Government & Public Sector

Agentic AI Implementation Guide

Document ID: B6-GOVT-PUBLIC-SECTOR
Version: 1.0
Category: Industry Vertical

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Sector Overview

Characteristic	Description
Decision Velocity	Slow (procurement, policy)
Compliance Burden	Very High (FISMA, FedRAMP, state regulations)
Data Sensitivity	High (PII, national security)
Legacy Systems	Extensive (COBOL, mainframes)
Budget Cycles	Annual, rigid
Stakeholder Complexity	Very High (elected officials, citizens, unions)

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Primary Use Cases

1. Citizen Services (GS + VE)

Application: Automated response to citizen inquiries

Paradigm: GS (retrieval) + VE (compliance)

Flow:
1. Citizen submits inquiry (web/phone/email)
2. GS retrieves relevant policies, procedures, eligibility
3. VE ensures response follows agency guidelines
4. Human review for complex/sensitive cases
5. Response delivered with required disclosures

Compliance: ADA accessibility, language requirements

ROI Metrics:

• 60% reduction in response time
• 40% reduction in call center volume
• 85% citizen satisfaction maintained

2. Grants Management (VE)

Application: Grant application processing and compliance monitoring

Protocol: GRANTS_PROCESSING_V1

Step 1: Application Intake
- Extract application data
- Validate completeness
- Assign tracking number

Step 2: Eligibility Screening
- Check entity eligibility (SAM.gov)
- Verify certifications
- Confirm match requirements

Step 3: Technical Review
- Score against criteria
- Flag discrepancies
- Generate review summary

Step 4: Compliance Check
- Verify budget alignment
- Check for conflicts
- Document findings

Step 5: Recommendation
- Generate funding recommendation
- Route for approval
- Create audit record

Compliance: 2 CFR 200, agency-specific requirements

3. Procurement Assistance (GS)

Application: Helping vendors navigate procurement process

Paradigm: GS

Knowledge Base:
- FAR/DFAR regulations
- Agency supplements
- Past solicitations
- Award histories

Capabilities:
- Explain procurement requirements
- Identify relevant contract vehicles
- Guide proposal preparation
- Answer compliance questions

Guardrails:
- No bid/no-bid recommendations
- No pricing guidance
- Disclosure of AI use

4. Policy Analysis (GS + LSR)

Application: Analyzing proposed regulations and legislation

Phase 1 (GS): Research
- Retrieve relevant statutes
- Find precedent policies
- Identify stakeholder positions
- Gather impact data

Phase 2 (LSR): Synthesis
- Summarize key provisions
- Identify implementation challenges
- Propose alternatives
- Draft briefing materials

Output: Policy brief with citations

5. Benefits Administration (VE)

Application: Processing benefit applications

Protocol: BENEFITS_DETERMINATION

Required: Complete audit trail, decision rationale

Step 1: Identity Verification
- Validate identity documents
- Cross-reference databases
- Flag discrepancies

Step 2: Eligibility Determination
- Apply eligibility rules
- Calculate benefit amounts
- Document all decisions

Step 3: Quality Assurance
- Automated consistency checks
- Sample for human review
- Track error rates

Compliance: Privacy Act, program-specific regulations

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Compliance Framework

FedRAMP Considerations

Requirement	Agentic Implementation
Data residency	US-based LLM providers or on-premise
Access control	PIV/CAC integration, MFA
Audit logging	Immutable, 7-year retention
Incident response	72-hour reporting capability
Continuous monitoring	Automated security scanning

FISMA Controls (Selected)

Control Family	Agentic Relevance
AC (Access Control)	Agent authentication, authorization
AU (Audit)	Action logging, review procedures
CA (Assessment)	Agent testing, validation
CM (Configuration)	Agent versioning, change control
IA (Identification)	User/agent identity management
SC (System Protection)	Input validation, output filtering

Privacy Act Compliance

REQUIREMENTS FOR PII HANDLING:

1. System of Records Notice (SORN)
   - Document agent access to PII
   - Publish in Federal Register if new system

2. Privacy Impact Assessment (PIA)
   - Assess agent use of PII
   - Document safeguards
   - Review annually

3. Minimum Necessary
   - Agent retrieves only required PII
   - Context windows minimized
   - Outputs filtered

4. Individual Rights
   - Access request handling
   - Amendment procedures
   - Accounting of disclosures

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Implementation Considerations

Procurement Path

Option 1: Existing Contract Vehicles
- GSA Schedule 70 (IT)
- NASA SEWP
- Agency BPAs

Option 2: New Procurement
- RFI for market research
- RFP with AI-specific evaluation criteria
- Pilot program authority

Option 3: Other Transaction Authority (OTA)
- Faster procurement for prototypes
- Available at some agencies

Change Management

Government-Specific Challenges:
- Union considerations
- Political sensitivity
- Public scrutiny
- Long approval chains

Mitigation:
- Early stakeholder engagement
- Transparency about AI use
- Gradual rollout
- Human oversight emphasis

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ROI Framework

Quantifiable Benefits

Metric	Typical Improvement
Processing time	50-70% reduction
Error rates	30-50% reduction
Citizen wait times	40-60% reduction
Staff reallocation	20-40% to higher-value work

Mission Impact

Outcome	Measurement
Service accessibility	24/7 availability
Equity	Consistent treatment across cases
Transparency	Decision explanation capability
Accountability	Complete audit trails

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Case Example: Benefits Processing

Agency: State workforce agency
Challenge: 6-week backlog in unemployment claims
Solution: VE agent for initial eligibility determination

Implementation:
- VE agent processes 70% of straightforward claims
- Complex cases routed to human adjudicators
- Full audit trail for all decisions
- Citizens can request human review

Results:
- Backlog cleared in 4 weeks
- 65% of claims processed same-day
- Error rate reduced 35%
- Appeals rate unchanged (validation of quality)
- Staff focused on complex cases and fraud detection

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Document maintained by CODITECT Public Sector Team