Class Deviation 2025-O0003 - Impacts on Equal Employment Opportunity (EEO)

On March 4, 2025, the Office of the Under Secretary of Defense for Acquisition & Sustainment issued Class Deviation 2025-O0003 titled “Restoring Merit-Based Opportunity in Federal Contracts” in response to the new Administration's Executive Orders (E.O.) 14173 and 14168.

The Class Deviation instructs contracting officers to:

• Not take any action to implement or enforce Executive Order (E.O.) 11246, Equal Employment Opportunity, as implemented in Federal Acquisition Regulation (FAR) subpart 22.8;
• Not use the solicitation provisions and contract clauses prescribed at FAR 22.810 or 22.407(a)(4);
• Not review the representations in the System for Award Management that are based upon those solicitation provisions; and
• Not follow the procedures in Defense Federal Acquisition Regulation Supplement (DFARS) subpart 222.8 or DFARS Procedures, Guidance, and Information subpart 222.8.

Elimination of Specific FAR Clauses:

Several FAR clauses related to affirmative action and equal opportunity will no longer be included in new solicitations/contracts and contracting officers are instructed to issue modifications to existing contracts to remove the following:

• FAR 52.222-21, Prohibition on 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

Federal contracts will no longer require:

• Contractors to complete EEO representations in the System for Award Management
• A Preaward on-site EEO Compliance Evaluation
• Segregated facility prohibitions
• Affirmative action compliance requirements for construction contracts

However, states and municipalities may have similar EEO and affirmative action requirements for operating and business. Contractors are encouraged to work with their compliance and legal focals to ensure compliance with any state and local laws.

What Should Contractors Do?

• Identify existing and future contracts that will be impacted as a result of this Class Deviation and be prepared to issue modifications to lower-tier subcontractors where appropriate.
• Ensure that policies and procedures are aligned with these new requirements taking into account state and local laws. 
• Update your SAM registration and certifications where appropriate.
• Update any templates or forms to remove the rescinded clauses.
• Watch for any FAR/DFARS updates since the Class Deviation remains in effect until the changes are added to the FAR/DFARS. Further changes, via Class Deviations, could occur.

SpendLogic will continue to monitor changes to Federal procurement-related regulations and requirements to ensure our clients are well-informed and their setups reflect the most current regulatory requirements.