6000 Federal Contractor Compliance Audits are Coming: What We Know from FAR Clause 52.222-90

In a late-breaking regulatory development, the Federal Acquisition Regulatory Council has issued a new contract clause — FAR 52.222-90 — implementing Executive Order 14398, Addressing DEI Discrimination by Federal Contractors. The clause takes effect April 24, 2026, and requires bilateral modification of all existing federal contracts over $15,000 by July 24, 2026. Contractors who refuse modification may face termination for convenience.

The compliance implications are substantial. Noncompliance is now an enumerated cause for suspension and debarment, and the clause expressly ties compliance to materiality under the False Claims Act, creating exposure to treble damages, civil penalties, and qui tam liability.

This 60-minute briefing from DCI Consulting Group examines what the clause requires, how enforcement is likely to unfold across 430+ federal agencies, and the immediate steps contractors should take to prepare.

Topics Covered

• The statutory definition of "racially discriminatory DEI activities" and the scope of covered programs, including mentoring, ERGs, leadership development, and vendor diversity initiatives
• The six affirmative obligations imposed on prime contractors and the mandatory flow-down to subcontractors at every tier
• Anticipated enforcement posture, including parallels to EEOC systemic investigations and DOJ Civil Investigative Demands
• Priority actions before the July 24 deadline: privileged DEI program audits, subcontract language review, records retention, and internal escalation protocols
• Open questions awaiting resolution, including audit scope, lookback period, and the forthcoming Information Collection Request

Speakers:

David Cohen, President and CEO

Joanna Colosimo, Vice President of Workforce Analytics and Compliance Strategy