Issuance of HUD Acquisition Instruction 26‑02 – Acquisition of Artificial Intelligence and New Agency‑Specific Clauses

The U.S. Department of Housing and Urban Development (HUD), Office of the Chief Procurement Officer (OCPO), announces the issuance of Acquisition Instruction 26 02 (AI 26-02): Acquisition of Artificial Intelligence. This instruction implements requirements in support of Executive Order 13960, which directs Federal agencies to employ safe, secure, and trustworthy artificial intelligence (AI) to enhance government efficiency and mission performance. 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

To advance these directives, HUD OCPO has established five Agency Specific (AS) Clauses applicable to acquisitions involving AI systems, services, tools, models, or related data driven capabilities. These clauses will be incorporated into applicable solicitations and contracts above the micro purchase threshold to ensure responsible, transparent, and secure AI development and deployment across HUD programs.

New Agency Specific Clauses

AS 2602 Privacy, IP, and Government Data Use Requirements Defines requirements for privacy protections, intellectual property rights, and appropriate use, access, and retention of government data in AI enabled solutions. Directs contractors to comply with HUD requirements governing ownership and use of Government data and intellectual property developed or used in contract performance.

AS 2603 AI Use Transparency Requirements Requires disclosure of AI system use, model characteristics, training data sources, and explainability features to support transparency and accountability. Directs contractors to disclose all use of AI in the products or services they deliver or use in performance of the contract.

AS 2604 Vendor Lock In Protections Ensures portability, interoperability, and continuity of operations by preventing undue vendor dependency in AI solutions. Directs contractors to implement safeguards to ensure long-term agency control over systems, data, and AI Systems, AI Services, and AI models (collectively, AI Systems).

AS 2605 Ongoing Testing and Monitoring Requirements for AI System Establishes continuous evaluation, performance monitoring, and risk mitigation obligations for AI systems throughout the contract lifecycle. Directs contractors to support regular monitoring and evaluation of AI System(s) or AI Service(s) (collectively AI Systems) throughout the AI System's lifecycle to ensure the continued performance, accuracy, effectiveness, and trustworthiness of the AI System(s).

AS 2606 High Impact AI Requirements Applies heightened safeguards, documentation, and oversight for AI systems designated as high impact due to their potential effect on individuals, programs, or mission outcomes. Directs contractors to comply with all applicable federal and agency risk mitigation requirements for any AI system or service (collectively referred to as AI System) determined by the Government to be a High-Impact AI System.

Contractors responding to HUD solicitations involving AI related capabilities should review these clauses carefully to ensure full compliance with all requirements. HUD will incorporate these clauses into new acquisitions and, as appropriate, into modifications of existing contracts.

Questions regarding AI 26 02 or the associated Agency-Specific clauses should be directed to the contracting officer assigned to the applicable contract or solicitation.