3.1102
Policy
Contractors must actively prevent personal conflicts of interest and prohibit the misuse of nonpublic information by employees working on Government contracts.
Overview
FAR 3.1102 establishes the Government’s policy for contractors to actively identify and prevent personal conflicts of interest (PCI) among their covered employees, particularly those involved in acquisition functions. Contractors must ensure that employees who have access to nonpublic information through their work on Government contracts do not use this information for personal gain. This policy is designed to uphold the integrity of the acquisition process and protect sensitive Government information from misuse.
Key Rules
- Identification and Prevention of Personal Conflicts of Interest
- Contractors are required to identify and take steps to prevent personal conflicts of interest among their covered employees.
- Prohibition on Use of Nonpublic Information
- Covered employees must not use nonpublic information obtained through their Government contract work for personal benefit.
Responsibilities
- Contracting Officers: Must ensure contractors are aware of and comply with these requirements.
- Contractors: Must implement procedures to identify, prevent, and address personal conflicts of interest and restrict the misuse of nonpublic information by covered employees.
- Agencies: Oversee contractor compliance and address violations as necessary.
Practical Implications
- This policy exists to maintain ethical standards and public trust in the Government acquisition process.
- Contractors must have robust internal controls and training to detect and prevent conflicts of interest and improper use of information.
- Failure to comply can result in contract remedies, reputational harm, or legal consequences.