Conflict of Interest in Contract Management

(ii) Obligation for each insured employee to update the statement if his or her personal or financial circumstances change in such a way that a new personal conflict of interest may arise as a result of the task that the employee concerned is performing. As these examples show, most of us realize that a financial interest in the outcome can affect the judgment of a person or company, and it`s good to have a guideline for dealing with this type of situation. A real conflict of interest occurs when an employee making the financial decision is in a position in which he or she could be realistically influenced. This does not mean that the employee reacted to the conflict; it only means that the conflict exists,. B, for example, if a potential supplier is in the possession of a relative of the employee who makes the procurement decision. In the event of a perceived conflict of interest, the employee is in a position where he or she may appear to be influential or influenced. For example, the head of the purchasing department may have a financial interest in a potential supplier. Although he does not make the purchase decision itself, it can be perceived that he can influence the buyer who does so. (2) In which a contract employee performs acquisition functions that are closely related to inherently governmental functions (i.e., instead of being performed solely by a self-employed person). A conflict of interest occurs when an employee can – or appears to be – influenced in the performance of his or her official duties to make a decision that benefits him or her personally. For example, receiving a gift from a supplier by a purchasing employee may demonstrate a conflict of interest.

The benefit can also be negative,. B, for example, a contract that is denied to the most appropriate supplier because it refuses to compensate the procurement employee. As part of the requirements, senior managers and employees of government agencies are required to disclose their financial interests and the financial interests of their family members. The unT system and its component institutions are prohibited from purchasing goods or services from a seller if an agent or employee or family member of the agent or employee has a financial interest in the seller. What is a conflict of interest? Conflicts of interest arise in any type of business and we deal with them every day. For example, if you ask a restaurateur to recommend something from the menu, you know you`re giving them the chance to bring the slow-selling dish with the highest price at your expense to the benefit of the restaurant. If the owner does, you`ll likely dine elsewhere in the future. If you know this, a smart owner will not direct you badly.

Of course, you can avoid the conflict completely by not asking the owner for advice. The downside is that you will miss the advice of the person who has the most information about the restaurant. (i) the financial interests of the insured worker, his or her immediate family member or other members of the insured worker`s household; (6) Report any personal breach of conflict of interest by an insured employee of the contractual obligation as soon as it is detected. This report must include a description of the breach and the proposed actions that the contractor must take in response to the breach. Provide follow-up reports on corrective actions taken, as required. Violations of personal conflicts of interest include: In the event of a potential conflict of interest, agents and employees involved in procurement or contract management must complete a disclosure form and send it to the UNT System Business Service Center (BSC) with the ePro request or contract submission. If the potential conflict of interest is related to an acquisition card transaction or the performance of a contract or any other situation that does not involve an ePro application or the submission of a contract, the completed disclosure form must be emailed to conflictdisclosures@untsystem.edu to BSC. Please note that the purchase/contractual conflict of interest does not address other types of conflicts of interest relevant to other aspects (e.B.

research conflicts). (a) No current or past conflict of interest. This contractor has no commercial, professional, personal or other interest, including, but not limited to, representing other customers, that would conflict in any way or in any way with the performance of its obligations under this Agreement. The objectives of a conflict of interest policy should be to identify potential conflicts of interest for senior management and to allow management to pay attention to the issue in its decisions. The Harvard folks describe this situation as follows: “If a person believes that he or she may have a conflict of interest, the person must immediately and fully disclose the conflict to the Office of the Advocate General and not participate in any way in the matter to which the conflict relates until the issue of the conflict is resolved. In some cases, it can be argued that after full disclosure to the individuals concerned, the interests of the university are best served by the participation of the individual despite the conflict. Similarly, the federal government requires the contracting officer to identify actual and potential conflicts of interest and to avoid, neutralize or mitigate the conflict. FAR 9,504 (a).

Mitigation efforts may include the exclusion of a person or department of an enterprise from any subsequent participation in a procurement or, where appropriate, the waiver of the conflict. (d) subcontracting. The Contractor must subcontract the content of this clause, including this paragraph (d) – employees must promptly disclose actual or potential conflicts of interest by completing the “CsaP Disclosure of Actual or Potential Conflicts of Interest” form and submitting the ACAP for review and advice on mitigating the conflict of interest. (1) Have procedures in place to screen employees covered for potential personal conflicts of interest by – Sometimes people can`t even agree on the definition of a conflict of interest. Most definitions cover at least two components: (1) a company`s actual or potential financial interest in profits; and 2.) the actual or potential impact on that person`s or company`s ability to provide unbiased advice. For example, these intelligent people at Harvard University define conflicts of interest that affect university procurement as follows: “[A] person is considered a conflict of interest if the person or one of his or her family members or employees (i) has an existing or potential financial or other interest that impairs the person`s independence in carrying out his or her responsibilities to the university. or (ii) may derive any material, financial or other benefit from the Knowledge of Confidential Information at the University. (On the World Wide Web, under b) Reference to potential conflicts. If such an actual or potential conflict of interest arises under this Agreement, the Contractor shall promptly notify the Company in writing of any such conflict. Dealing with conflicts of interest requires integrity and trust in your company`s people and policies.

While many types of policies are possible, good policy should at least include full disclosure and efforts to neutralize the conflict. (4) the maintenance of effective supervision to verify compliance with the guarantees of personal conflicts of interest; Any potential conflicts of interest reported will be reviewed for approval prior to the completion of the procurement or contracting process. Personal conflict of interest means a situation in which an insured employee has a financial interest, personal activity or relationship that could affect the employee`s ability to act impartially and in the best interests of the government in the performance of the contract. (A de minimis interest that “would not affect the worker`s ability to act impartially and in the best interests of government” does not fall within this definition.) (i) avoid personal conflicts of interest, including the non-assignment or facilitation of the performance of tasks under the Contract for which the Contractor has identified a personal conflict of interest for the employee that the Contractor or Employee cannot satisfactorily prevent or mitigate in consultation with the Client; “Family Member” means any person related to the agent or employee involved in the procurement or management of contracts under the second degree of consanguinity (blood-related) or affinity (bound by marriage). The second degree of inbreeding includes a parent, child, sibling, grandparent or grandchild. The second degree of affinity includes a spouse, step-parent, son-in-law or spouse of a person in the second degree of inbreeding. This includes all persons who are related to the spouse of the officer or employee by the second degree of consanguinity. An affinity and inbreeding diagram is published below for reference. “Officers and employees involved in the procurement or management of contracts” means: The percentage of interest held may be calculated either on the basis of the voting shares or on the basis of the market value of the shares. (c) Termination due to factual conflicts. If, in the Company`s reasonable discretion, such conflict constitutes a material conflict with and with the performance of the Contractor`s obligations under this Agreement, the Company may terminate the Agreement immediately upon written notice to the Contractor; such termination of the Contract shall take effect upon receipt of such notice by the Contractor. The federal government has a similar definition, but also wants to avoid giving a company an unjustified competitive advantage over competing companies.

The Federal Procurement Regulations (“FAR”) 9.501, with respect to conflicts affecting an organization, have the following definition: “Organizational Conflict of Interest” means that a person is unable or may not be able to provide impartial assistance or advice to the government due to other activities or relationships with other persons, or that the objectivity of the person in the performance of the contract work is otherwise compromised, or could be. or a person has an unfair competitive advantage. (3) Preparation or approval of contractual documents, including documents defining requirements, incentive plans and evaluation criteria.