Springfield Standard

Senators Eric Schmitt and Elizabeth Warren have introduced a bipartisan bill aimed at enhancing competition and resiliency in the Department of Defense's procurement of artificial intelligence (AI) and cloud computing tools. The legislation, named the Protecting AI and Cloud Competition in Defense Act, seeks to ensure that smaller companies can participate in defense contracts alongside major tech firms.

"Competition and innovation are critical drivers of the Department of Defense’s ability to maintain its strategic advantage," said Senator Schmitt. This sentiment is echoed by Senator Warren, who noted, "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."

The proposed bill comes against a backdrop where the Department of Defense has already awarded $9 billion in contracts for its cloud computing network and requested an additional $1.8 billion for AI programs for fiscal year 2025. The act aims to prevent market domination by a few large companies by encouraging the DOD to consider services from multiple providers.

Key provisions include requiring competitive award processes for contracts exceeding $50 million annually, ensuring exclusive government rights over data access and use, promoting multi-cloud technology where feasible, and safeguarding government data on vendor systems. Additionally, the bill mandates that the DOD publish a report every four years on various aspects of competition within the AI sector.

The legislation is designed to provide meaningful guardrails to protect national security while fostering an environment where diverse players can contribute to technological advancements at the Department of Defense.