How To “Flow Down” The EO 14398 Clause To Subcontractors

Federal agencies have been incorporating FAR clause 52.222-90, Addressing DEI Discrimination by Federal Contractors, into new and existing contracts valued above $15,000. Under guidance from the White House Office of Management and Budget and the Federal Acquisition Regulatory Council, agencies must make every effort to incorporate the clause by July 24. Prime contractors in turn must ensure that the clause flows down...

FAR Council Formally Initiates Process To Mandate EO 14398 DEI Disclosures

The Federal Acquisition Regulatory Council has initiated the formal process for federal agencies to begin collecting all “books, records, and accounts” for assessing contractors’ compliance with Executive Order 14398. The new EO, Addressing DEI Discrimination by Federal Contractors, requires contractors to refrain from “racially discriminatory DEI activities” and provide the government access to the records and data needed to determine their compliance. The FAR Council...

Should Contractors Keep Using OFCCP’s Disability Self-ID Form If It Expires?

OFCCP’s disability self-identification form expired on April 30, but federal contractors may continue using Voluntary Self-Identification of Disability (CC-305) to comply with Section 503’s self-ID requirements. OFCCP requires federal contractors to use this form to invite applicants and employees to voluntarily identify their disability status. OFCCP has asked the White House Office of Management and Budget to extend its authorization...

OMB Publishes EO 14398 Implementation Guidance

Federal agencies must begin incorporating a new contract clause implementing EO 14398 into new and existing contracts valued above $15,000, beginning April 24. The guidance from the White House Office of Management and Budget and the Federal Acquisition Regulatory Council introduces FAR clause 52.222-90, Addressing DEI Discrimination by Federal Contractors. According to the guidance, agencies must “make every effort” to incorporate the...

FAR Council Requests Mandatory EO 14398 DEI Disclosures

The Federal Acquisition Regulatory Council has asked the White House Office of Management and Budget to permit federal agencies to collect from federal contractors and subcontractors all “books, records, and accounts” necessary to assess their compliance with Executive Order 14398. That EO, Addressing DEI Discrimination by Federal Contractors, requires contractors to refrain from “racially discriminatory DEI activities” and to assess and...

$17 Million DOJ Settlement Highlights FCA Risk Tied To Alleged DEI Discrimination

The Department of Justice has announced a $17 million civil settlement with a federal contractor alleged to have engaged in discriminatory DEI practices in violation of the False Claims Act. DOJ alleged that for more than seven years, the contractor: Used protected characteristics in compensation decisions, including “diversity modifiers” linking incentive pay to demographic targets; Used race, color, national origin, and...

New Executive Order Further Prohibits Discriminatory DEI Activities By Contractors

President Trump signed an Executive Order March 26 prohibiting federal contractors and subcontractors from engaging in “racially discriminatory DEI activities.” The new E.O., Addressing DEI Discrimination by Federal Contractors, defines racially discriminatory DEI as “disparate treatment based on race or ethnicity in the recruitment, employment (e.g., hiring, promotions), contracting (e.g., vendor agreements), program participation, or allocation or deployment of an entity’s resources.” The...