On Friday, December 19, the FAA updated its guidelines on the required procurement and contract language sponsors must use as a condition of their federal grants. The revisions are primarily to align the required contract language with new Executive Orders and modifications to the DOT Disadvantaged Business Enterprises (DBE) program. The new guidance document is effective immediately and applies to all future procurement and contracts, even those that do not involve federal funds.

Under Grant Assurance 1, when airport sponsors execute contracts, they must include certain language referencing and implementing other statutes, regulations, and Executive Orders. The scope of the language varies based on whether federal funds are involved and the specific type of contract (e.g., construction, services, equipment), but a baseline set of provisions apply to all procurements and contracts executed by the sponsor. Since 2018, the FAA has maintained a guidance document, titled Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects, to assist sponsors in identifying the correct provisions to include in different types of contracts. The Contract Provisions were most recently updated in May 2023, but that version was archived shortly after the new administration took office in February 2025.

In this newest update, the FAA made the following significant changes:

• Deleted language that was previously required pursuant to now-rescinded Executive Orders. This primarily included language pertaining to affirmative action, equal employment opportunities, and the prohibition on segregated facilities.
• Deleted language which previously interpreted the scope of prohibited discrimination under Title VI to include discrimination on the basis of limited English proficiency, sexual orientation, and gender identity.
• Replaced the prior Title VI Solicitation Notice with a new provision, which must be used in “all sponsor proposals for negotiated agreements regardless of funding source.”
• Revised language pertaining to the ACDBE and DBE program in accordance with the October updates to 29 C.F.R Parts 23 and 26. A summary of that regulatory update is available here. The changes to the Contract Provisions also indicate that sponsors may utilize a different process (and different solicitation language) for traditional design-bid-build contracts and design-build contracts.
• Added language implementing Section 936 of the FAA Reauthorization Act of 2024, which prohibited sponsors from using AIP funds in a contract involving certain foreign-made unmanned aircraft systems.

The FAA also made other revisions to reflect changes in contracting dollar value thresholds, terminology, and for organization.

Sponsors and their attorneys should review the updated Contract Provisions carefully and incorporate the revised language, as applicable, into all future procurement documents and executed contracts going forward. For additional information on the changes and required contract language generally, please contact Nicholas M. Clabbers.