XL EagleConflict of interest (Conflict of interest (personal and procurement integrity))
Conflict of interest stands for Conflict of interest (personal and procurement integrity). A conflict of interest exists when a person's financial interests, relationships, or past roles could affect, or look like they affect, their judgment on a government contract. Federal employees are bound by strict ethics rules, and certain contractor employees who help agencies with buying decisions must disclose and avoid personal conflicts.
Related rules include the Procurement Integrity Act, which bars disclosing or obtaining bid or source selection information, and limits on former federal officials going to work for contractors. Company-level conflicts are called organizational conflicts of interest (OCI).
Why it matters to a small contractor
Do not offer jobs, gifts, or favors to government staff involved in your bids, and do not ask them for inside information. If you hire a former federal employee, check whether post-employment limits apply to their role at your company.
Example
A small contractor wants to hire a retiring facility manager from the base it serves. Before making an offer, they ask the employee to get an ethics opinion about any restrictions on working on that base's contracts.
Conflict of interest: common questions
Can I give a gift to a contracting officer?
Generally no. Federal ethics rules sharply limit gifts to federal employees from people seeking their business. Do not offer meals, gifts, or favors.
What is the Procurement Integrity Act?
It is a law that bars disclosing or obtaining contractor bid or proposal information and source selection information before award, among other limits.
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