CEO 75-7 -- January 6, 1975

CONTRACTS BY BID

GOVERNMENT CONTRACT ISSUED ON "BEST BID" BASIS PRESENTING NO CONFLICT OF INTEREST

To: Vernon C. Holloway, Senator, 39th District, Miami

Prepared by: Gene L. "Hal" Johnson

SUMMARY:

When contracts are issued on a competitive basis, no violation of the Code of Ethics exists even though the public officer owns a material interest in a business entity doing business with an agency of which he is an officer. Section 112.313(2), F. S., as amended by Ch. 74-177, Laws of Florida. Nor does conflict of interest exist if the major contractor awarded a bid on a competitive basis subsequently subcontracts with another business entity in which a public officer owns a material interest.

QUESTION:

If Interstate Electric Company subcontracts work on state projects, would I have a conflict of interest, since I own controlling stock in the subject company?

Your question is answered in the negative so long as the contracts are issued on a competitive basis.

Section 112.313(2), F. S., as amended by Ch. 74-177, Laws of Florida, states:

No public officer or employee of an agency shall own a material interest in any business entity doing business with the agency of which he is an officer or employee, except in those cases when the business is contracted with full public competition and award is made to the lowest or best bidder or to a consultant in accordance with Chapter 287.055, Florida Statutes.

Where these competitive bid procedures have been followed, no conflict of interest exists even though the public officer does own a material interest in a business entity doing business with an agency of which he is an officer. Further, if these procedures have been followed, no conflict of interest exists where the major contractor subsequently subcontracts with another business entity to perform some work, even though a public officer owns a material interest in the firm performing the subcontracting work.

We should also point out that this provision applies only when the public officer's or employee's agency is the contracting agency. For example, in your situation the contracting agency must be the State Legislature for the provision to apply.

We therefore conclude that no conflict of interest exists even though you may own a material interest in the subject company.