Federal Government & Defense

Mission-ready AI.
Accountability built in.

FY2025 and FY2026 NDAA both explicitly mandate audit trails, explainability, and model governance for DoD AI. $13.4B in defense AI spending flows to contractors who demonstrate governance readiness. OMB M-25-22 requires AI governance terms in all contracts effective September 2025. CLEOS is architecturally aligned with every requirement out of the box.

$13.4B
Active defense AI spending
100%
of new DoD AI contracts require audit trail under FY2026 NDAA
Sep ’25
OMB M-25-22 effective — AI governance in all new contracts
FY2026
NDAA mandate for DoD AI explainability and governance
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The Problem

Federal AI mandates aren’t future policy. They’re current contract requirements.

The federal government has moved from AI guidance to enforceable requirements — in contracting terms, statute, and appropriations. Governance isn’t a competitive differentiator anymore. It’s a gate.

NDAA
Both FY2025 and FY2026 mandate DoD AI governance
The FY2025 NDAA (§§ 1501-1512) established AI governance requirements for DoD programs. The FY2026 NDAA extends these with explicit audit trail requirements, explainability mandates, and model documentation standards for all AI systems used in mission-critical applications. Non-compliant contractors face contract disqualification.
Congressional Research Service 2025
Sep ’25
OMB M-25-22 effective — AI governance in all federal contracts
OMB M-25-22, effective September 2025, requires federal agencies to include AI governance, audit, and accountability terms in all new contracts involving AI systems. Agencies can no longer award contracts to vendors who cannot demonstrate governance capability. This applies to every prime contractor and major subcontractor.
OMB Office of Federal Procurement Policy 2025
$13.4B
Defense AI spending flowing to governance-ready contractors
$13.4B in active defense AI spending is being competed right now. The differentiating capability in every competitive evaluation is not AI performance — it’s governance readiness. Contractors who cannot demonstrate audit trail capability, explainability, and access controls are being screened out at the pre-qualification stage.
DISA / DARPA Budget Submissions FY2025-2026

The Solution

How CLEOS solves the federal AI governance problem

Three mission-critical capabilities that satisfy NDAA requirements, OMB mandates, and DoD data boundary standards — out of the box.

1
Intelligence Analysis Governance & Classification Boundary Enforcement
Intelligence analysis workflows operate across multiple classification levels — with strict requirements that AI systems cannot transfer information across classification boundaries under any circumstances. CLEOS policy hooks enforce classification boundary compliance at the infrastructure level: an AI agent working on UNCLASSIFIED analysis cannot access SECRET data under any circumstances, regardless of user error or credential misconfiguration. Every access attempt — authorized and blocked — is logged with full provenance for inspector general review. Cross-session memory is maintained within classification levels, eliminating the re-briefing overhead that consumes analyst time on every mission cycle.
Classification EnforcementIG Audit TrailZero-Trust Access
2
Acquisition Compliance & FAR Accountability
AI-assisted acquisition and contracting workflows must satisfy FAR accountability requirements — every AI recommendation, analysis, and decision must be documentable and defensible. CLEOS captures the full decision chain for every AI-assisted contracting action: what data was accessed, what alternatives were evaluated, what policy constraints were applied, and what human review was performed. This documentation satisfies FAR 15.305 source selection documentation requirements for AI-assisted award decisions and provides the audit trail that Government Accountability Office bid protest proceedings require. For Defense Acquisition System programs, CLEOS provides the AI governance documentation that Defense Acquisition Guidebook requirements now mandate.
FAR ComplianceSource Selection AuditGAO Protest Readiness
3
Multi-Agent Mission Coordination Across Clearance Levels
Modern defense AI deployments involve multiple AI agents coordinating across mission functions — logistics, intelligence, acquisition, and operational planning. CLEOS’s multi-user session coordination enables AI agents to share relevant context while maintaining strict clearance-level data isolation. An agent with access to operational planning data can coordinate with a logistics agent without exposing operational details beyond the logistics agent’s need-to-know. Session metadata (who is working on what, when) is visible for coordination purposes; session contents remain isolated. This is not a permissions management feature — it is architectural enforcement at the infrastructure level that survives any user error or credential compromise.
Multi-Domain OperationsNeed-to-Know EnforcementSession Isolation

Why the Math Works

Federal AI ROI is measured in contract wins and mandate compliance

CLEOS is the infrastructure that turns governance requirements from a compliance cost into a competitive moat.

100%
NDAA FY2026 audit trail requirement coverage
Every AI action CLEOS governs generates a complete, immutable audit trail. No additional instrumentation required — NDAA compliance is the automatic byproduct of CLEOS deployment.
$13.4B
Defense AI market accessible to governance-ready contractors
Contractors with demonstrated AI governance capabilities are winning disproportionate share. CLEOS provides the governance documentation that pre-qualification requires — without building a custom compliance layer.
91%
Compute reduction on intelligence analysis workflows
Defense AI workloads are among the most compute-intensive in any sector. A 91% reduction on classified AI analysis translates directly to reduced data center requirements, energy costs, and SWaP constraints for deployed systems.

Regulatory Alignment

Every federal AI mandate CLEOS satisfies natively

Federal AI regulation is now statutory, not just guidance. CLEOS is built for every layer of the federal AI accountability stack.

NDAA FY2025 & FY2026 — DoD AI Governance
Mandates audit trails, explainability, and model documentation for all DoD AI systems. CLEOS satisfies all three requirements natively — every AI action is logged, every decision is traceable, and model documentation is generated automatically.
Statutory · Active
OMB M-25-22 — Federal AI Acquisition
Effective September 2025. Requires AI governance, audit, and accountability terms in all federal contracts. CLEOS provides the governance documentation that contract terms require — and the audit trail that contract compliance monitoring demands.
OMB · Sep 2025
FedRAMP — Federal Cloud Authorization
Federal Risk and Authorization Management Program requires security controls documentation for all federal cloud systems. CLEOS’s audit trail, access controls, and session logging satisfy FedRAMP AC, AU, and IA control families natively.
FedRAMP · Required
Executive Order 14110 — AI Safety & Security
EO 14110 requires federal agencies to assess and mitigate AI risks with documented governance processes. CLEOS’s four-layer hook architecture provides the pre-execution policy enforcement and post-execution audit documentation that EO 14110 compliance requires.
Executive Order

Buyers

Who in federal government and defense buys CLEOS

Federal AI governance decisions are made at the program, acquisition, and mission owner level — with policy oversight from OMB and congressional direction.

Program Executive Officers
Responsible for AI system acquisition and deployment. CLEOS provides the governance capability that PEO source selection criteria require and that NDAA compliance mandates.
AI Mission Owners
Accountable for mission AI performance and accountability. CLEOS’s audit trail and session coordination enables mission owners to demonstrate governance to inspector general oversight.
Prime Contractors
Competing for $13.4B in defense AI contracts. CLEOS provides the governance infrastructure that pre-qualification evaluations require — without building a custom compliance layer per program.
Defense Innovation Unit (DIU)
Fielding commercial AI capabilities into defense contexts. CLEOS provides the governance bridge between commercial AI tools and DoD accountability requirements.

The NDAA is law.
OMB M-25-22 is in effect.

See how CLEOS satisfies every federal AI governance mandate — and turns compliance from a cost center into a contract-winning capability.

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