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ARTICLE · 21 APRIL 2026

FAR Council Issues Deviation Implementing EO 14398 As Federal Lawsuit Challenges The Order

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The Federal Acquisition Regulation Council has issued sweeping implementation guidance for Executive Order 14398, creating a new contract clause that prohibits "racially discriminatory DEI activities" and establishes noncompliance...

United StatesGovernment, Public Sector
Go-To Guide:
  • New Federal Acquisition Regulation (FAR) clause: The FAR Council issued government-wide implementation guidance with a model class deviation, adding FAR 52.222-90, Addressing DEI Discrimination by Federal Contractors (APR 2026) (DEVIATION APR 2026), to rapidly implement Executive Order (EO) 14398.
  • Existing contracts: Contracting officers must “make every effort to bilaterally modify existing” covered contracts to add FAR 52.222-90 by July 24, 2026. If a contractor refuses, the memorandum instructs contracting officers to consider terminating the contract for convenience.
  • Suspension and debarment risk: The model deviation makes failure to comply with FAR 52.222-90 an express cause for discretionary suspension and debarment under FAR Part 9.

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