II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Protecting AI and 

5 Cloud Competition in Defense Act of 2024’’. 

6 SEC. 2. ENSURING COMPETITION IN ARTIFICIAL INTEL7 LIGENCE PROCUREMENT. 

8 (a) DEFINITIONS.—In this section: 

9 (1) ARTIFICIAL INTELLIGENCE; AI.—The terms 

10 ‘‘artificial intelligence’’ and ‘‘AI’’ have the meaning 


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1 given the term ‘‘artificial intelligence’’ in section 

2 5002 of the National Artificial Intelligence Initiative 

3 Act of 2020 (15 U.S.C. 9401). 

4 (2) CLOUD COMPUTING.—The term ‘‘cloud 

5 computing’’ has the meaning given the term in Spe6 cial Publication 800–145 of the National Institute of 

7 Standards and Technology, or any successor docu8 ment. 

9 (3) CLOUD PROVIDER.—The term ‘‘cloud pro10 vider’’ means any company engaged in the provision, 

11 sale, or licensing of cloud computing to customers, 

12 including individuals and businesses. 

13 (4) CONGRESSIONAL DEFENSE COMMITTEES.— 

14 The term ‘‘congressional defense committees’’ has 

15 the meaning given the term in section 101(a) of title 

16 10, United States Code. 

17 (5) COVERED PROVIDER.—The term ‘‘covered 

18 provider’’ means any cloud provider, data infrastruc19 ture provider, or foundation model provider that has 

20 entered into contracts with the Department of De21 fense totaling at least $50,000,000 in any of the 5 

22 previous fiscal years. 

23 (6) DATA INFRASTRUCTURE.—The term ‘‘data 

24 infrastructure’’ means the underlying computer, net25 work, and software systems that enable the collecVerDate Sep 11 2014 00:10 Dec 31, 2024 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S5436.IS S5436

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1 tion, storage, processing, and analysis of data, in2 cluding the ability to record, transmit, transform, 

3 categorize, integrate, and otherwise process data 

4 generated by digital data systems. 

5 (7) DATA INFRASTRUCTURE PROVIDER.—The 

6 term ‘‘data infrastructure provider’’ means any com7 pany engaged in the provision, sale, or licensing of 

8 data infrastructure to customers, including individ9 uals and businesses. 

10 (8) FOUNDATION MODEL.—The term ‘‘founda11 tion model’’ means an artificial intelligence model 

12 that— 

13 (A)(i) generally uses self-supervision; 

14 (ii) contains at least 1,000,000,000 param15 eters; and 

16 (iii) is applicable across a wide range of 

17 contexts; or 

18 (B) exhibits, or could be easily modified to 

19 exhibit, high levels of performance at tasks that 

20 pose a serious risk to security, national eco21 nomic security, national public health, or safety. 

22 (9) FOUNDATION MODEL PROVIDER.—The term 

23 ‘‘foundation model provider’’ means any company 

24 engaged in the provision, sale, or licensing of founVerDate Sep 11 2014 00:10 Dec 31, 2024 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S5436.IS S5436

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1 dation models to customers, including individuals 

2 and businesses. 

3 (10) MULTI-CLOUD TECHNOLOGY.—The term 

4 ‘‘multi-cloud technology’’ means architecture and 

5 services that allow for data, application, and pro6 gram portability, usability, and interoperability be7 tween infrastructure, platforms, and hosted applica8 tions of multiple cloud providers and between public, 

9 private, and edge cloud environments in a manner 

10 that securely delivers operational and management 

11 consistency, comprehensive visibility, and resiliency. 

12 (b) CLOUD, DATA INFRASTRUCTURE, AND FOUNDA13 TION MODEL PROCUREMENT REQUIREMENTS.—The Sec14 retary of Defense shall, in contracting provisions with 

15 cloud providers, foundation model providers, and data in16 frastructure providers— 

17 (1) promote security, resiliency, and competi18 tion in the procurement of such solutions by requir19 ing a competitive award process for each procure20 ment of cloud computing, data infrastructure, or 

21 foundation model solutions; 

22 (2) ensure that the Government maintains ex23 clusive rights to access and use of all Government 

24 data; and 

25 (3) ensure that the competitive process— 


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1 (A) prioritizes the appropriate role for the 

2 Government with respect to intellectual prop3 erty and data rights and security, interoper4 ability, and auditability requirements; 

5 (B) includes modular open systems ap6 proaches and appropriate work allocation and 

7 technical boundaries; and 

8 (C) considers multi-cloud technology where 

9 feasible and advantageous. 

10 (c) DATA TRAINING AND USE PROTECTION.—The 

11 Secretary of Defense shall direct the Chief Digital and Ar12 tificial Intelligence Office to update or promulgate provi13 sions of the Defense Federal Acquisition Regulation Sup14 plement (DFARS) to ensure that— 

15 (1) Government-furnished data, provided for 

16 purposes of development and operation of AI prod17 ucts and services to the Department of Defense, is 

18 not disclosed or used without proper authorization 

19 by the Department of Defense; 

20 (2) Government-furnished data stored on ven21 dor systems, provided for purposes of development 

22 and operation of AI products and services to the De23 partment of Defense, is appropriately protected from 

24 other data on such systems, and is treated in ac25 cordance with Department of Defense data decrees 


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1 and Creating Data Advantage (Open DAGIR) prin2 ciples; 

3 (3) violation of these provisions shall be subject 

4 to specific penalties, including fines and contract ter5 mination; and 

6 (4) component acquisition executives may issue 

7 exemptions upon— 

8 (A) determining that issuing an exemption 

9 is not inconsistent with national security; and 

10 (B) notifying the Chief Digital and Artifi11 cial Intelligence Officer of the specific provi12 sions exempted, the vendor and program being 

13 issued the exemption, and the justification for 

14 the exemption. 

15 (d) REPORTING.— 

16 (1) IN GENERAL.—Not later than January 15, 

17 2026, and annually thereafter for four years, the 

18 Chairman of the Joint Chiefs of Staff, in coordina19 tion with the Under Secretary of Defense for Acqui20 sition and Sustainment, shall submit to the congres21 sional defense committees a report assessing the 

22 competition, innovation, barriers to entry, and con23 centrations of market power or market share in the 

24 AI space for each period covered by the report. The 


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1 report shall also include recommendations of appro2 priate legislative and administrative action. 

3 (2) PUBLICATION.—The Secretary of Defense, 

4 acting through the Assistant to the Secretary of De5 fense for Public Affairs, shall ensure that the report 

6 is made available to the public by— 

7 (A) posting a publicly releasable version of 

8 the report on a website of the Department of 

9 Defense; and 

10 (B) upon request, transmitting the report 

11 by other means, as long as such transmission is 

12 at no cost to the Department. 

Æ 


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