On January 15, 2025, DoD, GSA, and NASA issued a proposed rule to amend the FAR to revise guidance, definitions, and examples of organizational conflicts of interest (OCIs). In addition to moving OCIs from FAR Subpart 9.5 to a new subpart in FAR Part 3 (i.e., FAR Part 3.12), the proposed rule directs the FAR Council to provide and update definitions related to specific types of OCIs (e.g., unequal access to information, impaired objectivity, biased ground rules). According to the proposed rule, the FAR shall be revised to include guidance and illustrative examples of potential OCIs. The proposed rule also “requires that the FAR be revised to provide agencies with tailorable solicitation provisions and contract clauses to avoid or mitigate organizational conflicts.” Interestingly, the proposed rule distinguishes between an incumbent’s “natural advantage” and an unfair competitive advantage.

Written comments should be submitted on or before March 17, 2025 to be considered in the formation of the final rule.

The January 15 proposed rule can be found here.