On October 25, 2016, the US Agency for International Development (USAID) issued a final rule (81 Fed. Reg. 73,352) that requires contractors operating under USAID-funded contracts to not discriminate among end-users of supplies or services (also known as beneficiaries) on the basis of characteristics such as social status, ethnicity, religion, age, marital status, disability, national origin, gender or sexual orientation. The aim of the rule, which follows a proposed rule (81 Fed. Reg. 56,572) and is applicable to prime contractors and subcontractors at all levels of federal contracting, is to amend the Agency International Development Acquisition Regulation (AIDAR) to include a clause entitled “Nondiscrimination against End-Users of Supplies or Services,” the primary objective of which is to ensure that USAID’s non-discrimination policy and practice is followed through to completion by the contractors that work on USAID projects. Contractors must insert the clause, “Nondiscrimination against End-Users of Supplies or Services,” in section I of all solicitations and resulting contracts, including subcontracts at any tier.

The final rule became effective October 25, 2016.