Federal Policy
GSA Proposes AI Contract Clause
March 19, 2026
The General Services Administration (GSA) has proposed a new contract clause, GSAR 552.239-7001, titled "Basic Safeguarding of Artificial Intelligence Systems," aimed at expanding federal government control and oversight over AI tools procured through GSA Multiple Award Schedule (MAS) contracts. This clause mandates that contractors provide broad government rights to use AI models for any lawful purpose, require use of American-developed AI systems, enforce strict incident reporting, and impose data ownership and compliance flowdown obligations on contractors and their subcontractors. The proposal is open for public comment until March 20, 2026, and represents a significant shift in federal AI procurement governance, emphasizing data control, supply chain transparency, and ideological neutrality.
- Why this matters: Procurement professionals and contractors providing AI capabilities to the federal government must prepare for extensive compliance requirements, including safeguarding government data, ensuring use of U.S.-origin AI technologies, and managing subcontractor adherence.
- The clause's broad government rights and operational mandates may impact commercial AI vendors' contracting strategies and require updates to internal policies and diligence practices.
- Organizations should evaluate their AI offerings and supply chains for compliance risks and consider the potential administrative burden, especially smaller vendors.
- Contractors can submit comments on the proposed clause through the GSA portal by March 20, 2026, influencing final contract terms and implementation guidance.
If the Contractor is providing or using as part of performance of this contract an AI System owned and/or operated by a Service Provider then the Contractor is responsible for the Service Providerβs adherence to this clause.
— GSA Proposed Clause GSAR 552.239-7001
The draft gets the diagnosis mostly right. But it has responded to an existing governance gap with a clause that tries to do too much at once through the wrong channel, risking both overreach and distortion.
— Jessica Tillipman, Associate Dean for Government Procurement Law Studies
Contractors must implement and maintain 'reasonable technical, administrative, physical, and organizational safeguards' to protect Government Data from unauthorized access, loss, or alteration.
— Holland & Knight analysis
Agencies
General Services Administration, Cybersecurity and Infrastructure Security Agency, Office of Management and Budget, National Institute of Standards and Technology, Pentagon
Contracts
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Locations
Sources
- Draft GSA Policy Seeks Broader Government Control Over AI Tools · meritalk · Mar 10
- The GSAβs Draft AI Clause Is Governance by Sledgehammer | Lawfare · Lawfare · Mar 19
- GSA's Proposed AI Clause: A Deep Dive into New Requirements for Government Contractors | Insights | Holland & Knight · Holland & Knight · Mar 18
- AI for Government: 7 Days for Contractor Comments on GSA Proposed Contract Clause for AI Systems | Government Contracts Legal Forum · Government Contracts Legal Forum · Mar 16
- New AI Terms and Conditions Coming Soon to GSA MAS Contracts | Wilson Sonsini · Wilson Sonsini · Mar 18