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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5436 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5436

      To provide for certain requirements relating to cloud, data 
           infrastructure, and foundation model procurement.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            December 5, 2024

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 2024''.

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; 
                and
                    (C) considers multi-cloud technology where feasible 
                and advantageous.
    (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;
            (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 not 
                inconsistent with 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, 2026, 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 
        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.
                                 <all>
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