The compliance landscape for AI in govcon
Government contractors operate under a regulatory burden that most commercial businesses never encounter. FAR and DFARS clauses flow down from your prime contract into every aspect of your operations. DCAA can audit your cost accounting, timekeeping, and billing systems. CUI and ITAR regulations control what information you can share and how you must protect it. Small business subcontracting plans require ongoing monitoring and reporting. And organisational conflicts of interest must be screened before you pursue new opportunities.
AI can help with all of this compliance work. But before we discuss how AI helps, we need to address the question that keeps every contracts officer and FSO awake at night: "What data am I allowed to put into an AI tool?"
The answer is not a blanket yes or no. It depends on the classification of the data, the AI tool's security posture, and your contractual obligations. This module gives you a decision framework that your team can apply to every piece of data before it touches an AI tool.
