1. 410th COR Training
COR Ethics Training
2008

2. Learning Objectives 410th COR Training
Understand rules for working with Contractors
Understand ethical standards
Understand prohibitions

3. Working with Contractors in the Federal Workplace
410th COR Training
Working with Contractors in the Federal Workplace
Why Am I Here?

4. Modern Workplace 410th COR Training Contractors support the mission
Contractors are perceived as “partners”
The last decade has seen remarkable change, not only in the way Army competes and awards contracts, but also a fundamental change in the role contractors play in supporting the Army’s mission. A widely-held, but inaccurate, view is that contractors are no longer outsiders with whom we deal at arms length. Instead, acquisition reform has encouraged the view that contractors are partners – the one team concept. Although contractors play a key role, they have different loyalties than those of Federal employees. So, there remain fundamental differences between the Government and the contractor, and very definite legal and ethical limitations on the degree to which we may act as “partners.”
The following are numbers associated with the changing workplace:
72,000 contracts worth over $215B*
5.6M contractor personnel worked on Federal contracts**
DoD approximately 60% contractor personnel
*GSA’s Federal Procurement Data Center
**Data from Paul C. Light, The True Size of Government (1996), as of 1996
“The lines became too easy to cross, and no one was paying attention. I don't even think most people know where the lines are anymore."
The purpose of this training is to re-establish those lines. In many cases, the ethics rules governing your relations with contractor personnel are different from the rules governing your relations with your fellow Government employees. The goal of this training is to enhance your awareness of the differences in these rules.

5. Modern Workplace 410th COR Training
But Contractors are NOT Government employees
Conflict of interest rules N/A to Contractor employees -- even when:
Performing the same/similar work as Government employees
Working side-by-side with Government employees
The lines between Federal employees (to include military personnel) and contractor personnel have become blurred. The next three slides are used to emphasize the principles guiding Federal employee conduct and that guiding contractor personnel.

6. COR/Contractor Relationship BLUF
410th COR Training
COR/Contractor Relationship BLUF
Public service is a public trust
Your duties as a COR are to the Government
Professional friendships are not prohibited…however…no favoritism or preferential treatment
Always avoid a conflict of interest or appearance of a conflict of interest

7. Traps for the Unwary COR
410th COR Training
Traps for the Unwary COR
COR is Contracting Officer Representative. The term is found in DFARS
The contract clause found in the DFARS is found at: DFARS Contracting Officer's Representative.
As prescribed in , use the following clause: CONTRACTING OFFICER'S REPRESENTATIVE (DEC 1991)
(a) Definition. “Contracting officer's representative” means an individual designated in accordance with subsection of the Defense Federal Acquisition Regulation Supplement and authorized in writing by the contracting officer to perform specific technical or administrative functions.
(b) If the Contracting Officer designates a contracting officer's representative (  COR  ), the Contractor will receive a copy of the written designation. It will specify the extent of the  COR  's authority to act on behalf of the contracting officer. The  COR  is not authorized to make any commitments or changes that will affect price, quality, quantity, delivery, or any other term or condition of the contract.
The term “COTR” or “COR-T” is means contracting officer technical representative. A COTR differs in that he or she has specialized technical knowledge in overseeing a contract, such as engineers.

8. Information Security 410th COR Training 18 USC 1905
Government employees may not divulge information received in the course of their employment or official duties
Punitive: fine and/or 1 year in prison

9. Information Security 410th COR Training
Do not discuss acquisition or sensitive information:
In areas that are not secure (e.g., bathrooms, hallways, DFAC)
At a meeting, until you know who is at the meeting
(a) Non-public information. Employees may not disclose “non-public information”
to further the private interest of any individual, company or organization. [5 CFR
(a)] “Non-public information” means information that the employee
gains by reason of federal employment and that he or she knows (or reasonably
should know) has not been made available to the general public. [5 CFR
(b)]
(b) Advance procurement information. “A high level of business security must be
maintained in order to preserve the integrity of the acquisition process.” [FAR
5.401(a)] Employees participating in the acquisition process may not disclose:
(a) information on plans that would provide undue or discriminatory advantage to private or personal interests, (b) information received in confidence from an offeror, (c) information otherwise requiring protection under the Freedom of Information Act or Privacy Act, or (d) information pertaining to internal agency communications (e.g., technical reviews, contracting authority or other reasons, or recommendations referring thereto). [FAR 5.401(b) & (c)]
(c) Releasing information about a procurement before solicitation is issued.
“Information concerning proposed acquisitions shall not be released outside the
government before solicitation except for presolicitation notices IAW FAR
or FAR , or long-range acquisition estimates IAW FAR 5.404, or synopses IAW FAR Within the government, such information shall be restricted to those having a legitimate interest. Releases of information shall be made (a) to all prospective bidders, and (b) as nearly as possible at the same time, so that one prospective bidder shall not be given unfair advantage over another.” [FAR (a)]
(d) Information related to a source selection. Employees may not disclose contractor
bid or proposal information or source selection information. [41 USC 423(a),
(f)(1), (f)(2); FAR (a)] [Note: This is information related to a specific
source selection.]
(e) Information Protected Under the Trade Secrets Act. The Trade Secrets Act states
that, unless authorized by law, an employee may not publish or disclose any
information (a) that comes to him/her in the course of his/her employment or
official duties, and (b) that concerns or relates to the trade secrets, processes,
operations, style of work or apparatus, or to the identity, confidential statistical
data, amount or source of any income, profits, losses, or expenditures of any
person, firm, partnership, corporation, or association. [18 USC 1905]
(f) Intelligence. Releasing intelligence to contractors must comply with
AFI , Release of Intelligence to US Contractors, 1 April 1999.

10. OPSEC!!! Information Security 410th COR Training
Be aware of your surroundings!
OPSEC!!!

11. 410th COR Training
Gifts

12. Gifts: BLUF 410th COR Training You may not accept a gift:
Because of your official position
From a prohibited source (e.g., a Contractor)

13. Conflicts of Interest 410th COR Training
Joint Ethics Regulation, DoD R
5 CFR 2635
18 USC 201: Bribery/Kickback
14 Principles of Ethical Conduct for Employees of the Executive Branch

14. Definition of Gift 410th COR Training
Anything of value, including cash or investment interests (e.g., stocks or bonds), with exceptions
Not all of the gift exceptions will be discussed. Those exceptions that acquisition personnel will normally encounter are discussed:
Gifts of $20.00 or less.
Gifts based on personal relationships.
Discounts.
Gifts from prospective employers
Remember: If pay fair market value, it is not a gift.

15. Not a Gift 410th COR Training
Modest items of food, refreshments (coffee and donuts), but not a meal
Greeting cards and items with little intrinsic value (plaques, certificates) intended only for presentation
Commercial discounts available to the public or to all Government personnel
Anything for which you pay market value (i.e., face value)
Not all of the gift exceptions will be discussed. Those exceptions that acquisition personnel will normally encounter are discussed:
Gifts of $20.00 or less.
Gifts based on personal relationships.
Discounts.
Gifts from prospective employers
Remember: If pay fair market value, it is not a gift.

16. Gift Exceptions 410th COR Training
Gifts of $20 or less per occasion or $50 in a calendar year
Gifts of $20 or less per source per occasion, not exceeding $50 per calendar year from single source
May decline gifts to keep aggregate value at $20 or less
May not pay differential over $20 to retain gift
Not all of the gift exceptions will be discussed. Those exceptions that acquisition personnel will normally encounter are discussed:
Gifts of $20.00 or less.
Gifts based on personal relationships.
Discounts.
Gifts from prospective employers
Remember: If pay fair market value, it is not a gift.

17. Gift Exceptions 410th COR Training
Gifts based on personal relationship
Gifts based on a personal relationship (family, good friend) rather than the position of the employee
Consider history of the relationship and whether family member or friend personally pays for the gift

18. Gift Exceptions 410th COR Training
Commercial discounts available to general public or all Government or military personnel
However, you cannot accept discounts to subgroups based on rank, position or organization

19. Gift Exceptions 410th COR Training Gifts from prospective employers
Meals, lodging, transportation, etc,
IF, customarily offered
But…must be reported

20. Gift Exceptions 410th COR Training Gifts between Employees
Departing Soldiers
Traditional gift-giving occasions

21. However… 410th COR Training It is NEVER acceptable to:
Accept a gift in return for being influenced to perform an official act
Accept gifts so frequently that a reasonable person would think you are using your office for private gain
Public service is a public trust

22. Misuse of Contractor Personnel
410th COR Training
Misuse of Contractor Personnel

23. Prohibitions 410th COR Training
Prohibition on personal services contracts (which make contractors appear to be Government employees)
Contractor personnel cannot perform Federal functions
FAR
The following statutory and regulatory provisions are applicable to personal services contracts:
5 U.S.C Employment of experts and consultants; temporary or intermittent
10 U.S.C. 129b - Authority to procure personal services
10 U.S.C Personal services contracts (at medical treatment facilities)
FAR
DFARS
AFARS
A personal services contract is characterized by the employer-employee relationship it creates between the Government and the contractor’s personnel. The Government is normally required to obtain its employees by direct hire under competitive appointment or other procedures required by the civil service laws. Obtaining personal services by contract, rather than by direct hire, circumvents those laws unless Congress has specifically authorized acquisition of the services by contract. To determine if Federal functions, ask whether comparable services performed in the same or similar agencies by Government personnel or are services in furtherance of assigned functions or mission.

24. Remember Your Charter 410th COR Training Monitor contract compliance
Do not interfere with Contractor-employee relations
Do not tell Contractors to:
Hire or fire a particular employee
Reassign or discipline an employee
Grant or deny leave
Change employee duty hours

25. Contractor-Employee Relationship
410th COR Training
Contractor-Employee Relationship
Contractor supervisor determines:
Who works what hours
Leave and other time off
Holidays worked
No “59 Minute Rule”
No fitness time
Organization Day Picnic? Perhaps, if…
The following statutory and regulatory provisions are applicable to personal services contracts:
5 U.S.C Employment of experts and consultants; temporary or intermittent
10 U.S.C. 129b - Authority to procure personal services
10 U.S.C Personal services contracts (at medical treatment facilities)
FAR
DFARS
AFARS
A personal services contract is characterized by the employer-employee relationship it creates between the Government and the contractor’s personnel. The Government is normally required to obtain its employees by direct hire under competitive appointment or other procedures required by the civil service laws. Obtaining personal services by contract, rather than by direct hire, circumvents those laws unless Congress has specifically authorized acquisition of the services by contract. To determine if Federal functions, ask whether comparable services performed in the same or similar agencies by Government personnel or are services in furtherance of assigned functions or mission.

26. Traveling with Contractors
410th COR Training
Traveling with Contractors
The following presentation will deal with a number of different situations concerning travel with contractor personnel. See “Travel Alternatives When Visiting Contractor Facilities,” issued as an information paper by OSD SOCO (November 2003), at the following website address:

27. Transportation and Travel
410th COR Training
Transportation and Travel
General rule: Official travel of Government employee must be funded by the Government
Sharing a vehicle can pose a problem
Does it look bad?? Well, does it?
If you travel in an official capacity to a “meeting” and your spouse will accompany you, your agency may accept travel expenses from a non-Federal source for your spouse, if your spouse will:
Support the mission of your agency or substantially assist you in carrying out your official duties;
Attend a ceremony at which you will receive an award or honorary degree; or
Participate in substantive programs related to the agency’s programs or operations.” [41 CFR ]

28. Contractor Required to Provide Under Contract?
410th COR Training
Contractor Required to Provide Under Contract?
Transportation is acceptable if it is included in a contract between the Government and the Contractor. Contracts for on-site inspections may contain a provision requiring the Contractor to make available to the Federal employee reasonable assistance for carrying out those official duties.
DoD Standards of Conduct Office memo, “Travel Alternatives When Visiting Contractor Facilities”, November 2003, pages 1-2 (italics in original).

29. Transportation Integral to a Site Visit?
410th COR Training
Transportation Integral to a Site Visit?
If the Contractor offers transportation within a single site, it may be acceptable as transportation integral to the site visit. Such transportation is not gift because it does not have an independent market value, is not otherwise available, entails unique capabilities, or is of nominal value.
Source: DoD Standards of Conduct Office memo, “Travel Alternatives When Visiting Contractor Facilities”, November 2003, page 2.

30. Travel Hypothetical 410th COR Training
COR lives on lovely Camp Arifjan; Contractor employee lives downtown
COR wants to purchase gifts for spouse; Contractor employee offers to take COR to local store
Can COR still objectively monitor Contractor compliance with contract?
Public service is a public trust
If you travel in an official capacity to a “meeting” and your spouse will accompany you, your agency may accept travel expenses from a non-Federal source for your spouse, if your spouse will:
Support the mission of your agency or substantially assist you in carrying out your official duties;
Attend a ceremony at which you will receive an award or honorary degree; or
Participate in substantive programs related to the agency’s programs or operations.” [41 CFR ]

31. Awards and Certificates for Contractor Personnel
410th COR Training
Awards and Certificates for Contractor Personnel

32. Awards And yes, this includes coins
410th COR Training
Awards And yes, this includes coins
Awards programs are based on statute:
Military – 10 USC 1124, 1125
Civilian USC
NO statutory authority for giving coins to Contractors, so…cannot use funds to purchase coins

33. Certificates of Appreciation
410th COR Training
Certificates of Appreciation
Do not use certificates to recognize Contractor or individual Contractor employees
Complicates selection process on future contracts
See also AR ,

34. Organizational Conflicts of Interest
410th COR Training
Organizational Conflicts of Interest

35. Statement of Work 410th COR Training
Contractor cannot provide both an item or service and corresponding
Item specifications OR
System or service work statement
Unless the Contractor is the sole source or did not solely prepare SOW
See FAR

36. Proprietary Information
410th COR Training
Proprietary Information
Contractors performing Government advisory and assistance services must:
Agree to protect information of other companies from unauthorized use or disclosure
Refrain from using the information for any purpose other than that for which it was furnished
See FAR

37. Procurement Integrity Act, 41 USC §423
410th COR Training
Procurement Integrity Act, 41 USC §423

38. Procurement Integrity Act (PIA)
410th COR Training
Procurement Integrity Act (PIA)
Ban on obtaining or disclosing Contractor bid or procurement info
One-year ban on accepting compensation from certain Contractors after leaving Federal employment
Requirement for procurement officials to report employment contacts with a Contractor

39. Criminal/Civil Penalties for Disclosure
410th COR Training
Criminal/Civil Penalties for Disclosure
Imprisonment up to 5 years
Up to $50,000 fine per violation plus twice the amount of compensation an individual or organization received or offered for the prohibited conduct

40. Administrative Actions
410th COR Training
Administrative Actions
Cancellation of the procurement
Disqualification of an offeror
Rescission of the contract
Suspension or debarment
Adverse personnel action
Other action in the best interest of the Government

41. Contractor Bid or Proposal Information (CBPI)
410th COR Training
Contractor Bid or Proposal Information (CBPI)
Cost or pricing data
Indirect costs & direct labor rates, and overhead rates
Proprietary information about manufacturing processes, operations or techniques marked by the Contractor

42. CBPI Does NOT Include 410th COR Training
Information already disclosed or made available to public
Information disclosed by contractors
Information disclosed pursuant to a proper request from Congress, Comptroller General, or Inspector General (if certain conditions met)

43. PIA & Post-Government Employment
410th COR Training
PIA & Post-Government Employment
These rules pertaining to the post-employment one year compensation ban are prescribed by the Procurement Integrity Act. These rules, if applicable, are in addition to other post-government restrictions discussed later.

44. One-Year Ban Rule 410th COR Training
Federal employees who serve in one of seven positions or who make decisions on a contract over $10M may not accept compensation from the contractor for one year as an employee, consultant, officer or director
Ban applies to officers, enlisted, civilians

45. The Seven Positions 410th COR Training 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
On 10 August 1999, the DoD Standards of Conduct Office (DoD/GC-SOCO) issued a memorandum on the subject, "Guidance on Application of Procurement Integrity Compensation Ban to Program Managers." This memo is helpful in determining whether and individual is a program manager. It may be found on OSD SOCO’s website:

46. The Seven Decisions 410th COR Training
Award a contract, subcontract, modification, or task or delivery order over $10M
Establish rates applicable to a contract or contracts valued over $10M
Approve issuance of a contract payment or payments over $10M
Pay or settle a claim over $10M
On 10 August 1999, the DoD Standards of Conduct Office (DoD/GC-SOCO) issued a memorandum on the subject, "Guidance on Application of Procurement Integrity Compensation Ban to Program Managers." This memo is helpful in determining whether and individual is a program manager. It may be found on OSD SOCO’s website:

47. PIA & Reporting Contacts
410th COR Training
PIA & Reporting Contacts
If you are:
Participating personally and substantially in a…
Competitive procurement…
Valued in excess of the simplified threshold (currently $1M OCONUS)
And you contact or are contracted by a bidder or offeror in the procurement…
You MUST:
This concerns the PIA.

48. PIA & Reporting Contacts
410th COR Training
PIA & Reporting Contacts
Promptly report the contact in writing to your supervisor & ethics counselor
and
Reject the offer or
Disqualify yourself from further involvement in the procurement
Give written report to supervisor & ethics counselor, and either:
(1) reject the possibility of employment, or
(2) seek disqualification from working on procurement until job discussions end & there is no arrangement for employment.
Rule applies only to contracts in excess of simplified acquisition threshold ($100,000).
Rule applies only between date when bids or proposals are received & contract award date.
Rule applies to contacts with “bidders” & “offerors.”
The maximum penalty is: Civil penalty of $50,000 for each violation, & adverse personnel action (i.e., termination).

49. Disqualification Actions
410th COR Training
Disqualification Actions
To avoid violating the PIA:
Take no action
Written notice to supervisor (JER 2-204)
Supervisor response:
Written Recusal
Copy to Ethics Counselor & subordinates

50. 410th COR Training
We may operate as a team with our contractors, but we are in different lanes
Avoid appearance problems
Ask your ethics counselor!

51. YOU MAKE THE CALL! 410th COR Training
The holiday weekend is fast approaching and your OIC invokes the “59-minute rule” for all members of the office – including the Contract support team.
Is it permissible to allow Contractor personnel to leave 59-minutes before their scheduled departure time?

52. 410th COR Training
No!

53. YOU MAKE THE CALL! 410th COR Training
The day is going by fast and the boss has been tied up on a project. Bob, a former Soldier and friend who now works for a Contractor on the support contract, is going to the food court for lunch. You ask him to stop by “Chick-on-a-Stick” to pick up lunch for the boss.
Is it permissible to ask Bob to pick up lunch?

54. 410th COR Training
No!

55. YOU MAKE THE CALL! 410th COR Training
A contractor employee offers to drive an Army employee to lunch at a restaurant ten miles off-post in his personal vehicle.
May the employee accept the ride?

56. Under $20? Perhaps… Does it look bad?
410th COR Training
Answer: Probably not
Under $20? Perhaps… Does it look bad?

57. YOU MAKE THE CALL! 410th COR Training
May commander’s coins be given to Contractor employees?

58. 410th COR Training
Not only No, but He!! No!

59. YOU MAKE THE CALL! 410th COR Training
A Contractor for your organization wants to offer ALL NCOs in your unit free tickets to the home opener for the Seattle Mariners! The Contractor hopes that this will further promote the partnership between Army and Contractor personnel. The tickets have a face value of $55 but the Contractor paid $20 each.
May the NCOs accept the tickets?

60. 410th COR Training
No!
Contractor is a prohibited source, so no gifts are permissible unless an exception applies:
$20/$50 rule: No – Rule is “face value” not what Contractor paid
General discount or benefit? No – offered only to NCOs within your organization
Personal Relationship? No – offered because of status as NCO

61. YOU MAKE THE CALL! 410th COR Training
Your unit is having an Organization Day. Place of duty for all employees is the post picnic ground or the office. The COR tells Contractor employees they must attend.
Did the COR properly exercise his/her authority?

62. 410th COR Training
No!
CORs cannot interfere with the Contractor’s management prerogative by “supervising” Contractor employees or otherwise directing their work efforts
Unless Organization Day attendance is part of the Statement of Work, the Government cannot REQUIRE Contractor employees to attend

63. HOWEVER… 410th COR Training
Contracting employees CAN attend the Organizational Day activities
At their own expense and on their own time
Provided the Contractor allows them to attend