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ANNUAL ACQUISITION ETHICS TRAINING FOR DESIGNATED DEPARTMENT OF ARMY PERSONNEL 2007 1.

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Presentation on theme: "ANNUAL ACQUISITION ETHICS TRAINING FOR DESIGNATED DEPARTMENT OF ARMY PERSONNEL 2007 1."— Presentation transcript:

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2 ANNUAL ACQUISITION ETHICS TRAINING FOR DESIGNATED DEPARTMENT OF ARMY PERSONNEL

3 DUTY……HONOR….. GOVERNMENT CONTRACTS 2

4 Got Ethics Questions? Contact your ethics Contact your ethics counselor before you act. CPT Nancy Lewis: (703)

5 Why Ethics Rules? Ensure that we perform our mission with public interest in mind. Ensure that we perform our mission with public interest in mind. Uphold publics confidence in integrity of Government. Uphold publics confidence in integrity of Government. 4

6 Ex-Air Force Official Gets Prison Time Boeing Received Special Treatment in Procurement By Renae Merle and Jerry Markon Washington Post Staff Writer Saturday, October 2,2004; Page A01 5

7 Dragonlady gets her tail caught in the revolving door "The stain of this offense is very severe," said Judge T.S. Ellis of the U.S. District Court in Alexandria, Virginia, while sentencing Darlene Druyun this morning. Druyun, also known as the Dragonlady for being a tough negotiator, was the second-most senior Air Force procurement official and, while overseeing billions of dollars of Air Force contracts, was involved in discussions with Boeing for a $250,000-a-year job. She was sentenced to nine months in prison, a $5,000 fine, three years of supervised release and 150 hours of community service. Druyun (who referred to herself as the "Godmother of the C-17") pleaded guilty to\ "Godmother of the C-17""Godmother of the C-17" conspiracy to violate federal conflict-of-interest regulations on a technical basis. That is, she initially admitted only knowingly violating regulations, but not to using her position in the Pentagon to give Boeing advantages. However, she failed a lie detector test and then admitted that she "did favor the Boeing Company in certain negotiations as a result of her employment negotiations and other favors provided by Boeing to the defendant," according to the supplemental statement of facts and supplemental plea agreement. supplemental statement of factssupplemental plea agreement supplemental statement of factssupplemental plea agreement Druyun helped Boeing obtain a grossly-inflated $23 billion deal where the Pentagon would lease Boeing tankers, rather than buy them (and save up to $5 billion). Essentially, she was negotiating for Boeing rather than the government at this point. Assistant U.S. Attorney Robert Wiechering said, "she did this as a parting gift to Boeing and to ingratiate herself into Boeing." For more information on the Boeing tanker deal check out our Contractor Bailout Contractor BailoutContractor Bailout ArchivesArchives and our new report The Politics of Contracting. The Politics of Contracting ArchivesThe Politics of Contracting 6

8 Contractor fraud probed on Kuwait base U.S. authorities are investigating a web of more than $10 million in favors, bribes and kickbacks among Army officers, contractors and subcontractors at Camp Arifjan, court and military records show. By Matt Kelley, USA TODAY Matt KelleyMatt Kelley October 14,

9 Camp Arifjan... is the center of the Army's financial operation for Iraq. It has handled more than $4.2 billion in military contracts. It's also a center for corruption investigations. So far, 13 people associated with the Army's contracting operation in Kuwait have been charged with corruption in federal courts the majority of the 20 corruption cases brought to date involving Army contracts for Iraq. Eight of the 13 have pleaded guilty. Two enlisted soldiers at Camp Arifjan were court-martialed for taking bribes. So far, 13 people associated with the Army's contracting operation in Kuwait have been charged with corruption in federal courts the majority of the 20 corruption cases brought to date involving Army contracts for Iraq. Eight of the 13 have pleaded guilty. Two enlisted soldiers at Camp Arifjan were court-martialed for taking bribes. Six companies accused of corruption in Kuwait also have been punished administratively by Army contracting officials, records show. Six companies accused of corruption in Kuwait also have been punished administratively by Army contracting officials, records show. The biggest bribery case of the Iraq war so far involves Army Maj. John Cockerham, a former contracting officer at Arifjan, who is accused of taking $9.6 million in bribes from at least eight companies seeking contracts to provide bottled water and other supplies. 8

10 Those linked to Cockerham include some involved in other cases: Maj. Gloria Davis, a fellow contracting officer at Arifjan who worked on several contracts with Cockerham. Davis killed herself in December, a day after admitting to Army investigators that she took $225,000 in bribes from contractor Lee Dynamics International, federal court records say. Lee Dynamics also hired Davis' son, Damien Thomas, the company's lawyer says. The Army suspended Lee Dynamics from contracting in July. Maj. Gloria Davis, a fellow contracting officer at Arifjan who worked on several contracts with Cockerham. Davis killed herself in December, a day after admitting to Army investigators that she took $225,000 in bribes from contractor Lee Dynamics International, federal court records say. Lee Dynamics also hired Davis' son, Damien Thomas, the company's lawyer says. The Army suspended Lee Dynamics from contracting in July. Diaa Salem, a businessman from Kuwait whom Cockerham named as a business partner when creating a Texas company in The Army barred Salem and his firm, Jasmine International Trading, from getting contracts for a year in 2006 in a separate case. Diaa Salem, a businessman from Kuwait whom Cockerham named as a business partner when creating a Texas company in The Army barred Salem and his firm, Jasmine International Trading, from getting contracts for a year in 2006 in a separate case. In that case, two Army soldiers working at Camp Arifjan's finance office were court-martialed for taking $7,000 from Salem to process Jasmine's payments more quickly, according to Army records released to USA TODAY under the Freedom of Information Act. In that case, two Army soldiers working at Camp Arifjan's finance office were court-martialed for taking $7,000 from Salem to process Jasmine's payments more quickly, according to Army records released to USA TODAY under the Freedom of Information Act. 9

11 Other unassociated cases: LTC Guiterrez: Assigned to ASG-KU as Director of Logistics. Offered to disclose procurement –sensitive information to an employee of a contractor providing logistics support to the Army in exchange for a cash payment of $3400. LTC Guiterrez committed suicide subsequent to the preferral of bribery charges against him. LTC Guiterrez: Assigned to ASG-KU as Director of Logistics. Offered to disclose procurement –sensitive information to an employee of a contractor providing logistics support to the Army in exchange for a cash payment of $3400. LTC Guiterrez committed suicide subsequent to the preferral of bribery charges against him. CW2 Peleti: Charged in federal court with receiving $50,000 in bribes regarding a food services contract and smuggling $40,000 in cash to the US. Peleti was the Food Services Advisor for Iraq and Kuwait in CW2 Peleti: Charged in federal court with receiving $50,000 in bribes regarding a food services contract and smuggling $40,000 in cash to the US. Peleti was the Food Services Advisor for Iraq and Kuwait in CW2 Wiesemann: Charged with graft and bribery. He has since resigned with an Under Other Than Honorable Conditions discharge as he faces federal prosecution. CW2 Wiesemann: Charged with graft and bribery. He has since resigned with an Under Other Than Honorable Conditions discharge as he faces federal prosecution. LTC Bruce D. Hopfengardner, USAR: In connection with a bribery and fraud scheme, accused of fraudulently awarding contracts and authorizing cash payments despite defective or non performance; also accused of stealing $120,000 in cash from the Coalition Provisional Authority (CPA) in cooperation with other co-conspirators; faces wire fraud, wrongful conversion, interstate transportation of stolen property, conspiracy and money laundering charges. LTC Bruce D. Hopfengardner, USAR: In connection with a bribery and fraud scheme, accused of fraudulently awarding contracts and authorizing cash payments despite defective or non performance; also accused of stealing $120,000 in cash from the Coalition Provisional Authority (CPA) in cooperation with other co-conspirators; faces wire fraud, wrongful conversion, interstate transportation of stolen property, conspiracy and money laundering charges. 10

12 Other cases: COL Whiteford:. Once the second most senior person at CPA. Charged with conspiracy, bribery, wire fraud. COL Whiteford:. Once the second most senior person at CPA. Charged with conspiracy, bribery, wire fraud. LTC Debra Harrison: Assigned to CPA at one point as the Acting Comptroller. Charged in federal court with conspiracy, bribery, wire fraud, interstate transport of stolen property, bulk cash smuggling, money laundering and falsifying tax report. LTC Debra Harrison: Assigned to CPA at one point as the Acting Comptroller. Charged in federal court with conspiracy, bribery, wire fraud, interstate transport of stolen property, bulk cash smuggling, money laundering and falsifying tax report. LTC Michael Wheeler: Assigned as an advisor for CPA projects for the reconstruction of Iraq. Charged in federal court with conspiracy, bribery, wire fraud, interstate transport of stolen property, bulk cash smuggling. LTC Michael Wheeler: Assigned as an advisor for CPA projects for the reconstruction of Iraq. Charged in federal court with conspiracy, bribery, wire fraud, interstate transport of stolen property, bulk cash smuggling. These three worked in conjunction with LTC Bruce D. Hopfengardner. Phillip Bloom is a US citizen who received more than $8.6 million in rigged contracts. The indictment alleges that Bloom, in return, provided Whiteford, Harrison, Wheeler, Stein, Hopfengardner and others with over $1 million in cash, SUVs, sports cars, a motorcycle, jewelry, computers, business class airline tickets, liquor, promise of future employment with Bloom, and other items of value. 11

13 Topics Gifts Gifts Bribery Bribery Contractor Personal Contractor Personal Organizational Conflict of Interest Organizational Conflict of Interest Procurement Integrity Act Procurement Integrity Act Seeking Employment/Post- Government Service Employment Seeking Employment/Post- Government Service Employment 12

14 G I F T s S The servants of the nation are to render their services without any taking of presents.. The disobedient shall, if convicted, die without ceremony. --Plato 13

15 The rules on the acceptance of gifts are with a few exceptions, the same for all agencies in the Executive Branch. Everyone in DoD must be aware of the restrictions in order to avoid inadvertent mistakes that could ruin a career. As decision-makers, we all perform official duties that outsiders may want to unfairly influence. As public servants, we must not allow even the appearance of impropriety. 14

16 Prosecution !... Michael Dubberly, GM-15 program director of the Air Vehicle Division for the Naval Air Systems command, pleaded guilty to accepting gratuities from Engineering Matrix Services of Cardiff, N.J.... Dubberly was treated to four expensive dinners from executives of the company, which he helped award millions of dollars in Navy contracts. He also requested that a portion of the companys profits be deposited in an offshore mutual fund, according to the inspector general. Dubberly faces a maximum sentence of two years in prison and a $250,000 fine. 15

17 Two years in prison and a $250,000 fine in exchange for four expensive meals?!?!? If Mr. Dubberly were prosecuted under the bribery statute (18 USC 201), he could face penalties of up to 15 years in prison and 3 times the amount of the bribe. The prosecution appears to have decided to ask for lesser penalties in this case. If Mr. Dubberly were prosecuted under the bribery statute (18 USC 201), he could face penalties of up to 15 years in prison and 3 times the amount of the bribe. The prosecution appears to have decided to ask for lesser penalties in this case. And dont forget: even if the courts dont prosecute, the media surely will. 16

18 Gift Acceptance Analysis 1) Is it (a) from a prohibited source, or (b) offered because of your official position? 2) Is it defined as a gift? 3) Is there an exception? 4) Is there a limitation on using the exception? 17

19 General Gift Rule An employee shall not solicit or accept any gift or other item of monetary value 1. From a prohibited source; or source; or 2. Given because of the employees official position 18

20 Prohibited Sources Any person 1) seeking official action from, doing business with, or conducting activities regulated by, the individuals employing agency; or 2) whose interests may be substantially affected by the performance or nonperformance of the individuals official duties DEFINITIONDEFINITION 19

21 Not Gifts Modest items of food and refreshment Modest items of food and refreshment Greeting cards and items with little intrinsic Greeting cards and items with little intrinsic value, such as plaques, certificates, and trophies value, such as plaques, certificates, and trophies Loans from financial institutions Loans from financial institutions Opportunities and benefits available to Opportunities and benefits available to the public or a class of employees Rewards and prizes to competitors Rewards and prizes to competitors Pensions and other benefits from a former employer Pensions and other benefits from a former employer Anything paid for by the Government or Anything paid for by the Government or by the employee Gifts accepted under specific statute Gifts accepted under specific statute 20

22 Gift Exceptions Exceptions to the gift acceptanceprohibition 21

23 Gift Exceptions Gifts of up to $20, up to $50 per year from the same source Gifts of up to $20, up to $50 per year from the same source Discounts and similar benefits Discounts and similar benefits 22

24 You may accept gifts (other than cash or investment interests) up to $20 per occasion, if the aggregate market value received from one source under this exception does not exceed $50 in a year. You may accept gifts (other than cash or investment interests) up to $20 per occasion, if the aggregate market value received from one source under this exception does not exceed $50 in a year. You may accept reduced membership or other fees offered to all Government employees or all military personnel by professional organizations if the only restriction on membership is professional qualifications. You may accept opportunities, benefits, favorable rates, and commercial discounts offered You may accept reduced membership or other fees offered to all Government employees or all military personnel by professional organizations if the only restriction on membership is professional qualifications. You may accept opportunities, benefits, favorable rates, and commercial discounts offered (1) to a group in which membership is unrelated to Government employment (e.g., The Association of Retired Persons) (2) to members of an organization in which membership is related to Government employment if the same is broadly available to large segments of the public through organizations of similar size, (e.g., The Senior Executive Service Association) or (3) by an entity that is not a prohibited source 23

25 Gift Exceptions, cont. Gifts based on personal relationships Gifts based on personal relationships Gifts based on outside employment Gifts based on outside employment Awards and honorary degrees Awards and honorary degrees 24

26 Gift Exceptions, cont. Social invitations from other than prohibited sources Social invitations from other than prohibited sources Speaking engagements and widely attended gatherings Speaking engagements and widely attended gatherings Mr. and Mrs. Invitee Defense Pentagon Washington, D.C. 25

27 Gift Hypothetical You are a quality assurance officer for the X-Files Project. UFO Corp. is the contractor. You attend a week of related meetings. On Monday, the VP for at UFO Corp. takes you to lunch and insists on paying the $18 for your meal On Tuesday, the CEO of UFO Corp. invites you to join him for dinner for which you never see a bill. On Wednesday, you run into an old college chum and have drinks in the hotel lounge, where you discover your friend is now the Director of Marketing for UFO Corp. He charges the tab to his own room before you can get out your wallet. You leave the tip. On Thursday, you sit down for a quiet breakfast alone when a UFO Corp. project officer sits down with you. You ask the waiter for separate checks, but the UFO employee insists on covering the entire amount through his corporate expense account. Are you in trouble? 26

28 Analysis: 1) Is it from a prohibited source? YES, YES, YES, and YES 2) Is it defined as a gift? YES 3) Is there an exception? YES and NO. The first meal probably qualifies for the $20 exception. The second meal probably does not, unless you only had a Caesars salad for dinner. You would need to send a check to UFO Corp. to cover the cost of your dinner if it was over $20. The drinks in the lounge would have put you over the $50 limit from the same source, since your chum works for UFO Corp. Gifts from different representatives of the same company are deemed to be from the company. BUT, you might accept the gift of the drinks under another exception: gifts based on a personal relationship. The breakfast with the project officer clearly would put you over the limit of $50 from the same source in a year unless you reimbursed the company for your dinner with the UFO executive AND you were able to accept the drinks under the personal relationship exception. 27

29 Bribery Accepting a gift, even if nominal in value, in return for being influenced in the performance of an official act is a bribe. 18 USC Section

30 Contractors in Government Workplace! Contractors in Government Workplace! 29

31 Changing Workplace Contractors Support DoD Mission- No longer considered outsiders with whom we deal with at arms length!! Contractors are Perceived as Partners Unchanging Laws Fundamental Differences Legal and Ethical Limitations 30

32 Oath of Office Officers and Army Civilians I do solemnly swear/affirm that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true allegiance to the same; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties of the office upon which I am about to enter. So help me God. I do solemnly swear/affirm that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true allegiance to the same; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties of the office upon which I am about to enter. So help me God. 31

33 The Contractors Oath BOTTOM LINE 32

34 Goals Re-establish the Lines Re-establish the Lines Recognize when contractors and Federal employees must be distinguished Recognize when contractors and Federal employees must be distinguished 33

35 ALLOWING TIME OFF 34

36 ALLOWING TIME OFF Remember: Remember: Federal Personnel System rules/regulations are inapplicable to contractor personnelFederal Personnel System rules/regulations are inapplicable to contractor personnel Contractor personnel time is billed to the governmentContractor personnel time is billed to the government Exercise caution: Exercise caution: Organization DayOrganization Day Holiday PartyHoliday Party Off-Site ConferenceOff-Site Conference TrainingTraining Coordinate with contracting officer Coordinate with contracting officer Ensure that contractor personnel are informed Ensure that contractor personnel are informed 35

37 YOU MAKE THE CALL! The holiday weekend is fast approaching and the officer-in-charge of the organization invokes the 59-minute rule for all members of the office – including the contract support team who work with the Soldiers and government employees. The holiday weekend is fast approaching and the officer-in-charge of the organization invokes the 59-minute rule for all members of the office – including the contract support team who work with the Soldiers and government employees. Is it permissible to allow the contractor personnel to leave 59-minutes before their scheduled departure time? Is it permissible to allow the contractor personnel to leave 59-minutes before their scheduled departure time? 36

38 ANSWER Decisions concerning time off are to be made by the contractor NOT the government Decisions concerning time off are to be made by the contractor NOT the government Contractor personnel are paid pursuant to the terms of the contract with the Army – not according to federal personnel system rules/regulations Contractor personnel are paid pursuant to the terms of the contract with the Army – not according to federal personnel system rules/regulations The contractor employee has no authority to modify the terms of the contractThe contractor employee has no authority to modify the terms of the contract Only certain government personnel have the authority to modify the terms of the contractOnly certain government personnel have the authority to modify the terms of the contract 37

39 Misuse of Contractor Personnel 38

40 Misuse of Contractor Personnel Prohibited from directing contractor personnel to: Perform any tasks other than those in the contract. 39

41 Sharing a Taxi A DoD employee and a contractor employee are on official travel and would like to split the cost of a taxi ride to the airport. This is permissible. True/False?? True/False?? 40

42 Sharing the cost of the taxi ride with the contractor is permissible because each traveler would pay his or her pro-rata share to the neutral provider of the transportation. Sharing the cost of the taxi ride with the contractor is permissible because each traveler would pay his or her pro-rata share to the neutral provider of the transportation. The DoD employee should, however, consider whether sharing the taxi might constitute an appearance of a conflict of interest. The DoD employee should, however, consider whether sharing the taxi might constitute an appearance of a conflict of interest. TRUE 41

43 You Make the Call 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? 42

44 Answer The Army employee may accept the ride if it fits within one of the exceptions to the gift rule. Caution: There may be an appearance problem that requires discussion with an ethics counselor if, for example, this arrangement occurs frequently or the Army employee is making official decisions affecting the contractor. 43

45 Organizational Conflicts of Interest 44

46 What is an Organizational Conflict of Interest (OCI)? An "organizational conflict of interest" exists when a contractor is or may be unable or unwilling to provide the government with impartial or objective assistance or advice. Creates an actual or potential conflict of interest on a current contract or a potential future procurement. 45

47 The two underlying principles are – 1) Preventing the existence of conflicting roles that might bias a contractors judgment AND 2) Preventing unfair competitive advantage 46

48 How Does OCI Arise? government contractor has opportunity to skew a competition in its favor Biased ground rules cases... government contractor has opportunity to skew a competition in its favor... access to non public information that would give it an unfair competitive advantage Unequal access to information... access to non public information that would give it an unfair competitive advantage Impaired objectivity... government contractor would be in a position to evaluate itself or a related entity Impaired objectivity... government contractor would be in a position to evaluate itself or a related entity 47

49 Areas Providing systems engineering and technical direction Providing systems engineering and technical direction Preparing specification of work statements Preparing specification of work statements Access to proprietary information Access to proprietary information Solicitation provisions, waivers and mitigation plans Solicitation provisions, waivers and mitigation plans 48

50 Providing Evaluation Services A contractor cannot evaluate its own offers for products or services, or those of its competitors, without proper safeguards to ensure objectivity to protect the Governments interests. 49

51 Procurement Integrity Act 50

52 Resources 41 USC the current version of the Procurement Integrity Act went into effect on 1 Jan USC the current version of the Procurement Integrity Act went into effect on 1 Jan 97 Implemented by FAR 3.104, DFAR Part 203, and AFAR Part 5102 Implemented by FAR 3.104, DFAR Part 203, and AFAR Part

53 Bans Disclosing contractor bid or proposal or source selection information (for competitive procurements) Disclosing contractor bid or proposal or source selection information (for competitive procurements) Obtaining contractor bid or proposal or source selection information (for competitive procurements) Obtaining contractor bid or proposal or source selection information (for competitive procurements) Accepting compensation from certain contractors after leaving Federal employment Accepting compensation from certain contractors after leaving Federal employment Discussing non-Federal employment with certain bidders or offerors Discussing non-Federal employment with certain bidders or offerors 52

54 To Whom Does Disclosure Ban Apply? The disclosure ban applies to: Current Federal employees and military personnel Current Federal employees and military personnel Former Federal employees and military personnel Former Federal employees and military personnel Individuals (such as contractor employees) who are currently advising the government regarding the procurement Individuals (such as contractor employees) who are currently advising the government regarding the procurement Individuals (such as contractor employees) who have advised the government regarding the procurement but are no longer doing so Individuals (such as contractor employees) who have advised the government regarding the procurement but are no longer doing so 53

55 What Are Not Violations of the Disclosure Ban? Information already disclosed publicly or made available to public Information already disclosed publicly or made available to public Information disclosed by contractors. They are not prohibited from disclosing their own bid or proposal information. Information disclosed by contractors. They are not prohibited from disclosing their own bid or proposal information. Source Selection Info disclosed, pursuant to a proper request, to Congress, the Comptroller General, or the inspector general (provided the SSI or CBPI is highlighted and notice given that disclosure is restricted by PIA.) Source Selection Info disclosed, pursuant to a proper request, to Congress, the Comptroller General, or the inspector general (provided the SSI or CBPI is highlighted and notice given that disclosure is restricted by PIA.) 54

56 Penalties for Disclosing or Obtaining SSI or Contractor Bid or Proposal info + And ……….. 55

57 56

58 Administrative Actions Cancellation of the procurement. Cancellation of the procurement. Disqualification of an offeror. Disqualification of an offeror. Suspension or debarment of the contractor. Suspension or debarment of the contractor. Initiation of an adverse personnel action. Initiation of an adverse personnel action. Any other action in the best interest of the Government. Any other action in the best interest of the Government. 57

59 Seeking Employment 58

60 Applicable Procurement Integrity Act Procurement Integrity Act 18 U.S.C. Section U.S.C. Section 208 Joint Ethics Regulation Joint Ethics Regulation Standards of Ethical Conduct for Executive Branch Employees Standards of Ethical Conduct for Executive Branch Employees 59

61 Seeking Employment 5 C.F.R (b) 5 C.F.R (b) You are seeking employment when you: You are seeking employment when you: engage in negotiationsengage in negotiations make unsolicited employment contactmake unsolicited employment contact includes sending resume (up to 2 months) includes sending resume (up to 2 months) respond to unsolicited proposal (except unconditional rejection)respond to unsolicited proposal (except unconditional rejection) 60

62 Disqualification To avoid violation: Take no actionTake no action Written notice to supervisor (JER 2-204)Written notice to supervisor (JER 2-204) Supervisor response:Supervisor response: Written Written Recusal Recusal Copy to Ethics Counselor & subordinates Copy to Ethics Counselor & subordinates 61

63 Post-Government Employment Restrictions 62

64 Post-Government Employment Restrictions Representational Restrictions 18 U.S.C. § 207 Prohibits representing another before U.S. Government with intent to influence Lifetime banLifetime ban 2-year ban2-year ban 1-year cooling-off period for senior employees1-year cooling-off period for senior employees 1-year ban on senior employees representing foreign entities1-year ban on senior employees representing foreign entities 63

65 Government Purchase Cards SCENARIO: No one in your office enjoys drinking from the office water fountain. The water is often warm and sometimes has a weird metallic taste to it. One day Director H2O orders you (after taking a large gulp of warm, metallically water from the fountain) to buy a couple cases of bottled water with your GPC for the office. SCENARIO: No one in your office enjoys drinking from the office water fountain. The water is often warm and sometimes has a weird metallic taste to it. One day Director H2O orders you (after taking a large gulp of warm, metallically water from the fountain) to buy a couple cases of bottled water with your GPC for the office. QUESTION: May you buy bottled water? QUESTION: May you buy bottled water? 64

66 Answer Bottled water generally does not materially contribute to an agencys mission accomplishment and is generally a personal expense. GAO- Sanctioned Exception Where Water is Unpotable: Agencies may use appropriated funds to buy bottled water where a buildings water supply is unwholesome or unpotable. 65

67 Contractors SCENARIO: SCENARIO: You are the administrative staff supervisor for an organization. The receptionist for your organization is a contractor employee. He has worked in support of the organization for 2 years and has done a terrific job. He has decided to pursue a college education and has asked you for a letter of recommendation discussing his job performance & work ethic. He intends to include the letter of recommendation with his college application. QUESTION: May you write the letter of recommendation? 66

68 Answer Impermissible to give preferential treatment to any non-federal entity. Would need to do the same for all other contractor employees The terms of the contract control contract provides for the proper method to provide information on performance awards. Discuss with contracting officer. 67

69 CONTRATORS Scenario: Commander Lewis gave out coins to contract employees during an office award day? Did Commander Lewis do anything wrong? 68

70 ANSWER Coins purchased with appropriated funds shall not be presented to contractor personnel. DA Memo , para. 5d(2) Coins purchased with personal funds are okay! 69

71 Government Resources SCENARIO: While you are driving home from work your tire blows out. A gas station a block away replaces the tire right away. You are so thrilled that the problem is solved so easily that you inadvertently use your Government travel card to pay. Later, when you get the bill for the card you immediately pay in full. SCENARIO: While you are driving home from work your tire blows out. A gas station a block away replaces the tire right away. You are so thrilled that the problem is solved so easily that you inadvertently use your Government travel card to pay. Later, when you get the bill for the card you immediately pay in full. QUESTION: Is there a problem here? 70

72 Correct Answer Misuse of Government travel cards and purchase cards has received considerable congressional and media scrutiny in recent years. Even when employees have paid off their charges, agencies have taken administrative or disciplinary action. More misuse: Cash advances Vehicle lease agreements Motor vehicle repair Long term lease of land or building Nordstrom, Macys, Neiman Marcus 71

73 Post-Government Service Employment Restrictions SCENARIO: Found You!, Inc., is the contractor for the ABC program. You interact with the ABC division of Found You! on technical matters and evaluate their product. Right before a meeting to discuss a product, a ABC employee unexpectedly mentions that Found You! is looking for a manager in a new division, DEF, completely separate from ABC. You tell him youre going to talk to your ethics counselor ASAP and then get back to him with your decision. You then proceed with the meeting. SCENARIO: Found You!, Inc., is the contractor for the ABC program. You interact with the ABC division of Found You! on technical matters and evaluate their product. Right before a meeting to discuss a product, a ABC employee unexpectedly mentions that Found You! is looking for a manager in a new division, DEF, completely separate from ABC. You tell him youre going to talk to your ethics counselor ASAP and then get back to him with your decision. You then proceed with the meeting. QUESTION: Did you do the right thing? QUESTION: Did you do the right thing? 72

74 Answer Once you have engaged in a conversation such as just described, you are considered to be seeking employment with the company. 73

75 Duty. Honor. Government Contracts. Who you gonna call? LTC Denise Council-Ross: ; Duane Zezula: ; COL Scott Lind: ; ETHICS 74

76 Conclusion Duty. Honor. Government Contracts. Any questions?? 75


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