FAR Council Formally Initiates Process To Mandate EO 14398 DEI Disclosures

May 6, 2026

What's New

The Federal Acquisition Regulatory (FAR) Council has initiated the formal process for federal agencies to begin collecting all “books, records, and accounts” needed to assess compliance with Executive Order (EO) 14398, Addressing DEI Discrimination by Federal Contractors. The new DEI EO requires contractors to refrain from “racially discriminatory DEI activities” and provide the government access to the records and data needed to determine contractor compliance.

Under the Paperwork Reduction Act, federal agencies must seek approval of the recordkeeping requirements and costs associated with federal laws, regulations, and executive orders. The FAR Council submitted an identical request last month on an emergency basis, which was later withdrawn for technical reasons.

What It Means

Of note, a supporting statement accompanying the announcement confirms (once again) that the FAR Council expects more than 6,000 agency inquiries annually into contractor DEI activities. Contrary to recent speculation, however, there is no indication these inquiries will take the form of full DEI “audits” by agency contracting officers. Nor is there any requirement for prime contractors to affirmatively collect “certifications” or other DEI information from subcontractors.

What You Should Do

Federal contractors can prepare for agency enforcement of EO 14398 by taking the following steps:

• Verify whether FAR 52.222-90 is being added to contract awards, modifications, and renewals (which is often incorporated “by reference”).
• Flow the clause down to subcontractors at all tiers once incorporated.
• Continue annual reviews of DEI-related policies and programs.

CWC’s DEI Risk Assessment Package supports compliance planning for organizations wanting to proactively evaluate risk.

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