Overview
FAR 9.506 outlines the formal administrative steps a Contracting Officer (CO) must follow to identify, document, and mitigate significant organizational conflicts of interest (OCI) before a contract is awarded. It establishes a chain of approval to ensure that OCI risks are addressed consistently and transparently throughout the acquisition lifecycle.
Key Rules
- Information Gathering: COs are directed to use internal Government sources (files, audit activities, financing offices) and public sources (trade journals, credit services) before seeking OCI-related information from prospective contractors.
- Trigger for Formal Action: If a "significant" potential OCI is identified, the CO must initiate a formal approval process before issuing the solicitation.
- Submission Requirements: The CO must submit a written package to the chief of the contracting office (or a higher designee) containing:
- An analysis of the conflict and a recommended course of action (avoid, neutralize, or mitigate).
- A draft solicitation provision.
- A draft contract clause (if applicable).
- Approval Authority: The approving official must review the recommendation, weigh the benefits and detriments to the Government and contractors, and provide a decision (approve, modify, or reject) in writing.
- Resolution Before Award: The CO must resolve the OCI or potential conflict consistent with the approved plan before the contract is officially awarded.
- Continuity of Restrictions: If responsibility for an acquisition is transferred to a different contracting office, the original office is required to notify the successor of any OCI restrictions and provide a copy of the relevant contract.
Practical Implications
- Pre-Solicitation Delays: Because the OCI mitigation plan requires formal written approval from the chief of the contracting office before the solicitation is released, early identification is critical to prevent procurement timelines from slipping.
- Protest Risk: Failure to follow these specific procedural steps—especially the requirement for a written analysis and formal approval—is a common ground for bid protests; the administrative record must clearly show the CO's proactive evaluation of "significant" conflicts.