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How does an 'organizational conflict of interest' (OCI) impact teaming decisions for a federal bid?

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My firm is looking at a federal Request for Proposal (RFP) for IT modernization services under NAICS 541512. It's a full and open competition, and we are considering teaming with a larger prime. The prime mentioned an organizational conflict of interest (OCI) during our initial discussions, and we are trying to understand what this means for us. We know an OCI can impact a bid, but we are not clear on how it affects our eligibility as a subcontractor or the overall proposal strategy. We have reviewed the RFP and it does include a clause about OCIs. How does an OCI impact teaming decisions for a federal bid, and what should we be looking out for?

asked Priya S. Verified vendorCapture manager, IT services · Herndon, VA · 690 rep

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An organizational conflict of interest (OCI) can directly impact teaming decisions by restricting which companies can partner on a federal bid, often due to their prior work creating an unfair competitive advantage or impaired objectivity. A prime contractor's OCI may prevent them from bidding on a specific requirement, or it could prevent them from teaming with certain subcontractors if that teaming arrangement itself creates an OCI. The Federal Acquisition Regulation (FAR) Subpart 9.5 discusses OCIs and outlines various types, such as impaired objectivity, unequal access to information, and biased ground rules. The contracting officer is responsible for identifying and resolving OCIs, sometimes requiring mitigation plans or even disqualification of an offeror. For your firm, you need to understand the nature of the prime's OCI and how it relates to the specific work contemplated in the RFP. If the prime's OCI cannot be effectively mitigated, your firm may need to seek a different prime to avoid being disqualified from the competition.

answered Dana K. Retired contracting officer, 22 years · Alexandria, VA · 345 rep

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