1. The Contract Management Process The importance of Ethics in Public Contracting

2. OUTLINE  Vital part of the Contract Administration process  The University is an agency of the Commonwealth of Virginia  University Policy  Types of conflict of interest  Responsibilities of the Contract Administrator  Disclosure and Resolution  Sources for information on Ethics – Commonwealth of Virginia

3. ETHICS IN CONTRACTING  Ethics in contracting is a vital part of the contracting process, particularly in public procurement.  The University, as an Agency of the Commonwealth of Virginia, and its employees, are subject to the Virginia Comprehensive Conflict of Interests Act as well as the Virginia Public Procurement Act.  The University is a member of the National Association of Educational Buyers and endorses and supports its Code of Ethics. One provision of the Code, reads, "…decline personal gifts and gratuities." In keeping with that Code and the Laws of the Commonwealth, and in the spirit of a professional public entity, the employees of the University do not accept gifts of any kind from vendors.

4. Types of Conflict of Interest  Actual Conflict of Interest – A public employee’s decision is influenced by outside interests or the employee receives a direct or indirect benefit based upon a decision or action made in the public interest.  Potential Conflict of Interest – A public employee has outside interests or influence that could have the potential for influence of his/her actions or decision making in the public interest.  Appearance of a Conflict of Interest – Any situation in which a reasonable person would conclude that the employee has outside influence or interest which conflicts with his/her public duties or responsibilities.

5. ETHICS IN CONTRACTING cont…  Policy: http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+2.2-3100http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+2.2-3100  Prohibited Conduct: http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+2.2-3103http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+2.2-3103  Disclosure: http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+2.2-3114http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+2.2-3114  Consequences of Violations: http://leg1.state.va.us/cgi- bin/legp504.exe?000+cod+2.2-3122http://leg1.state.va.us/cgi- bin/legp504.exe?000+cod+2.2-3122  Resolution of a conflict of interest or potential for conflict of interest:  Disclosure – If an actual conflict of interest occurs, it is the responsibility of the employee who identifies it to report it immediately to the proper authorities which should be the agency’s internal auditor, human resources, a supervisor and/or the agency head. Immediate action must be taken.  Immediate Action – transfer responsibility to another employee whether an actual conflict or potential for conflict exists.  Responsibility – It is the responsibility of each public employee to not put himself or herself in a position where an appearance of or actual conflict of interest may occur. If potential exists, the employee must take immediate action to avoid the situation or recuse himself/herself from the procurement. The Contract Administrator must ensure that each team member understands his or her ethical responsibilities.