Under FAR 9.504(e), when may an award be made despite an OCI?

Under FAR 9.504(e), when may an award be made despite an OCI?

• A. Obtain a waiver approved by the Head of the Contracting Activity.
• B. Proceed only if there is no real OCI.
• C. Award decision ignores risk of OCI.
• D. Cancel the procurement instead of addressing OCI.

Answer: (A)

Under FAR 9.504(e) an organizational conflict of interest does not automatically stop an award. The government may proceed despite an OCI if the Head of the Contracting Activity approves a waiver in writing after weighing the specific risks and confirming that appropriate safeguards will mitigate bias. This waiver framework exists to allow the best value solution when the public interest warrants it and when concrete steps—such as separating conflicting roles, using independent evaluators, or other mitigation measures—are in place to manage the conflict. If such a written waiver is not obtained, the procurement should not proceed under the conflict; options like ignoring the risk or canceling the procurement would not satisfy the requirements.

Under FAR 9.504(e) an organizational conflict of interest does not automatically stop an award. The government may proceed despite an OCI if the Head of the Contracting Activity approves a waiver in writing after weighing the specific risks and confirming that appropriate safeguards will mitigate bias. This waiver framework exists to allow the best value solution when the public interest warrants it and when concrete steps—such as separating conflicting roles, using independent evaluators, or other mitigation measures—are in place to manage the conflict. If such a written waiver is not obtained, the procurement should not proceed under the conflict; options like ignoring the risk or canceling the procurement would not satisfy the requirements.