9.506 Procedures
Source: FAR 9.506 on acquisition.gov
FAR 9.506 requires contracting officers to systematically identify, analyze, and resolve organizational conflicts of interest before contract award, ensuring transparency and integrity in the procurement process.
Overview
FAR 9.506 outlines the procedures contracting officers must follow to identify, evaluate, and address potential organizational conflicts of interest (OCI) in government acquisitions. The section details steps for gathering information, preparing analyses and recommendations, obtaining approvals, and including appropriate provisions and clauses in solicitations and contracts. It also covers the responsibilities of both contracting officers and approving officials, as well as requirements for transferring acquisition responsibility when restrictions are in place.
Key Rules
- Information Gathering
- Contracting officers should first seek OCI-related information from internal government sources, then from external sources if necessary.
- Analysis and Approval
- For acquisitions with significant OCI potential, a written analysis and recommended actions must be submitted for approval before solicitation issuance.
- Drafting Provisions and Clauses
- Draft solicitation provisions and, if appropriate, contract clauses must be prepared and submitted with the analysis.
- Approval Process
- The approving official reviews, considers impacts, and approves, modifies, or rejects recommendations in writing.
- Implementation and Resolution
- Approved provisions/clauses are included in solicitations/contracts, and conflicts must be resolved before award.
- Transfer of Acquisition Responsibility
- If acquisition responsibility is transferred, the successor office must be notified of any restrictions and provided relevant contract documentation.
Responsibilities
- Contracting Officers: Gather information, prepare analyses, draft provisions/clauses, obtain approvals, include approved language in solicitations/contracts, and resolve conflicts before award.
- Contractors: Respond to solicitation requirements and provide information relevant to potential OCIs.
- Agencies/Approving Officials: Review and approve or modify OCI analyses and recommendations; ensure continuity of restrictions during acquisition transfers.
Practical Implications
- This section ensures OCIs are proactively identified and managed to protect the integrity of the procurement process.
- Contracting officers must follow a structured process, which can be time-consuming and requires thorough documentation.
- Failure to properly address OCIs can result in protest, contract delays, or post-award challenges.
(a) If information concerning prospective contractors is necessary to identify and evaluate potential organizational conflicts of interest or to develop recommended actions, contracting officers first should seek the information from within the Government or from other readily available sources. Government sources include the files and the knowledge of personnel within the contracting office, other contracting offices, the cognizant contract administration and audit activities and offices concerned with contract financing. Non-Government sources include publications and commercial services, such as credit rating services, trade and financial journals, and business directories and registers.
(b) If the contracting officer decides that a particular acquisition involves a significant potential organizational conflict of interest, the contracting officer shall, before issuing the solicitation, submit for approval to the chief of the contracting office (unless a higher level official is designated by the agency)-
(1) A written analysis, including a recommended course of action for avoiding, neutralizing, or mitigating the conflict, based on the general rules in 9.505 or on another basis not expressly stated in that section;
(2) A draft solicitation provision (see 9.507-1); and
(3) If appropriate, a proposed contract clause (see 9.507-2).
(c) The approving official shall-
(1) Review the contracting officer’s analysis and recommended course of action, including the draft provision and any proposed clause;
(2) Consider the benefits and detriments to the Government and prospective contractors; and
(3) Approve, modify, or reject the recommendations in writing.
(d) The contracting officer shall-
(1) Include the approved provision(s) and any approved clause(s) in the solicitation or the contract, or both;
(2) Consider additional information provided by prospective contractors in response to the solicitation or during negotiations; and
(3) Before awarding the contract, resolve the conflict or the potential conflict in a manner consistent with the approval or other direction by the head of the contracting activity.
(e) If, during the effective period of any restriction (see 9.507), a contracting office transfers acquisition responsibility for the item or system involved, it shall notify the successor contracting office of the restriction, and send a copy of the contract under which the restriction was imposed.