DoD Issues Class Deviation Revoking Sustainability Clauses: Impact on Federal Contractors

On March 7, 2025, the Office of the Under Secretary of Defense issued Class Deviation 2025-O0004, “Revocation of Executive Order on Sustainability.” This deviation implements EO 14148, which rescinded EO 14057 and its associated procurement mandates. The deviation brings significant changes to sustainability requirements in federal contracting.

Contracting officers are now prohibited from using FAR 52.223-19 and 52.223-22 in new solicitations and contracts.  FAR 52.223-19, Compliance with Environmental Management Systems, required contractors to implement and maintain environmental management systems supporting the government’s sustainability goals. FAR 52.223-22, Public Disclosure of Greenhouse Gas Emissions and Reduction Goals Representation, required offerors to publicly disclose their greenhouse gas (GHG) emissions and any reduction goals and to represent this information in their proposals.

The Directive now bars agencies from requiring contractors to submit a GHG inventory or other emissions report as a condition of award, but biobased, and ENERGY STAR/FEMP-designated products remain fully enforceable.  The Directive also advises that until the GSA updates is SAM.gov website contracting officers should not consider those outdated fields.

Immediate Impacts

• Contract modifications. Contractors will likely encounter modifications in existing long-term contracts and new task orders which delete the eliminated FAR clauses and inserting new orders.
• Contractors can anticipate amendments to open solicitations eliminating FAR 52.223-19 and 52.223-22. Contractors should acknowledge amendments and make decisions to revise representations or revisit pricing if applicable.
• Protest Risks: These changes are likely to result in inconsistencies in how solicitations are prepared and evaluated. If a solicitation includes revoked clauses, omits the required deviation clauses, or if evaluations do not align with the new class deviation, the risk of bid protests will increase. Such protests can cause unavoidable delays in contract awards, lead to suspensions of work, or require corrective actions.

Recommended Contractor Actions

• Contractors should carefully review solicitations for compliance and seek clarification as necessary.
• Watch for contract modifications in existing DoD contracts regarding FAR clauses FAR 52.223-19 and FAR 52.223-22.
• Update any internal company proposal templates and internal compliance checklists.

For additional guidance, please feel free to contact Michelle Kantor, Chair of Federal Government Contracting Group, McDonald Hopkins, LLC.