Certified Professional Contract Manager (CPCM) 2025 – 400 Free Practice Questions to Pass the Exam

The term organizational conflict of interest (OCI) specifically refers to a situation where an organization has the potential to gain an unfair competitive advantage due to its contractual activities. This typically occurs when the organization’s relationships, activities, or resources might improperly influence its decision-making in the context of acquiring government contracts or performing those contracts.

In the context of government contracting, an OCI may arise if a contractor possesses non-public information from one contract that could unfairly benefit its performance on another contract. This undermines fairness in the procurement process and can lead to a lack of trust between the government and contractors. Therefore, ensuring that OCIs are identified and mitigated is crucial for maintaining integrity in competition and ensuring all bidders have a fair chance.

The other options describe different types of conflicts or issues that are not specific to the organizational context of contracting, such as personal biases, interpersonal disputes over resources, or general disputes from contractual obligations. These do not align with the definition and implications of an OCI in the regulatory framework surrounding contracts.