GSA Proposes New Contract Clause Focused on the Government Use of AI
On March 6, 2026, the U.S. General Services Administration (GSA) issued a draft version of a new contract clause, GSAR 552.239-7001, titled “GSA Federal Acquisition Service Proposed Government AI System Terms and Conditions”. This clause is intended for insertion in GSA solicitations and contracts concerning Artificial Intelligence capabilities. The GSA is currently seeking industry feedback on this draft until March 20, 2026, and plans to incorporate it into all existing and new Multiple Award Schedule (MAS) contracts during the upcoming “mass modification,” Refresh 31.
Background
This initiative follows the decision by the president and the Department of War (DoW) to designate Anthropic as a supply chain risk, leading to its removal from GSA contract programs. The new clause mandates that contractors ensure their AI providers agree to the government’s use of an AI system or service for any “lawful Government purpose.” This requirement stems from a well-publicized dispute between Anthropic and the DoW.
Key Provisions of the Draft Clause
The proposed clause includes several significant requirements:
- Agencies purchasing through GSA contracts will receive an “irrevocable, royalty-free, non-exclusive license” to use the AI system for any lawful government purpose.
- This license extends to integrating the AI system with government systems as necessary.
- Prime contractors using another vendor’s AI products must secure these rights with any service provider at any tier below the prime contract level.
Compliance Requirements
Additional compliance requirements under the draft clause include:
- Disclosing all AI systems used in contract performance.
- Using only “American AI Systems”.
- Providing AI systems that enable human oversight by government officials.
- Reporting security incidents via CISA forms within 72 hours.
- Notifying the government in advance of changes to AI system or service providers.
- Making commercial efforts to ensure compliance with “Unbiased AI Principles.”
- Permitting government evaluation and remediation rights.
- Providing documentation of compliance upon government request.
Implementation Timeline
Once finalized, GSA contracting officers will be required to insert this clause in all GSA-issued solicitations and contracts when AI capabilities are involved, as well as in all new and existing MAS contracts. The GSA aims to incorporate this clause into all MAS contracts via Refresh 31, giving contractors 60 days to accept it. While there is no specific date for the issuance of Refresh 31, it was originally anticipated in February 2026.
Industry Concerns
As the first federal contract clause addressing AI, the draft has raised several concerns:
- Clarity of defined terms, such as “Artificial Intelligence (AI) System.”
- Undefined terms like “lawful Government purpose.”
- Authority of the government under the GSA MAS program to impose deviations from commercial practices.
These questions highlight the complexities and potential implications of the draft clause, indicating a need for further clarification and dialogue within the industry.
