Definition
In FAR Subpart 3.11 – Preventing Personal Conflicts of Interest for Contractor Employees Performing Acquisition Functions, the term “Personal Conflict of Interest” (PCI) is defined. PCI represent illegal activity covered by the FAR. It can be traced in the actions of a covered employee whose ability to act impartially is jeopardized (Chess Consulting, 2018). In addition, it may hinder the capacity to act in the best interest of the government while executing under the contract. An person who performs an acquisition duty that is closely related with tasks that are inherent to the government is referred to as a “covered employee” (Chess Consulting, 2018). They work either for the contractor directly or as a subcontractor for the contractor. The latter is a person who works for themselves but is considered to be a covered employee of the contractor. This is due to the fact that there is no employer to whom a person in this situation might provide the mandatory disclosures.
The Sources of Personal Conflicts of Interest
PCI happens when an employee fails to report a personal conflict of interest despite having the responsibility to do so. An employee who uses confidential information obtained during the course of their employment for the purpose of obtaining personal advantage. A violation of the provisions of a non-disclosure agreement caused by an employee’s failure to comply with the terms. Second example of PCI is representing a member of one’s own family in legal proceedings. The third example is getting into business for oneself in direct opposition to the current employment. The fourth example is recommending to a customer that they put their money in a business that an individual or his or her friend may own. Finally, employing a cousin or acquaintance who is not eligible by company or government standards.
Contractor Personnel
Contractors are exempt from government ethics regulations. Army Materiel Command attorney Larry Wilde, who handles ethical issues, said contractors provide vital support and services and often cooperate with government workers (Hawkins, 2017). However, they are not working for the government. Government management and employees must realize that a deal sets the business arrangement and task boundaries. Contractors are not bound by codes of conduct applied to a governmental employee (Hawkins, 2017).
The Currently Effective Rule
Everyone who is going to be participating in the source selection is informed on the relevant sections of 41 U.S.C. 2102, which is the section that deals with the prohibitions on disclosing and obtaining procurement information. The provision of FAR 3.104, which addresses the issue of the unlawful publication of information about contractor bids and proposals as well as source selection information. Standards of Ethical Conduct for Employees of the Executive Branch are outlined in Part 2635 of Title 5 of the Code of Federal Regulations. These regulations include appropriate standards of conduct, such as measures to avoid the improper disclosure of information. It is important to ensure that everyone who has access to the source selection information signs a Non-disclosure Agreement and a Conflict-of-Interest declaration. This will guarantee that all applicable laws and regulations are being followed. Conflict of Interest Statements must be filed before any access to classified material is granted. All parties conduct an in-depth investigation into all possible conflicts of interest have been resolved.
Subcontractors
This regulation applies to subcontractors since the information that is released is only exchanged between the two parties involved and cannot include a third party in any way. Contractors providing services related to government procurement must follow policies and processes designed to detect and avoid any conflicts of interest (PCI). Compliance with the regulations set out in FAR Part 3.11 (and 52.203-16 – Preventing Personal Conflicts of Interest), which went into effect in December 2011, necessitates this step (Chess Consulting, 2018). When subcontractor employees are in charge of procurement duties, these regulations could also extend to them in a similar fashion as to the prime contractor due to a flow down clause for subcontracts above $150,000. (Chess Consulting, 2018).
The Function of the Contracting Officer
Contracting officer is the person who reviews the cases of PCI. Employee that discovers PCI reports to them if the situation occurs. The report submitted to the officer contains a summary of PCI and proposed solution.
Recent Infractions Committed by Contractors
Mary Ng, Canada’s Minister of International Trade, may have broken the law with a recent personal conflict of interest, which might be considered a breach. The Conflict of Interest Act was violated by Trade and Small Business Minister Mary Ng, according to a ruling made by the federal Ethics Commissioner. The ruling was made in regard to two media training contracts that were granted to a close personal acquaintance (Raycraft, 2022). The decision was handed down by Ethics Commissioner Mario Dion on Tuesday in the form of a comprehensive report, accompanied by a sharply worded comment on the minister’s behavior (Raycraft, 2022).
This is a public relations organization that was co-founded by Amanda Alvaro (Raycraft, 2022). According to the findings of the research, Ms. Alvaro and Ms. Ng are good friends who have spent time together on vacations and shared in the joy of important events like birthdays and holidays (Raycraft, 2022). According to the commissioner’s report, Ms. Ng was involved in the decision-making process for a contract for $5,840 in March of 2019, and she was directly involved in the decision-making process for a contract worth $16,950 in April of 2020 (Raycraft, 2022). As a result, she has breached the rule against having a personal conflict of interest by giving the contract to a close friend.
Decision B-253714 of the GAO
In the matter of GAO Decision B-253714, RAMCOR Services, which was issued on October 7, 1993, a company filed a protest against an award of a contract for training and support services from the Department of the Treasury. There were three arguments that were put up, the first of which was that the awardee ought to have been disqualified from the competition because it had an unfair advantage over the other candidates. The second issue is that an employee of the Treasury inappropriately revealed confidential information to the recipient of the prize. The third reason is that the award could not be given because a possible conflict of interest existed between the Treasury employee and the award. The GAO came to the conclusion that the contract was granted correctly by Treasury. There was no evidence to support the claim that there was a conflict of interest. Because of the employee’s activities, the recipient of the award did not get an edge over its competitors. As a direct result of this, the objection was not upheld as part of the ultimate verdict.
Reference
Chess Consulting LLC. (2018). Organizational and personal conflicts of interest. Web.
Hawkins, K. (2017). Government contract defines working relationship with contractors. DVIDS. Web.
Raycraft, R. (2022). Trade minister apologizes for breaking conflict of interest rules. CBCnews. Web.