C.1 Identify and resolve conflicts of interest for public officials

Conflict of interest (COI) provisions apply to public officials as part of their conditions of employment. The key point is to ensure that all participants in the procurement team declare their interests before the tendering process begins and at critical stages throughout it, and to ensure that any issues arising are resolved.

A COI arises when a team member has an affiliation or interest that will or may compromise, or have the appearance of compromising, their impartiality, incentive and/or ability to fulfil their duties to government in their engagement on a PPP project (obligation to government). This definition is distinct from the legal interpretation of a conflict of interest.

COI can be defined in three categories:

• Actual COI means a set of established circumstances (interests) that detract from the public official fulfilling their obligation to government;

• Potential COI means a set of established circumstances where actual conflict may result if one or more future known events occur; and

• Perceived COI means a set of circumstances which may or be seen to compromise the interests of government by diminishing the fairness and competitiveness of the PPP procurement process.

Responses to a COI, or potential COI, will vary depending on the circumstances. Disclosures should be directed initially to the Project Director. It is expected that the Project Director can effectively manage most disclosure and COI events within their delegated level of authority. It is anticipated that the Project Director will rely on advice from the Probity Practitioner, the Treasury project officer and the senior responsible officer.

Public officials involved in procurement projects have a responsibility to inform themselves of their department's guidelines for dealing with conflicts of interest and dealing with offers of gifts and other benefits. This is in addition to being informed generally on standards of conduct set out in various state-based legislation for public officials.

In planning for a procurement process, market research involving contact and meetings with prospective bidders commonly occurs. This may be to inform department of requirements for a bid, or of the potential for the market to meet the department's requirements. Such contacts do not of themselves constitute a conflict of interest. However, they may constitute a potential conflict of interest and, if not managed correctly, could lead to an unacceptable conflict of interest being created.