GSA is preparing an AI-specific acquisition reform rule

The General Services Administration is developing changes to artificial intelligence acquisition provisions within its general rules that will prioritize a firm fixed-price procurement model and reduce hurdles to agency adoption.

In the coming weeks, the agency is planning to debut a draft AI acquisition rule for addition into the General Services Administration Acquisition Regulation, according to two people familiar with the proceedings. 

The new rule is part of GSA’s effort to balance implementing AI procurement rules that encourage market growth and foster competition while benefitting government buyers and taxpayers, the same person said, and part of the government’s mission to bring a “common sense” approach to AI acquisition. To do so, the rule will focus on removing bureaucratic rules and hurdles to commercial item acquisition, including AI and IT software.

The same person said that part of the process will be to analyze which contracts are not on a firm fixed-price basis and what is able to be shifted over. Per the rules, resellers and partners will remain part of GSA’s business strategy, the same person said, but the agency is also trying to make itself a “more predictable business partner” to original equipment manufacturers, including AI developers.

“It's … not going to be a one size fits all solution,” the same person told Nextgov/FCW. 

In addition to the AI-focused draft rule, new Federal Acquisition Regulation rule updates are also underway and are set to continue overhauling the government procurement process. These updates are intended to be finalized at the end of the fiscal year, pending approval by the FAR Council, and will consist of roughly a dozen rules, the source said. Both revisions will have a 30-day public comment window.

The FAR is a series of procurement regulations that govern how executive agencies enter into, develop and manage contracts. In his second administration, President Donald Trump has worked to overhaul the FAR, issuing an executive order that primarily aims to streamline the acquisition process and bring more companies to the federal market. 

The future of OneGov

Changes to GSA’s contracting structure will further cement the government’s preference for firm fixed-pricing, echoing mandates outlined in a late April executive order that seeks to move the government away from cost-reimbursement models.

GSA’s landmark OneGov program could also see changes in its contracting structure. Through the initiative, GSA has partnered with roughly two dozen tech providers to offer deeply discounted rates on software to government customers by treating the government as a single large customer. 

The person familiar predicts that OneGov contracts will change, anticipating the focus of the initiative to adopt longer-term contracts, echoing sentiments expressed in an agency leader’s remarks last week. 

“I think the major change in OneGov from this year to last is going to be working to put in more longer-term OneGov agreements, things that are still going to be very competitively priced,” the same person said. 

Washington Technology Editor-in-Chief Nick Wakeman contributed to this report.