10.0292 Standards of ethical conduct.

Cite as [A.S.A.C. § 10.0292]

(a) Ethical standards for employees. Any attempt to realize personal gain through public employment by conduct inconsistent with the proper discharge of the employee’s duties is a breach of a public trust. In order to fulfill this ethical standard, employees must meet the requirements of this section.

(b) Ethical standards for contractors. Any effort to influence any public employee to breech the standards of ethical conduct set forth in this section is also a breach of ethical standards.

(c) Employee disclosure requirements.

(1) Disclosure of benefit received from contract. Any employee who has, or obtains any benefit from any government contract with a business in which the employee has a financial interest shall report such benefit to the chief procurement officer or designee.

(2) Failure to disclose benefit received. Any employee who knows or should have known of such benefit and fails to report such benefit is in breach of ethical standards of this section.

(d) Employee conflict of interest.

(1) Policy. It shall be a breach of ethical standards for any employee to participate directly or indirectly in a procurement when the employee knows that:

(a) the employee or any member of the employee’s immediate family has a financial interest pertaining to the procurement.

(b) A business or organization in which the employee, or any member of the employee’s immediate family, has a financial interest pertaining to the procurement: or

(c) any other person, business, or organization with whom the employee or any member of the employee’s immediate family is negotiating or has an arrangement concerning prospective employment is involved in the procurement.

(2) Discovery of actual or potential conflict of interest, disqualification, and waiver. Upon discovery of an actual or potential conflict of interest, an employee shall promptly file a written statement of disqualification and shall withdraw from further participation in the transaction involved.

(e) Use of confidential information. It shall be a breach of ethical standards for any employee or former employee knowingly to use confidential information for actual or anticipated personal gain, or for the actual or anticipated gain of any other person.

(f) Prohibition against gratuities and kickbacks.

(1) Gratuities. It shall be a breach of ethical standards for any person to offer, give, or agree to give any employee or former employee or for any employee or former employee to solicit, demand, accept, or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation,

preparation of any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any proceeding or application, request for ruling, determination, claim or controversy, or other particular matter, pertaining to any program requirement or a contract or subcontract, or to any solicitation or proposal therefore.

(2) Kickbacks. It shall be a breach of ethical standards for any payment, gratuity, or offer of employment to be made by or on behalf of a subcontractor under a contract to the prime contractor or higher tier subcontractor or any person associated therewith, as an inducement for the award of a subcontract or order.

(3) Contract clause. The prohibition against gratuities and kickbacks prescribed in this subsection shall be conspicuously set forth in every contracts and solicitation therefor.

(j) Prohibition against contingent fees.

(1) Contingent fees. It shall be a breach of ethical standards for a person to retained, or to retain a person, to solicit or secure a government contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, except for retention of bona fide employees or bona fide established commercial selling agencies for the purpose of securing business.

(2) Representation of contractor. Every person, before being awarded a government contract, shall represent, in writing, that such person has not retained anyone in violation of this subsection. Failure to do so constitutes a breach of ethical standards.

(3) Contract clause. The representation prescribed in this subsection shall be conspicuously set forth in every contract and solicitation therefor.

(j) Prohibition Against Employee Use and Contractor Acceptance of Purchase Requisitions.

(1) Policy. Only valid purchase orders and contract awarded pursuant to this chapter constitute legal and binding documents between the government and its contractors. The government shall not make payment to a contractor who delivered goods or services a result of receipt and acceptance of a purchase requisition, unless such purchase was authorized by this chapter.

(2) Notice. All purchase requisitions used by the government shall contain a prominent notice on the face of the requisition form which sets forth the prohibition in this subsection.

(3) Employee Liability. Unless otherwise authorized by this chapter, any employee who uses or attempts to use a purchase requisition to obtain goods or services directly from a contractor without first obtaining a valid purchase order or contract may be held personally liable and responsible for the amount of the goods and services.

(4) Ratification. Employee purchase for the government without the use of a valid purchase order or contract are improper and illegal. Such actions may be ratified in exceptional circumstances by the chief procurement officer when such action is determined to be in the interest of the government.

History: Rule 5-84, eff 11 Jul 84, (part).