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  • Question

    Is their any conflict of interest in contractor xxx providing direction and managing yyyy and providing input to company yyyy's CPAR rating?


    Answer

      FAR 2.101 defines “organizational conflict of interest” as meaning “that because of other activities or relationships with other persons, a person is unable or potentially unable to render impartial assistance or advice to the Government or the person’s objectivity in performing the contract work might be otherwise impaired, or a person has an unfair competitive advantage.”  FAR 9.502(c) adds the information that “[a]n organizational conflict of interest may result when factors create an actual or potential conflict of interest on an instant contract, or when the nature of the work to be performed on the instant contract creates an actual or potential conflict of interest on a future acquisition. In the latter case, some restrictions on future activities of the contractor may be required.”
     
    Ultimately the answer to your question is dependent on the circumstances.  A key question for you to look at is whether xxx is or could be a competitor to yyyy on future acquisitions.  If so, that increases the potential that xxx would be unable to render impartial assessment of yyyy’s performance. 
     
    One thing that is a bit unclear in your question is the relationship between XXX and YYYY.  If XXX is managing YYYY (the term you’ve used), that makes it sound like YYYY is a subcontractor.  Subcontractor information is not collected in CPARS.  However, if you’ve used that term colloquially, and YYYY is not technically a subcontractor, we encourage you to review the rules in FAR subpart 3.11 on contractor personal conflicts of interest.  Your situation may fall under the category of “acquisition function closely associated with inherently governmental functions,” which includes “supporting or providing advice or recommendations with regard to the following activities of a Federal agency: . . . (6) administering contracts (including ordering changes or giving technical direction in contract performance or contract quantities, evaluating contractor performance, and accepting or rejecting contractor products or services).”  See FAR 3.1101. 

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