Contract Management & GenAI Procurement Requirements - 2305.3

Contracts for the purchase of, or that include, GenAI may include unique, contract-specific requirements to ensure the State is adequately protected.

Contract managers shall continuously monitor, assess, and validate GenAI contract deliverables for equitable outcomes, output inaccuracies, fabricated content, hallucinations, biases, and the need for human action for all decision-making processes to ensure applicable state laws and policies are followed. Contract managers must work closely with their department GenAI subject matter expert to assess and validate contract deliverables.

Contract managers must enforce GenAI contract language, as outlined in section 2305.1 of this chapter, by monitoring any unreported use of GenAI, any additions or modifications of previously reported use of GenAI technology and requiring the contractor to disclose details of the use of GenAI through the submittal of the GenAI Reporting and Factsheet Form (STD 1000).  Upon discovery and/or when contractors report new use of GenAI, engage the department's Chief Information Officer (CIO) to complete a risk assessment and possible consultation with the California Department of Technology (CDT) to determine how to proceed.