Addressing DEI Discrimination by Federal Contractors
Federal Contractors Must Ban Racially Discriminatory DEI Activities
What it does
Agencies must add a contract clause banning racially discriminatory DEI activities and enforce compliance through cancellation, suspension, and debarment.
Real-world impact
- Contractors risk contract cancellation or suspension for violating the DEI ban.
- Violations may lead to debarment and enforcement under the False Claims Act.
- Agencies must add new contract clauses and review contractor compliance regularly.
Topics
Summary
This order requires federal contracts and subcontracts to include a clause banning racially discriminatory DEI activities and lets agencies enforce that ban.
It applies to companies that sell goods or services to the federal government, their subcontractors, and the agencies that manage those contracts. The order says preventing racial discrimination will promote economy and efficiency in contracting and it authorizes contract cancellation, suspension, debarment, reporting requirements, and possible False Claims Act enforcement.
Questions, answered
Ask questions about this executive order and its implications. Try:
- “What agencies are affected by this order?”
- “How does this order change existing policy?”
- “What are the practical implications of this order?”