The Procurement Integrity Act (known commonly as the PIA) aims to ensure proper distance between contractors and Government procurement officials. And it outlines penalties not only for Government employees but also offending contractors. So, every contractor should have a working knowledge of the PIA’s key aspects.
So what are we waiting for? Below we outline the PIA’s principal components.
No disclosing proposal and source selection information
A present or former Government official (or a person advising the Government or acting on its behalf) may not knowingly disclose a contractor’s bid or proposal information or source selection information before the award to which the information relates. On the flip side, no person (e.g., another contractor) may obtain bid or proposal information or source selection information until after the relevant award.
Put simply, once proposal information hits the Government’s desk, the Government must keep it under wraps before award. The statute thus keeps offerors on a equal playing field, without giving offerors a sneak peek into their competitors’ proposals.
No accepting offers of non-federal employment
If a Government official participating “personally and substantially” in a procurement (above the simplified acquisition threshold) is contacted by an offeror (or initiates the contact) about possible non-federal employment, she must take the following actions: (1) report the contact to the appropriate higher-level official, and (2) reject the possibility of non-federal employment or disqualify herself from participating in the procurement until approved to resume. Approval will depend on whether the offeror remains an offeror or all discussions with the offeror about possible non-federal employment have ceased (without an agreement, of course).
Don’t think that just the Government official might get in trouble here. The statute specifically provides penalties for contractors who pursue employment discussions knowing that the Government official has not complied with her obligations.
No accepting compensation from a contractor
This provision pertains to former Government officials.
First, they cannot accept compensation from a contractor (whether as an employee, officer, director, or consultant) for one year if they significantly engaged in a procurement where the agency selected the contractor for a $10+ million award. Specifically, if the former Government official served as the contracting officer, the source selection authority, a member of the source selection board, or the chief of a financial or technical evaluation team, then for one year, she cannot accept money from the awardee. The one-year period begins on the date of contract award or the date of contractor selection, if the official was not serving in the position on the award date.
Second, if the former Government official acted as the program manager, deputy program manger, or administrative contracting officer for a contract above $10 million, she must wait one year before accepting compensation from the contractor. The one-year period begins on the date the official last served in one of those positions.
And third, the one-year prohibition applies to any former Government official who: (1) personally decided to award a contract, subcontract, modification, or order over $10 million; (2) established overhead or other rates applicable to one or more contracts that are valued above $10 million; (3) approved contract payments above $10 million; or (4) paid or settled a claim above $10 million. The one-year period begins on the date the official made one of the decisions described above.
But there is a exception to these prohibitions. A former Government official can accept compensation from a contractor’s division or affiliate that doesn’t produce the same or similar products or services as the division or affiliate awarded the $10+ million contract.
Again, here, both the former Government official and the contractor who knowingly violate these prohibitions may faces penalties.
Penalties
We needn’t dwell much on these. Suffice it to say, they aren’t pleasant. They include criminal and civil penalties, cancelling procurements, rescinding contracts, and suspension and debarment.
Reporting requirement to preserve protest right
Of course, if a competitor ever engaged in conduct prohibited by the PIA, it could gain the upper hand. So, it’s possible to protest an award that you believe was tainted by PIA violations. BUT, there’s a caveat. Within 14 days of discovering a possible violation, a contractor must report the relevant facts to the procuring agency. GAO will dismiss any protest that fails to timely meet this reporting requirement.
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If you have any questions relating to the PIA or other government contracting issues, give us a call at 913-354-2630.
Understanding the Basics: The Procurement Integrity Act was last modified: September 22nd, 2021 by