Subpart 9.5
Organizational and Consultant Conflicts of Interest
FAR Subpart 9.5 requires contracting officers and contractors to proactively identify, disclose, and resolve organizational and consultant conflicts of interest to ensure fairness and integrity in federal contracting.
Overview
FAR Subpart 9.5 addresses Organizational and Consultant Conflicts of Interest (OCI) in federal contracting. Its purpose is to prevent situations where a contractor’s objectivity or ability to perform is impaired due to conflicting roles or relationships, or where a contractor has an unfair competitive advantage. This subpart defines key terms, outlines when and how OCI rules apply, and provides procedures for identifying, evaluating, and mitigating conflicts. It also details the responsibilities of contracting officers, waiver provisions, required solicitation clauses, and practical examples to guide compliance.
Key Rules
- Scope and Definitions
- Establishes what constitutes an organizational or consultant conflict of interest and when these rules apply.
- Applicability and Waivers
- Explains which contracts are subject to OCI rules and under what circumstances waivers may be granted.
- Contracting Officer Responsibilities
- Requires contracting officers to identify, evaluate, and resolve potential OCIs before contract award.
- General Rules and Procedures
- Provides general principles and step-by-step procedures for handling OCIs, including documentation and mitigation strategies.
- Solicitation Provisions and Clauses
- Mandates inclusion of specific OCI-related provisions and clauses in solicitations and contracts.
- Examples
- Offers illustrative scenarios to help contracting professionals recognize and address OCIs.
Responsibilities
- Contracting Officers: Must proactively identify, evaluate, and resolve OCIs, document findings, and include appropriate clauses in contracts.
- Contractors: Must disclose potential OCIs, cooperate in mitigation efforts, and comply with contract clauses addressing conflicts.
- Agencies: Oversee compliance, grant waivers when justified, and ensure OCI procedures are followed.
Practical Implications
- This subpart exists to maintain fairness and integrity in federal procurement by preventing biased advice, impaired objectivity, and unfair competitive advantages.
- It impacts daily contracting by requiring due diligence in identifying and managing OCIs, especially in complex or high-value procurements.
- Common pitfalls include failure to recognize potential OCIs, inadequate documentation, or insufficient mitigation measures.