Overview
This section establishes the federal requirement for contractors to safeguard the integrity of the procurement process by managing personal conflicts of interest among their staff. It focuses on ensuring that contractor employees performing acquisition functions remain impartial and do not exploit sensitive government data.
Key Rules
- Identification and Prevention: Contractors are strictly required to have systems in place to identify and prevent personal conflicts of interest (PCI) for "covered employees."
- Misuse of Information: Contractors must prohibit covered employees with access to nonpublic information from utilizing that data for personal financial gain.
- Scope of Responsibility: The burden of oversight is placed on the contractor to monitor their own workforce's ethical compliance regarding government resources and information.
Practical Implications
- Contractors must implement robust internal compliance programs, including required financial disclosure statements and ethics training for employees performing acquisition-related tasks.
- Failure to prevent a conflict or the misuse of nonpublic information can lead to contract termination, suspension, or debarment.