New OCI Rule Contains Big Changes

The proposed OCI rule implementing the Preventing Organizational Conflicts of Interest in Federal Acquisition Act has just dropped. We started discussing the Act back in early 2023 after it was passed in late 2022, and I outlined my predictions at the Court of Federal Claims judicial conference. This 108-page rule will propose some major changes for organizational conflicts of interest.

Here is a summary of some of the big changes proposed in this new rule. For those concerned about potential organizational conflicts of interest, the examples included in this proposed rule are greater in number than before, and very specific about the situations that may give rise to conflicts. This could empower agencies to look at OCIs more closely than they have in the past. Stay tuned for more updates on SmallGovCon.

Continue reading

Predictions: Upcoming Rules on Conflicts of Interest

Back in 2023, we wrote about Congress’s late-2022 mandate to update and clarify various rules surrounding organizational conflicts of interest (or OCIs). At that time, Congress, in a short piece of legislation, asked that OCI rules be updated to address a number of areas. In this post, I’ll provide some predictions about how the OCI rules will be updated, as we wait for the new proposed rule to come out. In addition, I’m discussing this topic at the Judicial Conference for the U.S. Court of Federal Claims. Once the proposed rule is released, SmallGovCon will also do a run-through of those changes.

Continue reading

GAO Upholds Low Agency Bar to Waive OCI

The FAR requires offerors, in most situations, to disclose any actual or potential organizational conflicts of interest (OCI) that exist when submitting an offer or proposal in response to a solicitation. While it is rare that an offeror will be excluded from competition solely due to the existence or potential of an OCI, offerors who do not disclose as required will most likely be excluded, making this a situation where you generally want to disclose the existence of an OCI up front, not explain after the agency’s discovery through other means. Offerors may choose to avoid, mitigate, or neutralize an OCI by putting up a organizational barrier between the individual creating the OCI and the perceived or actual conflict. However, in some situations, avoiding, mitigating, or neutralizing the OCI may not be in the agency’s best interest. In that case, and as happened in Accenture Federal Services, LLC, agencies are given the option to waive the requirements of FAR subpart 9.5, thereby making award regardless of the existence or potential of an OCI.

Continue reading

New OCI Law Focuses on Private Sector Contracts, More Examples, More Procedures

Late 2022, the president signed a law that would increase what contractors have to reveal about potential organizational conflicts of interest. The law is called the Preventing Organizational Conflicts of Interest in Federal Acquisition Act. Below, we highlight some of the main things contractors should look out for based on this new law.

Continue reading

Playing Games? GAO Requires NASA to Scratch $650 Million Contract Due to Foosball Snafu

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.

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

GAO Rejects Innuendo-Based OCI Disqualification

Thinking about hiring an employee of the incumbent contractor for your next bid? If so, make sure to protect yourself from disqualification based on an organizational conflict of interest.

In a recent bid protest by Archimedes’ Global, Inc., the GAO reversed the Government’s decision to exclude Archimedes from consideration for a bid when an alleged OCI was based on mere innuendo and supposition instead of hard facts supported by the record.

Continue reading