Subpart 3.11
Preventing Personal Conflicts of Interest for Contractor Employees Performing Acquisition Functions
Contractors performing acquisition functions must proactively identify, prevent, and report personal conflicts of interest among their employees to maintain the integrity of the federal procurement process.
Overview
FAR Subpart 3.11 establishes requirements to prevent personal conflicts of interest (PCI) among contractor employees who perform acquisition functions closely associated with inherently governmental functions. This subpart defines key terms, outlines policies, and prescribes procedures for identifying, mitigating, or waiving PCIs. It also details the responsibilities of contractors and contracting officers, provides guidance on handling violations, and mandates the inclusion of a specific contract clause to ensure compliance. The regulation aims to maintain the integrity of the federal acquisition process by ensuring that contractor employees do not use their positions for personal gain or to influence government decisions improperly.
Key Rules
- Scope and Definitions
- Applies to contractor employees performing acquisition functions closely associated with inherently governmental functions, and defines relevant terms such as "personal conflict of interest."
- Policy and Procedures
- Contractors must identify and prevent PCIs, provide training, and report potential conflicts. Contracting officers must ensure compliance and address violations.
- Mitigation or Waiver
- Procedures are provided for mitigating or waiving PCIs when necessary, subject to agency approval.
- Violations and Contract Clause
- Outlines consequences for violations and requires a specific contract clause to be included in applicable contracts.
Responsibilities
- Contracting Officers: Ensure inclusion of the PCI clause, monitor compliance, and address violations or waiver requests.
- Contractors: Identify, prevent, and report PCIs; provide employee training; comply with mitigation or waiver procedures.
- Agencies: Oversee implementation, approve waivers, and enforce compliance.
Practical Implications
- This subpart exists to protect the integrity of the acquisition process and prevent undue influence or bias.
- Contractors must have robust internal controls and training to identify and manage PCIs.
- Failure to comply can result in contract termination, suspension, or other penalties.