3.1101
Definitions
FAR 3.1101 defines key terms—especially "covered employee" and "personal conflict of interest"—that are critical for contractors to identify and manage conflicts of interest in acquisition functions.
Overview
FAR 3.1101 provides key definitions for Subpart 3.11, which addresses the prevention of personal conflicts of interest (PCI) for contractor employees performing acquisition functions closely associated with inherently governmental functions. This section clarifies what constitutes an "acquisition function closely associated with inherently governmental functions," defines "covered employee," and explains what is meant by "personal conflict of interest." These definitions are foundational for understanding compliance obligations related to contractor employee conduct, disclosure requirements, and conflict mitigation in federal acquisitions.
Key Rules
- Acquisition Functions Closely Associated with Inherently Governmental Functions
- Includes activities such as planning acquisitions, developing statements of work, evaluating proposals, awarding and administering contracts, and determining contract cost allowability.
- Covered Employee
- Refers to contractor or certain subcontractor individuals performing acquisition functions as described above.
- Personal Conflict of Interest (PCI)
- Defined as a situation where a covered employee’s financial interests, relationships, or activities could impair impartiality in government contract performance. Specific examples and sources of PCI are provided.
Responsibilities
- Contracting Officers: Must ensure contractors understand and comply with PCI requirements and definitions.
- Contractors: Must identify covered employees and ensure they avoid or disclose personal conflicts of interest as defined.
- Agencies: Oversee contractor compliance and enforce PCI mitigation measures.
Practical Implications
- This section exists to clarify who and what is subject to PCI rules, ensuring all parties understand the scope of compliance.
- Impacts daily contracting by requiring careful identification of covered employees and monitoring for potential conflicts.
- Common pitfalls include failing to recognize all sources of PCI or misidentifying covered employees, leading to compliance violations.