Overview
This section prescribes the mandatory procedures and responsibilities for contractors and contracting officers to identify, screen, and mitigate personal conflicts of interest (PCI) among contractor employees performing acquisition functions closely associated with inherently governmental functions.
Key Rules
- Mandatory Screening: Contractors must obtain detailed financial disclosures from "covered employees" regarding their financial interests, family interests, gifts, and prospective employment relationships before assigning them to sensitive tasks.
- Continuous Monitoring: Employees are required to update disclosure statements whenever their personal or financial circumstances change.
- Conflict Prevention: Contractors must prohibit employees from performing tasks where a conflict exists that cannot be mitigated and must ensure employees do not use non-public information for personal gain.
- Non-Disclosure Agreements (NDAs): Contractors are required to obtain signed NDAs from covered employees to protect non-public government information.
- Compliance & Oversight: Contractors must maintain effective oversight, establish disciplinary actions for violations, and report any PCI violations to the Contracting Officer (CO) immediately.
- Contracting Officer Duty: Upon receiving a violation report, the CO must review the contractor’s corrective actions and, if deemed unsatisfactory, take further action in consultation with agency legal counsel.
Practical Implications
- Compliance Burden: Contractors performing acquisition support services must implement internal ethics and disclosure programs that mirror those found within the federal government.
- Risk Mitigation: The requirement for immediate reporting and CO review means that a failure to effectively manage an employee’s conflict could result in the removal of personnel or potential contract disputes if the CO determines the contractor's response was insufficient.