9.502 Applicability
Source: FAR 9.502 on acquisition.gov
FAR 9.502 makes organizational conflict of interest rules broadly applicable to most federal contracts, requiring vigilance from both contractors and contracting officers, especially in advisory and technical service areas.
Overview
FAR 9.502 outlines the applicability of Subpart 9.5, which addresses organizational and consultant conflicts of interest (OCI) in federal contracting. This section clarifies that the rules apply to both profit and nonprofit organizations, including those established with government funds, and are not limited to any specific type of acquisition. However, it highlights that OCIs are more likely in contracts involving management support, consulting, technical evaluations, and systems engineering where the contractor lacks overall responsibility for development or production. The section also notes that OCIs can arise from current or future contract work, potentially leading to restrictions on a contractor's future activities. Acquisitions governed by unique agency-specific OCI statutes are exempt from this subpart.
Key Rules
- Applicability to All Organizations
- Applies to both profit and nonprofit entities, including those created with government funds.
- Broad Acquisition Coverage
- Not limited to specific acquisition types, but OCIs are more likely in certain service contracts.
- Potential for Future Restrictions
- OCIs may result in restrictions on a contractor’s future activities if conflicts are identified.
- Agency-Specific Exclusions
- Acquisitions covered by unique agency OCI statutes are excluded from this subpart.
Responsibilities
- Contracting Officers: Must assess all contracts for potential OCIs, especially in high-risk service areas, and apply restrictions as needed.
- Contractors: Must be aware of OCI risks in their work and comply with any imposed restrictions on future activities.
- Agencies: Must identify if unique agency OCI statutes apply and ensure proper exclusion from this subpart when relevant.
Practical Implications
- This section ensures that all types of organizations and acquisitions are considered for OCI risks, promoting fair competition and integrity in government contracting. Contractors should be vigilant about potential OCIs, especially in advisory or technical roles, and be prepared for possible restrictions on future work. Failure to recognize or address OCIs can lead to compliance issues or disqualification from future contracts.
(a) This subpart applies to contracts with either profit or nonprofit organizations, including nonprofit organizations created largely or wholly with Government funds.
(b) The applicability of this subpart is not limited to any particular kind of acquisition. However, organizational conflicts of interest are more likely to occur in contracts involving-
(1) Management support services;
(2) Consultant or other professional services;
(3) Contractor performance of or assistance in technical evaluations; or
(4) Systems engineering and technical direction work performed by a contractor that does not have overall contractual responsibility for development or production.
(c) An organizational conflict of interest may result when factors create an actual or potential conflict of interest on an instant contract, or when the nature of the work to be performed on the instant contract creates an actual or potential conflict of interest on a future acquisition. In the latter case, some restrictions on future activities of the contractor may be required.
(d) Acquisitions subject to unique agency organizational conflict of interest statutes are excluded from the requirements of this subpart.