# Federal Agencies Rethink Contracting for AI

Federal acquisition leaders are actively revising contracting models to address rapid advancements in artificial intelligence (AI). This shift emphasizes modular contract structures, outcome-based performance metrics, and the integration of AI as a supportive tool rather than a replacement for human decision-making. Agencies such as the Department of Transportation, NIH's NITAAC, and HHS are leading efforts to incorporate AI responsibly within acquisition processes, promoting transparency and value in federal procurements.

- Procurement professionals should anticipate increased use of modular and outcome-focused contracts that allow flexibility for AI-enabled solutions.
- Contractors can leverage AI tools to enhance proposal development and service delivery while ensuring human oversight remains integral, aligning with federal expectations.
- This evolution signals opportunities for vendors with AI expertise to engage in federal acquisitions that prioritize responsible AI integration.
- Organizations should prepare for updated acquisition strategies that balance innovation with accountability and transparency in AI applications.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Artificial Intelligence
**Published:** September 17, 2026

### Government Entities
- Department of Transportation (DOT)
- National Institutes of Health (NIH)
- NITAAC
- Department of Health and Human Services (HHS)
- General Services Administration (GSA)

### Vendors
- Red Hat (industry representative)

### Key Quotes
> You want to use [AI] responsibly. You want to have someone that can overlook that. I always want to keep the human in the loop.
> — Ricky Clark, Director, NITAAC at NIH

### Sources
- [AI Forces a Rethink of Federal Contracting Models | GovCIO Media & Research](https://govciomedia.com/ai-forces-a-rethink-of-federal-contracting-models) - GovCIO Media & Research