A new executive order (EO) establishes requirements for federal contractors related to diversity, equity, and inclusion (DEI) practices.
The order directs agencies to incorporate a contract clause requiring contractors to:
- Comply with restrictions on racially discriminatory DEI activities
- Provide access to records and reporting to demonstrate compliance
- Flow requirements down to subcontractors
- Report potential violations
The order also outlines enforcement actions for non-compliance, including contract termination, suspension, debarment, and potential False Claims Act exposure. In addition, the FAR Council is directed to issue deviation and interim guidance within 60 days to support implementation. Read the EO here.