Examples
FAR 9.508 provides real-world examples to help contracting professionals identify and mitigate organizational conflicts of interest in government contracting.
Overview
FAR 9.508 provides practical examples of situations where organizational conflicts of interest (OCI) may arise, helping contracting officers interpret and apply the general OCI rules in FAR 9.505. The section illustrates various scenarios, such as when a contractor is involved in systems engineering, specification development, or evaluation activities, and clarifies when a contractor should be excluded from follow-on work or supply contracts to prevent unfair competitive advantage or impaired objectivity. These examples are not exhaustive but serve as guidance for identifying and mitigating OCIs in specific contract situations.
Key Rules
- Systems Engineering and Technical Direction
- Contractors providing systems engineering or technical direction should not supply components for the same system but may supply unrelated components.
- Specification Development and Follow-on Work
- Contractors who develop specifications or performance criteria may be excluded from follow-on acquisitions based on those specifications to avoid conflicts.
- Proprietary Information Handling
- Contractors accessing proprietary information must protect it and avoid using it for unauthorized purposes.
- Consulting Restrictions
- Contractors assisting in regulatory or evaluation processes may be restricted from consulting for applicants or participants during and after contract performance.
Responsibilities
- Contracting Officers: Must assess contract situations for potential OCIs using these examples as guidance and apply appropriate restrictions or exclusions.
- Contractors: Must comply with restrictions on follow-on work, protect proprietary information, and avoid roles that create conflicts.
- Agencies: Should ensure oversight and enforcement of OCI mitigation measures and restrictions.
Practical Implications
- This section exists to help contracting professionals recognize and address OCIs before awarding or administering contracts.
- It impacts daily contracting by clarifying when exclusions or restrictions are necessary to maintain fairness and integrity.
- Common pitfalls include failing to identify OCIs early or improperly allowing conflicted contractors to participate in follow-on work.