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

An organizational conflict of interest occurs when a contractor is able to gain an unfair advantage under a contract due to its relationships or prior engagements. This situation can harm the integrity of the contractual process and compromise the fairness of competition. When a contractor has access to non-public information or has vested interests that might bias their performance or decision-making, it creates a conflict that could lead to unequal competition among vendors or compromise the fulfillment of the contract.

In this context, other options do not encapsulate the essence of an organizational conflict of interest. An employee's personal vendetta relates to individual behavior rather than systemic issues affecting organizations. External pressures influencing contract decisions may lead to questionable practices but do not inherently define an organizational conflict. Team disagreements focus on interpersonal dynamics rather than the access to unfair advantages under a contract. Hence, option C accurately reflects the nature of an organizational conflict of interest.