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117-s-3905117th Congress

Preventing Organizational Conflicts of Interest in Federal Acquisition Act

Sponsored By: Senator Peters, Gary C. [D-MI]

Became Law

Summary

Prevents organizational conflicts of interest in federal contracting. This law requires the Federal Acquisition Regulatory Council to revise the Federal Acquisition Regulation within 18 months to define conflict types, add clear examples, and give agencies tools to spot and limit conflicts of interest in contracts.

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  • Executive agencies get model solicitation provisions and contract clauses to avoid or mitigate conflicts. Agencies must adopt and periodically update agency-specific conflict-of-interest procedures and may tailor clauses to unique risks.
  • Contractors face new disclosure expectations about relationships that could create conflicts and may face limits on future contracting tied to the work they perform. The law includes illustrative scenarios such as contractors doing agency consulting while also working for private clients regulated by that agency.
  • Contracting officers can take professional standards and procedures into account when evaluating organizational conflicts, reflecting updates to the Federal Acquisition Regulation procedures in section 9.506.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Stronger conflict-of-interest rules for federal contractors

Within 18 months, the Federal Acquisition Regulation adds clear conflict-of-interest definitions and examples, including ties to public, private, and foreign entities. Examples include a consultant who also works for a company regulated by the same agency. Contractors must disclose ties and risks, and may face limits on future awards to avoid conflicts. Contracting officers can consider professional standards a firm already follows. Every executive agency must tailor clauses for its own risks, create or update its conflict rules, and review them regularly.

Sponsors & CoSponsors

Sponsor

Peters, Gary C. [D-MI]

MI • D

Cosponsors

  • Sen. Grassley, Chuck [R-IA]

    IA • R

    Sponsored 3/23/2022

  • Sen. Hassan, Margaret Wood [D-NH]

    NH • D

    Sponsored 3/24/2022

  • Sen. Ernst, Joni [R-IA]

    IA • R

    Sponsored 3/24/2022

Roll Call Votes

No roll call votes available for this bill.

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