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When GSA released their updated post for Multiple Award Schedule (MAS) Solicitation Refresh #31 recently, they quietly slipped in a newly proposed clause that would govern AI use in federal contracts. This proposed clause, GSAR 552.239-700, Basic Safeguarding of Artificial Intelligence Systems, introduces significant requirements for companies who are using AI in any capacity in federal contracts. GSA originally gave contractors until March 20 to leave their feedback, but the period was extended to April 3, 2026, and GSA is pushing the AI changes to MAS Refresh #32.
When the time comes, the implementation period could be expedited (as little as 60 days), so let’s cover what we know so you can submit your feedback on this clause and be prepared for the upcoming changes.
GSA’s Newly Proposed AI Clause
When the AI clause was originally added to the Solicitation Refresh #31 draft, it immediately induced panic. Industry experts were scrambling to make sense of the 9-page legal document and gather their thoughts before the commend period ended. Now that we have some more time to process, we’ll cover the highlights of this clause below.
Foreign AI Systems are Banned
This part of the clause restricts the use of foreign AI Service Providers. Only AI systems developed and produced in the U.S. can be used in federal contracts. This requirement adopts the definition of American AI from the Advancing American AI Act.
Agencies Will Own AI Data Outputs and Custom Developments
Government agencies will own all data outputs and custom AI developments made during the contract. Contractors and AI Service Providers will still maintain ownership of their underlying AI systems and base models, but they must grant the government an “irrevocable, royalty-free, non-exclusive license” to use the AI systems during the contract.
Prohibited Use of Government Data
Government data can’t be used for AI training or improvement for the duration of the contract. Additionally, there must be extra safeguards in place to protect government data from loss, destruction, unauthorized alteration, and prevent unlawful or accidental use/processing of data.
Contractors Are Responsible for AI Service Provider Compliance
One of the biggest causes for concern in this clause is that it states contractors are responsible for AI Service Provider compliance, even if the AI provider isn’t a subcontractor.
The definition of Service Provider in this clause is: an "entity that directly or indirectly provides, operates, or licenses, an AI system but is not a party to the contract. Service Providers may or may not be subcontractors." Essentially, if you are providing or using an AI system as part of the performance of the contract, then you are responsible for making sure the Service Provider adheres to the clause.
Disclosure of All AI Systems
The new clause also requires contractors disclose all AI systems used in performance of the contract, including any modifications that were made to comply with non-U.S. federal government or commercial compliance no later than 30 days after award, unless requested earlier by the Contracting Officer.
Change Management
This next part of the clause covers any changes in AI systems, especially if there's a new model out (like ChatGPT version 5.3). Contractors must provide the government with concurrent access to new/updated AI models for a minimum of 30 days (for major revisions) and 15 days (for minor revisions) before they can discontinue or replace their existing model.
Also, if a contractor plans to change their Service Provider, they must let the Contracting Officer know at least 30 days before they plan to make this change.
Additional AI Provisions
The regulations above are the highlights of the clause, but there are some additional changes to consider including human oversight, unbiased AI principles, and feedback reporting. The full document of GSAR 552.239-7001 can be found on GSA's Interact Page here.
Timeline of the Newly Proposed AI Clause
There isn’t a lot of certainty here in the timeline, but what we do know is that you have until April 3 to relay your feedback to GSA—either by commenting on this GSA Interact Post or emailing the MAS PMO at: maspmo@gsa.gov. The sweeping changes will not be made in Solicitation Refresh #31, but GSA anticipates including them in Refresh #32.
Since Refresh #31 has been delayed to late April or longer, it may be a few months before we see more details on this AI clause. GSA did originally say that contractors would have 60 days to implement these changes (shorter than the original 90 to accept a Mass Modification), so it’s important you are up to date on these changes and prepared for what’s to come.
If you have questions about this clause or have concerns about how it’ll affect you, we suggest you capitalize on this opportunity to give your feedback.
Keeping Up with MAS Updates
As we have seen with this AI clause and previous changes in the past year, it’s important for contractors to be flexible and stay on their toes when it comes to MAS Program updates. Although Solicitation Refresh #31 isn’t including these AI provisions, it will make Transactional Data Reporting (TDR) mandatory for all contractors, and change the requirements for the Startup Springboard Program among other updates.
Once GSA reviews the comments for this AI clause, we hope to see more information about the final requirements, and a timeline for implementation. But like anything in the government, things change and are pushed often before they become formal requirements.
To stay updated about the AI clause and future Solicitation Refreshes, check out our blog and our monthly newsletter. If you have questions about managing your GSA Schedule through all of these changes, one of our consultants would be happy to help you.
