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Regulations, laws and compliance

OCI (Organizational Conflict of Interest)

OCI stands for Organizational Conflict of Interest. An organizational conflict of interest happens when a company's other activities or relationships could make it unable to give the government impartial advice, impair its objectivity, or give it an unfair competitive advantage.

There are three common types. 'Biased ground rules' is when a firm helped write the requirements it now bids on. 'Unequal access to information' is when it has nonpublic information that helps it compete. 'Impaired objectivity' is when it would be judging its own work or a related company's work. Agencies can avoid, neutralize, or mitigate OCIs, or exclude the firm.

Why it matters to a small contractor

If you help an agency write a statement of work, inspect another contractor's work, or prepare cost estimates, you may be barred from bidding on the follow-on job. Before taking an advisory task, think about which future work it could block.

Example

A small engineering firm is hired to write the specifications for a base's HVAC replacement. When the construction contract comes out, the firm is told it cannot bid because it wrote the requirements.

OCI: common questions

What is the difference between OCI and a personal conflict of interest?

OCI is about the company's other work and relationships. A personal conflict is about an individual employee's financial or personal interests.

Can an OCI be mitigated?

Often yes, through firewalls, limiting access to information, or divesting the conflicting work. The contracting officer decides whether the plan is enough.

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