9.505-2
Preparing specifications or work statements
Contractors who help prepare specifications or work statements for competitive acquisitions are generally barred from supplying the resulting items or services to prevent unfair competitive advantage, with limited exceptions.
Overview
FAR 9.505-2 addresses organizational conflicts of interest (OCI) related to contractors who prepare specifications or work statements for government acquisitions. The regulation aims to prevent contractors from gaining an unfair competitive advantage by restricting their eligibility to compete for contracts based on specifications or work statements they helped develop, except under certain circumstances. This ensures the integrity and fairness of the procurement process, particularly for nondevelopmental items and systems or services acquired competitively.
Key Rules
- Restrictions on Contractors Preparing Specifications
- Contractors who prepare complete specifications for nondevelopmental items for competitive acquisitions are generally barred from supplying those items as a prime or subcontractor for a reasonable period, typically covering the initial production contract.
- Exceptions to Restrictions
- The restriction does not apply if the contractor provides specifications at the Government’s request for a product they supply, or if they assist as industry representatives under Government supervision.
- Drafting Specifications for Nondevelopmental Equipment
- A contractor drafting specifications for nondevelopmental equipment should be excluded from production competition to avoid biased specifications and ensure fair competition.
- Development Work
- No prohibition applies to development contractors, as their competitive advantage is considered unavoidable and not unfair.
- Preparing Work Statements
- Contractors who prepare or assist in preparing work statements for competitive acquisitions may not supply the system or services unless they are the sole source, participated in development/design, or multiple contractors were involved in preparing the work statement.
Responsibilities
- Contracting Officers: Must identify and mitigate potential OCIs, enforce restrictions, and ensure exceptions are justified and documented.
- Contractors: Must disclose involvement in preparing specifications or work statements and comply with restrictions on subsequent participation.
- Agencies: Should prepare their own work statements when possible and supervise contractor involvement to prevent bias.
Practical Implications
- This regulation exists to prevent conflicts of interest and ensure fair competition in government contracting.
- Contractors must be vigilant about their roles in specification or work statement preparation to avoid disqualification from future opportunities.
- Common pitfalls include failing to recognize when restrictions apply or not documenting exceptions properly.