FAR 52.222-90 Explained: New Clause May Result in 6,825 Audits Per Year
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...