SUBPART 209.5—ORGANIZATIONAL
AND CONSULTANT CONFLICTS OF INTEREST
(Added January
10, 2008)
209.570 Limitations on contractors acting as lead
system integrators.
209.570-1 Definitions.
209.570-2 Policy.
209.570-3 Procedures.
209.570-4 Solicitation provision and contract
clause.
209.570 Limitations on contractors acting as lead
system integrators.
209.570-1 Definitions.
“Lead system integrator,” as used in
this section, is defined in the clause at 252.209-7007, Prohibited Financial
Interests for Lead System Integrators.
See PGI 209.570-1 (Pop-up Window or PGI Viewer Mode) for additional information.
209.570-2 Policy.
(a) Except as provided in paragraph (b) of this
subsection, 10 U.S.C. 2410p prohibits any entity performing lead system
integrator functions in the acquisition of a major system by DoD from having
any direct financial interest in the development or construction of any
individual system or element of any system of systems.
(b) The prohibition in paragraph (a) of this
subsection does not apply if—
(1) The Secretary of Defense certifies to the
Committees on Armed Services of the Senate and the House of Representatives
that—
(i) The entity was selected by DoD as a
contractor to develop or construct the system or element concerned through the
use of competitive procedures; and
(ii) DoD took appropriate steps to prevent any
organizational conflict of interest in the selection process; or
(2) The entity was selected by a subcontractor to
serve as a lower-tier subcontractor, through a process over which the entity
exercised no control.
209.570-3 Procedures.
In making a responsibility
determination before awarding a contract for the acquisition of a major system,
the contracting officer shall—
(a) Determine whether the prospective contractor
meets the definition of “lead system integrator”;
(b) Consider all information regarding the
prospective contractor’s direct financial interests in view of the prohibition
at 209.570-2(a); and
(c) Follow the procedures at PGI 209.570-3 (Pop-up Window or PGI Viewer Mode).
209.570-4 Solicitation provision and contract
clause.
(a) Use the provision at 252.209-7006,
Limitations on Contractors Acting as Lead System Integrators, in solicitations
for the acquisition of a major system when the acquisition strategy envisions
the use of a lead system integrator.
(b) Use the clause at 252.209-7007, Prohibited
Financial Interests for Lead System Integrators—
(1) In solicitations that include the provision
at 252.209-7006; and
(2)
In contracts when the contractor will fill the role of a lead system
integrator for the acquisition of a major system.
