Contracts

• President Donald Trump signed Executive Order 'Addressing DEI Discrimination by Federal Contractors' on March 26, 2026, mandating a clause in all federal contracts prohibiting racially discriminatory DEI activities by contractors and subcontractors. • The clause subjects non-compliant parties to False Claims Act liability, contract termination, and potential debarment, with enforcement prioritized by the U.S. Attorney General including review of whistleblower qui tam actions. • This builds on prior Trump actions eliminating federal DEI programs and aligns with EEOC Chair Andrea Lucas's warning letter to the 500 largest U.S. companies about Title VII liabilities from DEI practices.

• Tech companies including Palantir, Anthropic, and Anduril are increasingly partnering with the US Department of Defense, marking a significant shift from decades of strained relations between the tech sector and military. • Anduril announced a 10-year, US$20 billion contract with the US military, while Palantir's Maven data analytics platform and Anthropic's AI have been used extensively in operations against Iran, including defense against Shahed drones. • The collaboration represents what investors view as a lucrative opportunity, with traditional military contractors like Lockheed Martin and Boeing now joined by rising tech giants in supplying cloud computing, AI-powered drones, and advanced defense systems.

Policy brought forward as Middle East war highlights fragility of global supply chainsBritish suppliers will be prioritised for public contracts in shipbuilding, steel, AI and energy infrastructure under new guidance marking them out as sectors vital to national security.Departments will also have to either use British steel or justify sourcing it from overseas, under the rules announced by the government. Continue reading...

• The Pentagon transitioned from pilot projects to long-term enterprise contracts with venture-backed defense tech firms, exemplified by deals with Anduril and Palantir totaling billions. • Anduril's contract covers AI-powered drones, autonomous systems, and counter-UAS hardware tied to live missions, setting new benchmarks for manufacturing and delivery. • Steven Simoni of Allen Control Systems called it a 'meaningful signal' that startups must prove operational reliability over prototypes.