William Weisberg writes about a recent $110,000 Justice Department settlement in a False Claims Act case, which could serve as a precedent for the future handling of Organizational Conflicts of Interest in government contract bids.
When a contractor has an unfair competitive advantage from previous work done, has impaired objectivity in doing work for the government, or another conflict of interest, they are required to disclose it; otherwise they certify that they have none.
Previously, most contractors assumed that the worst thing that could happen with an undisclosed or unmitigated OCI is that they would lose a contract after a GAO bid protest. This six-figure settlement penalty raises the stakes substantially. To protect themselves, Weisberg recommends that contractors implement a formal OCI screening process as part of their proposal preparation.
