FAR 9.502—Applicability.
Plain-English Summary
FAR 9.502 explains when the organizational conflict of interest (OCI) rules in Subpart 9.5 apply and why they matter. It covers the types of organizations covered, including both profit and nonprofit entities, even nonprofits created largely or wholly with Government funds; the fact that the rules are not limited to any one acquisition type; the acquisition areas where OCI risk is especially high; the difference between conflicts tied to the current contract and conflicts that can affect future acquisitions; and the carve-out for acquisitions governed by unique agency OCI statutes. In practice, this section tells contracting officers and contractors where to look for OCI risk, when to expect special restrictions, and when agency-specific law may override the general FAR framework. Its purpose is to prevent biased ground rules, impaired objectivity, unequal access to information, and other situations where a contractor’s role could distort competition or contract performance. For contractors, it signals that OCI review is not limited to obvious consulting arrangements and can affect a wide range of support and technical roles. For agencies, it establishes the threshold question: does Subpart 9.5 apply here, and if so, what restrictions or mitigation are needed to protect the integrity of the procurement process?
Key Rules
Applies to all organizations
This subpart applies to contracts with both profit and nonprofit organizations, including nonprofits created largely or wholly with Government funds. The OCI rules are therefore not avoided simply because the contractor is a nonprofit or quasi-governmental entity.
Not limited by acquisition type
The applicability of Subpart 9.5 is broad and is not confined to any particular kind of acquisition. Agencies must assess OCI risk across the full range of procurements, not just in a narrow set of contract types.
Higher-risk service areas
OCI is more likely in management support services, consultant or other professional services, contractor participation in technical evaluations, and systems engineering and technical direction work by a contractor without overall responsibility for development or production. These are the classic areas where a contractor may influence requirements, evaluations, or technical direction in ways that create bias or unfair advantage.
Current and future conflicts
An OCI can arise from the instant contract itself or from the nature of the work creating a conflict in a future acquisition. When future-acquisition risk exists, the Government may need to impose restrictions on the contractor’s later activities to protect competition and objectivity.
Agency-specific statutes control
Acquisitions covered by unique agency OCI statutes are excluded from this subpart’s requirements. In those cases, the agency’s specific statutory framework governs instead of, or in addition to, the general FAR OCI rules.
Responsibilities
Contracting Officer
Determine whether Subpart 9.5 applies to the acquisition, identify whether the work falls into a higher-risk OCI category, and decide whether restrictions, mitigation, or exclusion are needed. The contracting officer must also recognize when a unique agency OCI statute displaces the general FAR framework.
Agency
Apply the correct OCI regime for the procurement, including any agency-specific statutory requirements that exclude the acquisition from Subpart 9.5. The agency must ensure its acquisition planning and oversight processes account for OCI risk in covered procurements.
Contractor
Assess whether its role could create an actual or potential OCI on the current contract or on a future acquisition, and be prepared to accept or propose restrictions where necessary. The contractor should disclose relevant relationships, work products, and prior involvement that could affect objectivity or competition.
Source Selection / Technical Evaluation Personnel
Be alert to OCI risk when contractors assist with technical evaluations or other source selection-related functions, and ensure contractor involvement does not compromise fairness, impartiality, or access to nonpublic information.
Practical Implications
OCI review is not just for big consulting contracts; it can apply to many service and technical support arrangements, including nonprofits and Government-funded entities.
The highest-risk situations are where a contractor helps shape requirements, evaluate competitors, or direct technical work while lacking overall responsibility for the program.
A conflict may show up later, not immediately: work performed today can restrict the contractor’s ability to compete for or perform future work.
Contracting officers should document the OCI analysis early, because mitigation or restrictions may need to be built into the solicitation or contract before award.
A common pitfall is assuming that agency-specific OCI rules do not matter; if a unique statute applies, the FAR subpart may be displaced or supplemented, so the correct legal authority must be checked first.
Official Regulatory Text
(a) This subpart applies to contracts with either profit or nonprofit organizations, including nonprofit organizations created largely or wholly with Government funds. (b) The applicability of this subpart is not limited to any particular kind of acquisition. However, organizational conflicts of interest are more likely to occur in contracts involving- (1) Management support services; (2) Consultant or other professional services; (3) Contractor performance of or assistance in technical evaluations; or (4) Systems engineering and technical direction work performed by a contractor that does not have overall contractual responsibility for development or production. (c) An organizational conflict of interest may result when factors create an actual or potential conflict of interest on an instant contract, or when the nature of the work to be performed on the instant contract creates an actual or potential conflict of interest on a future acquisition. In the latter case, some restrictions on future activities of the contractor may be required. (d) Acquisitions subject to unique agency organizational conflict of interest statutes are excluded from the requirements of this subpart.