On September 19, the Government Accountability Office (GAO) issued a report highlighting a gap in current Organizational Conflicts of Interest (OCIs) restrictions. According to the report, the Federal Acquisition Regulation (FAR) does not adequately address how contracting officers should consider bids from contractors who engage in contracting activities with the government of China and other countries of concern.Continue Reading New Organizational Conflict of Interest Regulations Coming Soon
OCI
Bid Protest Minute: Proving an Organizational Conflict of Interest Exists
On December 20, 2023, the Government Accountability Office (GAO) denied an unsuccessful bidder’s protest, arguing, among other things, that the procurement was tainted by an appearance of impropriety after the agency appointed a senior executive from a competing firm, formerly responsible for their proposed technical approach, to be the agency’s new director. According to the protester, the taint arising from the agency’s action could only be cured by disqualifying the competitor and making an award to the protester.Continue Reading Bid Protest Minute: Proving an Organizational Conflict of Interest Exists
New Legislation Strengthens Disclosure Requirements for Potential Organizational Conflicts of Interest
On December 27, President Biden signed the Preventing Organizational Conflicts of Interest in Federal Acquisition Act into law. The legislation, ushered through Congress by a bipartisan group of backers, strengthens existing regulations around federal contractor conflict of interest mitigation and provides new requirements for agencies to follow to sniff out potential conflicts of interest. Continue Reading New Legislation Strengthens Disclosure Requirements for Potential Organizational Conflicts of Interest
Not Quite Good Enough: COFC Finds Agencies OCI Investigations Fall Short
Organizational conflicts of interest (OCI) are troubling for both the government and contractors. Under FAR 2.101, an OCI is a situation where “a person is unable or potentially unable to render impartial assistance or advice to the Government, or the person’s objectivity in performing the contract work is or might be otherwise impaired, or a person has an unfair competitive advantage.” In an OCI investigation, a contracting officer (CO) should assess OCI risk during the pre-award and post-award procurement processes.
Recent Court of Federal Claims (COFC) Cases
On August 2, 2021, Judge Solomson issued his decision in Oak Grove Technologies, LLC v. United States. The unsuccessful offeror, Oak Grove Technologies (OGT), filed a bid protest challenging the United States’ award to the successful offeror, F3EA. In the complaint, OGT questioned the agency’s award decision and raised numerous challenges regarding the evaluation process. OGT also provided evidence that F3EA had allegedly improperly benefited from unequal access to information and biased ground rules. Essentially, OGT argued that an OCI tarnished the award. During a hearing, the court questioned the integrity of the procurement and recognized that OGT was not treated with the fairness required under the Federal Acquisition Regulation (FAR). The court ultimately granted OGT’s motion and the agency was prevented from proceeding with the award to F3EA.Continue Reading Not Quite Good Enough: COFC Finds Agencies OCI Investigations Fall Short
Beware of Your Subcontractor’s Organizational Conflicts of Interest
A recent Government Accountability Office (GAO) decision, International Business Machines Corporation, B-410639, et al., Jan. 15, 2015, highlights the need for contractors to ensure that both they and their subcontractors are free of or can sufficiently mitigate any organizational conflicts of interest (OCIs).
On January 15, 2015, the GAO denied IBM’s bid protest over an award of an indefinite-delivery/indefinite quantity contract to upgrade a Department of Defense payroll system. IBM protested its elimination from the competition because key personnel from its proposed subcontractor, Booz Allen Hamilton, were involved in developing the statement of work, solicitation and other key acquisition documents and strategies, resulting in a “biased ground rules” OCI.Continue Reading Beware of Your Subcontractor’s Organizational Conflicts of Interest