Compliance Stuff

The FAR Council recently issued  much-anticipated guidance  implementing Executive Order (EO) 14398, “Addressing DEI Discrimination by Federal Contractors.” 00:00 11:12 Quick Hits New clause FAR 52.222-90 declares contractor compliance “material” to the government’s payment decisions, creating direct False Claims Act liability for contractors who maintain prohibited programs. Agencies must bilaterally modify existing contracts to include the new clause by July 24, 2026 , and if a contractor refuses, agencies are told to consider whether the contract should be terminated for convenience. Prime contractors must flow the clause down to all tiers and report any subcontractor’s “known or reasonably knowable” violations to the contracting officer. While  EO 14398 , issued in March 2026, set the policy stage, this  new memorandum  provides the technical architecture and aggressive deadlines that federal contractors and subcontractors must navigate immediately. Below, w...

On March 26, 2026, President Trump issued  Executive Order 14398, Addressing DEI Discrimination by Federal Contractors , which instructed  . Consistent with deadlines established by the executive order, the Federal Acquisition Regulatory Council (FAR Council)  issued a memorandum  dated April 17, 2026, providing guidance to agencies that issue contracts to support their implementation of EO 14398.  The memorandum informs agencies that they must use the new contract clause at FAR 52.222-90 as follows: Beginning April 24, 2026, the new clause must be inserted in new solicitations and resulting contracts that are valued over the micro-purchase threshold, including contracts for commercial products and services. The micro-purchase threshold is $15,000. Open solicitations are also to be amended to incorporate the new clause.  Contracting officers are further instructed to “make every effort to bilaterally modify existing contracts by July 24, 2026 .” If a contr...

BLOG OVERVIEW:  The FAR Council has released FAR 52.222-90, a new contract clause implementing Executive Order 14398 that prohibits federal contractors and subcontractors from engaging in race- or ethnicity-based disparate treatment in employment, contracting, and program participation. Paired with an emergency Paperwork Reduction Act (PRA) information collection request, the clause will apply to new federal contracts over $15,000 beginning April 24, 2026 with existing contracts modified by July 24, 2026, and flows down to all U.S.-based subcontractors. The PRA supporting statement projects 6,825 contractor audits per year across approximately 430 federal agencies, with noncompliance carrying consequences that include contract termination, debarment, and False Claims Act exposure. Federal contractors are facing a significant new compliance development following the release of  a proposed information collection  under the Paperwork Reduction Act (PRA). This information co...