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...