ETHICS FOR GPC USERS

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ETHICS FOR GPC USERS APPROVING
OFFICIALS

• 2008

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Why Are We Here?
New duties responsibilities require a
different perspective, AND training is required
before you may use the GPC.
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HOW TO LOOK AT ETHICS ISSUES VIEW THE
BIG PICTURE
The general principles in EO 12674
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(No Transcript)
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ETHICS RESPONSIBILITIES IMPORTANT ISSUES FOR GPC
USERS

• Conflicts of interest
• Gifts from outside sources
• Financial disclosure
• Seeking non-Federal employment

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SOURCES OF ETHICS RULES

• EO 12674
• JOINT ETHICS REGULATION (JER)
• Criminal Civil statutes

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Penalties for Violations
Criminal AND Civil Violation of Federal Criminal
Statutes potential jail time Administrative
sanctions also, including removal.
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CONFLICTS OF INTEREST

• GENERAL RULES
  
• CANT USE PUBLIC POSITION FOR PRIVATE GAIN
• CANT GIVE APPEARANCE OF IMPROPRIETY
• THINK ABOUT
• WHAT YOU BUY
• WHERE YOU BUY IT

Lowes? Home Depot?? My brothers store???
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CONFLICTS OF INTEREST

• IS THERE A RELATIONSHIP WITH
• YOUR OWN FINANCIAL INTEREST? (PART-TIME
  JOB, POTENTIAL EMPLOYMENT, INVESTMENT?)
• THE FINANCIAL INTEREST OF A FAMILY
  MEMBER?
• A PERSONAL RELATIONSHIP?

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CONFLICTS OF INTEREST

• USE A COMMON SENSE APPROACH
• Ask for guidance (Check w/your supervisor or
  ethics counselor)
• Remember, you must avoid the appearance of
  impropriety

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GIFTSImproper Conduct?

• Vendors provide free merchandise, services,
  gifts, or portion of profit as incentive or
  kickback.
• Why do we have so many gift (gifts, bribes,
  kickback) issues?
• BECAUSE, the Federal Government, ( the Army)
  spends a HUGE amount of money! It is a normal
  part of commerce for businesses to compete for
  some of those , and one way to compete is to
  offer something of value to those who can affect
  how (or where) money is spent. Many of these
  practices are perfectly legitimate some are
  perfectly legitimate in the private sector, but
  our own ethics rules prohibit us from profiting.
  As part of the GPC program, you will be in a
  position to have gift issues arise because you
  are spending (or oversee spending) government .

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GIFTS - 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 201

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GIFTS

• LOTS OF OPPORTUNITIES FOR GIFT ISSUES!
• GENERAL RULE No gifts from prohibited sources
• MANY exclusions and exceptions

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GIFTS

• AN EMPLOYEE SHALL NOT SOLICIT OR ACCEPT ANY
  GIFT
• FROM A PROHIBITED SOURCE
• OFFERED ON ACCOUNT OF THE EMPLOYEES OFFICIAL
  POSITION

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GIFTS

• A PROHIBITED SOURCE IS ANY PERSON WHO
• SEEKS OFFICIAL ACTION FROM THE AGENCY
• DOES BUSINESS WITH THE AGENCY
• IS REGULATED BY THE AGENCY
• HAS INTERESTS THAT MAY BE AFFECTED BY THE
  PERMFORMANCE OR NONPERFORMANCE OF OFFICIAL DUTIES

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GIFTS What is a Gift?

• It will be hard for you to resolve gift issues
  unless you have an understanding of what is, and
  what is not, a gift Sooo
• A GIFT IS ANY THING OF VALUE THAT IS NOT
  SPECIFICALLY EXCLUDED BY REGULATION
• Can by money, merchandise, services, favors,
  investment interests, favorable rates, discounts,
  travel, meals, or any other thing that has some
  value

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GIFTS

• What is NOT a gift
• Modest items of food not part of a meal
  
  (coffee donuts exclusion)
• Cards, plaques, certificates,
  
• and trophies meant solely for presentation
• Loans available on terms available to the public
• Benefits, favorable rates, and discounts
  available to the public
• Rewards and prizes available to the public in
  random contests and drawings

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GIFTS

• What is NOT a gift
• Pensions and benefits from former employers
• Anything paid for by the government
• Anything for which market value is paid
• Gifts to the government

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GIFTS EXCEPTIONS TO THE GENERAL RULE

• IF YOU ARE OFFERED SOMETHING THAT IS NOT
  EXCLUDED, YOU MAY BE ABLE TO ACCEPT IT IF IT
  QUALIFIES FOR ONE OF THE TWELVE EXCEPTIONS TO THE
  NO GIFTS RULE
• EVEN IF YOUR GIFT QUALIFIES FOR ONE OF THE
  EXCEPTIONS, YOU SHOULD NOT ACCEPT IT IF GIVES THE
  APPEARANCE THAT YOU ARE PROFITING FROM YOUR JOB
  (14 Principles!)

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GIFTS - EXCEPTIONS

• 20 Rule gifts w/retail value of 20 or less
  and not more than 50/yr from the same source
• Based on a family or personal relationship
• Discounts to groups (if group qualifies)
• Awards and honorary degrees
• Based on an outside business relationship
• Free attendance at qualifying widely attended
  gathering
• Social invitations from non-prohibited sources

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GIFTS - EXCEPTIONS
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• The 20 Dollar Rule
• You may accept gifts, even from prohibited
  sources or offered because of your official
  position, if the gift has a retail value of 20
  or less, and you do not accept more that 50
  retail value from a single source in a year.
• This is the most used exception, and resolves
  many issues for commonplace giveaways, such as
  pens, pencils, book bags, calendars, and the like
  which are routinely offered.

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GIFTS YOU DECIDE!

• You are out shopping for unit supplies and
  having a great day. The following items are
  offered to you. What do you do?
• An employee where you frequently make GPC
  purchases says You give us lots of business
  why dont you sign up for our Business Rewards
  card? Its free, and youll get a percentage
  back of everything you spend. How about it?
• You have been shopping for office furniture, and
  return to one of the stores. The salesman gives
  you some Starbucks cake (your favorite kind),
  and says Hey, if you buy that suite you looked
  at before, I can throw in two 20 gift
  certificates to Olive Garden. Do you eat the
  cake? Take the gift certificates? One gift
  certificate? Turn both down?
• You make a large purchase, which comes with a
  bonus "free flash drive. Can you keep it? What
  if its value is 20?
• While checking out, you see a display Take a
  Coupon Its Our Birthday! 10 off your next
  purchase. You want a computer from this store,
  and the coupon will save you about 70. OK?
• Back at work, you find a package addressed to
  you. It is an expensive-looking walnut desk set
  with a card that says Happy Holidays from Our
  Business to Yours sent by a place where you have
  made some fairly big GPC purchases. What do you
  do?

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GIFTS

• REMEMBER
• IT IS NEVER INAPPROPRIATE TO DECLINE A GIFT
• (BUT, SOMETIMES ITS IMPOSSIBLE!)

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FINANCIAL DISCLOSURE

• Annual requirement for some GPC personnel to
  file the OGE Form 450 (Confidential Financial
  Disclosure Report).
• Reports must be filed w/in 30 days of assuming
  qualifying duties, and annually in February
  thereafter (changed recently from October).
• Filers must have annual ethics training every
  year by regulation.

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FINANCIAL DISCLOSURE

• OGE FORM 450
• Purpose To identify possible conflicts of
  interest
• Focuses on relationships, not on amounts
• Filed when you assume the responsibilities, and
  then annually in February each year
• You, and your supervisor must sign

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SEEKING EMPLOYMENT

• ALL EMPLOYEES MUST AVOID CONFLICTS OF INTEREST,
  INCLUDING WHEN SEEKING EMPLOYMENT WHILE STILL AN
  ARMY EMPLOYEE
• You are seeking employment when you
• engage in negotiations
• make unsolicited employment contact
• includes sending resume
• excludes requesting job application
• respond to an unsolicited proposal (except
  unconditional
  rejection)

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SEEKING EMPLOYMENT

• YOU MAY HAVE A CONFLICT IF YOUR JOB SEARCH
  INCLUDES VENDORS OR OTHERS THAT YOU HAVE HAD
  CONTACT WITH USING THE GPC
• YOU SHOULD CONSULT YOUR SUPERVISOR/ETHICS
  COUNSELOR BEFORE SEEKING EMPLOYMENT WITH ANY
  SUCH BUSINESS
• YOU WILL EITHER DISQUALIFY YOURSELF FROM FURTHER
  OFFICIAL CONTACT W/THE BUSINESS, OR YOUR
  SUPERVISOR ETHICS COUNSELOR MAY DETERMINE THAT
  THERE IS NO SUBSTANTIAL CONFLICT

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QUESTIONS?
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Who to Call

• Check our website!
• Call Administrative Law
• General Ethics Questions 751-6525
• Procurement Specific Questions 751-6196