Organizational Conflict of Interest (OCI)

An Organizational Conflict of Interest (OCI) exists when a contractor's work on one contract creates an unfair competitive advantage or impairs its objectivity on another contract. OCIs are categorized into three types: unequal access to information, biased ground rules, and impaired objectivity.

Unequal access occurs when a contractor gains proprietary or source selection information through one contract that could benefit it on another. Biased ground rules arise when a contractor helps develop the requirements or evaluation criteria for a procurement in which it will compete. Impaired objectivity occurs when a contractor must evaluate its own products or services.

Contractors must disclose potential OCIs in their proposals and develop mitigation plans. Common mitigation measures include firewalls between business units, recusal of conflicted personnel, and third-party audits. Failure to disclose an OCI can result in proposal rejection, contract termination, or debarment.