Contractors are subject to a number of contract provisions, statutes, and regulations concerning ethics and conflicts of interest. A significant area of concern involves potential or actual organizational conflicts of interest (“OCI”) which could seriously threaten business development or current contracts. OCIs may arise at any stage of a procurement—during proposal preparation, in a bid protest, or during performance—and could be tied to hiring a former government employee or an employee of another contractor. A contractor with a clear understanding of the rules and processes is in a much better position to convince contracting officers and other government personnel that the OCI can, and has been mitigated, possibly saving millions in revenue and preserving business opportunities.

A related issue involves hiring former government employees who may be subject to post employment restrictions. The restrictions depend on the position the individual held and the individual’s role in the work. A violation of these restrictions could result in criminal liability or ineligibility for contract award. Contractors need to be aware of the restrictions placed on former government personnel to protect their interests. Further, being mindful of the post-employment restrictions allows contractors to recruit talented personnel with government experience without fear of reprisal.

OCIs and post-government employment violations may result in lost contracts and liability. Therefore, contractors must be informed about the general rules and guidelines when dealing with OCIs, preparing mitigation plans, and hiring former government employees.