Artificial Intelligence for American Competitiveness and Economic Security (AI-ACES) in South Asia

The Artificial Intelligence for American Competitiveness and Economic Security (AI-ACES) in South Asia initiative, solicited under DFOP0018586 by the Bureau of South and Central Asian Affairs within the U.S. Department of State, aims to securely deploy American AI technologies in strategic economic sectors across three or more South Asian countries—including Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka—to reduce dependence on adversary-developed systems and strengthen allied capacity. The program focuses on enhancing national AI strategies, particularly in support of the U.S.-India TRUST initiative, while fostering policy environments that mitigate risks of AI system interference and exploitation. It requires applicants to build multi-sector partnerships among government, academia, and private industry through trusted vendors, establish structured certification pathways to elevate workforce capabilities, and ensure all deployed technologies align with U.S. economic and security interests. Proposals must outline SMART objectives, a detailed logic model, and a comprehensive monitoring and evaluation plan with clear milestones, deliverables, and sustainability metrics to ensure long-term impact beyond the program’s 36-month performance period, which is scheduled to begin on September 30, 2026. All applications must comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards under 2 CFR Part 200, including domestic preference mandates requiring maximum use of U.S.-made goods and materials, and must adhere to Department of State-specific requirements under 2 CFR Chapter VI and its standard terms and conditions. Applicants are required to be registered in SAM.gov with a Unique Entity Identifier (UEI), and subrecipients must obtain a UEI prior to award execution. Budgets must be submitted in U.S. dollars using OMB cost categories via the SF-424A format, with clear justification for all line items and strict prohibitions on unallowable costs such as entertainment, alcoholic beverages, and political advocacy. The proposal must include a detailed narrative not exceeding 15 pages, a one-page executive summary, letters of support from partners, and a current NICRA if indirect costs are claimed. Evaluation is weighted toward program feasibility (30%), organizational capacity (20%), planning and objectives (15%), monitoring and evaluation rigor (15%), sustainability (10%), and cost realism, with additional review for financial stability, management systems, and past performance through SAM.gov integrity checks. All awardees must follow Department of State branding guidelines to visibly acknowledge U.S. government funding and are subject to