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INTELLIGENT CONTRACTING


Contract delivery and execution can be made more transparent, more efficient and more cost-effective.


the receipt and evaluation of proposals and, finally, enable the award of a smart contract. While most of the data needed to launch the intelligent contracting concept already exist in data- bases across the federal government, the data will need to be sent through a methodical process to clean, organize and pack- age it to allow intelligent agents, smart contracts and blockchain to efficiently use it to execute the intelligent-contracting system functions. By using data the government is already collecting, the intelligent contracting system will be able to feed data to the AI to enable it to, in conjunction with humans, analyze how best to execute each procurement’s acquisition strategy.


Te three supporting technologies of intelligent agents, smart contracts and blockchain must be developed and integrated to provide the dynamic operational capability required to facilitate the procurement process. Intelligent agents will work in conjunc- tion with humans, AI and big data to navigate a contract action through the entire process. By using intelligent agents to facilitate procurement, productivity will be increased across organizations, and this self-service capability will be provided to customers in an always-on and available mode. A smart contract is an output of the intelligent contracting concept that provides a secure contrac- tual instrument that can be used for contract award, performance verification and payment for services rendered. Blockchain is a relatively new technology that has been most associated with Bitcoin and cryptocurrency; however, it has many more potential applications. It is the mechanism that would be used to facili- tate contract award, payment and verification of performance or delivery of goods and services. One use case for blockchain is as a tool for awarding and recording transactions, including contract actions. By using blockchain technology, contracting profession- als can automate the process of contract award and administration by setting parameters for contract award, payment and perfor- mance verification.


Te combination of these six emerging technologies and a trained, capable and empowered workforce will ensure that the intelli- gent contracting system can meet the requirements of the most demanding and dynamic stakeholders in the future. Innovation is the future delivered. How will the government move from


the current state to the future vision of the intelligent contract- ing platform?


BRIDGING STRATEGIES: HOW DO WE GET THERE FROM HERE? Intelligent contracting is an exciting vision of the future of procurement


that uses six emerging technologies—cloud


computing, artificial intelligence, big data, intelligent agents, smart contracts and blockchain. Tis section will cover poten- tial bridging strategies to transition from where we are right now to a future state enabled by the intelligent contracting ecosystem. Although the six emerging technologies are currently used in diverse commercial and governmental applications, implementa- tion concerns and other risks still exist. Te process of identifying emerging technologies and developing a big idea is the easy part. Te more significant challenge is to figure out how the govern- ment will integrate the emerging technologies into a platform that can be fielded and sustained throughout the life cycle of the system. Te remainder of this section will discuss key leader- ship considerations related to cybersecurity risks, new legislation, funding and prioritization and the AI workforce.


If government leaders decided to implement this intelligent- contracting concept, they would need to conduct a thorough risk analysis. One risk that stands out is cybersecurity vulnerabil- ity. Identifying and reducing cybersecurity risks would be critical to integrating the six technologies into a system that complies with government cybersecurity requirements and delivers value to stakeholders. After identifying, assessing and mitigating key risks, leaders must gain an understanding of AI-focused legisla- tion that provides authority to fund the AI-enabled intelligent contracting ecosystem.


Government leaders must become knowledgeable and adept at leveraging key AI-focused legislation. In 2017, the Trump admin- istration identified AI as one of its top research and development priorities by emphasizing the requirement for AI project propos- als to include an “all-of-government” benefit to gain approval. In 2018, the Modernizing Government Technology Act was signed into law to provide authority to fund IT projects across the federal


150


Army AL&T Magazine


Fall 2020


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