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Possible conflict of interest?


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I currently work for a vendor who provides contract support to a Federal client. I am also a co-owner of a separate LLC. I am wondering if it would be a conflict of interest to get into federal contracting as a LLC while working with the Federal Government. We would compete for different Departmental contracts under a separate NAICS and specialty (the LLC provides completely different supplies/services than the company I work for). If it is considered a conflict of interest, would my LLC be able to compete for requirements of the State? 
 

Note: I have not seen specific language under the FAR or my employer’s Employee Agreement that forbids this. If there is a regulation that specifically speaks to this, please share. Thank you!

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On 1/6/2021 at 7:58 PM, The Contacting Contractor said:

if it would be a conflict of interest to get into federal contracting as a LLC while working with the Federal Government.

In a general view I do not believe it would be a conflict of interest.   The LLC as the contractor, the  particular solicitation/contract, the agency, your position as the employee for the vendor become more specific to a procurement(s) the matter of conflict of interest may become present.  Also keep in mind that "appearance of a conflict of interest" may fit into the picture as well.  I suspect, with out any research that there are many in the same situation as you.  

While FAR part 3 deals with conflict of interest issues for government employees there are lines drawn to the does and don'ts with regard to interface with contractors.  And associated clauses that are put in contracts to help avoid issues of conflicts of interest or otherwise determine one.   A read of FAR part 3 with this in mind may help you understand where the issues of conflict, or the appearance of,  with a contractor crops up. 

Other due diligence might be contact with an attorney knowledgeable with conflict matters and a discussion internally with the vendor for whom you work.   Suggesting the latter as  a  safety net to not determine whether your efforts with your LLC is a conflict for you but whether your efforts with your LLC puts the vendor you work for in conflict situation.

 

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Many companies have written policies and procedures and perhaps the company you work for has some covering your subject matter. Also, some terms terms and conditions of its contracts or your potential contract may include such FAR clauses as 52.203-16 and 52.209-7. If LLC was a contractor and had subcontracts, and you were still an employee, this would tend to complicate the matter further. FAR Part 9.5 can give you a government prospective about contractor conflict of interest.

Edited by Neil Roberts
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