What Topics Will We Cover?

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2 What Topics Will We Cover? Conflicting Interests Outside Employment and Activities Fundraising Gifts Between Employees Contractors and Holiday Parties Post-Government Service Restrictions Supervisor Responsibilities When Reviewing Financial Disclosure Reports

3 Completing Your Training STEP 1: Read the General Rule for each scenario. STEP 2: Following each General Rule, there is a scenario and a question. Please choose the best answer from among the possibilities provided. STEP 3: After you select your answer, read the discussion which follows. Give particular attention to the explanations as to why the answer is correct or incorrect.

4 Completing Your Training Three-Step Approach Requires Careful Thought Goal: Build Understanding of Ethics Rules Help Avoid Inadvertent and Possibly Career-Ending xxx Violations of Ethics Laws Complex Rules; Good Intentions May Not Be Sufficient There are Exceptions! Best to Consult Ethics Official.

5 Conflicting Interests General Rule: You may not participate personally and substantially in a particular matter that directly and predictably affects your financial interests, or those of a spouse, minor child, general partner, or non-federal entity or organization with which you hold a position (officer, director or employee) or are seeking employment or have an arrangement concerning prospective employment. (18 U.S.C. 208) There are a lot of parts to this rule. You may want to read it again before going on to the scenario.

6 Conflicting Interests Scenario: Your supervisor has asked you to be the COR on a contract with DMC. This position would involve tasking the contractor and monitoring its deliverables. You also happen to own $20,000 worth of DMC stock and your spouse is employed there. However, her division is not involved with the work for your agency. Question: May you take these new COR responsibilities? Reflection: If you have a personal stake in an official decision, is your decision as a Federal employee based on your own best interest or your agency s best interest?

7 Question: You ve been asked to be the COR on a contract with the company that employs your spouse. Independently, you also hold $20,000 worth of stock with that same company. Can you accept the COR position? A. Yes. You have a high level of integrity and can assure your supervisor that you won t let either your stock ownership or your spouse s employment influence you in making decisions on this contract. C. No. Your financial interest in the stock -- and in your spouse s employment and salary -- preclude you from taking on this responsibility. B. Maybe -- if you sell the stock and determine that your actions could not affect your spouse s salary and benefits. D. Yes -- if you sell your stock and divorce your spouse.

8 DISCUSSION 18 U.S.C. 208 is a criminal statute. Prohibits Government Employees from Participating Personally and Substantially in Particular Matters in which They Hold a Financial Interest Goal: Build Understanding of Ethics Rules Help Avoid Inadvertent and Possibly Career-Ending xxx Violations of Ethics Laws Complex Rules; Good Intentions May Not Be Sufficient There are Exceptions! Best to Consult Ethics Official.

9 Key Point: 18 U.S.C. 208 is a criminal statute.

10 Conflicting Interests General Rule: You may not participate personally and substantially in a "particular matter" for which there are specific parties, if you know that the matter is likely to affect the financial interests of a member of your household, or a person with whom you have a covered relationship is a party to the matter, and you determine that a reasonable person with knowledge of the relevant facts would question your impartiality in the matter. 5 C.F.R Carefully consider this General Rule. You may want to read it again before going on to the scenario.

11 Conflicting Interests Scenario: Let s suppose that you own no stock in DMC and your spouse works for someone else, but up until 8 months ago, you were employed by DMC. Your supervisor still wants you to be the COR for a DMC contract. Question: What is your reaction? Reflection: If you have a personal stake in an official decision, is your decision as a Federal employee based on your own best interest or your agency s best interest?

12 Question: Your supervisor wants you to be the COR for a company you were recently employed by. You have no other connection with your former employer (i.e. stock holdings or pension plan). What is your reaction? A. No reasonable person would question your impartiality. (You didn t even like working for the company because you couldn t get promoted there.) Therefore, you can go ahead and accept the COR position. B. A reasonable person might question your impartiality, so you should talk to your supervisor about accepting the position.

13 DISCUSSION If Your Supervisor Determines Your Impartiality IS Likely to be Questioned: Assign Responsibilities to Someone Else; or Authorize Assignment Based on Determination That Government s Interest Outweighs Question of Integrity

14 DISCUSSION (Continued) In Making Such a Determination, Supervisors Must Consider Several Factors Nature of Relationship with Former Employer Magnitude of Interests for Former Employer Importance of Your Role Sensitivity of Matter Difficulty of Assigning Another Employee as COR

15 Key Point: Be aware of appearance problems; they can be complex. For those of you who are supervisors, please note your role when these questions arise among your personnel.

16 Outside Employment and Activities General Rule: You may not engage in outside employment or any other outside activity that conflicts with your official duties. Such activity conflicts with your official duties if it violates a statute or regulation or would require you to be disqualified from matters so central or critical to performing your duties that your ability to perform your official duties would be materially impaired. (5 CFR and (b)(10). You also may not use your public office for private gain. (5 CFR and (b)(7).

17 Outside Employment and Activities Scenario: You are a structural engineer and your job includes making recommendations concerning building standards to be adopted by your agency. You are well respected in your field and have been asked to run for a board position with a professional association, National Architects for Industrial Legos (NAIL). The position is unpaid and board meetings are in the evening. Question: If elected, may you hold a board position with x NAIL in your private capacity after hours? Reflection: Why does it matter what we do off-duty? What public good does this rule seek to accomplish?

18 Question: If elected, may you hold a board position on a professional association in your private capacity after hours? The association is known for its industry model standards, many of which are adopted by the Government. A. Yes. This is a voluntary position where the board meetings are held in the evenings when they would not interfere with your official duties. C. No. NAIL is adopting building standards and it s your job to make recommendations on your agency s building standards for the future. B. Yes. You and your colleagues have been attending the public informational meetings for years. Your agency has also submitted comments in response to NAIL s requests for comments on their proposed model standards. This is just another facet of those meetings and an opportunity to gain more insight into its model standards.

19 DISCUSSION Serving on Board of a Non-Federal Entity Requires Statutory Authority (Such as with USO) Federal Liaison to Private Organization Does Not Serve on Board Representative of Federal Agency No Voting Power Complex Rules; Best to Consult Your Ethics Official!!

20 Key Point: Service on a Board of Directors may present conflict of interest or appearance problems. Serving as a liaison to a non-federal entity will avoid conflict of interest and appearance issues. Check with your agency s ethics counselor if you would like to explore the possibility of being a DoD liaison.

21 Fundraising General Rule: You may not solicit or otherwise support fundraising in the Federal workplace. Such activity disrupts work, competes with authorized activities such as the Combined Federal Campaign for donations, invites abuse of position by superiors, and tempts subordinates to contribute in order to curry favor with seniors or co-workers. Consider this General Rule. You may want to read it again before going on to the scenario.

22 Fundraising Scenario: A local boy has a rare malady, RBS. Marianne Helpful, an employee, discussed this with her co-workers, who have agreed to raise money to help find a cure for RBS. They have decided to hold a lunchtime bake sale and auction, as well as a car wash in the building parking lot. Marianne drafts an to inform everyone in the building. She asks for donations for the bake sale and the auction and she makes flyers to post at various places. Question: Can Marianne proceed with these plans? Reflection:

23 Question: A local boy has a rare malady. Marianne Helpful discussed this with her co-workers, who agreed to raise money through a lunchtime bake sale and auction, as well as a car wash in the building parking lot. Can Marianne proceed with these plans? A. No. The only permissible fundraising in the workplace is for CFC and other authorized organizations (such as military relief societies). B. Yes. Because the event is for a good cause and takes place outside of regular work hours, Marianne can send an seeking participants and ask for donations in the office. She can also use the parking lot if the group first obtains permission from the building manager. C. Yes, but only if the RBS group is not participating in the Combined Federal Campaign. Groups that do participate must limit themselves to the once-ayear official solicitation of employees in the Federal workplace.

24 DISCUSSION Fundraising Events on Federal Installations May Be xxx XXX Authorized Under Limited Circumstances Head of Command / Organization Determines Which Areas are Outside Federal Workplace Must Also Consider: Direct Solicitation in Workplace Use of Government Resources Preferential Treatment by Government Fundraising Raises Thorny Issues! Best to Consult Your Ethics Official.

25 Key Point: Except in limited cases, e.g., CFC, fundraising in the Federal workplace is not permitted. Ethics rules are complex. If you have any questions, contact your Ethics Official.

26 Gifts Between Employees General Rule: You may not give to, or make a donation toward a gift for, an official superior, or solicit a contribution from another employee for a gift to either of their superiors. Also, an employee may not accept a gift from an employee who receives less pay unless the donor and recipient have a personal relationship that would justify the gift and are not in a superior-subordinate relationship. Consider this General Rule. You may want to read it again before going on to the scenario.

27 Gifts Between Employees Scenario: After 35 years, Mary Truly, has decided to retire. Her supervisor, John, wants to show his appreciation by personally arranging her retirement party. (The meal cost $20 per person.) He plans to contribute $100 toward a $300 gardening course (as a retirement gift) and pay for lunch for Mary and her husband. John is drafting an for his staff, including eight whom Mary supervises, with the party details. Question: Are there any limits on the party plans? Reflection: Doesn't this rule frustrate the normal social interaction between co-workers? Are there times when you could give a gift and not upset the work place?

28 Question: John wants to host a luncheon for his employee, Mary Truly, who has decided to retire after 35 years. In addition to the luncheon, John wants to give Mary a $300 retirement gift (for which he will contribute $100 himself). John is drafting an for his staff, including eight whom Mary supervises, with the party details. Are there any limits on the party plans? A. No. John can send an to everyone in the office saying he expects a 100% turn-out for the event and the cost of lunch and gift is $30 if only 20 people come, but if they all come, the lunch plus gift will only be $25. B. Yes. John cannot require attendance at the event or include the cost of the gift in the luncheon charge. C. Yes. Participation in the luncheon and the gift must be voluntary, but John may establish a cost for the luncheon that includes the cost of the gift.

29 DISCUSSION Rule Protects Integrity of Workplace Minimizes Potential of Buying Favors Exception Also Permits Gifts Valued at $10 or Less On Traditional Gift-Giving Occasions Other Exceptions Food or Refreshments in Office Hospitality at Residence (Within Limits) Hostess Gifts Does Not Permit Cash Gifts

30 Key Point: Awareness of gift rules helps prevent problems at work for both employees and supervisors. Gifts valued at $10 or less may be given to a supervisor on an occasional basis.

31 Contractors and xxx Office Holiday Parties General Rule: Whether a contractor employee may attend an office party during duty hours is up to the contractor employee s supervisor (not the Federal employee with whom he works). The time contractor employees spend at office parties may not be charged to the Government under the contract. Consider this General Rule. You may want to read it again before going on to the scenario.

32 Contractors and xxx Office Holiday Parties Scenario: Your office s holiday party committee decides to hold the annual party on a Friday during working hours. Everyone in the office is invited, including five IT GEEKS (contractor employees). The committee also determines that all attendees should contribute $12 to share costs of the refreshments. Question: May IT GEEKS employees attend the party contribute to the refreshments? Reflection: What public good is served by not allowing contractors to charge the Government for employee time at office parties? and

33 Question: Your office s holiday party committee decides to hold the annual party on a Friday during working hours. Everyone is invited, including five IT GEEKS (contractor employees). They also determine that all attendees should contribute $12 to share costs for the refreshments. May the IT GEEKS employees attend the party and contribute to the refreshments? A. No. Ethics rules prohibit contractors and Federal personnel from interacting socially. B. Yes. Contractors are part of a team and they will pay for their share of the expenses. A big reason for office parties is promotion of the one-team concept for the entire office. C. Yes - provided their supervisor authorizes their attendance and their time at the office party is not charged to the Government under the contract. The refreshment charge is not considered a gift.

34 Key Point: Contractors have their own ethics rules, and may have other restrictions on their employees. Be sure to consult the contractor supervisor before including the contractor s employees.

35 Post-Government Service Restrictions General Rule: You are permanently barred from communicating to, or even appearing before, Government personnel (executive and judicial branches), with the intent to influence, on behalf of anybody else outside the Government, on any particular matter for which there are specific parties, and on which you participated personally and substantially as a Federal employee. 18 U.S.C. 207(a)(1) Further, there is a 2-year bar for particular matters which were pending under your official responsibility or supervision during your last year of Federal service. 18 U.S.C. 207(a)(2)

36 Post-Government xx Service Restrictions Scenario: You left the Government a year ago. Your last job was administration of a contract with Booze Allen Hamilton (BAH). The contract ended during your tenure, but a new contract with BAH was awarded six months before you left. Although you didn t perform any functions on the second contract, one of your subordinates did. Question: May you represent BAH before the Government on the second contract now that you ve been retired for a year? Reflection: What is the purpose of these prohibitions? How does the country benefit by restricting the communications of former personnel?

37 Question: You left the Government a year ago. Your last job was administration of a contract with Booze Allen Hamilton (BAH). The contract ended during your tenure, but a new contract with BAH was awarded six months before you left. Although you didn t perform any functions on the second contract, one of your subordinates did. May you represent BAH before the Government on the second contract now that you ve been retired for a year? A. No. Because you supervised the employee who worked on the second contract, you have a two-year ban that prohibits you from representing BAH on that contract. B. No. You have a lifetime ban that prohibits you from representing BAH before the Government on the second contract. C. Yes. You had nothing to do with the second contract, so you may represent BAH before the Federal Government.

38 DISCUSSION Representational Bars Designed to: Limit Contractor Interactions with Government xxx Personnel on Certain Particular Matters Preclude Appearance of Undue Influence Does Not Prohibit Behind the Scenes Activities which Do Not Involve Interacting with Government Personnel on Same Particular Matters Prohibits Use of Protected Information Obtained as Government Officer or Employee

39 Key Point: Rules are Designed to Preclude even the Appearance of Undue Influence on the Government. Supervisors, please note your role when these questions arise among your current and former personnel.

40 Supervisor Responsibilities Reviewing Financial Disclosure Reports General Rule: Supervisors are responsible for thoroughly reviewing their employees' financial disclosure reports to determine if potential conflicts of interest exist and if corrective action is needed. Consider this General Rule. You may want to read it again before going on to the scenario.

41 Post-Government Supervisor Responsibilities Service Restrictions Reviewing Financial Disclosure Reports Scenario: You are the supervisor of your office and have collected and reviewed the annual financial disclosure reports from four employees. You've scanned the reports and checked to ensure that they are complete and signed. You notice, however, that one of your employees has purchased stock in KABAM, a software company. You expect that KABAM will bid on a pending procurement at your agency, and had anticipated assigning the employee to that procurement. Question: What is your next step? Reflection: Why should a supervisor have access to information about an employee's financial holdings?

42 Question: You have collected and reviewed the annual financial disclosure reports from your employees. You've checked the reports to ensure they are complete and signed. You notice that one employee has purchased stock in KABAM and you expect KABAM will bid on a pending procurement at your agency. You anticipated assigning the employee to that procurement. What is your next step? A. Sign the reports and forward them to the ethics official. Your only responsibility is to collect the reports and forward them in a timely manner. The ethics official will review the reports, ensure they are complete, and check for conflicts of interest. C. Since KABAM isn't currently on your agency s list of contractors, there isn t a conflicting financial interest. Sign the reports and forward them to the ethics official. B. Inform the employee she may not participate in the upcoming procurement because her ownership of KABAM stock creates a possible conflict. Make a note in the comments box and forward it to the ethics official. Consult with the ethics official to determine if there are any alternatives. D. Terminate the employee because of a possible criminal conflict of interest.

43 DISCUSSION Supervisors are First Line of Defense Remedies for Possible Conflicts: Recusal or Disqualification Divestiture Waiver Personnel May Have A Conflict Even if Contractor is xxx Not on the Agency s Current List of Contractors Supervisors Must Be Vigilant in Making Assignments Consult with Ethics Counselor When Questions Arise

44 Key Point: Supervisors are the first line of defense to protect both DoD and their employees by ensuring their personnel aren't placed in positions to inadvertently violate the law. Both supervisors and employees should consult with their ethics official when they have a question about whether a conflict exists, and if so, what to do about it.

45 Conclusion We hope this training has strengthened your understanding of the pertinent ethics issues. We also hope you will keep in mind that, no matter what the ethics issue may be, if you re not sure what to do, check with your ethics counselor in advance! The following material will also provide helpful general information on the ethics rules for all of you.

46 I. Ethics Contacts: The DoD Designated Agency Ethics Official (DAEO) is the General Counsel. William J. Haynes II.

47 If You Have Questions ~~ If assigned to the Office of the Secretary of Defense, Pentagon Contact the DoD Standards of Conduct Office (SOCO). Current contact information listed at MCB Hawaii Contacts: LtCol Manle: Major Mann:

48 II. Employee Responsibilities under Executive Order (as amended) DO ~~ Place loyalty to the Constitution, the laws, and ethical principles above private gain. Act impartially to all groups, persons, and organizations. Give an honest effort in the performance of your duties. Protect and conserve Federal property. Disclose waste, fraud, abuse, and corruption to appropriate authorities. Fulfill in good faith your obligations as citizens, and pay your Federal, State, and local taxes. Comply with all laws providing equal opportunity to all persons, regardless of their race, color, religion, sex, national origin, age, or handicap.

49 II. Employee Responsibilities under Executive Order (as amended) DO NOT ~~ Use non-public information to benefit yourself or anyone else. Solicit or accept gifts from persons or parties that do business with or seek official action from DOD (unless permitted by an exception). Make unauthorized commitments or promises that bind the Government. Use Federal property for unauthorized purposes. Take jobs or hold financial interests that conflict with your Government responsibilities. Take actions that give the appearance that they are illegal or unethical.

50 III. Guidance for DoD Personnel Refer to: DOD R, Joint Ethics Regulation DOD Standards of Conduct Office website:

51 IV. Employee Responsibilities under Federal Conflict of Interest Statutes 1. Conflicting Financial Interests -You may not do Government work on a particular matter that could affect your financial interests or those of your spouse, minor children, general partner, or organization with whom you are negotiating or have an arrangement for future or current employment. If you believe you have a conflicting financial interest, contact your ethics official to determine the appropriate remedy. 2. Bribery and Graft - You may not seek or accept anything of value, other than your Government pay, for being influenced in your official duties. 3. Outside Representation or Compensation in Matters Involving the Government - You generally may not represent anyone else to a federal agency or court on a particular matter involving the Government, whether you receive compensation or not. This includes the time you are on terminal leave. You generally may not share in any compensation resulting from such a representation that was made by anybody else to a Federal agency or court during the time you were a Federal employee.

52 Post-Government Employment Restrictions 4.1. Seeking and Engaging in Non-Federal Employment while Still in the Government - You may not do Government work that affects your possible future employment or the financial interests of someone with whom you are seeking employment. Two statutes require your disqualification in these types of situations: Under the criminal statute, you may not participate personally and substantially in particular matters that could affect your future salary or the financial interests of a potential employer. Under the Procurement Integrity Act, if you hold a certain position in a procurement valued at $100,000 or more, you must be disqualified from participating in the procurement before you may seek employment with a competing contractor.

53 Procurement Integrity Compensation Ban You may not accept compensation from a concerned contractor for one year following your service or action in a matter valued at more than $10 million under certain conditions. (Outlined in Notes View Please Read) You may accept compensation from a division or affiliate that does not produce the same or similar products or services. Before you receive any compensation Request written ethics advisory memo

54 Senior Officials Civilian Employees with Annual Rate of Basic Pay at or above $145,320 (in 2007) And General and Flag Officers For one year after leaving senior position, you may not: Make any communication or appearance on behalf of anyone else, with intent to influence, to employees of any agency in which you served; or Aid, advise, or represent a foreign government or foreign political party, with the intent to influence employees of any department or agency.

55 All Officers and Employees May Not Communicate or Make Appearance on Behalf of Anyone with Intent to Influence any Federal Agency or Court on Any Matter You Worked on While in Service. Different restrictions include: Lifetime Ban Two Year Ban One Year Ban May Use and Disclose Non-Public Government Information Only as Authorized.

56 Reservists and Retired Members xx of the Armed Forces Must obtain approval from your Service Secretary before accepting benefits from a foreign government Prohibited from holding civil service position with DoD for six months after retirement (currently waived) During terminal leave, military officers are prohibited from holding civil office with state or local governments and are prohibited from representing new employers to the Government. You are strongly encouraged to consult your ethics counselor well before you separate from the Government!

57 Supplementation of xx Federal Salary You generally may not accept any compensation from a non-federal source for your Government work.

58 Training Completion If you need a certificate (Proof of Training) one is included on the following page. You need only fill in your name and date of completion. We recommend that you save your certificate on your PC in the event you need it at a later date. If you have comments or suggestions for improving this or future training, please contact us at SOCO@dodgc.osd.mil

59 2013/2014 Ethics/StandardsofConductTraining