OCIs

Organizational conflicts of interest (OCIs) occur when an organization involved in a procurement or decision-making process has relationships or information that could bias its judgments or give it an unfair advantage. OCIs can undermine the integrity of the procurement, affect competition, or compromise the potential for obtaining the best value.

OCIs arise from three broad conditions: biased ground rules created by the contractor’s involvement, unequal access to non-public information, and conflicting roles stemming from the contractor’s various activities or affiliations. They can be present, anticipated, or arising from the contracting process, and they may involve contractors, subcontractors, or their affiliates. The objective is to prevent a party from shaping requirements, evaluating proposals, or wielding insider information in a way that benefits itself or its associates.

Common examples include a contractor designing a system and also evaluating proposals for the same system, or a firm with access to sensitive government information that could influence procurement decisions. OCIs can also arise when a company has ownership interests or other business relationships with potential bidders, users, or competitors that could create incentives to favor certain outcomes.

Mitigating OCIs involves disclosure and, when necessary, removal from the procurement process or other safeguards. Measures may include information barriers or firewalls, recusal of personnel, separate teams or contractors for different roles, independent evaluation, or modifying the procurement to reduce or eliminate the conflict. In many jurisdictions, OCIs are addressed through policy frameworks such as the Federal Acquisition Regulation (FAR) in the United States and equivalent national or agency policies, aimed at preserving fairness, objectivity, and competition.