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A KU researcher in the department of Physics, Dr. Roy G. Biv, is filling out his annual Conflict of Interest (COI) report. His spouse, Bev, co-owns and is employed by Kaleidoscope, a company that produces multimedia materials. On the COI form Roy correctly answers “No” to the questions of whether or not he has significant financial interests in a business related to his area of research. Although Bev’s ownership, income and office in the company meet the dollar thresholds of significance on the COI form, her work has no relationship to Roy’s research and therefore should not be disclosed on the COI form.
During the year, Roy collaborates with a colleague from the School of Education to submit a grant proposal to develop and test multimedia materials to teach concepts in his area of specialization. The proposal budget includes a subcontract to have the educational materials produced. Roy and his Co-I see Bev’s company, Kaleidoscope, as the perfect choice to produce the materials. Kaleidoscope has done similar work for other clients with good success and Bev is far more familiar with the nature of Roy’s project than another contractor would be. This situation is more of a congruence of interests than a conflict of interests!
Would hiring Kaleidoscope on the proposed project constitute a conflict of interest for Dr. Biv?
Yes. A potential conflict of interest arises once Roy proposes a project that could involve a company in which he, his spouse or other household member have a significant financial interest.
An actual conflict of interest would arise if Bev’s company were awarded the subcontract. An outside observer might reasonably suspect that project funds from public sources were being preferentially directed on the basis of the marital relationship, for personal gain, and without regard for finding the best and least expensive company for the job. At this point, whether or not Roy’s preference for Kaleidoscope is biased and whether or not the company actually is the best choice for the job are moot. The PI has decision-making authority over the project budget and has decided to direct project funds to his spouse. The situation needs to be reported and managed.
What should be done?
The first step would be for Roy to file an ad hoc COI report disclosing his spouse’s financial interest in a business that has suddenly become related to his research activities. (Ad hoc COI reports can be filed through the online Web site or the COI form can be downloaded from the Research Integrity Web site.) Disclosure is important at the proposal stage because a conflict of interest must have an approved management plan in place before award funds are spent. In addition, depending on the funding agency, KUCR may be required to disclose the conflict to the agency at the time of the proposal.
After filling out the ad hoc report, Roy meets with his chair to discuss the issue and obtain her signature. Roy and his chair opt to draft a short management plan to submit with the COI report. Roy’s chair will be responsible for overseeing the management plan. The completed report is passed to their dean for the final signature and the fully-executed form is forwarded to Research Integrity. Research Integrity arranges for Roy’s report to be reviewed by the COI committee. After some correspondence between the committee, Roy and his chair to refine the plan, the COI committee recommends approval. Final approval of the management plan is made by the vice provost for research.
What management strategies would be appropriate for a situation such as Roy’s?
The purpose of this management plan is to ensure that the choice of subcontractor is objective and based on the best candidate for the project. Management strategies might include a) the PI’s recusal from the decision on the subcontractor (note that the decision should not be handed down to someone who reports to the PI), b) approval of the subcontractor by peers not involved with the project, c) documentation of the decision on the subcontractor, and d) public acknowledgement of the relationship.
What happens when the project is over?
When the project is over and Bev’s company once again has no relation to Roy’s research activities, then Roy should submit a new COI report and attach a note to the effect that the previously reported disclosure no longer exists. This way Roy’s chair is notified when she signs the new report that her obligation to oversee his management plan is over, and Research Integrity can update its disclosure records. Since the reduction of a conflict is not as critical as the occurrence, it is acceptable for Roy to wait for the annual reporting cycle to file this change in COI status.
Next month: Six common techniques used to manage conflicts of interest.
