Organizational Conflicts of Interest: A Growing Integrity Challenge

Abstract

Recent experience in the United States suggests that public procurement professionals increasingly encounter a particular kind of conflict of interest, organizational conflicts of interest (OCIs). OCIs arise in situations where an entity plays two or more roles that are, in some sense, at odds with one another. This article endeavors to set out some points for consideration in this increasingly important area. Alleged OCIs have been identified in various activities of the U.S. federal procurement process, from contracts for security services in Iraq to public/private competitions for work to be performed in the U.S. This article first suggests reasons for the increasing frequency of OCIs, then steps back to analyze the elements of conflicts of interest and of OCIs, and then addresses the legal framework and caselaw related to OCIs in the U.S. federal procurement system.

Keywords: organizational conflict of interest, OCI, integrity, public procurement

JEL Classification: H57