GSA takes steps to remove DEI from federal contracts

The General Services Administration’s new class deviations will likely lead to a formal rulemaking process that would more permanently enshrine the Trump administration’s desire to outlaw diversity, equity and inclusion provision in government contracting.

Both deviations issued Saturday are GSA's move to implement the Trump executive order entitled "Ending Illegal Discrimination and Restoring Merit Based Opportunity."

GSA is making changes to the Federal Acquisition Regulation that the agency says will let contracting officers amend and modify current solicitations and contracts without penalty to the government or contract holder.

Agencies can use the modifications to remove contract clauses that promote DEI or have DEI considerations as contract requirements.

GSA Federal Acquisition Service Commissioner Josh Gruenbaum called the deviations “the first steps in transforming the FAR into a sensible, common-sense guideline to ensure that the federal government is working with industry as an attractive partner for business.”

In addition to rolling back DEI programs, the Trump administration has emphasized streamlining government operations as a priority. The administration has said it wants the government to operate more like a business.

As part of the same class deviation announcement, GSA also said it was dropping requirements for paper straws.

Class deviations are not a permanent solution and can be reversed with essentially another class deviation.

That is why a formal rulemaking process is likely to follow. GSA has not commented on how soon a rulemaking will begin but a rulemaking is planned.

The class deviation allows the Trump administration to move quickly, but rulemaking processes take time and are formal efforts to amend the regulations. But once in place, another rulemaking process is required to amend the rules again.

All of that takes time, with some estimates saying that complex rule changes require two years of work.

Rulemaking processes start with the publication of a draft rule, followed by a comment period of at least 60 days.

After the comments are addressed, a final rule is issued. Both the White House's Office of Federal Procurement Policy and Office of Management and Budget also play a role with internal reviews.

Meanwhile, the class deviation remains in effect unless it is challenged in court.

A GSA spokesman said that a rulemaking is in the works and to track progress at the FAR Open Case Management Report.

When the Trump administration launches a rulemaking, it will have to tie the rule back to existing legislation. Depending on how significantly the administration wants to change acquisition rules, it may need support from Congress to pass new legislation.

Class deviations may be quick, but long-lasting changes will take time.