FAST Act Gives DoD New Authority to Buy AI Tech Using Subscription Models and Any Available Cash

The Flexible Acquisition of Software Technology Act, or FAST Act, is all about modernizing how the Department of Defense (DoD) buys the digital tools it needs to power its Artificial Intelligence (AI) systems. Essentially, this bill grants the Secretary of Defense the authority to ditch some of the slow, old-school procurement rules when it comes to software and data. Specifically, it allows the DoD to purchase software and data using modern, commercial models like 'as a Service' subscriptions—think of it like the DoD getting a Netflix or Salesforce subscription for data and code, rather than having to buy the whole DVD box set every time. This is detailed in Section 2, which covers the procurement of software and data to support AI systems.

The Need for Speed: Subscriptions and Supplies

Under this new authority, the DoD can now acquire software and data in several flexible ways. They can buy "Software as a Service" (SaaS), which is software accessed remotely via the internet, or "Data as a Service," which is data delivered remotely, usually through a subscription. They can also buy "Data as a Supply," meaning they buy the data outright and host it themselves. This flexibility isn't just about buying new things; the bill also authorizes the Secretary to modify existing software to better support AI systems and to research and test those changes (Sec. 2). For the average person, this means the military can potentially integrate cutting-edge AI tools much faster, keeping pace with commercial tech development rather than lagging years behind.

Where the Money Comes From

One of the biggest changes here is financial. The FAST Act explicitly states that the Secretary can use "any money appropriated or otherwise available" to cover these AI-related purchases and modifications (Sec. 2). This is a big deal because it gives the DoD the flexibility to fund time-sensitive AI needs without being tied down to a single, specific budget line item. While this sounds efficient—and it is, allowing quicker reaction times—it also raises an eyebrow. Granting the authority to pull funds from "any available" pot of money could mean that funds originally earmarked for, say, military housing or equipment maintenance could potentially be shifted to urgent AI contracts if oversight isn't rigorous. The bill mandates the Secretary create new regulations for oversight, but we won't know how tight those controls are until they write them.

The Real-World Impact on Tech Vendors and Taxpayers

For tech companies, especially those specializing in AI and cloud services, this is a huge green light. It means the DoD is finally adopting modern commercial procurement practices, making it easier for smaller, innovative firms that rely on subscription models to sell to the military. This lowers the barrier to entry for many tech vendors. However, for taxpayers, the main impact hinges entirely on the quality of the new oversight rules. While the goal is efficiency and speed, increased spending flexibility, especially when coupled with the medium vagueness around the definition of an "Artificial Intelligence System," means the DoD will need to be extremely transparent about what they are buying and why. If the new rules are weak, it could lead to less standardized spending compared to traditional, rigid procurement methods, potentially affecting how taxpayer dollars are managed.