Published July 24, 2026 | TIKC NewsWire
Today is the deadline. July 24, 2026 is the date contracting officers were directed to complete bilateral modifications on all existing federal contracts incorporating FAR 52.222-90 — the new anti-DEI clause implementing Executive Order 14398. The clause prohibits race- or ethnicity-based disparate treatment in employment, contracting, and program participation. It flows to every subcontractor at every tier. Refusing to accept the modification can result in contract termination for convenience, suspension, and debarment.
What FAR 52.222-90 Requires
The clause applies to contracts above $15,000 where performance is in the United States. Noncompliance is now an enumerated basis for suspension and debarment under FAR Part 9. The FAR Council projects approximately 6,825 contractor audits per year. Contracting officers may request written DEI policies, training and mentorship eligibility criteria, and subcontractor oversight records.
Action Steps by Contractor Type
Prime contractors with a modification request in hand: Review with counsel before signing. You are certifying you do not engage in racially discriminatory DEI practices. Any internal program with race- or ethnicity-based selection criteria needs legal review first.
Subcontractors: Once a prime’s contract is modified, the clause flows to you at every tier including commercial products and services. Expect to see FAR 52.222-90 language in your agreements now.
If you decline to sign: The contracting officer is directed to consider whether the contract still meets agency needs — and if not, to terminate it for convenience. That consequence is real.
What This Does NOT Affect — WOSB, 8(a), and Minority-Owned Contractors
The clause targets race- and ethnicity-based treatment — not gender-based or veteran-based programs. WOSB set-asides, 8(a) eligibility, SDVOSB preferences, and HUBZone qualifications are statutory programs established by Congress and are not affected by EO 14398. Separate your statutory certification advantages — which are protected — from any internal programs with race-based eligibility criteria.
The Bottom Line
FAR 52.222-90 is live, the modification deadline is today, and nearly 7,000 annual audits are projected. Review your programs, respond to modification requests carefully, flow the clause to your subcontractors, and document your compliance posture. The clause is being challenged in court but remains enforceable. Comply now, monitor the litigation, and adjust as the legal picture clarifies. Brick by brick — compliance is not optional, but it is manageable.
Frequently Asked Questions
What is FAR 52.222-90?
A mandatory clause implementing EO 14398 prohibiting contractors from engaging in race- or ethnicity-based disparate treatment in federal contracting. Applies to contracts over $15,000 with U.S. performance and flows to all subcontractors at every tier.
What if I refuse the bilateral modification?
The contracting officer may terminate the contract for convenience. Noncompliance is also grounds for suspension and debarment under FAR Part 9.
Are WOSB and 8(a) certifications affected?
No. Statutory set-aside programs established by Congress are not affected. Only internal programs using race or ethnicity as a selection factor are in scope.
References
Ward & Berry. (2026, June 5). Federal contractors have until July 24 to comply with the new Addressing DEI Discrimination FAR clause. https://www.wardberry.com/dont-get-burned-this-summer
Fox Rothschild. (2026, June 18). Warp speed ahead: Agencies move quickly to implement anti-DEI clause. https://governmentcontracts.foxrothschild.com
About the Author
Melanie Patterson
Founder & CEO of Team Integrity Knowledge Center and creator of GovCon iSource. Former nurse turned entrepreneur with over 10 years guiding small, women-owned, and minority-owned businesses to over $10 million in government awards. Build, grow, scale — brick by brick. Contact
