Proponents have an expectation that government representatives will perform their duties in a fair and unbiased manner and that decisions they make will not be affected by self interest or personal gain.
A conflict of interest arises where an individual associated with the process is, through their particular associations or circumstances, influenced, or perceived to be influenced, to obtain an unjust advantage for themselves or another party.
Conflicts of interest, both actual and perceived, are often unavoidable. However, provided they are identified early and dealt with effectively, they need not prejudice the process.
It is important to ensure that individuals associated with the process are aware of how a conflict of interest arises and their responsibilities to report conflicts, to ensure conflicts are adequately addressed and the manner in which they have been addressed is adequately documented. Policies to deal with potential conflicts of interest should be established at the outset, rather than attempting to manage such issues on an ad-hoc basis as they arise through the competitive bid process.
It is imperative to ensure that all the members of the government project team, the evaluation committee, project steering committee and advisors declare their interests prior to the commencement of the competitive bid process and that expert advice is taken to ensure that any issues arising are resolved. Equally important is the establishment of arrangements to identify and address any new conflicts, or change in status of existing conflicts that may arise during the competitive bid process. This is particularly the case with advisors, whose firms invariably work on a range of projects with a range of clients at one time. In particular, declarations of interest should be reviewed when the identity of proponents and associated parties is known.
The way in which conflicts or potential conflicts are addressed may vary. It is important that the probity auditor is satisfied with the proposed approach to addressing a particular conflict of interest. At one extreme, a conflict may result in an individual or advisor being removed from the project or being required to remove the interest. Lesser conflicts of interest may be resolved simply by declaring and documenting the conflict and/or agreeing a conflict management strategy/solution.
Individuals involved in the competitive bid process must not accept gifts or gratuities, including entertainment, from proponents participating or likely to participate in the competitive bid process.
There are two types of interest which individuals associated with the process may have and which may represent a conflict of interest. These are: