What Does FAR Subpart 9.5 Mean for Federal Contractors?

According to FAR Subpart 9.5, the agency must identify and evaluate potential organizational conflicts of interest as early as possible and avoid, neutralize, or mitigate significant potential conflicts before award. The subpart applies to profit and nonprofit organizations, including nonprofit organizations created largely or wholly with Government funds, and it is not limited to one acquisition type. FAR says conflicts are more likely in management support services, consultant or other professional services, technical evaluations, and systems engineering or technical direction work performed by a contractor that does not have overall contractual responsibility for development or production. The subpart also states that a conflict may exist on the current contract or on a future acquisition, and that restrictions on future activities may be required. If a conflict cannot be avoided or mitigated, the contracting officer may not award the contract to the apparent successful offeror; before withholding award, the contractor must be notified, given the reasons, and allowed a reasonable opportunity to respond. Waivers are allowed only by the agency head or a designee, on a written request that states the extent of the conflict.