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Mitigation Plan Doesn't Always Heal OCI

Client Alert | 1 min read | 01.18.06

In Alion Science & Technology Corp. (Jan. 9, 2006, http://www.gao.gov/decisions/bidpro/297342.pdf), GAO found an impaired objectivity organizational conflict of interest in the award of a contract to provide electromagnetic spectrum engineering services to a manufacturer of electromagnetic spectrum-dependent products, because performance of the contract would involve many different kinds of subjective judgments that might affect the sale or use of such products of the contractor, its competitors, or its customers. A mitigation plan based upon assignment of all work involving such judgments to a subcontractor was rejected because it was based upon erroneous, understated assessments of the conflict potential presented by multiple tasks in the solicitation, and because the agency had not considered the impact on the technical evaluation scoring of a shift of so much of the work from the prime contractor to the subcontractor.

Insights

Client Alert | 4 min read | 03.25.26

NAIC Intensifies AI Regulatory Focus: What Health Insurance Payors Need to Know

The National Association of Insurance Commissioners (NAIC) is intensifying its oversight of how insurers use AI — and the pace of regulatory activity shows no signs of slowing. Over the past several months, the NAIC has published a formal Issue Brief staking out its position on federal AI legislation, launched a multistate AI Evaluation Tool pilot aimed at examining insurers’ AI governance programs, and continued to expand adoption of its AI Model Bulletin across state lines. These developments continue a trend towards enhancing regulation; the NAIC adopted AI Principles in 2020 and a Model Bulletin in 2023 clarifying that existing insurance laws apply to AI systems and establishing expectations for governance, documentation, testing, and third-party oversight. That Model Bulletin has now been adopted in approximately 24 states....