Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

FAR Councils issue final rule aimed at preventing contractor employee Personal Conflicts of Interest

Lexology November 3, 2011

On November 2, 2011, the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (FAR Councils) issued a final rule on “Personal Conflicts of Interest,” or “PCIs,” that will place significant new obligations on contractors and contractor employees.

76 Fed. Reg. 68,017 (Nov. 2, 2011). The rule requires contractors that have employees performing “acquisition functions closely associated with inherently governmental functions” to identify and prevent PCIs for such employees. It also requires such contractors to prohibit “covered employees” with access to non-public Government information from using it for personal gain. The final rule implements section 841(a) of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009, Pub. L. No. 110-417, and follows a proposed rule issued nearly two years ago, 74 Fed. Reg. 58,584 (Nov. 13, 2009).

The final rule, which includes only minor revisions from the proposed rule, creates a new subpart under FAR part 3 (FAR subpart 3.11), as well as a new clause for Contracting Officers (COs) to use in contracts (FAR 52.203-16). The rule’s effective date is December 2, 2011. The new clause will be included in all covered contracts and task or delivery orders issued on or after the effective date. COs are instructed to modify, on a bilateral basis, existing task- or delivery- order contracts to include the new clause for future orders. In the event that a contractor refuses to accept such a modification, the contractor will not be eligible to receive further orders under the contract.

Please read the entire post for important information regarding implementation, obligations for contractors, and definitions of the terms here

November 6, 2011 - Posted by | Civilian Contractors, Contingency Contracting, Contractor Oversight, Government Contractor, Legal Jurisdictions | , , , , , , , , , , , ,

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