Overview
This section specifies the high-level authority and strict criteria required to waive the general prohibition against awarding government contracts to federal employees or businesses they own or control.
Key Rules
- Approval Authority: Only the agency head or a designee at or above the level of the Head of the Contracting Activity (HCA) can authorize an exception.
- Standard of Proof: Exceptions are granted only for a "most compelling reason."
- Primary Criterion: A justification must demonstrate that the government’s needs cannot reasonably be met through any other source.
Practical Implications
- These exceptions are rare and subject to intense internal scrutiny to avoid the appearance of favoritism or conflicts of interest.
- Contracting officers must provide exhaustive documentation proving that no other commercial or non-conflicted entities are capable of performing the work before seeking HCA-level approval.