Category Archives: Organizational Conflicts of Interest (OCI)

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What You Need to Know About Mergers and Acquisitions Involving Government Contractors and Their Suppliers

Volume VI —Organizational Conflicts of Interest:  When the Whole Is Less Than the Sum of Its Parts An organizational conflict of interest (“OCI”) arises when the performance of one contract undermines a contractor’s objectivity or creates an unfair competitive advantage with respect to another contract.  An agency cannot issue an award to a contractor that … Continue Reading

Organizational Conflicts of Interest – How We Can Help

By John Chierichella As many of you know, we frequently write on the topic of organizational conflicts of interests ("OCIs"). Several years ago, one of our partners, Keith Szeliga, published what remains the most comprehensive and insightful article available on this topic. The article, entitled Conflict and Intrigue in Government Contracts: A Contractor’s Guide to … Continue Reading

Proposed FAR Rule: A New Regulatory Framework For Organizational Conflicts Of Interest And Unequal Access To Nonpublic Information

By Keith Szeliga and Anne Perry On April 26, 2011, the Department of Defense (“DoD”), General Services Administration (“GSA”), and National Aeronautics and Space administration (“NASA”) published a proposed rule to amend the Federal Acquisition Regulation (“FAR”) coverage of organizational conflicts of interest (“OCIs”). See 76 Fed. Reg. 23236 (Apr. 26, 2011). In addition to transferring the … Continue Reading

A Retreat From Hard Line OCI Decisions? The COFC Overturns A Controversial GAO Ruling

By Anne B. Perry and Jessica M. Madon   On July 16, 2010, the Court of Federal Claims (“COFC”) determined that a Government Accountability Office (“GAO”) bid protest recommendation that an awardee, Turner Construction Co. (“Turner”), be disqualified on the basis of organizational conflicts of interest (“OCI”) under an Army Corps of Engineers (the “Army”) hospital … Continue Reading

The Dangers Of Courtship: Organizational Conflicts Of Interest Arising From Contemplated Corporate Transactions

By Keith R. Szeliga As the economy begins to recover, the number of corporate transactions between Government contractors no doubt will increase. If your company is positioned as a potential acquirer or a potential target, you should be aware of a recent Government Accountability Office (“GAO”) decision holding that entering into negotiations for a corporate transaction can … Continue Reading

DoD Issues Proposed Rule Providing Guidance On Organizational Conflicts Of Interest

By John S. Tobey On April 22, 2010 the Defense Acquisition Regulation Council proposed to amend the Defense Acquisition Regulation Supplement (“DFARS”) to provide uniform guidance and tighten existing requirements for organizational conflicts of interest (“OCIs”) by contractors in major defense acquisition programs.  See 75 Fed. Reg. 20,954 (April 22, 2010). The proposed rule implements section 207 … Continue Reading

Identifying Viable Post-Award Bid Protest Allegations At The GAO

The Government Accountability Office (“GAO”) denies more than three quarters of all bid protests decided on the merits. Certain categories of protests, however, tend to be more successful than others.  Three of our Government Contracts lawyers – Keith Szeliga, Marko Kipa, and Daniel Marcinak – recently published an article that assists protestors in identifying such allegations. Among … Continue Reading

Appearance of an OCI Standing Alone Is Insufficient to Disqualify Offeror

In AT&T Government Solutions, Inc., B-400216, Aug. 28, 2008, the GAO sustained a protest on the grounds that the Navy improperly excluded the protestor from the competitive range based upon an appearance of an organizational conflict of interest (OCI).  This case is significant because, among other things, it appears to be the first time the … Continue Reading

Administration of Organizational Conflict of Interest Mitigation Plans — Are Special Masters on the Horizon?

The Court of Federal Claims’ most recent decision in Axiom Resource Management v. United States, 2008 WL 541675 (Feb. 26, 2008) ("Axiom II"), suggests that extended judicial oversight of contract administration functions may be a viable bid protest remedy, particularly in the context of organizational conflicts of interest (OCIs).  The case also highlights the importance … Continue Reading

OCI Rules to Remember

Do understand the OCI rules and the different categories of OCIs. Do be particularly attuned to "impaired objectivity" OCIs. Do think broadly – OCIs are created at a company-wide level, not simply a division or sector level. Do consider the long-range business plan for a particular procurement; be aware that winning a small, preliminary award … Continue Reading

Axiom Resource Management v. United States: Judicial Scrutiny of Organizational Conflicts of Interest Intensifies

The Court of Federal Claims’ recent decision in Axiom Resource Management v. United States, 2007 WL 2840414 (Sept. 28, 2007), illustrates the trend toward more robust judicial review of organizational conflict of interest (OCI) allegations. The case also highlights several issues contractors should consider in drafting successful OCI mitigation plans.… Continue Reading

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