The Government AI Procurement Problem (And How to Fix It)

Federal agencies are under increasing pressure to adopt AI. Executive orders mandate it. Mission needs demand it. But there's a fundamental disconnect between how government buys technology and how AI needs to be deployed.

The Problem

Traditional government procurement was designed for buying defined products: servers, software licenses, consulting hours. AI doesn't fit neatly into any of these categories. An AI solution might require:

• Custom model development (is this a product or a service?)
• Ongoing data pipeline maintenance (capital or operational expense?)
• Iterative deployment with uncertain timelines (fixed-price or T&M?)
• Access to classified or sensitive data (which security framework applies?)

Practical Solutions

Agencies that successfully deploy AI share common approaches:

• Start with a use case, not a technology — Define the mission outcome first, then determine what AI capabilities are needed
• Use Other Transaction Authorities (OTAs) where available to bypass traditional procurement constraints
• Build internal AI literacy so program managers can evaluate AI proposals effectively
• Partner with companies that understand both AI and government — the technical and regulatory expertise must coexist

At Intenteon, our Government AI Advisory practice helps agencies navigate these challenges. Based in Reston, VA, we understand the government technology landscape from the inside.