3.  Appearance of a Conflict

Comments: Several respondents expressed concern about the difficulty contractors face in identifying circumstances that suggest "even the appearance of personal conflicts of interest." These respondents state that the standard is vague and too difficult for contractors and their employees to implement. One respondent points out that there are likely different standards in the "healthcare, defense, or transportation industries" and suggests limiting language along the lines of "consistent with industry norms."

Response: The rule requires that contractors inform covered employees of their obligation to avoid even the appearance of personal conflicts of interest. That same obligation is imposed on Government employees by FAR 3.101-1. Nothing in this rule requires a report of an "appearance of conflict." Concern about how to deal with an "appearance of a conflict," where in fact there is actually no conflict, is difficult, but once sensitized to the issue of appearances, contractors and contracting officers can develop solutions to the appearance questions that will protect the public's trust in the acquisition system.

The Councils do not concur with the suggestion that the rule incorporate industry norms as a standard. While there very well may be different ways of doing business in the healthcare, defense, and transportation industries, the threshold provided here is the minimum level of coverage required across all industries regarding personal conflicts of interest and the appearance of such conflicts.