3.1101
Definitions
If contractor personnel support sensitive acquisition decisions, they may be “covered employees” whose financial interests, relationships, or outside activities must not compromise impartial service to the Government.
Overview
- FAR 3.1101 provides the core definitions used in Subpart 3.11, which addresses personal conflicts of interest involving contractor personnel who perform acquisition-related support for the Government.
- Its purpose is to identify which functions, which individuals, and which types of interests trigger the subpart’s conflict-of-interest safeguards.
Key Rules
- Acquisition functions closely associated with inherently governmental functions
- This term covers contractor support or advice involving key acquisition activities such as acquisition planning, defining requirements, developing statements of work, preparing or approving contractual documents, evaluating proposals, awarding contracts, administering contracts, terminating contracts, and assessing whether costs are reasonable, allocable, and allowable.
- Covered employee
- A covered employee is either a contractor employee performing one of these acquisition-related functions or a self-employed subcontractor performing those functions, because there may be no separate employer to receive required disclosures.
- Personal conflict of interest
- A personal conflict exists when a covered employee has a financial interest, personal activity, or relationship that could impair impartial performance in the Government’s best interest. The rule excludes de minimis interests that would not realistically impair impartiality.
Responsibilities
- Contracting Officers: identify contracts involving covered acquisition support functions and ensure the subpart’s safeguards are applied.
- Contractors: determine which personnel are covered employees and monitor for disqualifying financial interests, relationships, outside employment, and gifts.
- Agencies: oversee contractor performance in sensitive acquisition support roles and protect the integrity of procurement decisions.
Practical Implications
- This section matters because it defines the boundary between ordinary contractor support and work that creates heightened ethics risk.
- Contractors supporting source selections, contract administration, or requirement development should screen personnel carefully.
- A common pitfall is overlooking indirect interests, such as family financial holdings, job-seeking activity, consulting arrangements, or travel gifts, that could compromise objectivity.