General
Government contracting must be conducted with the highest ethical standards, avoiding any real or perceived conflicts of interest to maintain public trust.
Overview
FAR 3.101-1 establishes the foundational ethical standard for all government business, emphasizing that all actions must be above reproach, impartial, and free from preferential treatment. It underscores the necessity for the highest degree of public trust and impeccable conduct in all transactions involving public funds. The regulation mandates that both actual and perceived conflicts of interest must be strictly avoided in government-contractor relationships. It also highlights that government personnel must not only comply with laws and regulations but also conduct themselves in a way that would withstand full public scrutiny and disclosure.
Key Rules
- Impartiality and No Preferential Treatment
- All government business must be conducted impartially, without favoritism, unless specifically authorized by law or regulation.
- Avoidance of Conflicts of Interest
- Both actual and apparent conflicts of interest must be strictly avoided in all dealings with contractors.
- High Standard of Conduct
- Government personnel must maintain conduct that upholds public trust and would not cause concern if publicly disclosed.
Responsibilities
- Contracting Officers: Must ensure all actions are impartial, avoid conflicts of interest, and maintain transparency.
- Contractors: Should be aware of and avoid actions that could create conflicts of interest or the appearance thereof.
- Agencies: Must foster a culture of ethical conduct and monitor for compliance with these standards.
Practical Implications
- This section exists to protect the integrity of the federal procurement process and maintain public confidence.
- It impacts daily contracting by requiring vigilance against conflicts of interest and ensuring transparency.
- Common pitfalls include unintentional preferential treatment or failing to recognize situations that could appear as conflicts of interest.