Finally figured out a way to 'cheat the system' to add schlongs. It was as simple as adding an empty set of armor and making the usable race 'Default'. I'm really glad it wasn't as involved as I was lead to believe; new addons, scripts, making SOS a requirement, etc. The way things work now both SOS and the game treat the new races just like the vanilla ones.
If you want to check out the mod, click the link. Kendo 2's Custom Races for EEO