Overview
This section prescribes the procedures and high-level approval requirements for instances where a contractor is unable to prevent a personal conflict of interest (PCI) as required by FAR clause 52.203-16. It establishes the mechanism for the government to either accept a mitigation plan or waive the conflict prevention requirement entirely.
Key Rules
- Exceptional Circumstances: Mitigation or waivers are only available in exceptional cases where the contractor cannot satisfactorily prevent a PCI.
- Approval Authority: Only the Head of the Contracting Activity (HCA) has the authority to approve a mitigation plan or grant a waiver; this authority cannot be redelegated.
- Required Documentation: The HCA must provide a written determination stating that the action is in the best interest of the Government.
- Conditions: The HCA may impose specific conditions or restrictions as part of a mitigation plan to protect the government's interests.
- Submission Path: Contractors must submit requests for mitigation or waivers through the Contracting Officer (CO) to reach the HCA.
Practical Implications
- High Threshold for Approval: Because the authority is non-delegable and requires HCA-level approval, obtaining a waiver or mitigation plan is a rigorous process that requires a strong justification of necessity and government benefit.
- Administrative Burden: Contractors should view this as a last resort; the requirement for a written "best interest" determination by senior leadership implies that standard PCI prevention is the expected norm for most service contracts.