[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1789.161]

[Page 1127]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1789--USE OF CONSULTANTS FUNDED BY BORROWERS--Table of Contents
 
  Subpart A--Policy and Procedures With Respect to Consultant Services 
                      Funded by Borrowers--General
 
Sec. 1789.161  Conflicts of interest.

    The standard for determining organizational conflicts of interest 
shall be as set forth in the FAR subpart 9.5 (48 CFR part 9, subpart 
9.5); however, the identification of the existence of an organizational 
conflict of interest may be made by either the Administrator or the 
cognizant Contracting Officer. In the event an organizational conflict 
of interest is determined to exist, the cognizant Contracting Officer 
shall take the actions prescribed at FAR 9.504 (48 CFR 9.504) to attempt 
to avoid, neutralize or mitigate the conflict. Should these actions be 
deemed by the Administrator and the Contracting Officer to adequately 
resolve the conflict, the contracting action with the offeror/contractor 
may proceed. Should the Administrator or the Contracting Officer 
determine that an organizational conflict of interest still exists such 
that contract award or other contracting action cannot be taken (award 
of task/delivery order, etc.) the offeror/contractor shall be so 
informed by the Contracting Officer and be provided a reasonable 
opportunity to respond in accordance with FAR 9.504(e) (48 CFR 
9.504(e)). After considering the contractor's response, if it is found 
by both the Administrator and Contracting Officer to remedy the conflict 
of interest, the contracting action may proceed. If the Administrator 
and Contracting Officer determine that the contractor's response does 
not resolve the conflict of interest, yet continuing with the 
contracting action with the offeror/contractor in question is considered 
in the best interest of the United States, a waiver in accordance with 
FAR 9.503 (48 CFR 9.503) may be executed. This waiver shall be submitted 
under the Contracting Officer's signature and approved by the 
Administrator. The Administrator has been delegated Head of Contracting 
Activity authority by the USDA Senior Procurement Executive solely for 
the purpose of waiver approval.