# GSA Proposes AI Data Safeguarding Clause

The General Services Administration (GSA) has proposed a new acquisition regulation clause (GSAR 552.239-7001) focused on safeguarding government data processed by Large Language Models (LLMs) and other AI systems in federal contracts. This draft clause mandates the use of AI technologies developed and operated by U.S.-incorporated entities, imposes role-based flow-down requirements on contractors and subcontractors, and clarifies intellectual property rights and liability protections. The proposal affects governmentwide contracts including Federal Supply Schedule and OASIS+ vehicles, with a public comment period open until August 3, 2026, and a listening session scheduled for July 14, 2026. Industry feedback will influence future rulemaking and acquisition modernization efforts. This regulatory initiative signals a significant shift in federal AI procurement strategy, emphasizing data protection, ethical AI principles, and U.S. jurisdictional control over AI technologies.

- **Why this matters:** Procurement professionals and contractors must prepare for new compliance requirements related to AI data safeguarding, intellectual property rights, and reporting obligations under federal contracts.
- The clause's emphasis on U.S.-incorporated AI providers may impact vendor eligibility and sourcing strategies for AI-related procurements.
- Organizations involved in governmentwide contracts such as the Federal Supply Schedule and OASIS+ should evaluate how these changes affect contract terms and subcontractor flow-down responsibilities.
- Contractors can leverage the public comment period and listening session to influence the final rule and better align their offerings with evolving federal AI acquisition policies.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Artificial Intelligence, Regulatory Compliance
**Published:** June 24, 2026

### Government Entities
- General Services Administration (GSA)
- Office of Management and Budget (OMB)
- National Institute of Standards and Technology (NIST)
- Federal Acquisition Service (FAS)

### Vendors
- OpenAI (contractor/vendor)
- Anthropic (contractor/vendor)

### Key Quotes
> The Revised Clause establishes requirements for contractors to ensure LLMs are developed and monitored in accordance with unbiased AI principles, including truthfulness and prioritizing historical accuracy.
> — Jacob Harrison, Associate

> Contractors must maximize the use of LLMs that are developed, managed, and operated by U.S.-incorporated entities subject to U.S. law and jurisdiction and that are not subject to foreign control.
> — Matthew F. Ferraro, Partner

> The government’s license to use the LLM is strictly limited to the specific purposes and scope of work defined within the contract or task/delivery order.
> — Rajeev Raghavan, Partner

### Sources
- [GSA Issues Proposed AI Contract Clause, Seeks Feedback | Crowell & Moring LLP https://t.co/dzrJJrAeaJ #LLMs](https://x.com/EpicPlain/status/2067373890603524181) - twitter-contract-vehicles
- [GSA Seeks Comments on Draft AI Data Safeguarding Clause](https://www.executivegov.com/articles/gsa-ai-data-safeguarding-gsar-clause-request-comment) - ExecutiveGov
- [GSA unveils new AI-specific acquisition rule - Washington Technology](https://www.washingtontechnology.com/contracts/2026/06/gsa-unveils-new-ai-specific-acquisition-rule/414351) - Washington Technology