SUMMARY OF THE PROCUREMENT INTEGRITY
The Procurement Integrity Act (41 U.S.C.
§423, implemented at FAR 3.104) has four basic provisions:
- A ban on disclosing procurement
- A ban on obtaining procurement
- A requirement for procurement officers
to report employment contacts by or with a competing contractor;
- A 1-year ban for certain personnel on
accepting compensation from the contractor.
The Ban on Disclosing Procurement
- The Act prohibits the disclosure of
"contractor bid or proposal information" and "source selection
- Current Federal
- Former Federal employees;
- Individuals (such as contractor
employees) who are currently advising the government regarding the
- Individuals (such as contractor
employees) who have advised the government regarding the procurement, but
are no longer doing so.
- The ban applies until the contract is
The Ban on Obtaining Procurement
- Individuals are prohibited from
knowingly obtaining "contractor bid or proposal information" or "source
selection information" before the award of the contract to which such
information relates, other than as provided for by law.
- The ban applies to everyone (including
Federal employees and contractor personnel).
The Employment Contact Reporting
- If a Federal employee who is
participating personally and substantially in a procurement contacts, or is
contacted by, a bidder or offeror in that procurement regarding possible
employment for that employee, the employee must:
- Promptly report the contact in writing
to the employee’s supervisor and to the designated agency ethics official
(or designee), AND
- Either: (a) Reject the possibility of
employment, OR (b) Disqualify himself or herself from further personal and
substantial participation in the procurement until the agency has authorized
the employee to resume participation in the procurement on the grounds that:
(1) the company that the employment contact was with is no longer a bidder
or offeror in the procurement, or (2) all discussions between the employee
and the company regarding possible employment have terminated without an
agreement for employment.
- This rule applies only to contracts in
excess of the simplified acquisition threshold ($100,000).
The 1-Year Ban on Accepting Compensation
from the Contractor
- The 1-year ban applies to people who
serve in any of the following seven positions on a contract over $10
- Procuring Contracting Officer
- Source Selection Authority
- Member of the Source Selection
Evaluation Board (SSEB)
- Chief of a financial or technical
- Program Manager
- Deputy Program Manager
- Administrative Contracting Officer
- The 1-year ban also applies to anyone
who "personally makes" any of the following seven types of
- Decision to award a contract over $10
- Decision to award a subcontract over
- Decision to award a modification of
contract or subcontract over $10 million.
- Decision to award a task order or
delivery order over $10 million.
- Decision to establish overhead or
other rates applicable to a contract or contracts that are valued over $10
- Decision to approve issuance of a
contract payment or payments over $10 million.
- Decision to pay or settle a claim over
- The 1-year ban can apply to officers,
enlisted personnel and civilian employees. The ban can apply regardless of
whether one retires, resigns, or separates from the government. The 1-year ban
applies to accepting compensation as an employee, officer, director, or
consultant of the contractor. The ban does not apply to accepting
compensation from any division or affiliate of a contractor that does not
produce "the same or similar products or services" as the entity of the
contractor that is responsible for the contract the employee was involved in
(such as a commercial division of the contractor).
- Current and former employees can request
a legal opinion on whether the 1-year compensation ban applies to them with
regard to any company (30-day letter).