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DCAA "Independence"

Client Alert | less than 1 min read | 03.24.09

The Defense Contract Audit Agency (DCAA) has revised its policy concerning "unsatisfactory conditions related to actions of Government Officials" to provide that "significant and serious" disagreements with actions by government officials, including contracting officers, will be reported directly to the Inspector General rather than to the Government official's management chain, as had been the policy in the past (Mar. 13, 2009). Prior guidance had already required direct reporting of "suspected irregularities" such as criminal violations, and this guidance appears to be intended to cover discretionary decisions that the auditors believe will "result in substantial harm to the Government or taxpayers, or that frustrate public policy."

Insights

Client Alert | 3 min read | 06.12.26

DOJ Guidance Backs Away From Disparate Impact Liability

On June 9, 2026, the U.S. Department of Justice (DOJ) issued a formal opinion concluding that the Equal Opportunity Employment Commission’s (EEOC) existing interpretations of Title VII of the Civil Rights Act of 1964 (Title VII) disparate-impact liability, including the Uniform Guidelines on Employee Selection Procedures (UGESP), are unconstitutional. According to the opinion, EEOC’s prior interpretations contemplate liability based on disproportionately adverse effects alone, without regard to an employer’s likely intent, rather than treating disparate impact as an evidentiary mechanism to “smoke out” intentional discrimination. DOJ found that this approach functions as a “qualified racial-proportionality mandate” that places “a racial thumb on the scales, often requiring employers to evaluate the racial outcomes of their policies, and to make decisions based on (because of) those racial outcomes.” The opinion fulfills one mandate of Executive Order 14281, which rejected disparate-impact liability insofar as it “creates a near insurmountable presumption that unlawful discrimination exists wherever there are any differences in outcomes among different [demographic groups].”...