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 report whether their subcontractors are engaged in such conduct.

OMB is likely to approve the request soon, as the April 26 deadline for federal agencies’ compliance with EO 14398 approaches.

A statement from the FAR Council affirms that:

  1. a new clause — FAR 52.222-90 — will be required in contracts valued above the micro-purchase threshold (currently $15,000);
  2. there will be a “flow-down” requirement to subcontractors; and
  3. the FAR Council expects more than 6,000 agency inquiries annually into contractor DEI activities.

Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here.