Organizational Conflicts of Interest in Government Contracting: Preparing for the Upcoming Proposed Rules

Description

In federal contracting, OCIs that are not identified and mitigated can have serious consequences. If an OCI is determined to be present, it may prevent a contractor from obtaining a contract award or even result in the termination of a current contract.

The OCI provisions in federal acquisition have been in place for decades. FAR Subpart 9.5 provides the rules that govern OCIs, and case law has classified these OCIs into three categories. The rules are widely viewed as insufficient to cover many OCI scenarios.

Effective January 2023, the Preventing Organizational Conflicts of Interest in Federal Acquisition Act (the Act) mandates updates to the FAR provisions that address OCIs. The Act is intended to ensure that federal agencies can award contracts to organizations free of conflicts so that the work can be performed to protect the interest of, and maximize benefits to, the federal government.

Because of their importance, many federal contractors may already have robust controls to identify, avoid, and report OCIs. Nevertheless, all federal contractors should understand the risks and opportunities presented by the new law and upcoming new regulations. Contractors are likely to need to put in place policies and procedures focusing on the updated OCI provisions.

Listen as our panel of experts discusses current OCI rules, implications of the anticipated changes to the rules directed by the Act, and how counsel can help organizations that contract with the government prepare for the changes.