The rules of engagement in federal contracting are changing—and fast. In a marked departure from previous administrations, the current Trump administration has issued new executive orders and policy guidance that effectively redefine how contractors are expected to communicate, operate, and present themselves when doing business with the federal government.
At the center of this change is a quiet but powerful shift in language. Certain terms—once common and even encouraged in federal proposals—are now being systematically phased out or outright discouraged. These changes don’t just affect what’s said in a proposal—they impact how contractors demonstrate their value, communicate with agencies, and remain eligible for opportunities.
Whether you’re a small business, veteran-owned firm, minority-owned company, or simply a contractor working on government projects, it’s critical to understand these new directives. This article breaks down the policy changes, lists terms to avoid, and offers real-world tips to help your business stay compliant, competitive, and contract-ready.
Overview: What’s Changed Under the Trump Administration
Executive Order 14173: “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”
Signed on January 21, 2025, this executive order rescinds the long-standing Executive Order 11246, which required federal contractors to implement affirmative action plans and prohibited employment discrimination based on race, sex, gender identity, or sexual orientation.
Key Impact: Contractors are no longer required—or encouraged—to include references to DEIA (Diversity, Equity, Inclusion, Accessibility) efforts in proposals, hiring practices, or public statements.
Executive Order 14151: “Terminating Radical DEIA Bureaucracies”
Signed on Inauguration Day, this order directed the dismantling of DEIA programs across all federal agencies. It mandates the removal of DEIA-related content from training, websites, communications, and procurement materials.
Key Impact: Federal RFPs, RFIs, and solicitation documents are being scrubbed of language referring to DEIA, climate change, or identity-based equity programs.
Guidance to Contracting Officers
New guidance issued by the Office of Federal Procurement Policy (OFPP) and other procurement agencies instructs Contracting Officers (COs) to avoid favoring contractors who highlight DEIA efforts, environmental justice, or other “ideological” terms in their bids.
Terms and Phrases to Avoid in Federal Proposals
While there is no formal blacklist, federal agencies have been quietly instructed to avoid using—and to view skeptically—certain terminology in procurement language. For contractors, using these terms in proposals may result in flagged submissions, delays, or even disqualification. To ensure compliance and avoid potential disqualification, contractors should refrain from using the following terms in proposals and communications:
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DEIA-Related Terms: diversity, equity, inclusion, accessibility, affirmative action, equal opportunity.
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Identity Markers: LGBTQIA+, gender identity, sexual orientation, non-binary, transgender.
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Environmental Terms: climate change, environmental justice, sustainability, carbon footprint.
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Social Terms: systemic racism, white privilege, unconscious bias, social justice.
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Health and Demographic Terms: health disparities, underserved communities, marginalized groups
Using these terms may lead to proposals being flagged or rejected due to non-compliance with current federal guidelines.
How to Stay Compliant While Remaining Competitive
Despite the shifting language landscape, federal contracting still rewards strong performance, past success, and sound business practices. Here are strategies to stay both true to your company’s mission and aligned with federal expectations:
Reframe Your Value Proposition Using Neutral, Results-Oriented Language
If your company previously highlighted diversity, sustainability, or community impact, you can still communicate these strengths—but do it in a way that focuses on performance, deliverables, and compliance.
Example:
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Instead of “We bring a culturally diverse team that understands marginalized communities.”
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Try “Our team brings decades of combined field experience and project execution in a range of urban and rural environments.”
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Instead of “We focus on sustainable practices that reduce carbon footprints.”
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Try “We implement energy-efficient construction strategies that reduce operational costs and align with federal building standards.”
Lean Into Your Technical Strengths and Past Performance
Now more than ever, Contracting Officers are being encouraged to evaluate based on skill, results, and low-risk delivery.
Focus your proposal on:
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Relevant past performance
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Cost control and efficiency
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Safety records
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Project scheduling and completion metrics
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Bonding capacity and compliance history
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Licensing, NAICS codes, and certifications
Still Certified? Use the Designation, Not the Demographics
Programs like 8(a), HUBZone, WOSB, VOSB, and SDVOSB remain intact—for now—and are still valued in federal procurement.
But be cautious: emphasize your certification and capabilities, not your demographic background.
Instead of:
“We are a Hispanic-owned business focused on empowering underserved communities.”
Try:
“We are a certified 8(a) firm with a proven track record in delivering timely, cost-effective solutions to federal clients.”
What This Means for Small and Disadvantaged Contractors
Although many of these changes target language and perceived ideology, the broader procurement infrastructure—especially set-aside programs for small and disadvantaged businesses—has not yet been dismantled. Your business can still thrive, but success now depends on how well you can:
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Adapt your language to avoid political triggers
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Demonstrate value through objective results
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Emphasize readiness, performance, and risk mitigation
Frequently Asked Questions (FAQs)
Q: Will I be disqualified for using “diversity” or “equity” in my proposal?
A: Not necessarily—but you run a greater risk of triggering scrutiny or being seen as non-compliant with the current administration’s procurement guidance.
Q: Can I still highlight my community impact work?
A: Yes—just frame it in terms of outcomes, not ideology. “Expanded workforce participation” is better than “racial equity in hiring.”
Q: Should I scrub my company website of these terms too?
A: No, your marketing is your own—but consider tailoring landing pages or capability statements that are geared specifically for federal clients.
Conclusion: Speak the Language of Compliance and Capability
Contracting is as much about communication as it is about construction, IT, or supply. With the new administration’s priorities firmly in place, language matters more than ever. By adjusting how you present your business—without sacrificing your core mission—you can position your company to thrive in this new federal landscape.
The Alliance for Hispanic Commercial Contractors (AHCC) is committed to helping all contractors understand these changes, avoid costly mistakes, and continue to grow their government contracting footprint.
Resources & Support
Article reviewed and fact-checked as of May 2025. For personalized assistance with federal proposals, reach out to AHCC at info@ahcc-midatlantic.org. In the age of disinformation, transparency is paramount. AHCC & TBG make it a point to go the extra mile to share all of our sources for your examination. Please see the sources below for the article above.
Primary Sources
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Executive Order 14173 – “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”
Signed on January 21, 2025, this order revokes Executive Order 11246 and other related directives, altering affirmative action requirements for federal contractors.
Full Text – White House -
Executive Order 14151 – “Ending Radical and Wasteful Government DEI Programs and Preferencing”
Issued on January 20, 2025, this order mandates the termination of DEI programs across federal agencies.
Full Text – White House -
Department of Defense Memorandum on DEI Contracts
Provides guidance for contracting officers to modify or terminate contracts containing DEI requirements.
Fox Rothschild LLP Article
Secondary Analyses and Commentary
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Wikipedia Entry on Executive Order 14173
Offers a comprehensive overview of the order’s provisions and implications.
Wikipedia – Executive Order 14173 -
Wikipedia Entry on Executive Order 14151
Details the background and effects of the order on federal DEI programs.
Wikipedia – Executive Order 14151 -
Department of Defense Guidance to Contracting Officers
Outlines the DoD’s instructions regarding solicitations and contracts with DEIA requirements.
Maynard Nexsen Blog -
Analysis of DEI Executive Orders
Discusses the legal implications of Executive Orders 14151 and 14173 for government contractors.
Gordon Rees Scully Mansukhani LLP Article -
OPM Guidance on DEIA Executive Orders
Provides initial guidance regarding the implementation of DEIA executive orders.
OPM Memorandum (PDF) -
Legal Response to Executive Orders 14151 and 14173
Explores the legal community’s response to the executive orders and their impact on DEI initiatives.
NALA Article -
Department of Justice Memorandum on Ending Illegal DEI Discrimination
Details the DOJ’s stance on DEI programs in light of Executive Order 14173.
DOJ Memorandum (PDF)