Conflicts of Interest
This page provides quick-reference charts that map the key personal and organizational conflict of interest rules in federal procurement, including what triggers them, who they cover, and the range of consequences.
Table 1
This table summarizes two of the more prominent “ethics” laws that address personal conflicts of interest and favoritism in government operations. Notably, this does not include other “ethics” laws that also address conflicts. The U.S. Office of Government Ethics has an excellent and reader-friendly guide that explains the various COI laws that are applicable to executive branch employees.
Table 1: General Conflict of Interest Rules
| Authority | Core Rule | Covered Parties | Common Fact Pattern | Flexibility | Typical Outcomes |
|---|---|---|---|---|---|
| 18 U.S.C. § 208 | No personal/substantial participation with disqualifying financial interest | Federal employees/SGEs | Employee owns stock in offeror | Limited waiver/exemptions | Criminal + admin |
| 5 CFR 2635.501/.502 | Avoid appearance of loss of impartiality | Federal employees | Covered relationship with bidder | Written authorization possible | Recusal; discipline |
Table 2
These rules are specific to federal procurement and buttress the more generally applicable ethics rules in Table 1. The table does not include, where relevant, the corresponding FAR “clause” or “solicitation provision.” For example, FAR 3.11 requires the inclusion of FAR 52.203-16 Preventing Personal Conflicts of Interest, in contracts and solicitations that: (1) Exceed the simplified acquisition threshold; and (2) Include a requirement for services by contractor employee(s) that involve performance of acquisition functions closely associated with inherently governmental functions for, or on behalf of, a Federal agency or department.
Table 2: FAR-Based Conflict of Interest Rules
| Provision | Core Rule | Covered Parties | Common Fact Pattern | Waiver/Mitigation | Typical Outcomes |
|---|---|---|---|---|---|
| FAR 3.101-1 | Avoid COI or appearance in Government-contractor relationships | Government official and contractors (often used to police integrity issues, including revolving-door concerns) | Former senior official joins offeror and touches capture/proposal | No | Corrective action, loss of award, exclusion/mitigation |
| FAR Subpart 3.6 | CO cannot knowingly award to employee-owned/controlled entity | Gov employees (SGE limited) | Employee-owned firm seeks award | High-level exception | Award blocked; protest/termination risk |
| FAR Subpart 3.11 | Prevent personal COIs for contractor staff doing acquisition functions | Contractor acquisition support staff | Evaluator has financial interest in bidder | Mitigation; rare waiver | Removal; remedies up to termination |
| FAR Subpart 9.5 | Identify/avoid/mitigate OCIs to protect fair competition | Contractors | Unequal access, biased ground rules, impaired objectivity | Mitigation; high-level waiver | Loss of award; exclusion; termination |