Organizational Conflict of Interest(OCI)
A situation where a contractor's other activities or relationships could impair its objectivity or create an unfair competitive advantage on a government contract.
Overview
An Organizational Conflict of Interest (OCI) arises when a contractor's involvement in one government activity could bias its judgment or give it an unfair advantage in another. Common scenarios include: a contractor helping draft a solicitation and then bidding on it; holding proprietary source selection information; or having financial interests that could affect impartiality.
Why It Matters in GovCon
OCIs can disqualify an offeror from competing or performing. Agencies identify potential OCIs during source selection and may exclude offerors or require mitigation (e.g., firewall, divestiture). Contractors must disclose potential conflicts and implement mitigation plans when required.
Key Details
- FAR 9.5: Governs identification and mitigation of OCIs.
- Types: Unequal access to information; biased ground rules; impaired objectivity.
- Mitigation: Organizational firewalls, divestiture, or recusal; not always sufficient.
- Subcontractors: Prime contractors must flow down OCI awareness to subs; sub involvement can create prime OCI.
Related Terms
- Non-Disclosure Agreement (NDA)
- Source Selection
- Fair Competition
- Impaired Objectivity
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