Notice of Intent to Forbear Enforcement of MCC Contractual DEI/DEIA Terms

Closed Special Notice Posted

Agency
Responses due
Set-aside
No set-aside

Opportunity facts

Place of performance
Washington, District of Columbia, United States

Notice details come from SAM.gov. Updated .

About this opportunity

The Millennium Challenge Corporation (MCC) issued a Special Notice on January 31, 2025, addressing the implementation of recent Executive Orders related to Diversity, Equity, Inclusion, and Accessibility (DEIA) programs. The notice communicates the agency's intention to forbear enforcement of contract clauses and provisions associated with DEI/DEIA activities to the maximum extent permitted by law. This action is part of a broader directive from the White House to end what is characterized as "radical and wasteful government DEI programs." The notice applies to all MCC contractors and federal assistance award recipients, signaling a significant shift in the agency's approach to diversity and inclusion initiatives. The communication is framed as a preliminary notification, with the agency indicating that more detailed guidance will be forthcoming.

The primary objective of the Special Notice is to immediately cease all DEIA-related activities across contracts, grants, cooperative agreements, and other awards, including domestic and international programs. While the notice does not mandate immediate action from contractors, it clearly states that any contracts or awards pertaining to DEI/DEIA mandates will be terminated, with no additional costs to be incurred in support of these programs. The notice applies universally to MCC contractors, with no specific eligibility criteria mentioned beyond current contract holders. There are no specific deadlines for contractor action, as the agency plans to issue further guidance about the forbearance implementation. The notice covers a comprehensive range of DEIA-related activities, including equity action plans, equity initiatives, and any programs or activities labeled as "equity-related," effectively dismantling existing diversity and inclusion frameworks within the MCC's contracting ecosystem.

Notice text

*** This is not a Sources Sought Notice / Request for Information / Request for Quotes / Request for Proposals ***

Notice on Implementation of Executive Order                                            

January 31, 2025

To:                       All MCC Contractors

Subject:            DEI/DEIA Activities Under Existing MCC Contracts

Dear MCC Contractors,

United States Millennium Challenge Corporation (MCC) is hereby notifying all MCC contractors the agency’s plans to take prompt action in complying with the President’s Executive Order (E.O.) “Ending Radical And Wasteful Government DEI Programs and Preferencing – The White House,” E.O. “Initial Rescissions of Harmful Executive Orders and Actions,” and E.O. “Ending Illegal Discrimination And Restoring Merit-Based Opportunity.”

To the maximum extent permitted by law, the MCC intends to take immediate action to begin forbearing enforcement of all contract clauses, provisions, terms, and conditions, related to DEI or DEIA. As set forth by President Trump, forbearing enforcement will reduce and eliminate immense public waste and shameful discrimination. This forbearance may include, but is not limited to, any clauses that mandate diversity-related obligations, any reporting or record keeping requirements specifically related to the same and to requirements imposed on contractors on a firm-wide basis, in each case not otherwise mandated by law.

Any contracts and federal assistance awards that pertain to the Diversity, Equity, and Inclusion (DEI) or Diversity, Equity, Inclusion, and Accessibility (DEIA) mandates, policies, programs, preferences, and activities, under whatever name they may appear, including “equity action plans,” “equity” actions, initiatives, or programs, “equity-related,” will be terminated immediately and no additional costs shall be incurred in support of those contracts and awards. This means that all DEIA activities under any contracts, grants, cooperative agreements, and other awards, including subcontracts and subawards, and programs domestic and abroad, are to cease immediately, with awards to be modified or terminated in accordance with applicable award terms and conditions.

For the avoidance of doubt, this memorandum does not specifically direct you to take any immediate action under your contract. We anticipate issuing further guidance and direction expeditiously to address the forbearance reference above.

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