In light of federal appellate rulings affirming Department of Defense authority to blacklist AI foundation models, evaluate whether your agency or defense contractor tech stack complies with Section 889, DFARS 252.204-7012, and federal exclusion lists.
| Tier | Status | Governing Threshold |
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When a federal appeals court overturns or stays a California district court injunction against a DoD AI blacklist, DoD acquisition officers regain the immediate statutory right under FAR 4.23 to issue stop-work orders and reject bid proposals incorporating the restricted model weights.
Federal Supply Chain Security rules obligate primes and subcontractors to certify that no "covered articles" appear anywhere in their inferencing pipelines, embedding models, or training corpus processors, creating cascade liabilities.
Providers seeking to mitigate blacklists must transition to strict sovereign escrow, air-gapped on-premises weights with zero foreign-held sub-processors, or petition the Secretary of Defense for a critical national security waiver.