FAR 9.506—Procedures.
Plain-English Summary
FAR 9.506 lays out the procedures contracting officers must follow when identifying, analyzing, documenting, and resolving organizational conflicts of interest (OCI) before award, and when carrying OCI restrictions forward if acquisition responsibility is transferred. It covers where to look first for information about prospective contractors, including Government files and personnel knowledge as well as non-Government sources such as credit services and trade publications. It also explains the approval process for acquisitions with a significant potential OCI: the contracting officer must prepare a written analysis, recommend how to avoid, neutralize, or mitigate the conflict, and submit a draft solicitation provision and, when appropriate, a proposed contract clause for approval before issuing the solicitation. The approving official must review the analysis, weigh the Government’s and contractors’ interests, and approve, modify, or reject the recommendation in writing. After approval, the contracting officer must include the approved provisions or clauses, consider any additional contractor information, and resolve the conflict before award in a manner consistent with the approval. Finally, if a restriction is in effect and the acquisition is transferred to another office, the restriction must be passed along with the contract copy so the successor office can continue compliance. In practice, this section is about disciplined OCI due diligence, documentation, and continuity so the Government does not award contracts that could compromise impartiality, objectivity, or fair competition.
Key Rules
Use readily available sources first
Before seeking special information about prospective contractors, the contracting officer should first look to Government sources and other readily available non-Government sources. This includes internal files, knowledgeable personnel, contract administration and audit offices, financing offices, and public commercial sources such as credit reports and trade journals.
Document significant OCI analysis
If an acquisition appears to involve a significant potential organizational conflict of interest, the contracting officer must prepare a written analysis before issuing the solicitation. The analysis must explain the issue and recommend a course of action to avoid, neutralize, or mitigate the conflict.
Obtain pre-solicitation approval
The contracting officer must submit the written analysis, a draft solicitation provision, and, if appropriate, a proposed contract clause to the chief of the contracting office or a higher designated official for approval before the solicitation is issued.
Review benefits and detriments
The approving official must review the contracting officer’s analysis and recommendations and consider the benefits and detriments to both the Government and prospective contractors. The official must then approve, modify, or reject the recommendation in writing.
Include approved restrictions
Once approved, the contracting officer must place the approved solicitation provision and any approved contract clause into the solicitation, the contract, or both, as applicable. These terms become the mechanism for enforcing the OCI restriction.
Consider contractor input
The contracting officer must consider any additional information provided by prospective contractors in response to the solicitation or during negotiations. OCI decisions are not frozen at the initial analysis stage if new facts emerge.
Resolve OCI before award
Before award, the contracting officer must resolve the actual or potential conflict in a way that is consistent with the approval or other direction from the head of the contracting activity. Award should not proceed until the OCI issue is addressed.
Carry restrictions to successor office
If acquisition responsibility is transferred during the effective period of an OCI restriction, the transferring office must notify the successor office and send a copy of the contract under which the restriction was imposed. This ensures the restriction remains visible and enforceable.
Responsibilities
Contracting Officer
Identify and evaluate potential OCI issues; first seek information from Government and readily available sources; prepare the written OCI analysis and recommended mitigation approach; draft the solicitation provision and any proposed clause; include approved provisions and clauses in the solicitation or contract; consider new information from offerors; and resolve the conflict before award consistent with approval or higher-level direction.
Approving Official (Chief of the Contracting Office or Higher Designated Official)
Review the contracting officer’s OCI analysis, recommended mitigation, draft provision, and any proposed clause; weigh the Government’s and prospective contractors’ interests; and approve, modify, or reject the recommendation in writing.
Contracting Office / Transferring Office
If acquisition responsibility is transferred while an OCI restriction is still in effect, notify the successor contracting office of the restriction and send a copy of the contract that imposed it.
Successor Contracting Office
Receive notice of any existing OCI restriction and the underlying contract so the restriction can be carried forward and enforced during the remaining effective period.
Prospective Contractors
Provide additional information in response to the solicitation or during negotiations when relevant to OCI identification, evaluation, or mitigation.
Practical Implications
This section makes OCI handling a front-end procurement task, not an afterthought; if the issue is significant, the analysis and approval must happen before the solicitation goes out.
Contracting officers should build a real paper trail. A weak or undocumented OCI analysis can lead to protest risk, award delays, or an unenforceable mitigation approach.
The requirement to use readily available sources first means the Government should not immediately burden offerors with requests for information that could have been gathered internally or from public sources.
New information can change the OCI picture during negotiations, so contracting officers need to revisit the analysis rather than rely only on the initial file.
When acquisition responsibility changes hands, OCI restrictions can be lost if the transfer is not documented and communicated; successor offices need the restriction and the underlying contract to avoid accidental noncompliance.
Official Regulatory Text
(a) If information concerning prospective contractors is necessary to identify and evaluate potential organizational conflicts of interest or to develop recommended actions, contracting officers first should seek the information from within the Government or from other readily available sources. Government sources include the files and the knowledge of personnel within the contracting office, other contracting offices, the cognizant contract administration and audit activities and offices concerned with contract financing. Non-Government sources include publications and commercial services, such as credit rating services, trade and financial journals, and business directories and registers. (b) If the contracting officer decides that a particular acquisition involves a significant potential organizational conflict of interest, the contracting officer shall, before issuing the solicitation, submit for approval to the chief of the contracting office (unless a higher level official is designated by the agency)- (1) A written analysis, including a recommended course of action for avoiding, neutralizing, or mitigating the conflict, based on the general rules in 9.505 or on another basis not expressly stated in that section; (2) A draft solicitation provision (see 9.507-1 ); and (3) If appropriate, a proposed contract clause (see 9.507-2 ). (c) The approving official shall- (1) Review the contracting officer’s analysis and recommended course of action, including the draft provision and any proposed clause; (2) Consider the benefits and detriments to the Government and prospective contractors; and (3) Approve, modify, or reject the recommendations in writing. (d) The contracting officer shall- (1) Include the approved provision(s) and any approved clause(s) in the solicitation or the contract, or both; (2) Consider additional information provided by prospective contractors in response to the solicitation or during negotiations; and (3) Before awarding the contract, resolve the conflict or the potential conflict in a manner consistent with the approval or other direction by the head of the contracting activity. (e) If, during the effective period of any restriction (see 9.507 ), a contracting office transfers acquisition responsibility for the item or system involved, it shall notify the successor contracting office of the restriction, and send a copy of the contract under which the restriction was imposed.