GSA Expo 2009 Ethics: Know the Rules of the Road Nicole Stein Desk Officer/Office of Government Ethics

RULE # 1 WHEN IN DOUBT, CONTACT YOUR ETHICS OFFICE

Rule #2 STEER CLEAR OF CONFLICTS OF INTEREST

18 U.S.C. § 208 Prohibits Personal and substantial involvement: in any particular matter in which employee or any person whose interests are imputed to him has a financial interest if the particular matter will have a direct and predictable effect on that interest

To prevent personal interests from affecting official actions Purpose

Scenario #1 Bill was the chief of Plans, Requirements, and Acquisitions for a Federal agency. He was in charge of the procurement of data processing equipment for a regional division of his agency. Bill was also engaged in off-duty employment. He was a partner in an information technology company, GeoKenn Technology.

Particular Matter Includes: Matters involving specific parties (contracts, grants, litigation, etc.) Matters of general applicability (regulations, policies, etc. that focus on the interests of a discrete and identifiable class of persons)

Personal Participation Directly, either individually or with others Through direct and active supervision of others

Substantial Participation Employee’s involvement is “of significance” to the matter… does not have to be determinative of the outcome it involves the “substantive merits” of a matter even if employee’s role may be minor in relation to the overall matter

Substantial Participation Requires more than: official responsibility knowledge perfunctory involvement administrative involvement

Financial Interest Potential for gain or loss as a result of governmental action

Imputed Financial Interests Spouse Minor child General partner Organization, when employee is an officer, director, trustee, general partner or employee Person or organization, when employee is negotiating or has an arrangement for prospective employment

Tools for Identifying Conflicts of Interest

Why File? Help employees avoid conflicts Protect the agency’s operations and reputation Promote public trust in Government

Examine the disclosed interests in light of the filer’s duties and determine whether there are any actual or potential conflicts Reviewer’s Role

Rule # 3 MAINTAIN IMPARTIALITY

Are you working on a particular matter involving specific parties that is likely to have an effect on the financial interest of your household OR is a person whom you have a “covered relationship” involved in a Government matter, either as a party or a representative to the matter?

IF SO, ask yourself…. Would a reasonable person with knowledge of the relevant facts question your impartiality if you participated in the matter? If the answer is YES = STOP WORKING ON THE MATTER

Who do you have a “covered relationship” with?

Covered Relationship Business, contractual or other financial relationship

Covered Relationship Member of household Close relative

Covered Relationship Person whom the employee’s spouse, parent, or dependent child serves or seeks to serve as an: Officer Director Trustee General Partner Agent Attorney Consultant Contractor Employee

Covered Relationship Officer Director Trustee General Partner Agent Attorney Consultant Contractor Employee Person the employee served within the last year as an:

Covered Relationship An organization where an employee is an active participant

Rule #4 KNOW HOW TO NAVIGATE THE GIFT RULES

Gifts from “prohibited sources” or given because of official position generally may not be accepted Contractors AND Contractor personnel are prohibited sources May accept if excluded from definition of gift (5 C.F.R. § (b)) May accept if exception applies (5 C.F.R. § )

Exclusions –Modest food items and light beverage –Greeting cards, plaques, trophies –Favorable rates and commercial discounts –Market Value Paid Exceptions –$20/$50 rule –Personal relationships –Outside business or employment relationship

Scenario #2 Any employee of Agency “X” has been given a ticket to the local production of Macbeth by an agency contractor. The face value of the ticket is $ May she accept the gift?

Rule #5 BEWARE OF HOW YOUR USE YOUR OFFICIAL TITLE

Use of Official Title EXCEPTION:  You may use your official title (and official stationery) only in response to a request for a reference or recommendation for someone:  You have dealt with in Federal employment; or  You are recommending for Federal employment.

Contractor Support Letters Not permitted: Endorsement for a contractor to use as part of public relations or advertising information Permitted: Factual statements that the contractor’s work has satisfied the Government’s requirements

Rule #6 SLOW DOWN ON THE EXIT RAMP

Seeking Employment 18 U.S.C § Prohibits personal and substantial participation in a particular matter in which a person with whom you are negotiating for employment or have an arrangement for future employment has a financial interest. 5 C.F.R § Prohibits personal and substantial participation in a particular matter that will have an effect on the financial interests of a prospective employer with whom you are seeking employment.

You are seeking employment when: You send a resume or contact someone about possible employment A potential employer has contacted you about possible employment and you do not immediately and unequivocally reject You are engaged in actual negotiations for employment

Seeking Employment Ends After two months have elapsed since you sent an unsolicited resume and the there’s been no expression of interest from the prospective employer; or Either side rejects the possibility of employment and all discussions of possible employment have ended.

Rule #7 KEEP AN EYE ON THE REAR VIEW MIRROR

Purpose Prevent “switching sides” Allow “cooling off”

§ 207 Bans Permanent, two years, or one year Length of ban based on type of matter, employee’s involvement, and position with the Government

Post-Employment Restrictions Lifetime Ban 18 U.S.C. § 207(a)(1) – Prohibits you from representing anyone before the government on a particular matter involving specific parties in which you participated personally and substantially. Two-Year Ban 18 U.S.C. § 207(a)(2) – Prohibits you for two years from representing anyone before the government on a particular matter involving specific parties which was pending under your official responsibility during your last year of government service.

One-Year Ban for Senior Employees Applies to Executive Level officials and SES officials compensated above 86.5% of the annual rate of basic pay for level II of the Executive Schedule Prohibits you from representing anyone on any matters before your agency for one year 18 U.S.C. § 207(c)

General Steps  Proposed post-employment activities  Employee classification  Possible prohibitions  Analysis of proposed activities  Exception or waiver

THANK YOU Nicole Stein (202)