When is it considered necessary for a contractor to avoid OCI instead of mitigating it?

A contractor needs to avoid an Organizational Conflict of Interest (OCI) when the conflict is significant because the potential for unfair competitive advantage or impaired objectivity can have serious implications for the integrity of the contracting process. In such cases, the nature of the conflict could affect a contractor's ability to perform the work fairly and impartially. If the OCI is significant, it implies that the conflict is not something that can be easily managed or mitigated, and allowing it to persist could lead to substantial legal or ethical issues, loss of trust, and damage to the reputation of the contractor.

In situations where the conflict is significant, proactive measures to avoid the OCI entirely are essential to maintain the integrity of the contracting process. This might involve actions such as restructuring the company, implementing strict personnel policies, or even refraining from pursuing certain contracts altogether. This heightened need for avoidance is based on the understanding that significant conflicts can have detrimental effects that go beyond the immediate parties involved, impacting overall trust in public procurement systems.

On the other hand, minor, unavoidable, or negligible conflicts may not pose the same level of risk and can often be managed adequately through mitigation strategies, such as disclosure or implementing safeguards. Thus, the response to different levels of conflict varies, making avoidance a