Organizational Conflicts of Interest

As employees, we must recognize our responsibility to avoid creating any Organizational Conflict of Interest (OCI). An OCI may result when factors (other activities or relationships) create an actual or potential conflict of interest.

Appropriately managing OCI requirements is central to Los Alamos National Laboratory’s operations. Federal Acquisition Regulation (FAR) Section 9.5 contemplates three situations in which conflicts may arise:

A “bias” situation in which a contractor has the opportunity to draft specifications or a statement of work for a later procurement, thus creating the possibility that it could skew the competition in its favor.
An “impaired objectivity” situation in which a contractor has some relationship or interest, such as a share of the proceeds on the sale of a product or an equity or ownership interest, or where the contractor may be called upon to review its own work or the work of a closely related entity.
An “unequal access to information” situation in which the contractor may gain a competitive edge because of its access to information that is not available to other competitors.

Summary of Policy

P723, Conflicts of Interest, provides guidance for employees regarding OCIs. When assessing whether a specific situation creates an OCI, common sense, good judgment, and sound discretion are required in both the decision about whether a significant potential conflict exists and, if it does, whether an appropriate means for avoiding it can be developed. Employees should contact the Office of General Counsel or EA-Ethics for assistance with OCI questions.

Do the Right Thing

Disclose and resolve any existing situations that potentially create an OCI.
Notify the applicable Acquisition Services Management (ASM) Division procurement specialist of any OCI concern related to a proposed or existing purchase requisition.

Common Questions

What types of circumstances should I be aware of in regard to a potential OCI?

Some questions to ask yourself include the following:

Will the subcontractor have conflicting roles that might bias the subcontractor’s judgment in its work for the laboratory?
Did something take place in the past that will give the potential subcontractor an unfair competitive advantage in the current subcontract?
Will performance of the current subcontract result in the offeror having an unfair competitive advantage in a future subcontract?

Note: There are also OCI requirements in regards to interactions with parent company representatives. See P723, Conflicts of Interest, for more information.

Organizational Conflicts of Interest