VA Compliance with Executive Order (EO) 14398 Addressing DEI Discrimination by Federal Contractors

The Department of Veterans Affairs is notifying industry about a new requirement for contractor compliance with Executive Order (EO) 14398, Addressing DEI Discrimination by Federal Contractors. The EO requires contractors to include a specific clause in their contracts, which prohibits racially discriminatory DEI activities and requires contractors to report any noncompliance. The VA will undergo formal rulemaking to incorporate this requirement into the Veterans Affairs Acquisition Regulation (VAAR). • The EO applies to all executive departments and agencies, including contractors and subcontractors. • The clause requires contractors to furnish information and reports to the contracting agency. • Noncompliance with the clause may result in contract cancellation, termination, or suspension. • Contractors must report any subcontractor's known or reasonably knowable conduct that may violate the clause. • The VA will invite the public to participate in the rulemaking process once it commences.