Overview
- Implementation moves ahead this week as acquisition officials direct the new FAR 52.222-90 clause into new solicitations and awards over the $15,000 micro‑purchase threshold, with open solicitations to be amended and existing contracts targeted for bilateral modification by July 24.
- The clause bans defined race‑ or ethnicity‑based DEI practices across hiring, promotions, vendor agreements, and access to programs like mentoring or leadership training, and it requires contractors to give agencies access to books and records to check compliance.
- Compliance is labeled material to government payment decisions under the False Claims Act, and DOJ has been told to prioritize reviews of whistleblower cases, with a recent $17.1 million DEI‑related settlement with IBM signaling active enforcement.
- A lawsuit filed in the U.S. District Court for the District of Maryland by higher‑education groups and the National Association of Minority Contractors seeks to halt the order, arguing it chills protected speech and association and exceeds presidential authority by tying violations to FCA liability.
- The rule reaches every subcontract tier and forces primes to report known or reasonably knowable issues at lower levels, pushing contractors to audit programs, rewrite flowdowns, and rethink events or outreach that highlight specific racial or ethnic communities.