Federal Contracting Glossary
Organizational Conflict of Interest (OCI)
A situation where a contractor's other work or relationships could bias its judgment or give it an unfair competitive advantage, regulated under FAR Subpart 9.5.
Definition
An Organizational Conflict of Interest (OCI) arises when, because of other activities or relationships, a contractor cannot give the government impartial advice, its objectivity is impaired, or it gains an unfair competitive advantage. FAR Subpart 9.5 requires contracting officers to identify, evaluate, and resolve OCIs as early as practicable.
Practitioners group OCIs into three types: unequal access to information (a contractor obtained nonpublic information that gives it an edge), biased ground rules (a contractor helped write the specifications it now wants to bid on), and impaired objectivity (a contractor would be evaluating its own or a competitor's work). OCI is a frequent and successful basis for bid protests.
How this affects your proposal
Screen every pursuit for OCI early — especially if you have done advisory or requirements-definition work for the same program. Where one exists, propose a concrete, credible mitigation plan.
Common questions about organizational conflict of interest (oci)
What are the three types of OCI?
Unequal access to information (you hold nonpublic data that advantages you), biased ground rules (you helped set the requirements you now bid), and impaired objectivity (your work would require you to assess your own or a competitor's performance).
Can an OCI disqualify my proposal?
Yes. If the contracting officer finds a significant OCI that cannot be avoided or mitigated, your firm can be excluded. Unmitigated OCIs are also a common, successful basis for a competitor's protest.
Related terms
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