public Law 103–355 ) and section 808 of the National Defense Authorization Act for Fiscal Year 2021 (Public Law 116– 283; 10 U.S.C. 4001 note); encourages participation by small business concerns (as defined under section 3 of the Small Business Act ( 15 U.S.C. 632 )) and nontraditional defense contractors (as defined in section 3014 of title 10, United States Code); uses all appropriate acquisition authorities, including authorities under sections 4021 and 4022 of title 10, United States Code, and commercial solutions opening contracts entered into pursuant to section 3458 of title 10, United States Code.
The Secretary of Defense, acting through the Director of the Chief Digital and Artificial Intelligence Office of the Department of Defense, shall revise the Department of Defense Supplement to the Federal Acquisition Regulation to ensure that— Government-furnished data provided for the development or operation of AI capabilities may not be used by a covered provider to train or improve commercial products without express written authorization from the Secretary of Defense; such Government-furnished data, when stored on covered provider systems, is protected and treated in accordance with covered data principles, or, to the maximum extent practicable, under commercial AI terms protective of Government interests; a service acquisition executive (as defined in section 101 of title 10, United States Code) may waive the requirements of this subsection only if— such waiver is determined to be necessary for national security; and the Director is notified of the specific waiver, the covered provider and a description and the value of the contract to which the waiver applies, the data subject to the waiver, and the justification for such waiver.
Not later than January 15, 2027, 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 on— competition and innovation among providers of AI technologies or cloud computing capabilities for the Department of Defense; barriers to the award of a contract with the Department of Defense faced by providers of commercial AI technologies and emerging technology companies; and legislative and administrative recommendations to enhance innovation, competition, and secure data practices in Department of Defense AI and cloud acquisitions.
The Secretary of Defense 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. 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 an entity engaged in the provision, sale, or licensing of cloud computing. The term covered data principles means— DoD data decrees as described in the memorandum of the Department of Defense titled Creating Data Advantage issued May 5, 2021; and Creating Data Advantage (Open DAGIR) principles, as defined by the Director of the Chief Digital and Artificial Intelligence Office The term covered provider means any cloud provider, data infrastructure provider, or artificial provider that has entered into one or more contracts with an aggregate total value of greater than or equal to $50,000,000 during the period of five fiscal years preceding the fiscal year in which a contract described in subsection
(a)is entered into. The term data infrastructure means the underlying computer, network, and software systems that enable the collection, storage, processing, and analysis of data, including the ability to record, transmit, transform, categorize, integrate, and otherwise process data generated by digital data systems.
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- Pub. L. 103-355
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Sec. 876
Protecting AI and cloud competition in defense contracts
Pub. L.Pub. L. 103-355
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