Understanding Organizational Conflicts of Interest

Unequal access to information: Contractor has access to non-public information (like competitor proprietary data or source selection information) that could provide unfair competitive advantage. Mitigation typically involves information barriers ("firewalls") to prevent the advantaged information from reaching personnel working on the affected contract.
Biased ground rules: Contractor helped develop the specifications, statement of work, or evaluation criteria for a competition in which it now seeks to participate. The concern is that requirements might be written to favor the contractor's solution. Mitigation may involve exclusion from downstream competition or demonstration that general requirements weren't tailored to specific solutions.
Impaired objectivity: Contractor is asked to evaluate or make recommendations regarding its own products, services, or those of a competitor. The contractor's financial interest could compromise the objectivity of its assessments. Mitigation is often difficult; exclusion from providing the evaluated products/services may be required.

Common OCI Scenarios

Advisory and assistance contracts: Contractors providing advice to agencies often face impaired objectivity concerns when their recommendations could affect their own business interests or their competitors' market positions
Systems engineering and technical assistance (SETA): SETA contractors frequently help develop requirements or evaluate proposals, potentially creating biased ground rules concerns for future competitions
Acquisition support services: Contractors supporting source selections may gain unequal access to competitor information or help develop evaluation criteria that favor specific approaches
Program management support: Supporting program offices often provides insight into future requirements and competitor performance, raising unequal access concerns
IT modernization planning: Contractors developing IT strategies may recommend solutions that favor their implementation capabilities or hardware/software partnerships
Technical evaluation support: Evaluating contractor proposals or products creates both unequal access and impaired objectivity risks

1
Review the solicitation for OCI clauses
Many solicitations include specific OCI restrictions or require OCI disclosures. Read these carefully to understand agency-specific concerns and any categorical exclusions.
2
Map relationships to the procuring agency
Document all current and recent contracts with the agency, advisory relationships, access to non-public information, and involvement in requirement development.
3
Analyze upstream and downstream connections
Consider whether your current work might create biased ground rules for this opportunity, or whether this opportunity could create impaired objectivity for future work.
4
Evaluate competitor relationships
If you provide evaluation services, SETA support, or advisory services, assess whether you'll be evaluating competitors' work or have access to their proprietary information.
5
Consider affiliate and teaming partner relationships
OCI can arise from parent company, subsidiary, or teaming partner activities—not just your own direct work.
6
Document your analysis
Maintain records of your OCI evaluation regardless of the conclusion. This documentation supports your position if questions arise later.

Information barriers (firewalls): Physical and electronic separation preventing personnel with access to conflicting information from working on affected contracts. Effective for unequal access OCI when properly implemented and monitored.
Personnel exclusion: Removing specific individuals from conflicting work based on their access to information or involvement in requirement development. Less disruptive than corporate-level exclusion.
Organizational separation: Establishing separate organizational units with independent management, systems, and physical locations to isolate conflicting activities. Most appropriate for substantial, ongoing conflicts.
Recusal from specific activities: Contractor agrees not to participate in particular aspects of work that create the conflict while performing non-conflicting portions. Common for advisory contracts with limited competitive implications.
Third-party oversight: Independent review of contractor recommendations or evaluations to validate objectivity. Addresses impaired objectivity concerns when direct exclusion isn't practical.
Divestiture or contract termination: Eliminating the conflicting relationship entirely by selling affected business units or terminating conflicting contracts. Last resort when conflicts cannot otherwise be resolved.

Specific conflict identification: Name the specific relationships, contracts, or activities that could create OCI concerns rather than making general statements
Conflict categorization: Explain which type(s) of OCI apply and why the identified situations create those concerns
Proposed mitigation measures: Describe concrete steps you'll take to mitigate identified conflicts, with enough detail to evaluate feasibility
Implementation approach: Explain how mitigation measures will be implemented, including timelines, responsible parties, and required resources
Monitoring and enforcement: Describe how you'll ensure ongoing compliance with mitigation commitments and what happens if violations occur
Commitment to disclosure: Affirm your commitment to report any new conflicts that arise during performance

Monitor business development: Evaluate new opportunities and contracts for OCI implications with existing work
Track personnel assignments: Ensure personnel with conflicting access or involvement don't inadvertently work on affected contracts
Verify firewall effectiveness: Periodically test information barriers to confirm they're actually preventing prohibited access
Document mitigation compliance: Maintain records demonstrating ongoing adherence to mitigation commitments
Report new conflicts promptly: When new conflicts arise, disclose them to the contracting officer without delay
Train relevant personnel: Ensure staff understand OCI obligations and their role in maintaining compliance