AI 26-02_Acquisition of Artificial Intelligence_SIGNED_4-23-26.pdf

Acquisition Instruction 26-02

ACQUISITION OF ARTIFICIAL INTELLIGENCE

1. Purpose

This Acquisition Instruction (AI 26-02) is issued to provide guidance for procurement of safe and secure artificial intelligence (AI) to improve government efficiency and mission effectiveness and to ensure AI models procured by the Federal Government produce reliable outputs free from bias. AI 26-02 was developed in alignment with the references listed in

Section 2 below.

2. References

• December 8, 2020, Executive Order 13960, Promoting the Use of Trustworthy Artificial

Intelligence in the Federal Government (EO 13960)

• December 23, 2022, Advancing American AI Act (The Act)

• April 3, 2025, Office of Management and Budget (OMB) Memorandum M-25-21, Accelerating Federal Use of AI through Innovation, Governance, and Public Trust (M-25-

21)

• January 23, 2025, Executive Order 14179, Removing Barriers to American Leadership in

Artificial Intelligence. (EO 14179)

• April 3, 2025, Office of Management and Budget Memorandum M-25-22, Driving

Efficient Acquisition of Artificial Intelligence in Government (M-25-22)

• July 23, 2025, Executive Order 14319, Preventing Woke AI in the Federal Government

(EO 14319)

• December 11, 2025, Office of Management and Budget Memorandum M-26-04, Increasing Public Trust in Artificial Intelligence Through Unbiased AI Principles (M-26-

04)

3. Attachments:

Attachment 1 – AI Acquisition Best Practices

Attachment 2 –AI Acquisition Clauses (AS-2602, AS-2603, AS-2604, AS-2605, and AS-

2606)

Attachment 3 – AI Acquisition Process

4. Cancellations: None

5. Effective Dates.

This acquisition instruction is effective upon issuance and remains in effect until canceled or superseded.

https://www.federalregister.gov/documents/2020/12/08/2020-27065/promoting-the-use-of-trustworthy-artificial-intelligence-in-the-federal-government https://www.federalregister.gov/documents/2020/12/08/2020-27065/promoting-the-use-of-trustworthy-artificial-intelligence-in-the-federal-government https://www.congress.gov/117/plaws/publ263/PLAW-117publ263.pdf https://www.whitehouse.gov/wp-content/uploads/2025/02/M-25-21-Accelerating-Federal-Use-of-AI-through-Innovation-Governance-and-Public-Trust.pdf https://www.whitehouse.gov/wp-content/uploads/2025/02/M-25-21-Accelerating-Federal-Use-of-AI-through-Innovation-Governance-and-Public-Trust.pdf https://www.whitehouse.gov/wp-content/uploads/2025/02/M-25-22-Driving-Efficient-Acquisition-of-Artificial-Intelligence-in-Government.pdf https://www.whitehouse.gov/wp-content/uploads/2025/02/M-25-22-Driving-Efficient-Acquisition-of-Artificial-Intelligence-in-Government.pdf https://www.federalregister.gov/documents/2025/07/28/2025-14217/preventing-woke-ai-in-the-federal-government https://www.whitehouse.gov/wp-content/uploads/2025/12/M-26-04-Increasing-Public-Trust-in-Artificial-Intelligence-Through-Unbiased-AI-Principles-1.pdf https://www.whitehouse.gov/wp-content/uploads/2025/12/M-26-04-Increasing-Public-Trust-in-Artificial-Intelligence-Through-Unbiased-AI-Principles-1.pdf

6. Background

Executive Order 13960 directs Federal agencies to employ safe, secure, and trustworthy artificial intelligence (AI) in innovative ways that enhance government efficiency and mission performance. To meet this directive, agencies must be able to procure effective and reliable

AI capabilities in a timely and cost‑efficient manner. OMB Memorandum M-25-22 provides guidance to help agencies strengthen their capacity to acquire AI responsibly. It aligns with the Advancing American AI Act, Executive Order 14179, and OMB Memorandum M‑25‑21.

Executive Order 14319 and OMB Memoranda M-26-04 direct Federal agencies to ensure AI models procured by the Federal Government have been developed to meet the two Unbiased

AI Principles of being truth-seeking and ideologically neutral AI models, and direct agencies to ensure any solicitation or procurement of an AI model is compliant with the Unbiased AI principles and any existing contracts for AI models should be modified to include the requirements for meeting the Unbiased AI principles.

7. AI Definitions

A list of AI Definitions can be found on AI@HUD.

8. Policy

In addition to regular procurement procedures in accordance with the FAR, HUDAR and

HUD applicable acquisition policies, the acquisition workforce must ensure that the procurement of AI includes the following:

1. Federal Information Technology Acquisition Reform Act (FITARA) review process to ensure planned acquisitions involving information and communication technology, of which AI Systems or AI Services (collectively referred to as “AI System”) are included or are used by the Contractor in contract performance, are properly reviewed by the OCIO for conformance.

2. Convene the Integrated Project Team (IPT) in accordance with Acquisition

Instruction 20-01: Acquisition Program and Project Management Policy. The IPT will work to inform the procurement of AI Systems) in a streamlined manner that apportions time and resources according to the requirements of the procurement, including associated complexity and risk, to support effective, efficient, and responsible development and execution of ongoing performance monitoring. The IPT will assist in creating an initial list of potential risks that should be evaluated based on the type of AI System under consideration. In particular, the IPT will identify potential risks to the agency's implementation of the nine principles for use of AI in government articulated in Executive Order 13960.

3. The following Agency Specific Clauses and references must be added to all contracts and, to the extent possible, added to existing contracts, at the latest, prior to the mailto:AI@HUD%20%7C%20HUD.gov%20/%20U.S.%20Department%20of%20Housing%20and%20Urban%20Development%20(HUD).

http://hudatwork.hud.gov/HUD/cio/po/i/fitara http://hudatwork.hud.gov/HUD/cpo/doc/AI20-01-FAC-PPM_Policy exercise of any option that extends the contract period of performance (Attachment

2). The clauses must be used in all solicitations and contracts, not just AI-related, procurements.

a. AS-2602 Privacy, IP, and Government Use Requirement, which protects intellectual property (IP) rights and ensures compliance with privacy requirements, in law and policy, whenever agencies acquire an AI System , or a Contractor uses an AI System , that will create, collect, use, process, store, maintain, disseminate, disclose, or dispose of Federal information containing personally identifiable information (PII).

b. AS-2603 AI Use and AI Model Transparency Requirements, which directs

Contractors to disclose any use of AI in the products or services they provide under the contract or use to deliver products or services under the contract. It also directs Contractors to ensure the AI models it develops are compliant with the Unbiased AI principles of truth-seeking behavior and ideological neutrality.

c. AS-2604 Vendor Lock-In Protections, which directs Contractors to implement safeguards that prevent vendor lock-in. It also ensures long-term agency control over systems, data, and AI.

d. AS-2605 Ongoing Testing and Monitoring, which directs Contractors to support regular monitoring and evaluation throughout the system lifecycle to ensure continued performance, effectiveness, and trustworthiness of AI

Systems.

e. AS-2606 Requirements for High-Impact AI Systems, which directs

Contractors to comply with all risk mitigation requirements for any AI System determined to be High-Impact AI.

In addition to incorporating the above AI related Agency Specific Clauses into all solicitations and contracts, the AI Acquisition Best Practices (Attachment 1) and AI Acquisition Process

(Attachment 3) must be followed. Compliance with these AI Acquisition Best Practices and the AI Acquisition Process ensures alignment with OMB Memoranda M-25-22 and M-26-04.

9. Applicability

This Acquisition Instruction applies to all HUD acquisitions above the micro-purchase threshold, awarded pursuant to a solicitation issued on or after the issuance of this AI 26-02 and to any option to renew or extend the period of performance exercised of an existing contract after the issuance of this AI 26-02.

10. Exceptions. The Chief Procurement Officer or designee, with concurrence from the Chief

Information Officer, must approve any exceptions to this AI 26-02. Requests for exceptions must be written and include the justification.

11. Point of Contact for this Instruction: Nicole Jackson, Acting Director, OCPO Procurement

Policy and Systems, 202-402-3868 or Nicole.H.Jackson@hud.gov.

X Francine L. Hemphill

Chief Procurement Officer mailto:Nicole.H.Jackson@hud.gov