FlashKeepers

Federal Contracting · FAR

Federal Contracting Compliance and Ethics

Organizational conflicts of interest, gratuities rules, and procurement integrity concepts in federal contracting.

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What is an organizational conflict of interest (OCI) in federal contracting?
A situation where a contractor's financial interest or other relationship creates a conflict with its ability to render impartial or objective judgment on behalf of the government.
Name the three general categories of organizational conflicts of interest.
Conflicting roles, biased ground rules, and impaired objectivity.
What is a conflicting roles OCI?
When a contractor serving in one role obtains an unfair competitive advantage or impaired objectivity in another role, such as advising the government on a procurement and then bidding on that same procurement.
What is a biased ground rules OCI?
When a contractor structures technical or evaluation criteria in prior work for the government to favor its own products or services in a subsequent procurement.
What is an impaired objectivity OCI?
When a contractor's corporate structure or tie to other work creates a situation where it cannot render impartial advice or cannot work objectively on bifurcated contract components.
What is the primary method for addressing OCI in federal contracting?
Disclosure of the conflict to the contracting officer and agreement on a mitigation plan, which may include organizational separation, timeline limitations, or exclusion from certain work.
When must a contractor disclose organizational conflicts of interest?
As soon as it becomes aware of a potential or actual OCI, typically in writing to the contracting officer.
What is organizational separation or a firewall as an OCI mitigation?
Segregating employees working on government advisory work from those bidding or performing on the related procurement, using physical separation, access controls, and information barriers.
What is a prohibited gratuity under FAR Part 3.2?
A gift, favor, entertainment, or other item of value given to a government employee or their family by a contractor with intent to obtain a contract or favorable contract treatment.
Are promotional items ever permitted under federal gratuities rules?
Yes, items of small intrinsic value (typically under $20) given to a government employee for promotional purposes may be permitted if there is no expectation of business benefit.
What is the primary consequence for providing prohibited gratuities?
Suspension or debarment from federal contracting, along with potential criminal penalties under 41 U.S.C. Section 8702.
Can contractor employees solicit gifts or entertainment from government employees?
No, contractor employees are prohibited from soliciting gifts, gratuities, or entertainment from government employees in connection with federal contracts.
What is procurement integrity in federal contracting?
A principle requiring ethical conduct in federal procurements, including honest dealing, avoidance of conflicts of interest, and prohibition on using nonpublic government procurement information for competitive advantage.
Who is covered by federal procurement integrity restrictions?
Contractor employees, consultants, former government employees, and other individuals with access to nonpublic procurement information for a particular government procurement.
What is a covered procurement action under procurement integrity rules?
A significant federal procurement involving the government's evaluation of offers, award decision, or negotiation, typically for contracts valued above a threshold amount (e.g., $10 million).

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