,,ii #aaith ,,congress #ast ,session ,s4 #agge ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #ae1 #bjbe ,ms4 ,warren 7for herself and ,mr4 ,schmitt7 introduced the following bill2 which was read twice and referred to the ,committee on ,armed ,services ,a ,,bill ,to provide for certain requirements relating to cloud1 data infrastructure1 and foundation model procurement4 #a4 ,short title ,this ,act may be cited as the ,protecting ,,ai and ,cloud ,competition in ,defense ,act of #bjbe4 #b4 ,ensuring competition in artificial intelligence procurement 7a7 ,definitions ,in this section3 7#a7 ,artificial intelligence2 ,,ai ,the terms artificial intelligence and ,,ai have the meaning given the term artificial intelligence in section #ejjb of the ,national ,artificial ,intelligence ,initiative ,act of #bjbj 7#ae ,u4,s4,c4 #idja74 7#b7 ,cloud computing ,the term cloud computing has the meaning given the term in ,special ,publication #hjj-ade of the ,national ,institute of ,standards and ,technology1 or any successor document4 7#c7 ,cloud provider ,the term cloud provider means any company engaged in the provision1 sale1 or licensing of cloud computing to customers1 including individuals and businesses4 7#d7 ,congressional defense committees ,the term congressional defense committees has the meaning given the term in section #aja7;a7 of title #aj1 ,united ,states ,code4 7#e7 ,covered provider ,the term covered provider means any cloud provider1 data infrastructure provider1 or foundation model provider that has entered into contracts with the ,department of ,defense totaling at least #ej1jjj1jjj in any of the #e previous fiscal years4 7#f7 ,data infrastructure ,the term data infrastructure means the underlying computer1 network1 and software systems that enable the collection1 storage1 processing1 and analysis of data1 including the ability to record1 transmit1 transform1 categorize1 integrate1 and otherwise process data generated by digital data systems4 7#g7 ,data infrastructure provider ,the term data infrastructure provider means any company engaged in the provision1 sale1 or licensing of data infrastructure to customers1 including individuals and businesses4 7#h7 ,foundation model ,the term foundation model means an artificial intelligence model that-- 7,a7 7i7 generally uses self-supervision2 7ii7 contains at least #a1jjj1jjj1jjj parameters2 and 7iii7 is applicable across a wide range of contexts2 or 7,b7 exhibits1 or could be easily modified to exhibit1 high levels of performance at tasks that pose a serious risk to security1 national economic security1 national public health1 or safety4 7#i7 ,foundation model provider ,the term foundation model provider means any company engaged in the provision1 sale1 or licensing of foundation models to customers1 including individuals and businesses4 7#aj7 ,multi-cloud technology ,the term multi-cloud technology means architecture and services that allow for data1 application1 and program portability1 usability1 and interoperability between infrastructure1 platforms1 and hosted applications of multiple cloud providers and between public1 private1 and edge cloud environments in a manner that securely delivers operational and management consistency1 comprehensive visibility1 and resiliency4 7b7 ,cloud1 data infrastructure1 and foundation model procurement requirements ,the ,secretary of ,defense shall1 in contracting provisions with cloud providers1 foundation model providers1 and data infrastructure providers-- 7#a7 promote security1 resiliency1 and competition in the procurement of such solutions by requiring a competitive award process for each procurement of cloud computing1 data infrastructure1 or foundation model solutions2 7#b7 ensure that the ,government maintains exclusive rights to access and use of all ,government data2 and 7#c7 ensure that the competitive process-- 7,a7 prioritizes the appropriate role for the ,government with respect to intellectual property and data rights and security1 interoperability1 and auditability requirements2 7,b7 includes modular open systems approaches and appropriate work allocation and technical boundaries2 7,c7 mitigates barriers to entry faced by small businesses and nontraditional contractors2 and 7,d7 prioritizes multi-cloud technology unless doing so is infeasible or presents a substantial danger to national security4 7c7 ,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 7,,dfars7 to ensure that-- 7#a7 ,government-furnished data1 provided for purposes of development and operation of ,,ai products and services to the ,department of ,defense1 is not disclosed or used without proper authorization by the ,department of ,defense1 including that such data cannot be used to train or improve the functionality of commercial products offered by a covered provider without express authorization by the ,department of ,defense2 7#b7 ,government-furnished data stored on vendor systems1 provided for purposes of development and operation of ,,ai products and services to the ,department of ,defense1 is appropriately protected from other data on such systems1 and is treated in accordance with ,department of ,defense data decrees and ,creating ,data ,advantage 7,open ,,dagir7 principles2 7#c7 violation of these provisions shall be subject to specific penalties1 including fines and contract termination2 and 7#d7 component acquisition executives may issue exemptions upon-- 7,a7 determining that issuing an exemption is necessary for national security2 and 7,b7 notifying the ,chief ,digital and ,artificial ,intelligence ,officer of the specific provisions exempted1 the vendor and program being issued the exemption1 and the justification for the exemption4 7d7 ,reporting 7#a7 ,in general ,not later than ,january #ae1 #bjbg1 and annually thereafter for four years1 the ,chairman of the ,joint ,chiefs of ,staff1 in coordination with the ,under ,secretary of ,defense for ,acquisition and ,sustainment1 shall submit to the congressional defense committees a report assessing the competition1 innovation1 barriers to entry1 and concentrations of market power or market share in the ,,ai space for each period covered by the report4 ,the report shall also include a list of the exemptions granted under subsection 7c77#d77;,a71 including the date and purpose of the exemption4 ,the report shall also include recommendations of appropriate legislative and administrative action4 7#b7 ,publication ,the ,secretary of ,defense1 acting through the ,assistant to the ,secretary of ,defense for ,public ,affairs1 shall ensure that the report is made available to the public by-- 7,a7 posting a publicly releasable version of the report on a website of the ,department of ,defense2 and 7,b7 upon request1 transmitting the report by other means1 as long as such transmission is at no cost to the ,department4