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Relaxation Of Requirements = Out-Of-Scope Mod

Client Alert | less than 1 min read | 06.22.05

In Poly-Pacific Technologies, Inc. (June 1, 2005 http://www.gao.gov/decisions/bidpro/296029.pdf), GAO found that an agency's modification that relaxed the requirements of an existing contract amounted to an improper out-of-scope modification and that the agency was required to have conducted a new competition. This decision shows that "cardinal" modifications can occur with relaxations, as well as expansions, of requirements.

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Client Alert | 14 min read | 03.13.26

AI for Government: 7 Days for Contractor Comments on GSA Proposed Contract Clause for AI Systems

On March 6, 2026, the General Services Administration (GSA) issued a significant proposed contract clause, GSAR 552.239-7001, Basic Safeguarding of Artificial Intelligence Systems (“Clause”), for inclusion in GSA Schedule solicitations and contracts for AI capabilities.  The proposed clause would impose substantial new requirements related to AI sources, intellectual property rights, data use, change management, and performance standards.  The Clause would also take precedence over any other contract terms (including commercial licensing terms) related to AI, including a Seller’s terms of sale and service to which the Government had previously agreed.  GSA requests comments by March 20, 2026....