Overview
FAR 5.401 establishes the fundamental principles for balancing transparency and confidentiality in federal procurement, emphasizing the need for business security to maintain the integrity of the acquisition process.
Key Rules
- Business Security: High levels of security must be maintained to prevent unauthorized disclosure of information that could compromise procurement integrity.
- Government Estimates: Information used to develop Government estimates must remain confidential and cannot be discussed with or publicized to potential contractors.
- Transparency vs. Protection: While the general policy is to provide maximum information to the public, exceptions apply to:
- Plans that provide unfair or discriminatory advantages to specific interests.
- Proprietary information received in confidence from offerors.
- Information protected by the Freedom of Information Act (FOIA) or the Privacy Act.
- Internal agency communications, such as technical reviews or recommendations.
- Broad Applicability: These requirements apply to all Government personnel involved in any stage of the acquisition cycle, not just the Contracting Officer.
Practical Implications
- Government personnel must exercise extreme caution during the market research and planning phases to ensure internal cost expectations or technical deliberations are not leaked to potential bidders.
- Failure to protect sensitive procurement data can lead to protests, a "tainted" acquisition process, or the disqualification of specific vendors who receive an unfair information advantage.