Federal Compliance Risk
Executive Orders 14151 & 14173 require Anti-DEI compliance certification. Non-compliant contractors face treble damages, revenue clawback, and permanent debarment from all federal work.
Compliance Risk
The False Claims Act is not a theoretical risk. Enforcement actions are increasing, and federal procurement officers are adding Anti-DEI certification clauses to active contracts right now.
Per false claim, plus treble damages (3x the contract value). A single non-compliant certification can trigger liability across your entire contract portfolio.
The government can demand repayment of contract payments already received if non-compliance is discovered. Your revenue from the past several years may be recoupable.
Debarment means permanent exclusion from all federal contracts and subcontracts. For GovCon primes, this is a business-ending event - there is no appeal that restores your prior standing quickly.
"Each contractor offering or performing a contract... shall certify that it does not operate any programs promoting DEI that violate any applicable Federal anti-discrimination laws. A false certification is actionable under the False Claims Act."
- EO 14173, Section 3(b)(iv) and associated OFCCP enforcement guidanceThe Hidden Danger
Most small GovCon primes are focused on performance - they assume their legal team (or lack thereof) would have flagged any compliance issues. They're wrong. Here's what's falling through the cracks.
Your subcontractors' non-compliance is YOUR liability under FAR flow-down clauses. Even if your own house is in order, a non-compliant sub can trigger an FCA investigation against you as the prime contractor. Most primes have never audited their subcontractor chain for Anti-DEI compliance.
Disgruntled employees can file False Claims Act suits on the government's behalf - and collect 15-30% of recovered damages as a reward. FCA qui tam filings are up 15%+ year-over-year. Your current or former HR staff know exactly which programs exist and what certifications were signed.
Executive orders are supplemented by agency enforcement guidance, OFCCP rule changes, and FAR/DFARS contract clause updates on an ongoing basis. What constitutes a compliant certification today may be insufficient by your next contract renewal. Without active monitoring, you will fall behind.
Most small GovCon firms have not updated their compliance programs since EO 14173 took effect in January 2025. Legacy DEI programs - training platforms, ERGs, hiring scorecards, supplier diversity programs - may all constitute non-compliance if they are still operational and uncertified.
Our Process
A systematic, documentation-first approach to Anti-DEI compliance that follows DCAA and FAR/DFARS standards. Not a checkbox exercise - a genuine compliance posture that holds up under scrutiny.
We review all existing DEI-adjacent programs, hiring practices, training content, ERGs, supplier diversity policies, and HR systems against EO 14151 and 14173 requirements. Every program that could constitute non-compliance is identified and documented.
We audit your entire subcontractor chain for Anti-DEI certification status. For each sub, we verify existing certifications or identify which ones require remediation before your next prime contract certification cycle. We provide template flow-down language for your subcontracts.
You receive a detailed written report identifying every gap between your current state and full compliance. Each gap includes a prioritized remediation action with specific steps, responsible party, and timeline. No ambiguity - clear actions with clear owners.
We prepare the certification language, policy amendments, and attestation documents you need to certify compliance on your next contract. Templates are drafted to mirror FAR clause requirements so your procurement officers can insert them directly.
For clients on the monitoring tier, we track all EO amendments, OFCCP guidance updates, and agency-specific enforcement actions monthly. You receive a status report every 30 days and immediate notification if any regulatory change affects your certification status.
Pricing
Both tiers include the full compliance audit. Monitoring adds ongoing protection as executive orders and enforcement guidance evolve.
$4,500 audit vs. $27,894+ per FCA violation vs. $50,000+ law firm audit - less than 1% of a single False Claims Act penalty
Credentials & Standards
We apply the same documentation standards used in DCAA compliance audits - because that's what holds up when the government comes knocking.
"We had an ERG and supplier diversity program that we didn't realize created FCA exposure. FedComply identified the issues and gave us a clear remediation plan before our next contract renewal."
"The subcontractor review was eye-opening. Three of our subs had not updated their compliance programs since the executive orders were signed. We would have been liable for their gaps."
"The monitoring service is worth every penny. We received notification of an OFCCP guidance update within 48 hours. Our competitors don't even know the requirement changed yet."
Questions & Answers
Executive Order 14151 (Ending Radical And Wasteful Government DEI Programs And Preferencing) and Executive Order 14173 (Ending Illegal Discrimination And Restoring Merit-Based Opportunity), both signed January 20, 2025, require federal contractors to certify that they do not operate DEI programs that violate federal anti-discrimination law. These orders mandate certification language in federal contracts and flow-down requirements to subcontractors under FAR Part 22 and DFARS.
The False Claims Act (31 U.S.C. 3729-3733) imposes civil liability on any person who knowingly submits a false or fraudulent claim to the federal government. Penalties range from $13,946 to $27,894 per false claim, plus treble (3x) the amount of the false claim. When a contractor certifies Anti-DEI compliance but has non-compliant programs, each false certification is a separate FCA violation. The qui tam provision allows employees, competitors, or other third parties to file suit on the government's behalf and receive 15-30% of any recovery.
Yes. FAR flow-down clauses (FAR 52.222-XX and related clauses) require prime contractors to pass Anti-DEI certification requirements down to their subcontractors above the simplified acquisition threshold. If a subcontractor operates non-compliant DEI programs, the prime contractor bears liability for failing to ensure proper flow-down compliance. Our audit reviews your full subcontractor chain and provides template flow-down certification language for your subcontracts.
Many contractors have legacy DEI programs - ERGs, training platforms, hiring scorecards, supplier diversity requirements, mentorship programs - that may need to be restructured or terminated before certification. Our audit identifies which specific programs create compliance risk and our remediation plan provides a clear roadmap for modification. Proactive remediation before an investigation is far less costly than responding to a False Claims Act suit or DOJ Civil Division inquiry.
Our standard audit timeline is 2-3 weeks from engagement. We review your policies, subcontractor chain, and existing programs, then deliver a gap report and remediation roadmap. Certification-ready documentation is included in the deliverables. Clients with straightforward compliance postures can complete the process in as little as 10 business days. Rush engagements are available if you have an immediate contract certification deadline.
Yes. The $4,500 Compliance Audit is a one-time engagement that covers your current compliance posture. Because executive orders are updated and enforcement guidance evolves on an ongoing basis, we strongly recommend pairing it with our $995/month monitoring service to ensure ongoing compliance as requirements change. The $4,500 audit price applies to your initial engagement; re-audits triggered by major regulatory changes are included for monitoring tier clients.
The $995/month monitoring service includes quarterly reviews of all executive order amendments and agency enforcement guidance, monthly written compliance status reports, immediate notification (within 48 hours) of any regulatory change that affects your certification status, priority re-certification document updates when requirements change, and a dedicated compliance advisor accessible by email and phone. Annual full re-audits are included for clients in their second year and beyond.
Take Action Now
New enforcement actions are announced monthly. Every day without a current compliance certification is a day your revenue and your contracts are at risk.
Schedule Your Compliance AuditOr call us directly: (800) 555-0199
New enforcement actions are announced monthly. Free 30-minute consultation available.