Counsel Commentary: “Revolving Door” Protests

Federal employees are subject to so-called “revolving door” laws when they leave government service and join the private sector to prevent unethical behavior and conflicts of interest. Upon resigning, they will receive an ethics advisory opinion letter laying out the restrictions they must follow and their compliance responsibilities. 

Contractors who hire former government employees also must understand that this may create an actual or apparent conflict of interest. These conflicts could have significant ramifications and may even result in disqualification from a procurement. If a contractor learns that one of their competitors has hired a former government employee, the contractor could file a protest to allege that the competitor has a disqualifying conflict of interest that was not properly considered by the contracting officer. 

Although circumstances vary by case, bid protest decisions from the Government Accountability Office (GAO) and the U.S. Court of Federal Claims (COFC) address conflicts of interest arising from the hiring of former government employees. RJO shareholder Stephen L. Bacon discusses the takeaways from these decisions and why it is important for contractors to proceed with caution in his monthly Contract Management Magazine column, “‘Revolving Door’ Protests.” He also explains what contractors should be particularly aware of when hiring and provides recent examples of cases. 

“GAO and COFC decisions underscore why contractors must be aware of any actual or potential unfair competitive advantage that may be obtained by hiring a former government employee,” Bacon writes. “Before hiring a candidate, contractors should have an accurate and complete understanding of the candidate’s prior roles and responsibilities during government service.”

The piece, which appears in the magazine’s November issue (subscription required), is the latest entry in Bacon’s monthly Counsel Commentary column and is published by the National Contract Management Association. It was used with permission.

Read Bacon’s latest Contract Management article here.