Ethics & Procurement Integrity -- Brochure (July 2007) - US Office of ...

Ethics &ProcurementIntegrityWhat You Need to Know as a Federal Employee Involvedin the Procurement and Acquisition ProcessContents3 Introduction3 Conflicts of Interest3 Financial Conflicts4 Impartiality Issues4 Gifts4 Gifts From Contractors5 Gifts To Contractors6 Procurement and Other Nonpublic Information6 Procurement Information7 Other Nonpublic Information7 Restrictions on Employment Discussions7 Seeking Employment: General Rules7 Seeking Employment with a Bidder or Offeror8 Working for a Contractor After Government8 Accepting Compensation from a Contractor9 General Post-Employment Restrictions10 Miscellaneous10 Fundraising10 Letters of Recommendation10 Outside Employment with a Contractor10 Conclusion11 About OGE

IntroductionAs a Federal employee involvedin the procurement andacquisition process, you playan important role in preserving theintegrity of Government contractingand assuring fair treatment of bidders,offerors, and contractors. A violationof ethics rules can cause a bid protestor undermine the public’s confidencein Government. Improper conductcan also result in an administrative,civil or even criminal penalty.This brochure provides generalinformation only. It will help yourecognize some of the most commonethics and procurement integrityissues that can come up during thecontracting process. Where there areexamples, please note that they justillustrate a few common scenarios.You might encounter other issues ordifferent situations.If you have a specific issue, havequestions, or need additional help,contact an ethics official at youragency before taking any action. Forinformation on how to contact yourDesignated Agency Ethics Official(DAEO), consult the DAEO list on theOffice of Government Ethics websiteat http://www.usoge.gov.1ConflictsofInterestEthics laws prohibit Governmentemployees from having financialconflicts of interest. By keeping inmind a few basic concepts, you canhelp ensure that contracts are awardedand administered free from improperinfluence or even the appearance ofimpropriety.Financial ConflictsA criminal law prohibits you fromworking on a Government matter(such as a contract) that would affectyour financial interests. This prohibitionalso covers the financial interestsof certain other persons such as:♦ your spouse;♦ minor child;♦ general partner;♦ an organization in which you serveas an employee, officer, director,trustee, or general partner; and♦ a person with whom you areseeking or have an arrangementfor future employment.A Few Examples of FinancialConflicts of InterestYou would have a financialinterest in a contract or othermatter that affects the contractorin situations such as these:♦ You own stock in a companythat is bidding on a contract(or that is likely to be asubcontractor).♦ You have a pension with, ordeferred compensation from,your former employer, acontractor that is participatingin a procurement with youragency.♦ You moonlight for a companythat gets a contract with youragency.♦ Your spouse works for acontractor and her salary wouldbe affected if her company isawarded (or loses) a contractwith your agency.3

Other NonpublicInformationIn addition to the rules on disclosureof specific procurement information,ethics rules prohibit you from disclosingany nonpublic information tofurther your private interests, or thoseof another person, such as a contractoror contractor employee. Nonpublicinformation includes informationabout a contract or procurement thatyou gain through your job and thatyou reasonably should know has notbeen made available to the public.An example of nonpublic informationwould be an agency’s internal decisionto terminate a particular contract.If you have any doubt about whetherinformation is protected information,or whether you are permitted todisclose such information, you shouldget advice from your agency ethicsofficial before disclosing or otherwiseusing the information.4RestrictionsonEmploymentDiscussionsDuring the course of your Governmentservice, you might decide toseek employment in the private sectoror even with a contractor who doesbusiness with your agency. There areseveral restrictions that apply to yourGovernment work when you seekfuture employment or have employmentdiscussions with contractors.Seeking Employment:General RulesAll Government employees aresubject to the rules on seekingemployment. These rules are quitebroad and apply well before you and apotential employer actually negotiatespecific terms and conditions ofemployment.You may not work on Governmentmatters that would affect the financialinterests of a contractor with whichyou are seeking employment. Thisrule generally applies even if youmake an unsolicited contact aboutpossible employment. It also appliesif you do not reject a contractor’sunsolicited overture about possibleemployment.Once you have reached an agreementfor future employment with a contractor,you still may not work on anyGovernment matters that would affectthe financial interests of the contractor.And remember, in any case whereyou have an obligation to recuseyourself from working on an assignment,you should notify your supervisoras soon as possible about yourneed to recuse.Seeking Employment witha Bidder or OfferorAs a Federal employee involved inthe procurement process, you mightbe subject to additional rules under theProcurement Integrity Act when youhave employment discussions with7

idders or offerors. These rules applyonly if you are performing certainfunctions involving:♦ the specification or statement ofwork;♦ the solicitation;♦ the evaluation of bids or proposals,or selecting a source;♦ the negotiation of price or termsand conditions of the contract; or♦ the review or approval of the awardof a contract.If you are performing one ofthese functions in a competitiveprocurement for a contract inexcess of $100,000, and you contactor are contacted by a bidder or offerorin that procurement about possiblenon-Federal employment, you must:♦ promptly report the contact inwriting to your supervisor and youragency ethics official; and♦ either-- reject the possibility of non-Federal employment; or-- consult with your supervisor anddo not work on that procurementuntil the agency has authorized youto do so.Note: you must also submit a writtendisqualification notice to the contractingofficer, the source selectionauthority, and your supervisor.5Working for aContractor AfterGovernmentDepending on your Governmentposition and what your role was in aprocurement, you might be subject tocertain restrictions when you leaveGovernment service.Accepting Compensationfrom a ContractorYou might be banned from acceptingcompensation from a contractor forone year after you served in a coveredprocurement-related position or madea procurement-related decision foryour agency. The ban, which is partof the Procurement Integrity Act,prohibits you from accepting compensationas an employee, officer, director,or consultant of the contractor.Who is Covered by theOne-Year Ban?The one-year ban applies if you:Served in any of the followingpositions on a contract over$10 million:♦ Procuring contracting officer;♦ Source selection authority;♦ Member of a source selectionevaluation board;♦ Chief of a financial or technicalevaluation team;♦ Program manager;8

♦ Deputy program manager; or♦ Administrative contracting officer;orPersonally made any of thefollowing decisions on behalf of youragency to:♦ Award a contract, subcontract,modification of a contract orsubcontract, or a task order ordelivery order over $10 million;♦ Establish overhead or other ratesfor a contractor on a contract orcontracts valued over $10 million;♦ Approve a contract payment orpayments over $10 million; or♦ Pay or settle a claim over$10 million.ExceptionThis restriction does not prohibit youfrom working for another division oraffiliate of the contractor, as long as itdoes not produce the same or similarproducts or services as the division oraffiliate responsible for the contract inwhich you were involved.General Post-EmploymentRestrictionsYou should also keep in mindthat there are criminal postemploymentrestrictions that apply toall Federal employees regardless ofwhether they work for a contractorafter Government service. You maybe covered by one or more of theserestrictions even if you did notperform any of the functions or servein any of the roles designated by theProcurement Integrity Act (see above).The most common restrictions areexplained below.Common RestrictionsYou are permanently barred fromrepresenting another person beforethe Government on the same matter(such as a contract) on which youworked as a Government employee.Representing means making acommunication or appearance withintent to influence the Government,and includes signing a letter, attendinga meeting, making a presentation, andmaking a telephone call.If you had official responsibilityfor a matter (such as the award ofa contract) during your last yearof Government service, you are barredfor two years from representinganother person before the Governmentconcerning that same matter. To becovered by this restriction, you neednot have worked on the contract, solong as it was under your supervision.If you are a “senior employee,” youare subject to a third restriction. Thisban prohibits you from representingother persons before the Governmenton any matters before your agencyfor one year after leaving Governmentservice. You need not have workedon the matter, nor had official responsibilityfor the matter. Your agencyethics official can tell you whetheryou are considered a “senioremployee.”9

These restrictions are quite broad.They can include communications,appearances or other representationsthat you might make on behalf of acompany while performing workunder a Government contract — notjust major communications about theaward or modification of a contract.However, they generally do notinclude behind-the-scenes work thatdoes not involve communication backto the Government.When in Doubt, Get HelpThere are other restrictions, aswell as exceptions, that governthis complex area of the law.Moreover, the consequences ofviolating these restrictions can besevere. You should consult with youragency ethics official before seekingemployment with a contractor todetermine whether a post-employmentrestriction might apply to yoursituation.6MiscellaneousFundraisingYou may not solicit a contractor or itsemployees for a charitable donationbecause they are “prohibited sources”of gifts under the Federal ethics rules.This is true even if, for example, youare fundraising on your own time andoutside of the workplace, and you arequite friendly with the contractoremployee.Letters of RecommendationYou generally may provide a letterof recommendation for a contractoremployee, on official agency letterhead,in response to a request for anemployment recommendation orcharacter reference. The letter ofrecommendation must be based onyour personal knowledge of the abilityor character of the contractor employeewith whom you have dealtduring the course of your Federalemployment or whom you are recommendingfor Federal employment.Outside Employment witha ContractorIf you would like to “moonlight” foran agency contractor, you shouldconsult with your agency ethicsofficial before taking any actionpursuing such outside employment.Depending on the facts, you couldtrigger restrictions related to thefollowing issues: seeking or negotiatingfor employment, procurementintegrity, conflicting financial interests,impartiality concerns, andagency-specific rules and procedures.ConclusionWe hope this brochure hashelped you identify someof the ethics and procurementissues that can come up in theprocurement and acquisition process.For more information on these issues,contact your agency ethics official.10

About OGEThe Office of Government Ethics(OGE) is the agency thatexercises leadership in theexecutive branch to prevent conflictsof interest on the part of Governmentemployees, and to resolve thoseconflicts of interest that do occur. Inpartnership with executive branchagencies and departments, OGE fostershigh ethical standards for employeesand strengthens the public’s confidencethat the Government’s business isconducted with impartiality andintegrity.www.usoge.govJuly 200711