9.505-1
Providing systems engineering and technical direction
Contractors providing systems engineering or technical direction for a system cannot supply that system or its major components, nor support suppliers of those components, to prevent conflicts of interest.
Overview
FAR 9.505-1 addresses organizational conflicts of interest (OCI) related to contractors providing systems engineering and technical direction for a system. The regulation prohibits such contractors from being awarded contracts to supply the system or its major components, or from acting as subcontractors or consultants to suppliers of the system or its major components, if they do not have overall contractual responsibility for the system's development, integration, assembly, checkout, or production. This is to prevent situations where a contractor could influence specifications or requirements in a way that favors its own products or services, thus ensuring fairness and integrity in the procurement process.
Key Rules
- Prohibition on Supplying the System
- Contractors providing systems engineering and technical direction (without full system responsibility) cannot supply the system or its major components.
- Prohibition on Subcontracting or Consulting
- Such contractors are also barred from being subcontractors or consultants to suppliers of the system or its major components.
- Definition of Activities
- Systems engineering and technical direction include activities like determining specifications, developing test requirements, supervising design, and directing other contractors’ operations.
Responsibilities
- Contracting Officers: Must ensure that contractors providing systems engineering and technical direction are not awarded supply contracts for the same system or its major components, nor allowed to act as subcontractors or consultants to suppliers.
- Contractors: Must avoid seeking or accepting contracts, subcontracts, or consulting roles that would violate these prohibitions.
- Agencies: Should monitor and enforce compliance to prevent OCIs and maintain procurement integrity.
Practical Implications
- This rule exists to prevent conflicts of interest and ensure impartiality in system development and procurement.
- Contractors must carefully assess their roles to avoid prohibited relationships.
- Violations can result in disqualification from contract awards and reputational harm.