New FAR Council Guidance: The ‘Teeth’ Behind the DEI Discrimination Ban for Federal Contractors
Quick Hits New clause FAR 52.222-90 declares contractor compliance “material” to the government’s payment decisions, creating direct False Claims Act liability for contractors who maintain prohibited programs. Agencies must bilaterally modify existing contracts to include the new clause by July 24, 2026, and if a contractor refuses, agencies are told to consider whether the contract should be terminated for convenience. Prime contractors must flow the clause down to all tiers…

