You might be wondering, “What’s so important about Organizational Conflicts of Interest (“OCIs”)?” The answer is fairly simple: understanding both what causes OCIs and how to mitigate them are critical because unmitigated OCIs can preclude a contractor from (1) competing for future contract work, (2) performing certain tasks under existing contracts, (3) transferring personnel between company organizations, (4) hiring personnel, (5) teaming with certain vendors, and/or (6) entering into certain corporate transactions. Moreover, undisclosed or unmitigated OCIs can create risk of liability under the False Claims Act. In this Part 1 of a three part series, we offer a summary of what creates OCIs and general mitigation strategies. In Part 2, we will detail how OCIs arise in protests, and in Part 3, we will address the risks of False Claims Act liability arising from undisclosed OCIs.

What is an Organization Conflict of Interest?

An OCI arises when, because of other activities or business relationships, a company, its employees, consultants, or subcontractors:

1. Is unable or potentially unable to render impartial assistance or advice to the Government;
2. Potentially lacks necessary objectivity in performing the contract work; or
3. Possesses an unfair competitive advantage.

These break down into three general categories of OCIs: (1) Unequal Access to Information, (2) Impaired Objectivity, and (3) Biased Ground Rules. Each category raises different concerns and requires different...

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