Does the new Army tattoo policy apply to DOD civilians and if so how?

As they are not subject to AR 670-1 when it comes to personal appearance, no. I do know that there are some dress code standards that they are held to, but I can not remember them off the top of my head since it has been a few years since I had GS workers I was the supervisor for.

While we may not be able to apply Army regulation and policy to GS, and other civilians, we can establish a dress code for civilian workers. From a quick bit of research through google I found an article with an interesting stance. A quote from this article: "While we generally cannot  In the case of individuals with tattoos and piercings, there is no federal or state law that affords them explicit protection from employment discrimination on the basis of their appearance"

http://www.fedsmith.com/2007/06/14/dress-codes-tattoos-federal-employees-brave/

A tattoo on their forehead? Oh wow, that does not seem right at all.