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: Diminishing the rights of contractors to the models they have developed.

In the wake of rapid AI integration across federal agencies, the has introduced a set of draft procurement clauses that could fundamentally change how contractors handle government data. As of April 2026, trade groups and industry leaders are raising alarms over the potential for these "burdensome" requirements to stifle the very innovation they aim to secure. The Core of the Controversy: Data Sovereignty 121910

from using any Government Data to train or improve their proprietary AI models. : Diminishing the rights of contractors to the

: Increasing the risk of litigation under the False Claims Act due to the technical difficulty of proving absolute data segregation or deletion. The Core of the Controversy: Data Sovereignty from

At the heart of the new draft guidance is a strict mandate on (defined as both inputs and outputs). Under the proposed rules, contractors and service providers would be: