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Government Contractors: Selected Agencies' Efforts to Identify Organizational Conflicts of Interest

GGD-96-15 Published: Oct 25, 1995. Publicly Released: Nov 29, 1995.
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Highlights

Pursuant to a legislative requirement and a congressional request, GAO reviewed three federal agencies' implementation of the Office of Management and Budget's (OMB) policies on conflicts of interest, focusing on: (1) whether the agencies have complied with existing requirements to identify and evaluate potential organization conflicts of interest (OCI); and (2) ways that agencies could improve their screening for such conflicts.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Office of Management and Budget The Director, OMB, should emphasize to heads of agencies the importance of ensuring that contracting officials receive sufficient training to help them to identify and to avoid and mitigate OCI situations.
Closed – Implemented
Following the report, the Director of OMB advised GAO by letter dated January 4, 1996, that she agreed with the findings, and she directed the Administrator, Office of Federal Procurement Policy, to send a memorandum to senior agency procurement executives emphasizing the need for training in this area. The Administrator, by memorandum dated February 12, 1996, to senior agency procurement executives and to the Deputy Under Secretary of Defense for Acquisition Reform, brought this matter to the attention of all federal agencies for their information and action.
Office of Management and Budget The Director, OMB, should take steps to avoid the possibility that the federal acquisition regulations might be interpreted to imply that if certificates have been obtained from contractors, agencies should not obtain other information in conducting an evaluation of the potential for conflicts of interest.
Closed – Implemented
The Director of OMB advised GAO by letter dated January 4, 1996, that she agreed with the findings, and she directed the Administrator, Office of Federal Procurement Policy, to send a memorandum to senior agency procurement executives emphasizing the need for addressing the possible misinterpretation in the federal acquisition regulations. The Administrator, by memorandum dated February 12, 1996, to senior agency procurement executives and to the Deputy Under Secretary of Defense for Acquisition Reform, brought this matter to the attention of all federal agencies for their information and action.

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Topics

Conflict of interestsConsultantsFederal procurementFederal procurement policyPreaward surveyProcurement regulationsReporting requirementsU.S. NavyProcurementContracting officers