Conflicts of Interest

Who should read this page?

This page is primarily provided for Commercial Officers, but it is also relevant to all those involved in Conflicts of Interest (COI) across MOD.

What does this page provide?

This page briefly explains what a COI is, shows you where you can find policy and guidance on the subject, identifies the main legal regulations impacting COIs (the Legal Framework) and outlines the general principles underpinning COIs.

It also explains what is mandated, identifies who you can go to for advice and sets out the relevant Commercial training and provides a list of further reading.

What are COIs?

COIs arise when Suppliers seek to operate as a customer friend or Client and a Supplier for the same area of acquisition activity.

Where can I find policy and guidance on COIs?

The Conflicts of Interest Commercial Policy Statement [47KB PDF] states the MODs commercial policy.

OGC Procurement Policy note [PDF] External link to Internet content (ref: Information Note 08/08 1 July 2008 ) provides guidance on new Cabinet Office Mandatory requirements for Security and Information assurance provisions in contracts.

Protection of Information is a COI Firewall requirement. See paragraph 14.b of the Conflicts of Interest Commercial Policy Statement [47KB PDF].

For overarching policy related to Supply Networks, see MOD Supply Network Policy APB(07)39 V1.11 [33KB PDF].

What is the Legal Framework for COI?

The Data Protection Act 1998 External link to Internet content sets out the Legal obligations that underpin Information protection policy.

What is the general principle when dealing with COIs?

It is sometimes in the MODs wider business interests to allow suppliers to operate on both the client and supply side. Where this is the case, and approval has been provided by the Project Team Leader and the relevant Head of Commercial, a formal Compliance Regime must be used.

What is mandated when dealing with COIs?

The requirement to work in accordance with the policy and guidance set out in the Conflicts of Interest Commercial Policy Statement [47KB PDF]
The requirement to undertake a Risk Assessment prior to any engagement decision when a COI or potential COI is identified
An Approved Business Case to proceed despite the COI
Where an exception is granted:
- Implementation of a formally agreed Compliance Regime (CR)
- o Project Teams must create and maintain a register of all their CRs
- Appointment of Senior Responsible Officers (SROs) on both sides to monitor adherence to the CR
- Creation of a Firewall document

Who do I go to for advice on COI?

Contact	Phone / Email	Area
DGDC Commercial Systems	DGDC CS-1B-1	For policy advice on this document.
The relevant Head of Commercial		For business specific application and to refer contentious cases to DE&S Director Commercial or Director General Defence Commercial
DE&S Programmes and Technology Group (previously known as FBG)	DES PTG-TD-TM	For advice on the existing QinetiQ Compliance Regime
DGDC Industry Policy	DGDC SEC IP-5	For wider Business Ethics that are relevant to COI
Central Legal Services Head of Commercial Law		For legal advice in the construction and agreement of the CR

What training is available on COI?

This statement is supplemented by relevant education and training through the Commercial Practitioners Workshop (1 and 2). A new topic will be added to the online Commercial Awareness and Practitioners Programme (CAPP) training package in due course.

What further reading might help?

Commercial Toolkit content:

Tendering and Contract Award topic.
IPR Overview and Policy topic.
For an example of an existing Compliance Regime, see the QinetiQ Compliance Regime [27KB PDF].
Guidelines for Industry (GFI) No 2 [38KB PDF] Code of Procurement Ethics.

Change History

1 February 2010: Revised to reflect the requirement for Protect Teams to create and maintain a register for Compliance Regimes.
1 September 2009: Updated to reflect a change to the general principle of COIs and a minor change of contact details. The COI Commercial Policy Statement has been amended at paragraphs 2 and 6.
1 July 2009: Minor editorial changes and corrected reference link.
1 May 2009: This Topic added to the Toolkit for the first time.