3.1103
Procedures
Contractors must implement and enforce comprehensive procedures to identify, prevent, and report personal conflicts of interest for employees performing acquisition functions, ensuring integrity in government contracting.
Overview
FAR 3.1103 outlines the required procedures for contractors whose employees perform acquisition functions closely associated with inherently governmental functions, focusing on preventing personal conflicts of interest (PCI). Contractors must implement robust screening, disclosure, and oversight processes to identify and mitigate PCIs among covered employees. The regulation mandates the use of FAR clause 52.203-16 and details specific steps for disclosure, prevention, training, oversight, disciplinary action, and reporting of violations. Contracting officers are responsible for ensuring contractor compliance and for taking further action if violations are not adequately addressed.
Key Rules
- Employee Screening and Disclosure
- Contractors must obtain and maintain disclosures from covered employees regarding financial interests, employment relationships, and gifts, and require updates if circumstances change.
- Conflict Prevention and Mitigation
- Contractors must prevent covered employees from performing tasks where a PCI exists and cannot be mitigated, prohibit use of non-public information for personal gain, and require signed non-disclosure agreements.
- Employee Notification and Training
- Contractors must inform employees of their obligations to disclose and prevent PCIs, avoid using non-public information for personal gain, and avoid even the appearance of a conflict.
- Oversight and Enforcement
- Contractors must maintain oversight, take disciplinary action for non-compliance, and report violations to the contracting officer, including corrective actions taken.
- Contracting Officer Responsibilities
- Contracting officers must review contractor actions regarding violations and determine if further action is needed.
Responsibilities
- Contracting Officers: Ensure clause inclusion, review contractor reports, and take action if violations are unresolved.
- Contractors: Implement PCI procedures, screen and train employees, maintain oversight, and report violations.
- Agencies: Provide legal counsel and oversight as needed.
Practical Implications
- This section exists to protect the integrity of the acquisition process by preventing conflicts of interest among contractor employees. It impacts daily operations by requiring ongoing monitoring, documentation, and prompt reporting. Common pitfalls include inadequate disclosure processes, failure to update disclosures, and insufficient oversight or reporting.