Life sciences companies should be aware of a new contract clause and accompanying guidance from the Federal Acquisition Regulatory Council (“FAR Council”) implementing President Trump’s Executive Order 14398, Addressing DEI Discrimination by Federal Contractors. Effective April 24, 2026, all new Federal solicitations and contracts subject to the Federal Acquisition Regulation (“FAR”) must contain a new FAR clause requiring certification that the contractor does not engage in “racially discriminatory DEI activities,” as defined by the clause, in connection with the performance of work under the contract. Under the guidance, agencies must also modify all existing FAR-covered contracts to include the requisite certification language by July 24, 2026, and contractors will be required to flow down the clause in their subcontracts.
Sarah-Jane Lorenzo
Associate Attorney, Washington, D.C.
+1 202.887.3580
Sarah-Jane Lorenzo is an associate in the Washington, D.C. office of Gibson Dunn. Sarah-Jane focuses her practice on regulatory compliance matters, government contracts, and related litigation. Sarah-Jane regularly assists government contractors and subcontractors with matters including Government Accountability Office and Court of Federal Claims bid protests, government and internal investigations, contractor disclosures, questions of statutory and regulatory interpretation, and contract disputes. Sarah-Jane represents clients before a broad range of federal regulators, including the Small Business Administration (SBA) and Federal Acquisition Security Council (FASC), and helps clients make whistleblower reports to state and federal government agencies. She also advises clients on state and federal Freedom of Information Act requests and reverse-FOIA petitions.