GAO: Multiple Contracts With Single Agency May Increase Conflict Risk

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).

Continue reading

Ring Ring! GAO Sustains Protest of Awardee’s Conflict of Interest

Agencies have broad discretion when it comes to evaluating potential organizational conflicts of interest–but that discretion isn’t unlimited. In a recent decision involving a fight between two telecommunications giants, the GAO sustained the protest, holding that the the agency unreasonably concluded that there was no possibility of an “impaired objectivity” OCI arising from the award.

Continue reading