Bipartisan Bill Seeks to Boost Competition in Pentagon’s AI and Cloud Contracts

A bipartisan group of lawmakers, including Sens. Elizabeth Warren (D-Mass.) and Eric Schmitt (R-Mo.), has introduced new legislation aimed at fostering greater competition in the Pentagon’s cloud computing and artificial intelligence (AI) contract sectors. The proposed bill, titled the Protecting AI and Cloud Competition in Defense Act, seeks to curb the dominance of large tech companies and ensure a more competitive environment for these critical defense sectors.

According to a press release from Warren’s office, the bill is designed to “limit Big Tech monopolies from elbowing out competitors in the AI and cloud computing markets,” per the Washington Post. Both Warren and Schmitt, members of the Senate Armed Services Committee, have expressed concerns over the current reliance on a small number of tech giants for these essential services.

Warren emphasized the risks of this over-reliance, stating, “Right now, all of our eggs are in one giant Silicon Valley basket. That doesn’t only stifle innovation, but it’s more expensive and it seriously increases our security risks.” She went on to add, “Our new bill will make sure that as the Department of Defense keeps expanding its use of AI and cloud computing tools, it’s making good deals that will keep our information secure and our government resilient,” as reported by the Washington Post.

Under the provisions of the Protecting AI and Cloud Competition in Defense Act, the Pentagon would be required to follow a competitive award process for every contract involving cloud computing, data infrastructure, and AI solutions. The bill also mandates that the government maintain exclusive access to its data when contracting with vendors that have received contracts worth $50 million or more from the Pentagon in the past five years.

Additionally, the bill lays out specific requirements for contracting provisions, including prioritizing intellectual property and data rights, ensuring security and interoperability, and promoting the use of modular open systems. The legislation also advocates for multi-cloud technology where it is deemed feasible and beneficial, according to the Washington Post.

A key aspect of the bill focuses on safeguarding data used for AI development. The legislation directs the Pentagon’s Chief Digital and AI Office (CDAO) to implement measures to protect government-furnished data from unauthorized use. The bill stresses that data provided for AI product development must be properly secured and shielded from other data stored on vendor systems. It also calls for adherence to specific Department of Defense data protection standards.

Penalties, including fines and contract termination, would be imposed for any violations of the bill’s provisions, per the Washington Post.

Source: Washington Post