Responsibilities of the contracting officer
Contracting officers must obtain proper authorization and follow conflict of interest rules before awarding contracts to organizations owned or controlled by government employees.
Overview
FAR 3.603 outlines the specific responsibilities of contracting officers when considering awarding contracts to organizations that are owned or substantially controlled by government employees. Before making such an award, the contracting officer must ensure that an authorization is obtained under FAR 3.602 if they know or suspect that the prospective contractor is otherwise prohibited from receiving the award (per FAR 3.601), and there is a compelling reason to proceed. Additionally, the contracting officer must follow the requirements and guidance in FAR Subpart 9.5, which addresses organizational conflicts of interest, before awarding contracts to such organizations. This section is designed to prevent conflicts of interest and ensure the integrity of the federal procurement process.
Key Rules
- Authorization Requirement
- If the contracting officer knows or suspects a prospective contractor is prohibited under FAR 3.601, and there is a compelling reason to award, they must obtain authorization under FAR 3.602 before proceeding.
- Compliance with FAR Subpart 9.5
- Contracting officers must adhere to the requirements and guidance in FAR Subpart 9.5 regarding organizational conflicts of interest before awarding contracts to organizations owned or controlled by government employees.
Responsibilities
- Contracting Officers: Must obtain proper authorization and ensure compliance with conflict of interest rules before awarding contracts to organizations linked to government employees.
- Contractors: Must disclose ownership or control by government employees and avoid prohibited awards.
- Agencies: Must provide oversight and ensure that contracting officers follow all required procedures and authorizations.
Practical Implications
- This section exists to prevent conflicts of interest and maintain public trust in federal contracting.
- It impacts daily contracting by requiring additional scrutiny and documentation when government employee-owned organizations are involved.
- Common pitfalls include failing to obtain required authorizations or overlooking conflict of interest requirements, which can result in contract invalidation or disciplinary action.