As federal contractors begin to become engaged in multiple programs for a particular agency, the potential for the firm to encounter a situation where it finds itself involved in an organizational conflict of interest (OCI) may increase. This is particularly true with respect to “impaired objectivity” OCI, which is when a firm’s ability to render impartial advice to the government is or might be undermined by the firm’s competing interests. These OCIs often arise in service contracts where the contractor is placed in a position of evaluating its own performance on other contracts.
In a recent case, GAO found that an agency’s award of a contract created an impermissible impaired objectivity OCI for a contractor from two different perspectives for services that the contractor provided in the capacity as both a prime and subcontractor for an agency. The case is Steel Point Solutions, LLC B-419709,B-419709.2 (July 07, 2021).
While most of our get-togethers these days involve mask wearing, social distancing, and even virtual happy hours, spending time with friends is a great way to keep spirits light. Unfortunately for one group of friends, their weekly hangouts led GAO to conclude in its recent decision, Teledyne Brown Engineering, Inc., B-418835 (Sept. 25, 2020), that NASA had to cancel a more than $650 million deal and start the procurement process all over.
Hiring former government officials can sometimes be tricky business for contractors. As we discussed in a previous post, this is particularly true if the former official, based on work at an agency, could give the contractor a leg up in a specific procurement.
But hiring a former government official isn’t always a problem. And as a recent GAO decision illustrates, as long as the former official doesn’t have competitively useful, non-public information, an agency shouldn’t exclude an offeror from competition merely because it employs a former government official.