What GSA Contractors Need to Know About the New FAR Deviation for Revoked Executive Order 11246, Equal Employment Opportunity

Key Takeaways:

• GSA Issues Class Deviation CD-2025-04 Effective February 15, 2025
• Implementation of EO 14173 ‘Ending Illegal Discrimination and Restoring Merit-Based Opportunity’
• Revocation of the Landmark EO 11246 ‘Equal Employment Opportunity’
• Updates to Several FAR Clauses Related to Equal Opportunity and Affirmative Action
• Contractors Should Monitor and Adapt to Regulatory Changes

Introduction

On February 18, 2025, the General Services Administration (GSA) announced the issuance of GSA Class Deviation CD-2025-04, effective as of February 15, 2025. This deviation implements Executive Order (EO) 14173, titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” marking a significant shift in federal contracting policies.

The Revocation of EO 11246

The new executive order revokes the landmark EO 11246, known as “Equal Employment Opportunity,” which had been in place for 60 years. EO 11246 was a cornerstone in promoting equal employment opportunities within federal contracts. Its revocation signifies a substantial change in the regulatory landscape that has guided government contractors for decades.

Implementation of EO 14173

EO 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” introduces new directives aimed at altering previous equal employment mandates. The GSA’s class deviation serves as the mechanism to incorporate these changes into the Federal Acquisition Regulation (FAR), thereby affecting current and future federal contracts.

Impact on FAR Clauses

The class deviation results in updates to several FAR clauses, including but not limited to:

• FAR 52.222-21, Prohibition of Segregated Facilities
• FAR 52.222-22, Previous Contracts and Compliance Reports
• FAR 52.222-23, Notice of Requirement for Affirmative Action to Ensure Equal Employment Opportunity for Construction
• FAR 52.222-24, Preaward On-Site Equal Opportunity Compliance Evaluation
• FAR 52.222-25, Affirmative Action Compliance
• FAR 52.222-26, Equal Opportunity
• FAR 52.222-27, Affirmative Action Compliance Requirements for Construction
• FAR 52.222-29, Notification of Visa Denial

These changes impact new or open solicitations, new contracts, or leases with at least six months of performance remaining. Contractors engaged with the GSA must review these clauses to understand the new compliance requirements.

Implications for Contractors

Government contractors need to be vigilant in understanding how these regulatory updates affect their operations. The revocation of EO 11246 and the implementation of EO 14173 mean that previous compliance frameworks may no longer be sufficient. Contractors should assess their current contracts and practices to ensure alignment with the new directives.

Conclusion

As federal agencies continue to implement new executive orders and directives, staying informed is crucial for compliance and success in government contracting. The GSA’s issuance of Class Deviation CD-2025-04 represents a significant development in federal acquisition policies. Contractors are encouraged to monitor these changes closely.

“We will continue to monitor and report on developments as federal agencies continue their efforts to implement EOs and other directives relevant to government contractors,” the National Law Review states.