Trump admin tells agencies to stop considering DEI when handing out govt contracts
The recent changes to federal acquisition rules by the Trump administration have caused quite a stir in the government contracting world. The new regulations now require the government to stop considering diversity, equity, and inclusion (DEI) when awarding contracts. This move is part of the Department of Government Efficiency’s (DOGE) broader efforts to transform federal operations fundamentally.
The General Services Administration (GSA) announced these changes to the Federal Acquisition Regulations (FAR) in alignment with the president’s executive order aimed at restoring meritocracy and ending discrimination in both the public and private sectors. This decision reverses previous executive orders from the Biden administration that made it mandatory to consider DEI when reviewing contract proposals.
Renowned entrepreneur Elon Musk, who has been advocating for radical government reform, praised the move on X (formerly Twitter) even before the formal announcement by the GSA. Musk highlighted the importance of major FAR reform, echoing the sentiments of GSA acting administrator Stephen Ehikian.
Josh Gruenbaum, commissioner of the Federal Acquisition Service, emphasized the need for these actions to transform the FAR into a sensible and industry-friendly guideline. He expressed the importance of streamlining the regulations to make them more efficient, cost-effective, and valuable for businesses partnering with the federal government.
The executive order issued by President Trump on his first day in office directed federal contracting processes to be streamlined for enhanced speed, efficiency, and cost reduction. It also mandated federal contractors and subcontractors to comply with civil-rights laws and cease promoting diversity initiatives. The order specifically called for the removal of DEI principles from federal acquisition procedures, contracts, grants, and financial assistance.
Acting administrator Ehikian commended the steps taken by GSA, stating that they would make it easier for industries to sell their products and services to the government. He encouraged other agencies to follow suit in transforming government operations.
The Trump administration and Republicans have been vocal in their opposition to DEI policies, advocating for a focus on meritocracy instead. DOGE has already identified and eliminated hundreds of millions of taxpayer dollars in DEI-related contract cuts, including $350 million at the Department of Education. Last month, DOGE announced over $1 billion in savings through the elimination of 104 DEI contracts.
These changes mark a significant shift in government contracting practices, emphasizing merit-based decision-making and efficiency in federal operations. The government is taking proactive steps to ensure a fair and streamlined process for businesses looking to engage in federal contracts.
