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AI Summary: This regulation, Executive Order 14398, aims to promote economy and efficiency in Federal contracting by preventing racial discrimination. It defines "racially discriminatory DEI activities" as disparate treatment based on race or ethnicity in areas like recruitment, employment, contracting, program participation, or resource allocation. The order mandates that federal contracts and subcontracts include a clause prohibiting contractors from engaging in such activities, requiring them to report any violations, and making them subject to contract cancellation, termination, suspension, or debarment for non-compliance. It also directs the Office of Management and Budget to issue guidance, identifies high-risk sectors for discriminatory practices, and requires agencies to report on their implementation. The Federal Acquisition Regulatory Council will amend the Federal Acquisition Regulation to incorporate these requirements and remove conflicting provisions.