Acquisition & Fiscal Law Division Mr. Kevin Cutler Program Counsel Ethics Counselor
Ethics Briefing Overview Procurement/Ethics Landscape at 30,000 AGL Procurement Integrity Act Restrictions on Post-Government Employment Ethics Safeguards Related to Contractor Conflicts of Interest
The Landscape at 30,000
The Civil War The Landscape at 30,000 Procurements Marked by Fraud (both sides) Unscrupulous Contractors 1863 False Claims Act
Watergate The Landscape at 30,000 1978 Ethics in Government Act
The Landscape at 30,000 Cold War Military Buildup under Reagan Operation Ill Wind 1986-1989 1988 Procurement Integrity Act 1989 Office of Government Ethics Agency
The Landscape at 30,000 Corporate Scandals Enron Tyco WorldCom 2002 Sarbanes-Oxley Act
GWOT Wartime Contracting Commission Report The Landscape at 30,000 Newton s Third Law Cracking down on: Improper payments Nonperforming contractors Waste & Fraud
Procurement Integrity Act 41 U.S.C. Section 423 FAR Part 3.104
Procurement Integrity Act Procurement Integrity Act has Four Basic Provisions: A ban on disclosing procurement information A ban on obtaining procurement information Requirement to report employment contacts by or with a contractor A 1-year ban for certain personnel on accepting compensation from a contractor
Procurement Integrity Act Prohibits Disclosure of Procurement Information Contractor bid or proposal information Source selection information Applies to current & former Federal employees Applies to current & former contractor employees advising the government
Procurement Integrity Act Prohibits Obtaining Procurement Information Prohibits knowingly obtaining Contractor Bid or Proposal Information Source Selection Information Applies to everyone
Procurement Integrity Act The Employment Contact Reporting Rule If participating personally and substantially: Promptly report any contact in writing to supervisor and designated ethics official, AND Either reject possibility of employment OR Disqualify self from further participation
Procurement Integrity Act 1-Year Compensation Ban (Rule of Sevens) Applies if served in one of seven positions for contract over $10 Million Procuring Contracting Officer Source Selection Authority Member of Source Selection Evaluation Board Chief of Financial or Technical Evaluation Team Program Manager Deputy Program Manager Administrative Contracting Officer
Procurement Integrity Act 1-Year Compensation Ban (Rule of Sevens) Applies if made one of seven decisions for contact over $10 Million Decision to award a contract Decision to award a subcontract Decision to award a modification Decision to award a task order or delivery order Decision to establish overhead or other rates Decision to approve issuance of a contract payment Decision to pay or settle a claim over $10 Million
Financial Conflict of Interest 18 USC Section 208 Prohibits an Employee from Participating Personally and Substantially in any Particular Matter in which he or she has a Financial Interest, if the particular matter will have a direct and predictable effect on that interest Includes: Negotiating for employment Imputed Interests for Spouse & Dependents
Other Post-Government Employment Restrictions 18 USC Section 207 Representation Bans Lifetime representation ban if participated personally and substantially in the particular matter Two-year representation ban if the particular matter was pending under official responsibility
Conflicts of Interest for Contractor Employees New provision at FAR 3.11 Effective December 2011 Government policy requires contractors to Identify and prevent personal conflicts of interest of their employees Prohibit employees from using non-public Government contract information for personal gain
Summary Always do right. This will gratify some people and astonish the rest. Mark Twain
Ogden Air Logistics Center Civil Law Division Mr. Lance Thaxton Attorney-Advisor Ethics Counselor
Principles of Ethical Conduct Executive Order 12674 identifies 14 principles of ethical conduct Public Service is a public trust Financial conflicts of interest Use of nonpublic government information No soliciting or accepting gifts Put forth honest effort at work Making unauthorized commitments Use of public office for public gain Avoid giving preferential treatment Protect and conserve Federal property Outside employment Disclose fraud, waste, abuse, and corruption Good faith effort in fulfilling obligations as a citizen No discrimination Avoid appearance of impropriety
Gifts from Outside Sources
What is a gift? Gifts From Outside Sources Any gratuity, favor, discount, entertainment, hospitality, loan, forbearance, or any other item having monetary value It includes services It includes gifts of training, transportation, travel, lodging, and meals
Gift Exclusions Food and Refreshements The coffee and donut rule Greeting cards and items with little intrinsic value Discounts and benefits available to all government employees or military members Rewards and prizes open to public and entry not part of official duties
Gifts from Outside Sources Basic rule: You may not directly or indirectly solicit or accept a gift that is given because of your official position or that is given to you by a prohibited source Never solicit gifts from anyone, for any reason (that means for yourself or for the Air Force) Do not accept gifts from prohibited sources A prohibited source is any person or organization that seeks official action by your agency, does or seeks to do business with your agency, is regulated by your agency, or has an interest that may be effected by you when you are doing you job Do not accept gifts that are given to you because of your official position The gift would not have been solicited, offered, or given had the employee not held the status, authority, or duties associated with his position
Gifts from Outside Sources DoD Standards of Conduct Office Encyclopedia of Ethical Failure Private helicopter ride to work Great dinner, thanks for the tip Thank you briefcase Pharmaceutical samples
Gift Exceptions There 12 exceptions to the gift rule Most common exceptions 20/50 rule Based on personal relationship or family friendship Widely attended gathering Gifts based on spouse s outside business or employment Be careful with exceptions Avoid appearance of ethical violation It is okay to decline a gift even if it falls under one of the exceptions
Hatch Act Political Activities Governs political activities of Federal civilian employees Joint Ethics Regulation and DoD 1344.10 Govern political activities of active duty military members
Political Activities of Federal Employees Keys to understanding permitted and prohibited political activities of Federal employees Partisan v. Nonpartisan On duty v. Off duty Federal employees may: Be candidates for public office in non-partisan elections Display political signs, but not while on duty, in a government office, or while using GOV Campaign for or against candidates in partisan election, but not while on duty or in a government office
Political Activities of Federal Employees Federal employees may: Contribute money to political organizations Attend political fundraising function in a personal capacity off-duty Cannot host but spouse can Distribute campaign literature in partisan election, but not while on duty, in a government office, or in a GOV Hold office in political clubs and parties, and serve as a delegate to state and national political party conventions Additional restrictions for SES members and employees of certain agencies
Political Activities of Active Duty Members Active duty military members may: Register, vote, and express opinion, but not as representative of the Armed Forces Attend partisan and non-partisan political meetings but only as a spectator and not in uniform Encourage others to exercise their voting rights without any undue influence Join a political club and attend meetings when not in uniform Display political sticker on private vehicle Active duty members may not run for or hold partisan or non-partisan political office
Ethics Counselors Avoid being a write-up in the Encyclopedia of Ethical Failure Ask your ethics counselor
Government Ethics ANY QUESTIONS?