Preventing Organizational Conflicts of Interest in Federal Acquisition Act

Dec 27, 2022

Summary

Requires new rules for government contracts to clearly define and prevent situations where a company's other business could create an unfair advantage.

What problem does this solve?

The rules for government contracts were not clear enough about what counts as a conflict of interest, which could lead to unfairness. This law directs the government to create clearer definitions, examples, and rules so agencies can spot and stop these conflicts.

What does this law do?

Updates federal acquisition rules

Requires the Federal Acquisition Regulatory Council to revise the Federal Acquisition Regulation to better define and handle organizational conflicts of interest.

Defines specific types of conflicts

Adds clear definitions for conflicts like unequal access to information, impaired objectivity, and biased ground rules, along with helpful examples.

Provides new contract clauses

Directs the creation of standard contract language that agencies can use to require companies to share information about potential conflicts and limit future work that could cause a conflict.

Allows agencies to customize rules

Permits government agencies to change the standard contract language to better fit their unique needs and address specific risks.

Requires agencies to create procedures

Mandates that each government agency establish and periodically update its own internal procedures to carry out the new conflict of interest regulations.

Who does this affect?

Federal government contractors
Federal agencies

What is the real world impact?

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Promotes fairness in government contracting

Ensures that all companies have a fair chance to win government contracts by preventing some from having an unfair advantage due to inside information or biased rules.

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Protects taxpayer money

Aims to prevent waste and get better value for the government by making sure contracts are awarded based on merit, not on a company's special connections or influence.

When does this start?

The main rules must be updated within 18 months of the law's passage on December 27, 2022.

Deadline for new regulations

The Federal Acquisition Regulatory Council must revise the Federal Acquisition Regulation within 18 months of the law's enactment date (December 27, 2022).