The “Revolutionary Federal Acquisition Regulation (FAR) Overhaul” continues with the announcement of four new proposed rules covering 16 parts of the regulations. Significantly, each proposed rule additionally includes updates related to FAR Part 52, including its anti-DEI solicitation provisions and contract clauses. This compliance alert considers the impact on federal contractors and their non-discrimination and employee engagement programs.
Summary
On September 18, the FAR Council issued four new proposed rules in the Federal Register that amend 16 different parts of the Federal Acquisition Regulation (FAR), the primary regulation used by all federal agencies when purchasing from the private sector. This is the second of four planned waves of proposed rules. The individual rules cover the following FAR parts:
- 2026-003, covering Parts 8, 12, 13, 15, 38, 44, and 51: Concerning required sources of supplies and services, acquisition of commercial products and services, simplified procedures for noncommercial acquisitions, contracting by negotiation, and subcontracting policies and procedures. Parts 38 and 51 were removed.
- 2026-006, covering Parts 16, 17, and 35: Concerning types of contracts, special contracting methods, and contracting for research and development.
- 2026-010, covering Parts 14, 28, and 36: Concerning sealed bidding, bonds and insurance, and contracts for construction and architect-engineers.
- 2026-011, covering Parts 9, 27, and 47: Concerning contractor qualifications, patents, data and copyrights, and transportation.
Additionally, and relevant to our contractor audience, the rules propose changes to corresponding provisions and clauses in Part 52. This includes reference to 52.222-XX, “Addressing DEI Discrimination by Federal Contractors,” the FAR Clause issued earlier this year to implement EO 14398 (also called “Addressing DEI Discrimination by Federal Contractors”). Proposed rule 2026-011 includes a direction to add noncompliance with this clause to the list of causes for debarment and suspension at FAR 9.406-2(b)(1) and 9.407-2(a), respectively.
All four rules are only proposed at this stage, and the public comment period ends on October 19, 2026.
Who Is Impacted and What Actions Are Required?
These latest changes solidify the current federal policy of not doing business with contractors that “engage in any racially discriminatory diversity, equity, and inclusion (DEI) activities”. Because the new rules would expressly add noncompliance with FAR 52.222-90 as a basis for suspension and debarment, organizations need to be certain that their programs cannot be characterized as discriminatory.
Therefore, contractors should review DEI-related policies, programs, training, and employment practices ahead of the final implementation of these rules.
How Affirmity Can Help
A data-informed approach that accumulates evidence of fair operations remains the best way of demonstrating compliance. You can build this body of evidence with:
- Race and gender-based workforce analyses: Establish that no group in your organization is disproportionately advantaged or disadvantaged by your processes, programs, and policies.
- Workforce compliance solutions: Section 503 and VEVRAA affirmative action, as well as EEO-1, VETS-4212, and state-level reporting.
- DEI risk assessment services: Obtain a comprehensive, attorney-client-privileged assessment of potential legal and reputational risks in your current programs.
Protect your organization from shifting agency priorities: Contact our team of experts today. Find our alerts useful? Sign up here to stay informed!
About the Author
With four years of experience at Affirmity, Jamie Watford is a trusted consultant, partnering with organizations to navigate complex workforce compliance and reporting requirements across many industries. Her experience spans EEO-1, VETS-4212, California and Illinois pay data reporting, Minnesota state reporting, affirmative action programs, and workforce insights reporting. Jamie is passionate about building strong client relationships and helping organizations confidently navigate an evolving compliance landscape through guidance, collaboration, and practical solutions.