119-hr3434

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3434 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 3434

 To provide for certain requirements relating to cloud, data 
 infrastructure, and foundation model procurement.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 May 15, 2025

 Mr. Fallon (for himself, Ms. Jacobs, and Mr. Deluzio) introduced the 
 following bill; which was referred to the Committee on Armed Services

_______________________________________________________________________

 A BILL

 To provide for certain requirements relating to cloud, data 
 infrastructure, and foundation model procurement.

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

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Protecting AI and Cloud Competition 
in Defense Act of 2025''.

SEC. 2. ENSURING COMPETITION IN ARTIFICIAL INTELLIGENCE PROCUREMENT.

    (a) 

=== Definitions. ===
-In this section:

    (1) Artificial intelligence; ai.--The terms ``artificial 
 intelligence'' and ``AI'' have the meaning given the term 
 ``artificial intelligence'' in 

section 5002 of the National 
 Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 
 9401).

    (2) Cloud computing.--The term ``cloud computing'' has the 
 meaning given the term in Special Publication 800-145 of the 
 National Institute of Standards and Technology, or any 
 successor document.

    (3) Cloud provider.--The term ``cloud provider'' means any 
 company engaged in the provision, sale, or licensing of cloud 
 computing to customers, including individuals and businesses.

    (4) Congressional defense committees.--The term 
 ``congressional defense committees'' has the meaning given the 
 term in 

section 101

    (a) of title 10, United States Code.

    (5) Covered provider.--The term ``covered provider'' means 
 any cloud provider, data infrastructure provider, or foundation 
 model provider that has entered into contracts with the 
 Department of Defense totaling at least $50,000,000 in any of 
 the 5 previous fiscal years.

    (6) Data infrastructure.--The term ``data infrastructure'' 
 means the underlying computer, network, and software systems 
 that enable the collection, storage, processing, and analysis 
 of data, including the ability to record, transmit, transform, 
 categorize, integrate, and otherwise process data generated by 
 digital data systems.

    (7) Data infrastructure provider.--The term ``data 
 infrastructure provider'' means any company engaged in the 
 provision, sale, or licensing of data infrastructure to 
 customers, including individuals and businesses.

    (8) Foundation model.--The term ``foundation model'' means 
 an artificial intelligence model that--
        (A)
            (i) generally uses self-supervision;
            (ii) contains at least 1,000,000,000 parameters; 
 and
            (iii) is applicable across a wide range of 
 contexts; or
        (B) exhibits, or could be easily modified to 
 exhibit, high levels of performance at tasks that pose 
 a serious risk to security, national economic security, 
 national public health, or safety.

    (9) Foundation model provider.--The term ``foundation model 
 provider'' means any company engaged in the provision, sale, or 
 licensing of foundation models to customers, including 
 individuals and businesses.

    (10) Multi-cloud technology.--The term ``multi-cloud 
 technology'' means architecture and services that allow for 
 data, application, and program portability, usability, and 
 interoperability between infrastructure, platforms, and hosted 
 applications of multiple cloud providers and between public, 
 private, and edge cloud environments in a manner that securely 
 delivers operational and management consistency, comprehensive 
 visibility, and resiliency.

    (b) Cloud, Data Infrastructure, and Foundation Model Procurement 
Requirements.--The Secretary of Defense shall, in contracting 
provisions with cloud providers, foundation model providers, and data 
infrastructure providers--

    (1) promote security, resiliency, and competition in the 
 procurement of such solutions by requiring a competitive award 
 process for each procurement of cloud computing, data 
 infrastructure, or foundation model solutions;

    (2) ensure that the Government maintains exclusive rights 
 to access and use of all Government data; and

    (3) ensure that the competitive process--
        (A) prioritizes the appropriate role for the 
 Government with respect to intellectual property and 
 data rights and security, interoperability, and 
 auditability requirements;
        (B) includes modular open systems approaches and 
 appropriate work allocation and technical boundaries;
            (C) mitigates barriers to entry faced by small 
 businesses and nontraditional contractors; and
            (D) prioritizes multi-cloud technology unless doing 
 so is infeasible or presents a substantial danger to 
 national security.
            (c) 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

    (DFARS) to ensure that--

    (1) Government-furnished data, provided for purposes of 
 development and operation of AI products and services to the 
 Department of Defense, is not disclosed or used without proper 
 authorization by the Department of Defense, 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 Defense;

    (2) Government-furnished data stored on vendor systems, 
 provided for purposes of development and operation of AI 
 products and services to the Department of Defense, is 
 appropriately protected from other data on such systems, and is 
 treated in accordance with Department of Defense data decrees 
 and Creating Data Advantage (Open DAGIR) principles;

    (3) violation of these provisions shall be subject to 
 specific penalties, including fines and contract termination; 
 and

    (4) component acquisition executives may issue exemptions 
 upon--
        (A) determining that issuing an exemption is 
 necessary for national security; and
        (B) notifying the Chief Digital and Artificial 
 Intelligence Officer of the specific provisions 
 exempted, the vendor and program being issued the 
 exemption, and the justification for the exemption.
            (d) Reporting.--

    (1) In general.--Not later than January 15, 2027, and 
 annually thereafter for four years, the Chairman of the Joint 
 Chiefs of Staff, in coordination with the Under Secretary of 
 Defense for Acquisition and Sustainment, shall submit to the 
 congressional defense committees a report assessing the 
 competition, innovation, barriers to entry, and concentrations 
 of market power or market share in the AI space for each period 
 covered by the report. The report shall also include a list of 
 the exemptions granted under subsection
            (c) (4)
        (A) , including 
 the date and purpose of the exemption. The report shall also 
 include recommendations of appropriate legislative and 
 administrative action.

    (2) Publication.--The Secretary of Defense, acting through 
 the Assistant to the Secretary of Defense for Public Affairs, 
 shall ensure that the report is made available to the public 
 by--
        (A) posting a publicly releasable version of the 
 report on a website of the Department of Defense; and
        (B) upon request, transmitting the report by other 
 means, as long as such transmission is at no cost to 
 the Department.
 <all>