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FAR Council Urged to Regulate AI in Federal Procurement

FAR Council Urged to Regulate AI in Federal Procurement

First seen 28 Oct 2026, 02:21 UTC • •
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ThreatCluster AI
ThreatCluster •October 28, 2026 at 08:18 UTC
  • •Experts urge FAR Council to regulate AI in federal procurement.
  • •A lawsuit revealed issues with AI evaluations in bid processes.
  • •Proposed FAR rules are currently under public review.

Industry and legal experts are calling for the Federal Acquisition Regulatory Council (FAR Council) to establish regulations governing the use of artificial intelligence (AI) in federal procurement processes. This push follows a lawsuit where TRAX International Corporation claimed that the Army's AI-driven evaluations distorted their bid for a contract. The court ruled that AI-generated evaluations must be included in administrative records, highlighting the lack of specific federal rules on AI usage in bid evaluations. Experts argue that the FAR Council should provide guidance on AI tool usage, including transparency and verification of AI recommendations. The FAR Council is currently considering proposed rules that could address these issues, with public comments accepted until October 19, 2026.

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Timeline

2026-09-18
FAR Council proposed new rules on AI
The FAR Council released proposed rules addressing AI use in procurement, inviting public comments until October 19.
Federalnewsnetwork
2026-10-19
Public comment period closed
The FAR Council concluded the public comment period for proposed AI regulations in federal procurement.
Federalnewsnetwork
2026-10-27
Legal experts emphasize need for AI regulations
Legal experts highlighted the urgency for the FAR Council to regulate AI use in federal procurement following a lawsuit involving AI evaluations.
Federalnewsnetwork

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Common questions

What is the FAR Council?
The FAR Council is responsible for overseeing federal procurement regulations, including the use of AI.
Why is AI regulation needed in procurement?
Regulation is needed to ensure transparency and fairness in bid evaluations that use AI tools.
What was the outcome of the TRAX lawsuit?
The court ruled that AI-generated evaluations must be included in administrative records, but did not find the Army's use of AI arbitrary.