BSA provided the following recommendations to GSA to improve its draft AI procurement contract terms: 

• Clarify and revise the scope of the draft GSAR clause to limit it to LLM developers, expand the commercial product exception, and exclude use of retrieval mechanisms and knowledge bases. This clause should not apply to LLM service providers unless they design, build, deploy, and operate custom (i.e., non-commercial) LLM systems on behalf of the federal government because they will unlikely be able to comply with the clause; 
• Remove the foreign-based restrictions on the use of open source components; 
• Revise the GSAR clause’s allocation of IP ownership and licensing rights, along with the data-related definitions, to align them with standard commercial licensing practices and avoid impeding contractors’ IP rights; 
• Revise flowdown requirements and exceptions; 
• Improve implementation of the Unbiased AI Principles by limiting requirements to commercially reasonable efforts, recognizing shared responsibilities of LLM developers and government customers, and using widely available evaluation methods in lieu of undisclosed, bespoke government standards; 
• Eliminate the regulatory-based modification disclosure requirement and, if retained, limit it to AI systems that have been specifically modified or uniquely configured at the request of a non-US government in a manner that materially deviates from its standard commercial configuration; 
• Revise the compliance and reporting, change notification, and data portability requirements; 
• Require contracting officers to tailor the application and requirements of this clause to the specific contract holder in accordance with the related Office and Management and Budget (OMB) guidance and EOs (e.g., allow contracting officers to not require contractors to comply with requirements that should not apply to the contractor). This will help ensure federal agencies do not lose access to existing AI and to ensure the President's AI-forward agenda and strong preference for commercial software is not thwarted by restrictive regulation; and 
• Align explicitly with existing authorizations under FedRAMP/IL-5 frameworks to avoid duplication of effort and conflicting standards and enable contractor flexibility to meet changing needs.