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How does an organizational conflict of interest (OCI) affect teaming agreements?

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My company is looking to team with a larger prime for an upcoming federal IT services contract, NAICS 541519. We saw a presolicitation notice for it. We are concerned about potential organizational conflict of interest (OCI) issues because our firm performed some of the initial architecture design work for the agency on a prior contract. The prime we want to team with also has a long history with the agency. We are currently negotiating a teaming agreement. Does our prior work create an OCI that prevents us from teaming with this prime, or from bidding on the contract at all? What steps can we take to mitigate this potential OCI issue?

asked Priya S. Verified vendorCapture manager, IT services · Herndon, VA · 563 rep

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Your prior work on the architecture design could create an organizational conflict of interest, but it does not necessarily prevent you from teaming or bidding if you can mitigate the OCI. An OCI arises when a contractor's activities create an unfair competitive advantage or impaired objectivity, as outlined in FAR Subpart 9.5. Your firm's involvement in the initial design work could be seen as giving you an unfair advantage over other bidders who did not have that insight. The prime's long history with the agency is less likely to be an OCI unless that history involved similar design or evaluation work on this specific project.

To mitigate this, you need to identify the specific nature of the OCI. If it's an unfair competitive advantage, you might propose to wall off the individuals who performed the design work from the current proposal team. If it's impaired objectivity, such as if your firm would be evaluating its own prior work, then the agency might require specific actions like excluding your firm from certain parts of the contract. Discuss this directly with the prime during teaming agreement negotiations to develop a mitigation plan. The contracting officer will make the final determination on the OCI and the acceptability of any mitigation strategy.

answered Dave H. Verified vendorParts distributor, DLA and DIBBS · Dayton, OH · 602 rep

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Sign up to answerCite the FAR clause or procurement code where you can.