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GSA Previews Significant Changes Planned for Upcoming Multiple Award Schedule Refresh 

By Scott A. Freling, Jennifer Plitsch, Nooree Lee & Victoria Skiera on October 15, 2026
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On October 5, 2026, the General Services Administration (GSA) Federal Acquisition Service previewed its plan to issue Multiple Award Schedule (MAS) Refresh 34 in November 2026.  The announcement of Refresh 34 comes just days after the release of Refresh 33, which had previously been delayed to ensure appropriate integration of relevant updates.  Like Refresh 33, Refresh 34 would be incorporated into existing contracts via mass modification, which current contract holders must accept within 90 days after issuance in order to continue offering products and services on the MAS.  Refresh 34 and the corresponding mass modification would make several significant changes that MAS offerors and contractors should be tracking.


New Artificial Intelligence Clause

First, Refresh 34 would implement the revised version of GSA’s new artificial intelligence class deviation, which governs the acquisition of a “system where [Large Language Model] LLM functionality is a material feature and Government Data will be submitted directly to or produced by the LLM.”  See GSAR 552.239-7001(a) (Deviation).  GSA issued this class deviation in connection with the Revolutionary FAR Overhaul,[1] and it has undergone substantive revisions since the original draft version proposed earlier this year.  The class deviation is set to take effect on October 19, 2026.

In its current form, the clause would require contractors to implement controls addressing Government Data submitted to or created by an LLM.  Among other obligations, contractors would be required to disclose LLMs used in contract performance to process Government Data, configure the systems to comply with specified data-use procedures and safeguards, provide means to implement human oversight, and comply with notification requirements relating to both security incidents and violations of the clause.  See GSAR 552.239-7001(f), (j).  The clause also addresses ownership and licensing of data inputs, outputs, and background intellectual property covered by the clause; limits the use of Government Data for activities such as model training or fine-tuning; and prohibits certain forms of foreign control over an LLM’s “performance, operations, or protections[.]”  See GSAR 552.239-7001(e), (f), (j) (Deviation).

Notably, this clause does not apply when LLM use is limited to back-office or other internal contractor systems that only incidentally process Government Data and does not apply where LLM functionality is incidental or ancillary to the commercial product or service being procured.  See GSAR 552.239-7001(a) (Deviation); see also GSAR 539.71(b) (Deviation). 

The clause requires flowdown to applicable subcontractors “to the extent such entity collects, processes, stores, retains, trains on, fine-tunes on, or otherwise handles Government Data[,]” though the provisions of the clause governing “origin, ownership, jurisdiction, or foreign control” need not be flowed down in all cases.  See GSAR 552.239-7001(a)(2).  The clause also imposes a requirement to “conduct due diligence when selecting and overseeing” relevant subcontractor performance.  See GSAR 552.239-7001(d) (Deviation). 

Because the clause generally applies only when LLM functionality is a material feature and Government Data will be submitted directly to or produced by the LLM, current and prospective MAS contractors should start by evaluating whether their offerings fall within its scope, or whether a relevant exception applies.  Contractors that expect to be subject to the clause are well advised to carefully study its requirements and update applicable internal compliance and flowdown frameworks to ensure they are prepared to comply.

New Domestic End Product Clause and Related Sourcing Matters

Second, Refresh 34 would incorporate a class deviation setting forth a new clause allowing – but not requiring – Federal Supply Schedule (FSS) offerors and contractors to certify that listed products “are FSS domestic end products.”[2]  See GSAR 552.238-130 (Deviation). 

GSA has explained the class deviation is meant to carry out President Trump’s “efforts to root out fraud, waste, and abuse in federal procurement, and to protect American consumers (including the Federal Government) against fraudulent American-origin claims,” as articulated in Executive Order 14392, “Ensuring Truthful Advertising of Products Claiming to be Made in America,” which we previously covered here.  GSA goes on to clarify that the deviation “does not waive or modify the Trade Agreements Act of 1979 (19 U.S.C. 2501, et. seq.) nor any applicable trade agreement to which the United States is a signatory.”  This language introduces potential uncertainty as to the purposes and potential benefit of a U.S.-made certification where the relevant product is a qualifying country end product under the Trade Agreement Act. 

Notably, Refresh 33 also addressed sourcing matters.  It implemented a new deviation provision and clause aimed at strengthening supply chain security,[3] and a class deviation removing the exception to Trade Agreements Act applicability for certain federal programs making the application of the TAA more uniform in GSA acquisitions. 

Taken together, these sourcing-related actions reflect the administration’s continued focus on domestic sourcing and supply chain security, as well as the need for federal contractors to closely monitor ongoing developments in this space.

Other Changes and Next Steps

The Refresh 34 notification also announces that “GSA intends to move toward removing items from MAS contracts that fall within the scope of [the Department of Homeland Security (DHS)]’s Best-in-Class [Personal Protective Equipment (PPE)] Safety Stock contract for domestically manufactured nitrile gloves,” in an effort to support “consolidation of federal demand and a stronger domestic PPE supply chain.”  See GSA Notification, Significant Changes for the GSA Multiple Award Schedule (MAS) Solicitation.  DHS’s Safety Stock contract is an indefinite delivery indefinite quantity vehicle dating back to April of 2022, which supports the “pandemic and operational needs of DHS Components.”  See DHS Memorandum, PPE Safety Stock.  GSA has indicated that it plans to “engage directly with affected contractors” and consider their feedback “before proceeding with removal” of relevant items from the MAS.  See GSA Notification, Significant Changes for the GSA Multiple Award Schedule (MAS) Solicitation.

In addition, Refresh 34 would incorporate certain “modernization efforts,” including implementing a class deviation removing the limit on the number of five-year option extensions that GSA may exercise.  See GSAR 552.238-116 (Deviation). 

It is important to note that the changes GSA has planned for Refresh 34, and the corresponding mass modification, are currently in draft form and are subject to change, including – among other reasons – to account for comments from industry.   As such, schedule contractors and offerors should carefully assess the final version of the refreshed solicitation, once issued, to ensure they are tracking all relevant substantive changes at that time.  In the meantime, interested members of the public may attend a webinar covering the anticipated changes, set to take place on October 26, 2026. 


[1] GSA has explained that “[a]s with the FAR Overhaul, changes to the GSAR initially will be accomplished as deviations. Formal rule making will follow including a full notice and comment period.” 

[2] The background to this class deviation explains:  “‘FSS domestic end products’ is a new term.  It covers items which are both manufactured in the United States and also meet certain minimum amounts of American made or sourced components.”  The term is defined in the class deviation itself.  See GSAR 552.238-130(a) (Deviation).  In addition, GSA explains that it is “seeking clearance from OMB for information collections related to GSAR 552.238-130. Until clearance is received, contractors and offers may offer this certification, but GSA will not enforce compliance with clause requirements and or share the information received.”

[3] A July 2026 flyer updating the acquisition community on the provision and clause cautioned that “[i]f [supply chain] risks cannot be mitigated, GSA Contracting Officers have the authority to remove specific products, decline performance extensions, cancel or terminate contracts.”

Photo of Scott A. Freling Scott A. Freling

Scott Freling co-chairs the firm’s Government Contracts practice and is recognized by Chambers USA as a leading practitioner. He divides his practice between representing civilian and defense contractors in traditional government contracts matters and guiding buyers and sellers—including a number of leading private…

Scott Freling co-chairs the firm’s Government Contracts practice and is recognized by Chambers USA as a leading practitioner. He divides his practice between representing civilian and defense contractors in traditional government contracts matters and guiding buyers and sellers—including a number of leading private equity firms—through the regulatory aspects of complex M&A deals involving government contractors.

Chambers USA ranks Scott as a Band 1 lawyer for Government Contracts M&A. Scott is sought after for his regulatory expertise and his ability to apply that knowledge to the transactional environment. He has extensive experience leading classified and unclassified due diligence reviews of government contractors, negotiating transaction documents, and assisting with integration and other post-closing activities. He has served as the lead government contracts lawyer in dozens of M&A deals, with a combined value of more than $80 billion. Some of Scott’s notable transactions include Shield AI’s acquisition of Aechelon, Warburg Pincus and Berkshire Partners’ take-private acquisition of TRIUMPH for $3 billion, Advent International’s take-private acquisition of Maxar Technologies for $6.4 billion, and Aptiv’s acquisition of Wind River for $3.5 billion.

Scott also represents contractors at all stages of the procurement process and in their dealings with federal, state, and local government customers. He handles a wide range of government contracts matters, including compliance counseling, contract terminations, claims, disputes, audits, and investigations. Scott frequently advises contractors on organizational conflicts of interest and government intellectual property rights. He also counsels clients on risk mitigation strategies, including obtaining SAFETY Act liability protection for anti-terrorism technologies.

Law360 has recognized Scott as a MVP in Government Contracts. He was a founding co-chair of the Mergers and Acquisitions Committee of the ABA’s Public Contract Law Section.

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Photo of Jennifer Plitsch Jennifer Plitsch

Jennifer Plitsch is a member of the Government Contracts Practice Group, where she works with clients on a broad range of issues arising from both defense and civilian contracts including contract proposal, performance, and compliance questions as well as litigation, transactional, and legislative…

Jennifer Plitsch is a member of the Government Contracts Practice Group, where she works with clients on a broad range of issues arising from both defense and civilian contracts including contract proposal, performance, and compliance questions as well as litigation, transactional, and legislative issues.

She has particular expertise in advising clients on intellectual property and data rights issues under the Federal Acquisition Regulations (FAR) and obligations imposed by the Bayh-Dole Act, including march-in and substantial domestic manufacturing. Jen also has significant experience in negotiation and compliance under non-traditional government agreements including Other Transaction Authority agreements (OTAs), Cooperative Research and Development Agreements (CRADAs), Cooperative Agreements, Grants, and Small Business Innovation Research agreements.

For over 20 years, Jen’s practice has focused on advising clients in the pharmaceutical, biologics and medical device industry on all aspects of both commercial and non-commercial agreements with various government agencies including:

the Department of Veterans Affairs (VA);
the Department of Health and Human Services (HHS), including the Biomedical Advanced Research and Development Authority (BARDA), the National Institutes of Health (NIH), and the Centers for Disease Control (CDC);
the Department of Defense (DoD), including the Defense Threat Reduction Agency (DTRA), the Defense Advanced Research Projects Agency (DARPA), and the Joint Program Executive Office for Chemical Biological Defense (JPEO-CBRN); and
the U.S. Agency for International Development (USAID).

She regularly advises on the development, production, and supply to the government of vaccines and other medical countermeasures addressing threats such as COVID-19, Ebola, Zika, MERS-CoV, Smallpox, seasonal and pandemic influenza, tropical diseases, botulinum toxin, nerve agents, and radiation events. In addition, for commercial drugs, biologics, and medical devices, Jen advises on Federal Supply Schedule contracts, including the complex pricing requirements imposed on products under the Veterans Health Care Act, as well as on the obligations imposed by participation in the 340B Drug Pricing program.

Jen also has significant experience in domestic sourcing compliance under the Buy American Act (BAA) and the Trade Agreements Act (TAA), including regulatory analysis and comments, certifications, investigations, and disclosures (including under the Acetris decision and Biden Administration Executive Orders). She also advises on prevailing wage requirements, including those imposed through the Davis-Bacon Act and the Service Contract Labor Standards.

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Photo of Nooree Lee Nooree Lee

Nooree Lee represents government contractors in all aspects of the procurement process and focuses his practice on the regulatory aspects of M&A activity, procurements involving emerging technologies, and international contracting matters.

Nooree advises government contractors and financial investors regarding the regulatory aspects of…

Nooree Lee represents government contractors in all aspects of the procurement process and focuses his practice on the regulatory aspects of M&A activity, procurements involving emerging technologies, and international contracting matters.

Nooree advises government contractors and financial investors regarding the regulatory aspects of corporate transactions and restructurings and – more recently – on equity investments by the U.S. government. His experience includes preparing businesses for sale, negotiating deal documents, coordinating large-scale diligence processes, and navigating pre- and post-closing regulatory approvals and integration. He has advised on 50+ M&A deals involving government contractors totaling over $40 billion in combined value. This includes Advent International’s sale of Ultra Maritime to Lockheed Martin for $3.45 billion; Bridgepoint Group’s sale of Evac Group to Altor Equity Partners; the acquisition of Perspecta Inc. by Veritas Capital portfolio company Peraton for $7.1 billion; and Cameco Corporation’s strategic partnership with Brookfield Renewable Partners to acquire Westinghouse Electric Company for $7.8+ billion. Nooree also advised the financial advisor and lead left arranger of MP Materials’ $1 billion in committed financing for its partnership with the Pentagon to build out the U.S. rare earth materials supply chain.

Nooree also counsels clients focused on delivering emerging technologies to public sector customers. Over the past several years, his practice has expanded to include advising on the intersection of government procurement and artificial intelligence. Nooree counsels clients on the negotiation of AI-focused agreements with the U.S. government and the rollout of federal and state-level regulations impacting the procurement and deployment of AI solutions on behalf of government agencies.

Nooree also counsels clients navigating the Foreign Military Sales (FMS) program and Foreign Military Financing (FMF) arrangements. Nooree has advised both U.S. and ex-U.S. companies in connection with defense sales to numerous foreign defense ministries, including those of Australia, Israel, Singapore, South Korea, and Taiwan.

In addition to his government contracts advising, Nooree assists clients with navigating federal Freedom of Information Act and state public records requirements, including objecting to a government agency’s proposed release of a company’s proprietary information.

In addition to his work within the firm, Nooree is the Secretary for the American Bar Association’s Section of Public Contract Law. He also previously served as the firm’s Fellow for the Leadership Council on Legal Diversity program.

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Photo of Victoria Skiera Victoria Skiera

Victoria Skiera is an associate in the firm’s Government Contracts Practice Group, advising contractors on a range of regulatory and compliance issues. She has experience assisting clients with unique issues arising in government contracts transactions and related due diligence processes, as well as…

Victoria Skiera is an associate in the firm’s Government Contracts Practice Group, advising contractors on a range of regulatory and compliance issues. She has experience assisting clients with unique issues arising in government contracts transactions and related due diligence processes, as well as in compliance counseling, investigations, and disputes. Victoria also has experience assessing the impact of executive order and litigation activity in the context of federal procurement and financial assistance. Victoria maintains an active pro bono practice.

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  • Posted in:
    Government Contracts, Technology and AI
  • Blog:
    Inside Government Contracts
  • Organization:
    Covington & Burling LLP
  • Article: View Original Source

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