On February 15, the U.S. General Services Administration (GSA) announced two new “class deviations” (CDs) making a number of changes to the procurement rules applicable to GSA solicitations and contracts, including leases of real property.
This deviation process is authorized by Federal Acquisition Regulation (FAR) Subpart 1.4, which allows agencies to make rapid changes to the procurement rules in advance of regulatory action “when necessary to meet the specific needs and requirements of each agency,” a process that was notably used to implement the government contractor COVID-19 vaccination requirements imposed by executive order (EO). It is almost certainly the first of many deviations we will see from federal agencies as they move to implement the flurry of EOs issued since January 20.
The first deviation implements EO 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity, which revoked EO 11246, Equal Employment Opportunity, and announced the president’s intent to end affirmative action in government where it violates federal anti-discrimination law. The second deviation implements EO 14148, Initial Rescissions of Harmful Executive Orders and Actions, which revoked numerous Biden-era EOs that injected social policies into government contracting requirements and Section 2 of EO 14208, Ending Procurement and Forced Use of Paper Straws, which directs agencies to stop procuring paper straws. The class deviations make a number of changes to corresponding FAR provisions to carry out these executive decrees. We broadly outline the changes below.
Class Deviation CD-2025-04
CD-2025-04 prohibits contracting officers (COs) from including the following provisions in new solicitations or contracts (those with remaining periods of performance of six months or more):
- FAR 52.222-21, Prohibition of 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
In addition, COs must amend and remove any open solicitations that contain the above provisions or clauses.
Similarly, COs must include the following provisions below, with their corresponding change, in all new solicitations and contracts:
- FAR 52.204-8, Annual Representations and Certifications (JAN 2025) (DEVIATION FEB 2025)
- FAR 52.212-3, Offeror Representations and Certifications—Commercial Products and Commercial Services (MAY 2024) (DEVIATION FEB 2025)
- FAR 52.212-5, Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Products and Commercial Services (JAN 2025) (DEVIATION FEB 2025)
- FAR 52.213-4, Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services) (JAN 2025) (DEVIATION FEB 2025)
- FAR 52.244-6, Subcontracts for Commercial Products and Commercial Services (JAN 2025) (DEVIATION FEB 2025)
For existing contracts, including leases, with six months or more remaining, COs are directed to “modify the contracts at the next reasonable opportunity.” No change is required for contracts with less than six months remaining.
GSA added a new notice to be included in new solicitations that states even though the System for Award Management (SAM) may continue to require certain representations, COs should not consider those representations when making award decisions or enforcing requirements. Entities are not required to update SAM registrations to remove those representations.
The deviation also clarifies that it does not affect “[a]ny FAR subparts that are based on statute or are not covered by E.O. 11246 such as FAR subparts 22.13, Equal Opportunity for Veterans and its related clauses and provisions; an FAR subpart 22.14, Employment of Workers and Disabilities” or U.S. laws related to civil rights or nondiscrimination.
In addition, in what may provoke a legal challenge, the deviation states “[a]s of February 15, 2025, all uses of the term ‘gender identity’ are not to be recognized or used prospectively by Federal contractors.”
Class Deviation CD-2025-05
CD-2025-05 prohibits COs from including the following provisions in new solicitations or contracts:
- FAR 52.223-19, Compliance with Environmental Management Systems (MAY 2011)
- FAR 52.223-22, Public Disclosure of Greenhouse Gas Emissions and Reduction Goals Representation (DEC 2016)
Similarly, COs must include the following provisions below, with their corresponding changes, in all new solicitations and contracts:
- FAR 52.223-1 Biobased Product Certification (MAY 2024) (DEVIATION FEB 2025)
- FAR 52.223-2 Reporting of Biobased Products Under Service and Construction Contracts (MAY 2024) (DEVIATION FEB 2025)
- FAR 52.223-10 Waste Reduction Program (MAY 2024) (DEVIATION FEB 2025)
- FAR 52.223-23, Sustainable Products and Services (MAY 2024 (DEVIATION FEB 2025))
Going Forward
As noted above, the GSA CDs are likely the first of many deviations to be issued over the coming weeks. Further, Federal Acquisition Service Commissioner Josh Gruenbaum called the actions “the first steps in transforming the FAR into a sensible, common-sense guidelines to ensure that the federal government is working with industry as an attractive partner for business.” We expect additional actions to streamline federal procurement rules to implement EOs and to align the federal procurement rules more closely with commercial practices.
Please contact the author if you have any questions about how these class deviations or recent executive orders will affect your business.