Subject: VA Compliance with Executive Order 14398 Addressing DEI Discrimination by Federal Contractors.

Purpose: To inform the VA acquisition workforce (AWF) that VA intends to comply with Executive Order 14398 Addressing DEI Discrimination by Federal Contractors. The AWF, future and existing contractors and subcontractors are notified that a class deviation will be issued within 30 days to add a clause as required by the EO.

VAAR Parts Referenced: 822 and 852.

Effective Date:  N/A.

Background: Executive Order (EO) 14398 Addressing DEI Discrimination by Federal Contractors was signed on March 26, 2026. This EO requires all executive departments and agencies to ensure that all contracts, including contractors’ subcontracts and subcontractors’ lower-tier subcontracts, include the following clause language:

“In connection with the performance of work under this contract, [the contractor/appropriate party (contractor)] agrees as follows:

1. The contractor will not engage in any racially discriminatory DEI activities, as defined in section 2 of the Executive Order of March 26, 2026 (Addressing DEI Discrimination by Federal Contractors);
2. The contractor will furnish all information and reports, including providing access to books, records, and accounts, as required by the contracting agency pursuant to the Executive Order of March 26, 2026 (Addressing DEI Discrimination by Federal Contractors), for purposes of ascertaining compliance with this clause;
3. In the event of the contractor’s or a subcontractor’s noncompliance with this clause, this contract may be canceled, terminated, or suspended in whole or in part, and the contractor or subcontractor may be declared ineligible for further Government contracts;
4. The contractor will report any subcontractor’s known or reasonably knowable conduct that may violate this clause to the contracting department or agency and take any appropriate remedial actions directed by the contracting department or agency;
5. The contractor will inform the contracting department or agency if a subcontractor sues the contractor and the suit puts at issue, in any way, the validity of this clause; and
6. The contractor recognizes that compliance with the requirements of this clause is material to the Government’s payment decisions for purposes of section 3729(b)(4) of title 31, United States Code (False Claims Act).”

Applicability: This Acquisition Policy Flash applies to all VA activities and acquisitions.

Action Required: VA contracting officers are encouraged to discuss the EO with their contractors, potential contractors, and subcontractors of the requirements of EO 14398. Once the clause is developed and approved, VA contracting officers will be given instructions for implementation.

Additional Information: Direct questions or concerns regarding this Acquisition Flash to the Office of Acquisition and Logistics (003A), Procurement Policy and Warrant Management Service (003A2A), at va.procurement.policy@va.gov.