Definition
Conflict of Interest
A relationship that could bias a procurement decision.
A conflict of interest in procurement arises where a person involved in running or influencing a tender process has a personal, financial or other interest that could compromise their impartiality, such as a prior relationship with a bidder or a financial stake in the outcome. Buyers must identify, record and manage these to protect the integrity of the process.
How conflicts arise and are managed
Conflicts can involve evaluators, procurement staff, or decision-makers who have previously worked for, are related to, or hold shares in a bidding organisation. The Procurement Act 2023 places specific duties on buyers to take steps to identify and mitigate conflicts, including maintaining a conflicts of interest assessment.
Management options range from full recusal of the conflicted individual from the process, to independent review of their evaluation scores, to transparent disclosure where the conflict is minor and manageable.
- Personal relationships between evaluators and bidder staff
- Prior employment history connecting an evaluator to a bidder
- Financial interests, including shareholdings, in a bidding organisation
- Involvement in drafting specifications that favour a particular supplier
What suppliers should watch for
If you suspect an undeclared conflict affected a tender outcome, request information about how conflicts were identified and managed as part of your debrief. Evidence of an unmanaged conflict that affected the outcome can be a strong ground for a procurement challenge, though time limits for challenging are short.
Frequently asked questions
- Does a conflict of interest automatically invalidate a tender award?
- Not automatically. The key question is whether the conflict was properly identified and managed, and whether it actually affected the fairness of the outcome. An unmanaged conflict that influenced scoring is a stronger basis for challenge than a minor, disclosed and mitigated one.
- What should I do if I think an evaluator had a conflict of interest?
- Raise it formally with the buyer as part of your debrief request, ask how conflicts were identified and managed for that procurement, and seek legal advice quickly if you believe it affected the outcome, given short time limits for any challenge.
- Are buyers required to publish how they manage conflicts of interest?
- The Procurement Act 2023 requires buyers to take reasonable steps to identify and mitigate conflicts and to keep records, which can be requested. Publication practices vary, but suppliers can ask for relevant information as part of a debrief or a freedom of information request.
Related terms