What does this actually mean for federal contractors?
In simple terms, the FAR Council has now hard‑wired Executive Order 14398 into the FAR, which makes compliance contractually enforceable, not just policy guidance.
The most important change is the creation of FAR clause 52.222‑90. Once this clause is included in a solicitation or contract:
• Contractors are legally required to comply with the government’s expectations around addressing DEI‑related discrimination
• Non‑compliance is no longer a “reporting” issue; it can now trigger serious consequences
Why this matters:
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Debarment risk is real
FAR Part 9 now explicitly allows suspension or debarment for failure to comply with this clause. That elevates this from an HR or ethics discussion to an enterprise risk issue. -
Commercial contracts are impacted
By adding the clause to FAR Part 12, the government has ensured this applies not just to traditional FAR contracts, but also to commercial products and services. -
It flows down to subcontractors
Because the clause is now included in 52.244‑6, primes must ensure commercial subcontractors are also compliant. This increases due diligence and subcontract management requirements. -
Policy clarity, but higher accountability
The new FAR Part 22 subpart provides definitions and policy clarity, but it also removes ambiguity. Contractors can no longer claim uncertainty around expectations.
This update signals tighter enforcement, broader applicability, and higher stakes. Contractors, especially GovCon primes, should review internal policies, subcontract language, and compliance controls now to avoid eligibility and performance risk later.