Navigating Federal Solicitations with Artificial Intelligence for SMBs
As the federal government continues to modernize its procurement processes and integrate emerging technologies, many small to mid-sized businesses (SMBs) are looking for ways to boost their competitiveness. Artificial Intelligence (AI) tools can streamline responses to government solicitations yet there’s a looming shadow in regards to accuracy, legal ramifications and authenticity when bidding for contracts. If you’re a service provider interested in working with the government, understanding how leveraging AI is not just a gamble, it could be legally challenged.
How will small business owners be able to adapt to the changing times with the adoption of AI scanning tools being implemented in government agencies like GSA, USDA, DHS and the DOW?
Government agencies now know when you are using tools like ChatGPT for proposal writing and treat it as if you are a student cheating on an English paper.
“Northern California prosecutors used artificial intelligence to write a criminal court filing that contained references to nonexistent legal cases and precedents.”
Legal and Regulatory Considerations
While AI presents numerous advantages, it’s crucial to be aware of potential legal and regulatory issues:
1. Accuracy and Misrepresentation Risks: Just because you use AI doesn’t mean you can overlook the content’s accuracy. Inaccuracies could lead to bid protests or liability under the False Claims Act, severely damaging your reputation. Always have human experts review AI-generated content to maintain a high standard.
2. Protection of Proprietary Information: Be careful about feeding proprietary data into AI tools. Laws like FAR 3.104 restrict the sharing of sensitive information. Before using an AI tool, assess its data privacy practices.
3. Organizational Conflicts of Interest (OCI): If an AI tool has trained on your previous work with a federal agency, using it to propose on related contracts might create OCI issues. Evaluate AI outputs to mitigate any risk of bias.
4. Intellectual Property and Data Rights: Ensure you understand who owns the data produced from AI models and whether you can reuse AI-generated solutions in future contracts. Clarifying licensing agreements before use can prevent potential disputes later on.
5. Compliance with Proposal Submission Rules: Some solicitations have strict guidelines about originality and format—which could conflict with using AI. Confirm your AI-assisted proposals meet all stipulations.
“Deloitte’s member firm in Australia will pay the government a partial refund for a $290,000 report that contained alleged AI-generated errors, including references to non-existent academic research papers and a fabricated quote from a federal court judgment.” (Deloitte only refunding $60k to Australian Government)
– Nino Paoli – Fortune
Best Practices for Applying AI in Contract Bidding
– Adopt a Human-in-the-Loop Model: Always ensure that qualified professionals are involved in reviewing AI outputs to maintain quality and compliance. We pride ourselves in having an entire team of Government Procurement Advisors.
– Maintain Audit Trails: Document how you’ve employed AI in proposal development. This can come in handy for compliance reviews.
– Conduct Legal and Compliance Reviews: Engage with legal counsel to assess the implications of AI tools and their usage guidelines in your proposals. Our team consists of exceptional APMP Certified Proposal Writers to help guide you through the process.
– Train Your Personnel: Provide training for your team on how to use AI tools responsibly and ethically, fostering a culture of compliance.
– Stay Updated: Regulations regarding AI in federal procurement are evolving. Keep abreast of guidance from the FAR Council and your specific agency’s acquisition offices.
For SMBs especially those owned by veterans, women, or minorities, being aware of these practices can eventually lead to enhanced opportunities in government business.
“The Office of Management Enterprise Services, responsible for managing statewide procurement efforts in Oklahoma, announced it recently deployed Process Copilot, a generative AI platform from the German software service firm Celonis that flags mistakes in submission forms, such as missing vendor contracts or including the wrong type of procurement order.”
Conclusion
Yes, AI provides us an opportunity yet at the end of the day, it was was created by humans. By improving efficiency and accuracy in responding to solicitations, it opens doors to more lucrative opportunities. Yet, as you integrate these technologies, be diligent in addressing the legal and ethical aspects associated with their use. As the landscape changes, SMBs that actively navigate compliance will stand out in leveraging AI without risking their integrity.
For more resources and support on navigating government contracting, and to learn more about how we assist small businesses like yours with programs such as 8(a), VOSB, WOSB, and HUBZone.
