The General Services Administration (GSA) announced significant changes to the Federal Acquisition Regulations (FAR) and procurement practices last week, issuing two key deviations to the FAR in response to President Trump’s earlier Executive Order (EO) on merit-based contracting. The changes, which initially took effect February 15, 2025, notably eliminated diversity, equity, and inclusion (DEI) factors from source selection criteria in federal contracting.
EO 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” was signed by Trump on January 21, 2025. Per the EO, the “purpose of this order is to ensure [it ends] illegal preferences and discrimination. It is the policy of the United States to protect the civil rights of all Americans and to promote individual initiative, excellence, and hard work.”
However, a federal judge in Maryland ruled in favor of Baltimore City in their lawsuit against the Trump Administration, labeling the EO as likely unconstitutionally vague, lacking clear definitions, and potentially discriminating against certain viewpoints in violations of the First Amendment. U.S. District Judge Adam Abelson granted a preliminary injunction against parts of the EO “…from terminating or modifying federal contracts it labels as equity-related.”
GSA Acting Administrator and Deputy Administrator Stephen Ehikian emphasized that the changes were designed to “make it easier for industry to sell their products and services to the government,” while encouraging other federal agencies to follow GSA’s lead in transforming government contracting practices.
Federal Acquisition Service (FAS) Commissioner Josh Gruenbaum described the deviations as “first steps in transforming the FAR into a sensible, common sense guideline,” noting that the current 2,000-page FAR is “burdensome, outdated, and doesn’t allow agencies to buy at the speed of need.”
Under the now-paused new guidelines, contracting officers are instructed to immediately amend new and open solicitations and modify existing contracts at the next reasonable opportunity. However, the changes do not affect existing equal opportunity provisions for veterans and workers with disabilities, nor do they impact generally applicable civil rights laws.
Industry experts anticipated that other federal agencies would likely issue similar deviations in the coming weeks, potentially signaling a broader shift in federal procurement practices. The move would represent one of the most significant changes to federal contracting practices in recent years, though its long-term impact on federal procurement and contractor diversity programs remains to be seen. However, the recent court ruling provides some temporary relief for federal contractors and other private employers that faced concerns they would be a target of federal regulators over programs that may be classified as “illegal” DEI. The injunction is likely to be appealed by the Trump Administration, which could lead to it landing before the Supreme Court. Homeland Security Today will continue to follow this story’s developments.
The FAR is a set of regulations that governs how the government acquires goods and services with procurement contracts. The FAR was first issued on April 1, 1984, and has developed significantly over the years. It is now issued under joint authority of the Department of Defense, the GSA, and National Aeronautics and Space Administration (NASA). The FAR is codified in Parts 1 through 53 of Title 48 of the Code of Federal Regulations.
To read the GSA announcement, click here. To read EO 14173, click here. To read more about the lawsuit and injunction, visit the National Law Review.