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) has issued Acquisition Instruction 26‑02, which implements requirements for the acquisition of artificial intelligence (AI) systems, services, tools, models, or related data-driven capabilities. The instruction establishes five Agency-Specific (AS) Clauses that will be incorporated into applicable solicitations and contracts above the micro-purchase threshold. These clauses aim to ensure responsible, transparent, and secure AI development and deployment across HUD programs. The AS Clauses cover requirements such as privacy, IP, and government data use, AI use transparency, vendor lock-in protections, ongoing testing and monitoring, and high-impact AI requirements. • The AS Clauses will be incorporated into new acquisitions and, as appropriate, into modifications of existing contracts. • Contractors responding to HUD solicitations involving AI-related capabilities must review these clauses carefully to ensure full compliance with all requirements. • The clauses aim to prevent undue vendor dependency in AI solutions and ensure long-term agency control over systems, data, and AI systems. • Contractors must provide comprehensive documentation, training, and knowledge transfer to enable agency personnel or successor contractors to effectively manage, operate, and update AI systems.