New Administration Moves Swiftly to Cancel Contracts and Address DEIA Provisions

As it stated, the new Administration is wasting no time in making significant changes to federal contracting policies. In alignment with its stated priorities, the Administration has already canceled dozens of contracts, a representative list of examples is included below. These moves reflect the Administration’s broader effort to eliminate what it perceives as wasteful and divisive programs and align with directives issued earlier this week.

A key document driving these actions is the memorandum issued by Stephen Ehikian, Acting Administrator of the General Services Administration (GSA). The memo, dated January 22, 2025, outlines the Administration’s intent to suspend enforcement of contractual diversity, equity, inclusion, and accessibility (DEIA) terms in existing agreements.

GSA Memorandum Highlights

The memorandum, titled “Policy Statement Regarding Intent to Suspend Enforcement of Contractual DEI Terms in Existing Agreements,” references three executive orders signed by President Trump:

• Ending Radical and Wasteful Government DEI Programs and Preferencing (January 20, 2025)
• Initial Rescissions of Harmful Executive Orders and Actions (January 20, 2025)
• Ending Illegal Discrimination And Restoring Merit-Based Opportunity (January 21, 2025)

The memo states that GSA intends to forbear enforcement of contract clauses, terms, and conditions related to DEIA programs, citing concerns about their divisive nature, inefficiency, and potential to foster discrimination. Specifically, the memorandum targets:

• Clauses mandating diversity-related obligations
• Reporting or record-keeping requirements tied to DEIA
• Requirements imposed on contractors on a firm-wide basis

To prevent obfuscation, the memo calls on contractors to report any changes made to contracts since November 5, 2024 that could obscure connections to DEIA or similar ideologies. Contractors are instructed to send reports to GSAtruth@gsa.gov within 10 days of identifying such changes.

While the memorandum does not direct contractors to take immediate actions under their contracts, it indicates that further guidance will be issued soon. Additionally, GSA plans to expedite the development of directives and rulemaking to align contracting principles with President Trump’s “Pro-Growth and Made in America” agenda.

Examples of Canceled Contracts

Below is a representative list of excerpts of contract descriptions for just some of the terminated contracts

• Team Building and Diversity, Equity, Inclusion, and Accessibility Training Services
• OA Equity Support: Equity Expansion Support for Registered Apprenticeship (EESRA)
• DEIA Champions Program: Howard University
• Diversity and Inclusion Support Services
• Office of Minority and Women Inclusion (OMWI) Facilitation and Related Services
• Diversity, Equity, Inclusion, and Accessibility (DEIA) Enterprise Services
• Regulatory Support Services for Implementation of the “Make PPE in America Act”
• Equity in Federal Procurement Evaluation
• Advancing Health Equity through Policy Analysis and Support
• Human Capital Enterprise Digital Platform Subscription: Professional Diversity Network
• Civil Rights Requests Assistance in the Ongoing Implementation of the Existing DEIA Strategic Plan
• EEO & Diversity Training
• DEIA Train-the-Trainer Workshop
• Voice for Diversity, Equity, Inclusion, Accessibility, and Belonging Training
• AND, of note is one multiple-award BPA that was terminated

Implications for IT and Consulting Services Contractors

While these cancellations and policy shifts may lack immediate relevance to many IT and consulting services contractors, they underscore the rapidity with which the Administration is acting to identify and eliminate perceived areas of waste and inefficiency. Contractors across all sectors should take note of these developments and be prepared for additional changes that may arise as part of this broader effort.

As the Administration moves forward with its agenda, contractors are advised to remain informed and consult experts to ensure they navigate this evolving landscape effectively. The pace and scope of these changes demonstrate a clear intent to align federal procurement with the Administration’s priorities, which will undoubtedly impact contracting strategies in the months ahead.

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