Hiring the Government’s Own People: The Revolving-Door Rules That Can Backfire

Published 2026 | TIKC NewsWire

A former contracting officer or program manager can be one of the most valuable hires a government contractor ever makes. That same person can also become the reason a contract is challenged and an executive is investigated. The revolving door, the movement of people between government and industry, is legal and common. What is regulated, tightly, is what that person is allowed to do for you once they cross over.

The criminal core: 18 U.S.C. 207

The main post-employment statute is 18 U.S.C. 207, and it is a criminal law. It sets out several distinct restrictions on former federal employees. There is a lifetime ban on switching sides: a former official can never represent someone back to the government on the very same particular matter they worked on personally and substantially while in service. There is a two-year ban on matters that were under their official responsibility in their last period of service. And senior officials face a one-year cooling-off period on communicating back to their former agency on behalf of others. The theme is consistent: you cannot buy the ability to switch a specific person to the other side of a matter they used to own.

The procurement-specific layer

On top of the criminal statute sits the FAR and the Procurement Integrity Act. Under FAR 3.104, a former official who served in a key role on a procurement generally cannot accept compensation from the awardee for one year. So even where 18 U.S.C. 207 might not reach a particular activity, the compensation ban can still make the hire improper. The two regimes overlap, and a contractor has to clear both.

Why this is a conflict-of-interest problem for the company

Even a fully legal hire can create an organizational conflict or the appearance of one. If your new hire recently evaluated your proposals, ran your recompete, or holds nonpublic knowledge of a live procurement, a competitor can argue you gained an unfair advantage. That argument can surface in a bid protest with real consequences, regardless of whether anyone broke a criminal law. The individual’s exposure and the company’s exposure are separate risks, and both are real.

Build the wall on day one

The firms that hire former officials safely do the same things. They map exactly what matters and procurements the person touched. They wall that person off from any work connected to those matters, in writing, and they enforce it. They honor the compensation ban. And they disclose proactively when a question could arise, rather than waiting for a competitor to raise it. A documented screen is what turns a risky hire into a defensible one.

What to do now

• Get a written history. Before you hire, document the matters and procurements the person worked on for the government.
• Screen and recuse. Keep the new hire off anything tied to their prior official work, and put the screen in writing.
• Honor the one-year compensation ban. Confirm the PIA restriction does not apply before you assign or pay them for related work.
• Have them get an ethics opinion. Former officials can seek guidance from their old agency’s ethics office.
• Disclose early. If a conflict question exists, raise it with the contracting officer before someone else does.

The revolving door is an asset when you respect the rules and a liability when you ignore them. Hire the talent, build the wall, and keep both the person and the company clean. Brick by brick.

FAQ

Is it illegal to hire a former government official?

No. Hiring former officials is legal and common. What is restricted is what they can do for you afterward, especially representing you on matters they worked on in government and accepting compensation during the one-year procurement ban.

What is the lifetime ban under 18 U.S.C. 207?

A former official can never represent another party back to the government on the same particular matter in which they participated personally and substantially while in federal service.

What is the one-year compensation ban?

Under the Procurement Integrity Act and FAR 3.104, a former official who served in a key role on a procurement generally cannot accept compensation from the awardee for one year.

Can a legal hire still cause a protest?

Yes. Even a lawful hire can create an organizational conflict or the appearance of unfair advantage, which a competitor can raise in a bid protest. Screening and disclosure are the defense.

Sources

U.S. Office of Government Ethics. (2026). Post-employment restrictions under 18 U.S.C. 207.

Federal Acquisition Regulation. (2026). Section 3.104, Procurement Integrity, compensation restrictions.

This article is general information, not legal advice.