DCI Consulting – The FAR Council has released FAR 52.222-90, a new contract clause implementing Executive Order 14398 that prohibits federal contractors and subcontractors from engaging in race- or ethnicity-based disparate treatment in employment, contracting, and program participation. Paired with an emergency Paperwork Reduction Act (PRA) information collection request, the clause will apply to new federal contracts over $15,000 beginning April 24, 2026, with existing contracts modified by July 24, 2026, and flows down to all U.S.-based subcontractors. The PRA supporting statement projects 6,825 contractor audits per year across approximately 430 federal agencies, with noncompliance carrying consequences that include contract termination, debarment, and False Claims Act exposure.
Regulations, Compliance, & Enforcement
Trending Now
FAR 52.222-90 Explained: New Clause May Result in 6,825 Audits Per Year • DOJ Stands Up a New Fraud-Fighting Division: What Government Contractors Need to Know About the National Fraud Enforcement Division • FAR Updates Trade Agreement Act Thresholds • GE’s $36 Million ITAR Penalty — A Wake-Up Call for Export Control Compliance • Treasury Canceled Booz Contracts Over Vetting of IRS Leaker, Bessent Says
FAR 52.222-90 Explained: New Clause May Result in 6,825 Audits Per Year
Jag_cz | Shutterstock
Track False Claims Act cases, audit trends, and compliance best practices with our Compliance & Enforcement newsletter, delivering up-to-the-minute intelligence Monday–Saturday — Subscribe here.