proposal-operations7 min read

EO 14398: What Happens to Your Active A/E Federal Contracts

Federal agencies modify every active A/E contract — IDIQs, MATOCs, GSA Schedules, options — to add FAR 52.222-90 by July 24. What proposal teams should do.

Oswald B.Founder, RFPM.aiUpdated May 6, 2026

The 80-Day Window for Active Federal A/E Contracts

By July 24, 2026, federal agencies must modify every active federal contract — A/E IDIQs, MATOCs, GSA Schedules, BPAs, and option-year work — to add FAR 52.222-90, the EO 14398 DEI clause. The downstream cascade hits primes' active subcontracts through revised FAR 52.244-6 and lands on every Section C teaming partner.

The April 23 EO 14398 explainer covered the new clause for new federal contracts. This piece is for the proposal manager, contracts administrator, or BD director whose firm already holds active federal contracts that are about to receive modifications adding the clause — and who needs to know what to do over the next 80 days.

What the Modification Will Add

The contracting officer's modification incorporates two clauses into the existing contract:

  1. FAR 52.222-90 — the operative clause requiring the certification against race-based disparate treatment, audit cooperation, and prime monitoring of subcontractors.
  2. Revised FAR 52.244-6 — the flow-down clause requiring the prime to flow FAR 52.222-90 to subcontracts at any tier, including commercial-item subcontracts.

The modification is issued under each contract's standard "Changes" clause and FAR 43.103 administrative-change authority, supported by the agency-specific class deviation. Most agencies will issue these as bilateral modifications requiring a contractor signature. The substance is not negotiable — the clause is mandatory by executive order and FAR — but contracting officers expect a signed acknowledgment before the file is closed.

Which Active Contracts Are Getting Modified

Not every federal contract document on your firm's books receives a modification. The scope is:

Contract type Will get a modification? When
IDIQ master contracts in performance Yes By July 24
MATOCs / multi-award task order contracts Yes By July 24
GSA Schedule (MAS) contracts Yes By July 24
BPAs against GSA Schedule Yes By July 24, after the underlying schedule mod
Single-award firm-fixed-price contracts in performance Yes By July 24
Active option years Yes At option exercise or by July 24
Open task orders under modified IDIQs Inherit the clause via the master mod At master mod date
New task orders issued after April 24 Already include FAR 52.222-90 by reference N/A
Subcontracts under existing primes Modified by the prime once the prime mod is signed Cascades
Contracts in closeout only Typically no N/A
State and local contracts (no federal funds) No N/A

The IDIQ category is where most A/E firms will see the most modifications. A single USACE A-E IDIQ might cover dozens of open task orders. The master contract gets one modification; every open task order inherits the clause through that single mod.

What Happens to Open Task Orders

The timing question for proposal teams managing active task orders splits three ways:

  • Task orders awarded before the master IDIQ modification are governed by the original clause set. The clause attaches forward, not backward, on most agency class deviations.
  • Task orders awarded after the master IDIQ modification incorporate FAR 52.222-90 by reference through the master contract's incorporated clauses list. No separate task-order modification is required.
  • Option exercises during the modification window include the clause when the option is exercised. If your firm has an option year scheduled for May, June, or July, expect the exercise document to either reference the modification or include FAR 52.222-90 directly.

The Subconsultant Cascade Is the Bigger Lift

Once your firm acknowledges receipt of the prime contract modification, revised FAR 52.244-6 obligates you to flow FAR 52.222-90 to every active subcontract. Active subcontracts are not auto-modified by the agency mod — the prime has to issue separate modifications to each subconsultant. This is where most of the practical work falls.

For an A/E firm holding a federal IDIQ with five active subconsultants on five different open task orders, the cascade looks like:

  1. Prime contract receives the agency modification.
  2. Prime issues a contract modification to each subconsultant under each active task order — typically a separate document per subconsultant per task order.
  3. Each subconsultant signs the modification, including the certification.
  4. Prime collects and files the subconsultant certifications.
  5. Prime updates its standard subconsultant agreement template so future task-order subconsultants receive FAR 52.222-90 at issuance.

The volume scales with the number of active task orders × the number of subconsultants per task order. For a mid-market civil firm with three or four IDIQs, that often runs to 30–75 subcontract modifications inside 60 days.

What to Do, by Window

The 80-day modification window breaks into three operational phases.

Now through May 18 — Inventory and Standardize

  1. Inventory every active federal contract by contract number, agency, contracting officer, and active subconsultants. Knowing the contracting officer of record matters — modifications will land through that officer's office.
  2. Prepare a standard subconsultant modification template and have outside counsel review it once. The template should incorporate FAR 52.222-90, reference revised FAR 52.244-6, and include the subconsultant's certification language.
  3. Pre-brief BD and proposal coordinators on the timeline so the team isn't surprised when modifications start landing in inboxes.

May 18 through June 30 — Process Inbound Modifications

As agency-specific class deviations issue, modifications start arriving. The Corps of Engineers, GSA, VA, DOT, and NASA are unlikely to move on identical schedules. For each inbound modification:

  • Route through legal review on first occurrence per agency. Subsequent modifications from the same agency follow the same template.
  • Acknowledge receipt.
  • Trigger the subcontract-modification cascade for any open task orders under that prime contract.
  • Update SAM.gov representations if the agency deviation requires a re-rep.

July 1 through July 24 — Close the Cascade

By July 1, most prime modifications should be in. The remaining work is subcontract execution and verification:

  • Confirm every active subcontract has a corresponding modification signed.
  • Confirm subconsultant certifications are on file.
  • For any subcontract where the subconsultant has refused to sign, escalate to legal — refusal can be a basis for termination for default under most subcontract agreements.

Agency Class Deviations Will Differ

The FAR Council's April 17 memo directed agencies to issue class deviations across FAR parts 9, 12, 22, and 52 by April 27. Class deviation language is what shows up in your contract modifications. Expect variation in:

  • Timing. Some agencies issue modifications in batches in May; others wait until late June to coordinate with their option-exercise calendars.
  • Specific representations required. Some agencies require an annual SAM.gov re-representation; others rely on the existing rep cycle.
  • Audit-rights language. Base FAR 52.222-90 audit rights are broad. Agency deviations may narrow or broaden them.

For proposal teams, the practical posture is: don't assume the FAR 52.222-90 you saw on a Corps mod is identical to the one you'll see on a VA mod two weeks later. Read each modification on receipt.

Frequently Asked Questions

Can my firm refuse the modification?

Not on substance. The clause is mandatory by executive order and FAR. A firm can dispute administrative aspects of how the modification is implemented through the standard claims process under FAR 43.5 and the Contract Disputes Act, but the substantive obligation under FAR 52.222-90 is non-negotiable. Refusal to sign a bilateral mod can be treated as a breach by the contracting officer.

What happens to a proposal I submitted in April that hasn't been awarded yet?

If the resulting contract awards after the agency's modification rollout begins, it will reference FAR 52.222-90 directly — either through the agency's class deviation in the solicitation amendment chain, or in the award document itself. A proposal submitted under a pre-deviation solicitation can still produce a covered contract.

Does my SAM.gov registration need to change?

Possibly. Until SAM.gov adds a specific FAR 52.222-90 representation, most agency deviations are inserting the certification at the contract level rather than at registration. Watch for guidance from your contracting officers on whether annual re-representation is required, and check SAM.gov updates as the FAR Council formalizes the registration-level rep.

What if a subconsultant refuses to sign the flow-down?

Most standard subcontract agreements include a clause obligating the subconsultant to accept flow-downs of mandatory federal clauses. Refusal to sign is typically a default under that clause and can be grounds for termination. Before terminating, route through general counsel — the prime's monitoring obligation under FAR 52.222-90 begins as soon as the prime knows a subconsultant has declined to commit to the certification.

What if my contract is on option year 4 of 5?

Most contracting officers issue the modification at the next administrative touchpoint — an option exercise, a task-order issuance, or a standalone modification. Option-year contracts on a calendar exercise schedule (October 1 fiscal year, July 1 fiscal year) typically receive the modification at the option-exercise mod, not as a standalone document.


Modifications add a clause; they don't change the Brooks Act qualifications-based selection process governing how A/E work is awarded. What they change is how the resulting contracts are administered — and the volume of subcontract paper that has to clear in the next 80 days.

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