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Contractors’ Guide to Navigating New Federal DEI-Related Prohibitions in EO 14398 and FAR 52.222-90

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Executive Order 14398 (“EO 14398”) imposes significant new compliance obligations and risks on federal contractors and...

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Executive Order 14398 (“EO 14398”) imposes significant new compliance obligations and risks on federal contractors and subcontractors. Among other requirements, contractors must agree to: (1) not engage in “racially discriminatory DEI activities”; (2) report to the government any “reasonably knowable” “racially discriminatory” activities by their subcontractors; and (3) provide access to books and records to show compliance. With the FAR Council’s newly minted mandatory contract clause, FAR 52.222-90, the government is poised to swiftly insert these requirements into new and existing contracts.Read the <a href="https://govcon.mofo.com/topics/contractors-guide-to-navigating-new-federal-dei-related-prohibitions-in-eo-14398-and-far-52-222-90" target="_blank">full blog post</a>.

Contractors’ Guide to Navigating New Federal DEI-Related Prohibitions in EO 14398 and FAR 52.222-90

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Tina Reynolds is chair of Morrison Foerster’s Government Contracts & Public Procurement practice. She represents a wide variety of government contractors including information technology, defense, biotechnology, and pharmaceutical companies, as well as research organizations and universities, with a focus on general contract counseling and compliance, intellectual property and cybersecurity matters, federal grant funding, and state and local government contracting matters.Tina routinely advises clients on:<ul><li>Contract negotiations and prime-subcontractor relationships</li><li>Sources of supply and country of origin requirements</li><li>Organizational conflicts of interest and other ethics considerations</li><li>Safeguarding of intellectual property and other proprietary interests</li><li>Licensing and data rights issues</li><li>Handling of classified materials and controlled unclassified information</li><li>Freedom of Information and Public Records Act requests</li></ul>She also conducts due diligence and other activities related to the acquisition of government contracting concerns, and drafts and negotiates teaming agreements, subcontracts, licensing agreements, and cooperative research and development agreements, Small Business Innovative Research (“SBIR”) and Small Business Technology Transfer Program (“STTR”) agreements, and other transaction authority (“OTA”) agreements.Tina’s litigation experience includes government contracts claims litigation in federal courts and before boards of contract appeals, bid protests before the Government Accountability Office and the Court of Federal Claims, and complex disputes in federal courts, including civil fraud and False Claims Act litigation, and reverse Freedom of Information Act litigation.Prior to joining Morrison Foerster, Tina worked at another large national firm and as a trial attorney in the U.S. Department of the Navy, Office of the General Counsel, Navy Litigation Office.<h4>Recent Representative Experience</h4><ul><li>Negotiated the largest CHIPS Act federal funding agreement between a multinational semiconductor corporation and the U.S. Department of Commerce. </li><li>Negotiated a prime contract and major subcontracts related to the Department of Energy’s next generation supercomputer program, including extensive IP rights and associated patent rights waivers. </li><li>Negotiated a series of other transaction authority agreements with DARPA and associated subcontracts with more than a dozen research universities on behalf of a firm biotech client, including complex IP rights allocations and material transfer agreements. </li><li>Assisting clients with the FedRAMP authorization process and the development of license agreements for software products sold to federal, state, and local government agencies. </li><li>Providing cyber incident response counseling to some of the largest companies and organizations impacted by security incidents, many involving nation state threat actors. </li><li>Advising clients on Bayh-Dole reporting of inventions and IP strategies for contracts and grants. </li><li>Conducting due diligence for major government contract mergers and acquisitions, including, for example, Salesforce’s $8 billion acquisition of Informatica and Palo Alto Networks’ $25 billion acquisition of CyberArk. </li><li>Advising clients on litigation strategy for False Claims Act matters, including those being handled by the U.S. Department of Justice (DOJ) cyber fraud initiative.</li></ul>

Tina Reynolds

Partner

Andrew Turnbull is a partner in the firm’s Global Employment + Labor Group and co-leader of the firm’s Anti-Bias Strategy + Defense Task Force. He has extensive experience advising, defending, and investigating high stakes and class discrimination, harassment, and whistleblower claims, including enforcement actions by EEOC, DOL, DOJ Civil Rights, ICE, and similar state agencies.  He is also well versed in defending and pursuing employee mobility and trade secret misappropriation claims, including breach of non-competes, non-solicits, and non-disclosures claims as well as and duty of loyalty and trade secrets claims. Andrew also routinely defends and advises companies, board of directors, and executives on the significant reputational, business, and compensation issues arising from executive disputes.A primary focus of Andrew’s practice involves helping companies handle the unique employment issues and challenges from doing business with the federal government, including:<ul><li>Defending whistleblower qui tam and retaliation claims under the False Claims Act, the National Defense Authorization Act, and other whistleblower laws;</li><li>Advising and defending government investigations and litigation under the Service Contract Act, the Davis-Bacon Act, and other prevailing wage laws;</li><li>Compliance and litigation defense relating to federal and state affirmative action requirements and DEI related risks;</li><li>Advising on unique compliance issues for federal contractors, such as mitigating discrimination risks when screening for export control compliance under ITAR and EAR, conducting E-Verify audits and compliance, and navigating the Drug-Free Workplace Act.</li></ul>Andrew is problem-solver. He routinely provides clients from Fortune 100 companies to startups with practical and business-minded risk mitigation strategies for various employment and labor issues, including:<ul><li>Developing DEI, affirmative action, pay transparency, antidiscrimination, and antiharassment programs and policies;</li><li>Conducting pay equity studies, adverse impact analysis, and bias testing of employment tests and tools, including for artificial intelligence;</li><li>Developing trade secrets protection and restrictive covenants strategies;</li><li>Reductions in force, furloughs, and high-risk terminations;</li><li>Risks related to 1099s and other contingent workers; and</li><li>Risks related to I-9 and E-Verify compliance, audits, and raids.</li></ul>Andrew also advises companies and executives on a wide range of employment agreements, including drafting and negotiating executive employment agreements, separation agreements, non-competes and non-solicits, and commission and bonus plans.Andrew also represents employers in matters involving union avoidance, negotiating and drafting collective bargaining agreements, handling union grievances, and avoiding and defending unfair labor practice charges.Prior to joining private practice, Andrew worked as a human resources manager for a company recognized on the Inc. 500, an annual list of the fastest-growing private companies in the United States.  Andrew received his J.D. with honors from the George Washington University Law School, where he served as a notes editor for The George Washington Law Review.  While in law school, Andrew interned at the Commercial Litigation Branch of the U.S. Department of Justice.Andrew is an active member of the steering committee of the Washington Metro Industry Liaison Group.

Andrew Turnbull

Jillian Stern is an associate in Morrison Foerster’s Washington, D.C. office and a member of the firm’s Government Contracts & Public Procurement Group.In her current role, Jillian focuses on litigation, advisory-related work, and transactional diligence.Prior to joining Morrison Foerster, Jillian served as an attorney advisor in the U.S. Department of Commerce’s Office of General Counsel, Contract Law Division, where she represented the agency as lead counsel in complex bid protests and contract disputes. She successfully defended multimillion-dollar procurements before the Government Accountability Office and represented the agency before the Court of Federal Claims and the Civilian Board of Contract Appeals.In addition to her litigation experience, Jillian has played a key role in mentoring and training government attorneys and procurement officials. She has developed and delivered instructions on bid protest procedures, procurement best practices, and legally defensible evaluation documentation.Jillian earned her J.D. from The George Washington University Law School, with a concentration in government procurement, and published a note in the Public Contract Law Journal examining the use of the Defense Production Act during the COVID-19 pandemic.