[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1775 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 1775
To provide for certain requirements relating to cloud, data
infrastructure, and foundation model procurement.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 15, 2025
Ms. Warren (for herself and Mr. Schmitt) introduced the following bill;
which was read twice and referred to the Committee on Armed Services
_______________________________________________________________________
A BILL
To provide for certain requirements relating to cloud, data
infrastructure, and foundation model procurement.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protecting AI and Cloud Competition
in Defense Act of 2025''.
SEC. 2. ENSURING COMPETITION IN ARTIFICIAL INTELLIGENCE PROCUREMENT.
(a) Definitions.--In this section:
(1) Artificial intelligence; ai.--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).
(2) Cloud computing.--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.
(3) Cloud provider.--The term ``cloud provider'' means any
company engaged in the provision, sale, or licensing of cloud
computing to customers, including individuals and businesses.
(4) Congressional defense committees.--The term
``congressional defense committees'' has the meaning given the
term in section 101(a) of title 10, United States Code.
(5) Covered provider.--The term ``covered provider'' means
any cloud provider, data infrastructure 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.
(6) Data infrastructure.--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.
(7) Data infrastructure provider.--The term ``data
infrastructure provider'' means any company engaged in the
provision, sale, or licensing of data infrastructure to
customers, including individuals and businesses.
(8) Foundation model.--The term ``foundation model'' means
an artificial intelligence model that--
(A)(i) generally uses self-supervision;
(ii) contains at least 1,000,000,000 parameters;
and
(iii) is applicable across a wide range of
contexts; or
(B) 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.
(9) Foundation model provider.--The term ``foundation model
provider'' means any company engaged in the provision, sale, or
licensing of foundation models to customers, including
individuals and businesses.
(10) Multi-cloud technology.--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.
(b) Cloud, Data Infrastructure, and Foundation Model Procurement
Requirements.--The Secretary of Defense shall, in contracting
provisions with cloud providers, foundation model providers, and data
infrastructure providers--
(1) promote security, resiliency, and competition in the
procurement of such solutions by requiring a competitive award
process for each procurement of cloud computing, data
infrastructure, or foundation model solutions;
(2) ensure that the Government maintains exclusive rights
to access and use of all Government data; and
(3) ensure that the competitive process--
(A) prioritizes the appropriate role for the
Government with respect to intellectual property and
data rights and security, interoperability, and
auditability requirements;
(B) includes modular open systems approaches and
appropriate work allocation and technical boundaries;
(C) mitigates barriers to entry faced by small
businesses and nontraditional contractors; and
(D) prioritizes multi-cloud technology unless doing
so is infeasible or presents a substantial danger to
national security.
(c) Data Training and Use Protection.--The Secretary of Defense
shall direct the Chief Digital and Artificial Intelligence Office to
update or promulgate provisions of the Defense Federal Acquisition
Regulation Supplement (DFARS) to ensure that--
(1) 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, including that such
data cannot be used to train or improve the functionality of
commercial products offered by a covered provider without
express authorization by the Department of Defense;
(2) 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, and is
treated in accordance with Department of Defense data decrees
and Creating Data Advantage (Open DAGIR) principles;
(3) violation of these provisions shall be subject to
specific penalties, including fines and contract termination;
and
(4) component acquisition executives may issue exemptions
upon--
(A) determining that issuing an exemption is
necessary for national security; and
(B) 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.
(d) Reporting.--
(1) In general.--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 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 a list of
the exemptions granted under subsection (c)(4)(A), including
the date and purpose of the exemption. The report shall also
include recommendations of appropriate legislative and
administrative action.
(2) Publication.--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--
(A) posting a publicly releasable version of the
report on a website of the Department of Defense; and
(B) upon request, transmitting the report by other
means, as long as such transmission is at no cost to
the Department.
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