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“One morning I shot an elephant
      in my pajamas. . . .
  How he got in my pajamas, I
        don’t know.”

  When it comes to acquisition
   ethics, perception can be as
        important as reality.
References
•   FAR Part 3 – Improper Business Practices and
    Personal Conflicts of Interest; Subpart 3.104 –
    Procurement Integrity
•   FAR 9.5 – Organizational Conflicts of Interest
•   FAR 15.203 – Exchanges with Industry Before
    Receipt of Proposals
•   5 CFR 2635 – Standards of Conduct for Employees
    of the Executive Branch
•   OFPP “Myth-Busting” memos on improving
    communications during the acquisition process, 2
    February 2011 and 7 May 2012, available at
    http://www.whitehouse.gov/omb/procurement index
    memo
Releasable Information
• General procurement requirements and
agency acquisition needs
  • RFIs, draft RFPs, Sources Sought,
  Industry Days
  • Timing—before or after RFP release—is
  critical
• Information releasable under FOIA
  • Includes total contract price and the PWS
  of awarded contracts
  • CLIN pricing is generally not releasable
  under the FOIA but it depends
Protected Information

• Information that could jeopardize integrity
or successful completion of a procurement
  • Rough Order of Magnitude estimates or
  independent government estimate
  • Source selection plans
  • Direct comparisons of contractors
• Contractor proprietary information is to
be released ONLY with owner’s consent
Permissible Interactions
Within appropriate limits, Federal
personnel may receive information
about contractors’ capabilities and
discuss technology developments.
  • Government customers (actual or potential)
  must be careful in private discussions with
  contractors, especially regarding contract terms
  and conditions
  • NETCOM Memo 715-1, Industry
  Presentations, Demonstrations, Briefings and
  Tests and Evaluations, outlines our process
Risks of Improper Interaction

• A contractor that obtained (or was perceived to
have obtained) a competitive advantage in a
procurement may be prohibited from actually being
awarded the contract
• Miscommunications can lead to claims, disputes,
litigation, unauthorized obligations and/or contract
modifications, and general confusion
• Both the Army and industry can end up
expending scarce resources (time, labor, money)
to resolve the issue, often at the expense of the
acquisition effort itself
Gifts and Contractors

Federal personnel may not
accept a gift from an actual or
potential contractor that exceeds
a value of $20 per occasion or
$50 per calendar year
 • Based on both appearance and possibility of
 favoritism and/or bias
 • Meals and promotional items are generally
 considered “gifts”
Acquisition Ethics: Balancing Communication and Conflicts of Interest

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Acquisition Ethics: Balancing Communication and Conflicts of Interest

  • 1.
  • 2. “One morning I shot an elephant in my pajamas. . . . How he got in my pajamas, I don’t know.” When it comes to acquisition ethics, perception can be as important as reality.
  • 3. References • FAR Part 3 – Improper Business Practices and Personal Conflicts of Interest; Subpart 3.104 – Procurement Integrity • FAR 9.5 – Organizational Conflicts of Interest • FAR 15.203 – Exchanges with Industry Before Receipt of Proposals • 5 CFR 2635 – Standards of Conduct for Employees of the Executive Branch • OFPP “Myth-Busting” memos on improving communications during the acquisition process, 2 February 2011 and 7 May 2012, available at http://www.whitehouse.gov/omb/procurement index memo
  • 4.
  • 5.
  • 6.
  • 7.
  • 8. Releasable Information • General procurement requirements and agency acquisition needs • RFIs, draft RFPs, Sources Sought, Industry Days • Timing—before or after RFP release—is critical • Information releasable under FOIA • Includes total contract price and the PWS of awarded contracts • CLIN pricing is generally not releasable under the FOIA but it depends
  • 9. Protected Information • Information that could jeopardize integrity or successful completion of a procurement • Rough Order of Magnitude estimates or independent government estimate • Source selection plans • Direct comparisons of contractors • Contractor proprietary information is to be released ONLY with owner’s consent
  • 10. Permissible Interactions Within appropriate limits, Federal personnel may receive information about contractors’ capabilities and discuss technology developments. • Government customers (actual or potential) must be careful in private discussions with contractors, especially regarding contract terms and conditions • NETCOM Memo 715-1, Industry Presentations, Demonstrations, Briefings and Tests and Evaluations, outlines our process
  • 11. Risks of Improper Interaction • A contractor that obtained (or was perceived to have obtained) a competitive advantage in a procurement may be prohibited from actually being awarded the contract • Miscommunications can lead to claims, disputes, litigation, unauthorized obligations and/or contract modifications, and general confusion • Both the Army and industry can end up expending scarce resources (time, labor, money) to resolve the issue, often at the expense of the acquisition effort itself
  • 12. Gifts and Contractors Federal personnel may not accept a gift from an actual or potential contractor that exceeds a value of $20 per occasion or $50 per calendar year • Based on both appearance and possibility of favoritism and/or bias • Meals and promotional items are generally considered “gifts”