Conflict of Interest Rules

Washington, D.C. Metro Area Law Firm Interprets Conflict of Interest Rules

Intellectual Property Attorneys Represent Clients in Conflict of Interest Matters

Learn More About Government Contracts and Awards

The new Personal Conflicts of Interest (PCI) rules in the Federal Acquisition Regulation (FAR) took effect in December 2011, and apply to a government contractor’s covered employees who perform acquisition functions that are closely related with governmental functions.

Government contractors are required to take steps to identify and prevent personal conflicts of interests for these covered employees, and the failure to meet these requirements can result in suspension and ineligibility. The rules apply to employees who perform certain activities, including:

  • Planning acquisitions
  • Determining what services or supplies are to be acquired by the government
  • Developing or approving any contractual documents
  • Reviewing contract proposals
  • Awarding, administering, and terminating government contracts
  • Determining whether contract costs are reasonable

To meet these PCI requirements, government contractors should:

  • Review current internal policies on personal conflicts of interest for compliance with the FAR.
  • Establish reasonable reporting thresholds and forms that specifically address PCI requirements. Contractors may wish to consider modeling new disclosure forms after the governments OGE Form 450, which is used by Executive Branch employees to report their financial interests.
  • Offer specialized training covering the PCI requirements to all employees, from senior managers to the lowest level employees.
  • Prohibit covered employees from seeking non-public information (data-mining). The FAR expressly requires that contractors prohibit covered employees from using non-public information accessed through a government contract for personal gain.
  • Review standard subcontract agreements, inserting the FAR clause for Preventing Personal Conflicts of Interest. The clause contains a mandatory flow down provision that government contractors must be aware of.
  • Immediately disclose any PCI violation to the contracting officer as soon as identified. Contractors also need to have procedures in place to immediately investigate allegations of violations of PCI regulations.

Contact a Washington, D.C. Federal Conflict of Interest Rules Law Firm Today

If you need legal guidance regarding the Personal Conflicts of Interest rules, contact the Whay Law Firm online or call (202) 448-9677 to schedule your initial consultation today.

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