H.R. 3807: Flexible Acquisition of Software Technology Act

This bill, known as the Flexible Acquisition of Software Technology Act (or FAST Act), aims to facilitate the procurement of software and data to support the development of artificial intelligence (AI) systems for the Department of Defense (DoD). Here’s a breakdown of what the bill proposes:

1. Purpose of the Bill

The main goal is to enhance the DoD's capabilities in AI by allowing the Secretary of Defense to acquire necessary software and data resources more flexibly. This would include:

• Procurement of software as a service (SaaS) or software as a product
• Acquisition of data as a service (DaaS) or data as a supply
• Modification of existing software to support AI systems
• Researching, developing, testing, and evaluating software related to AI

2. Authorized Funding

The Secretary of Defense is authorized to utilize existing funds for these procurement activities. This means that any money allocated for the Department’s operations can be used for acquiring the software and data needed for AI development.

3. Regulatory Framework

The bill requires the Secretary of Defense to issue or modify regulations necessary to implement these acquisitions. This includes:

• Establishing rules for how software and data are procured and modified
• Overseeing these procurements to ensure proper usage of funds and resources

4. Definitions and Scope

The bill provides specific definitions to clarify its terms:

• Artificial Intelligence System: A system capable of tasks that require human-like cognition, such as learning and decision-making.
• Data as a Service: Data provided on a subscription basis, accessed remotely via the internet.
• Data as a Supply: Data acquired on a non-subscription basis, stored locally rather than accessed online.
• Software: Includes any type of computer software, both commercial and noncommercial, as defined in federal regulations.
• Software as a Service: Software provided on a subscription basis, accessed remotely via the internet.

5. Implementation

The overall implementation of the bill will be managed by the Secretary of Defense, who is responsible for ensuring the regulations are in place to support the new procurement processes effectively.

Relevant Companies

• MSFT: Microsoft Corporation may be impacted as they provide significant software and AI solutions for defense applications.
• GOOGL: Alphabet Inc. could see effects on their AI research and services used by government contracts.
• IBM: IBM’s cloud-based AI solutions may be sought after for defense-related projects.
• BA: The Boeing Company, involved in defense projects, might procure software and data services under this legislation.