CLM003 - Overview of Acquisition Ethics Introduction Page ...

1 CLM003 - Overview of Acquisition Ethics Introduction Page 1 of 11 Introduction Welcome to Ethics in the Era of Partnering, Ethics Training for the Acquisition , Technology and Logistics community. With this training, you will meet your ethical obligations when dealing with contractors who are working in the Government's workspace. Most importantly, with the aid of this training, you will avoid any inadvertent violation of the rules. CLM003 - Overview of Acquisition Ethics Introduction Page 2 of 11 Instructions This self-paced module guides you through real situations you may face as a Federal employee. You are strongly encouraged to explore all advice, resources and decisions presented to you on your way to resolving the issues.

2 To receive credit for taking this course you must achieve 100% on a short, comprehensive exam assessing your mastery of the material. You may review the lessons and take the exam as often as you wish. A DAU Certificate of Completion will be generated after successful completion of the exam. Type your name and the date in the appropriate fields on the certificate. Print the certificate using the print icon that appears on the bottom left-hand corner of the certificate. Please provide your supervisor or designated point of contact with a copy to verify your successful completion of the course. A score of 100% is required to successfully complete the Ethics Final Exam. Enjoy this training. You should find it useful and entertaining.

3 CLM003 - Overview of Acquisition Ethics Introduction Page 3 of 11 Ethics Overview For more than 200 years, the United States of America has kept alive the light of liberty, defending freedom ag ainst nearly every type of tyranny the world has known. To millions of citizens here at home and the millions more across the globe, America is the "arsenal of democracy" and you, the military and civilian men and women of the Department of Defense, are the ones who make defending democracy possible. This is especially true today as America fights the global tyranny of terrorism. Because the stakes are so high, our standards must be even higher, avoiding even the appearance of anything less than complete integrity, objectivity, and impartiality in the performance of our important responsibilities.

4 This training is designed to help you accomplish your assignments, to fully understand and comply with DOD regulations, and to assist our Department in maintaining the confidence and support of the American people as we carry out our vital mission. CLM003 - Overview of Acquisition Ethics Introduction Page 4 of 11 Ethics Overview , Cont. The following excerpt from President Barack Obama's Inaugural Address touches on the subject of Ethics . "..those of us who manage the public's dollars will be held to account, to spend wisely, reform bad habits, and do our business in the light of day, because only then can we restore the vital trust between a people and their government." CLM003 - Overview of Acquisition Ethics Introduction Page 5 of 11 Government and Contractor Teaming The last decade has seen remarkable change in not only the way in which DOD competes and awards contracts, but also a fundamental change in the role contractors play in supporting DOD's mission.

5 Acquisition reform has encouraged the view that contractors are "partners" - part of the DOD team, working toward the national defense. This change has yielded many benefits including: Decreased procurement lead-times Enhanced productivity Greater flexibility in the way in which the DOD employs contractor services Freeing the warfighter from administrative tasks so that he or she can focus on the mission of defending the nation CLM003 - Overview of Acquisition Ethics Introduction Page 6 of 11 Differences Between Government and Contractor As positive as many of these changes have been, there remain fundamental differences between the government and the contractor and very definite legal and ethical limitations on their interactions.

6 The government cannot be a partner in the same way that private parties can form a commercial partnership common practices like combining financial and personnel resources, sharing losses and exchanging assets are generally prohibited by federal statute. CLM003 - Overview of Acquisition Ethics Introduction Page 7 of 11 Ethics in the News There are currently several on-going investigations by the DOD Inspector General, the Government Accounting Office, and the Justice Department concerning allegations of ethical impropriety, so these issues are very visible in today's environment. Click on the images below to read more. Federal Times " Ethics Questions Dominate Defense Agenda" January 12 ,2004, p 17.

7 "But delineating clear boundaries between the proper role of government officials and industry executives will be tough", said Pierre Chao, an industry analyst for a think tank in the Nation's Capital. February 2004, p 21. Angela Styles, former Head of the Office of Federal Procurement Policy, in reference to procurement reforms of the 1990s, recently observed that: "The risk-taking, or what the Acquisition reformers would call 'innovation,' did go too far. The environment became one that encourages and rewards carelessness. The lines became too easy to cross, and no one was paying attention. I don't even think most people know where the lines are anymore." CLM003 - Overview of Acquisition Ethics Introduction Page 8 of 11 Differentiating Roles A good way to re-establish the "lines" for the defense Acquisition community is by differentiating the fu ndamental loyalties of government employees from the loyalties and obligations of contractor employees.

8 It is clear that, at the end of the day, the government's objectives and the contractor's goals differ. This difference affects our effort to "partner" or "team." Government Employee Role Upon entering government service, all military and civilian personnel swear an oath to support and defend the Constitution of the United States. Government employees are required to act in the public interest. Contractor Employee Role In contrast, contractor employees do not have the same civic duty. In fact, the contractor, a profit-making business, has a primary incentive to return profit to the shareholders. CLM003 - Overview of Acquisition Ethics Introduction Page 9 of 11 Core Ethical Principles for Acquisition Professionals Public service is a public trust Employees shall not hold conflicting financial interests Employees shall not use public office for private gain Employees shall not engage in conflicting outside employment Employees shall not give preferential treatment Employees shall protect and conserve Federal property Click each link to learn more.

9 Public service is a public trust Public service is a public trust requiring employees to place loyalty to the Constitution, the laws and ethical principles above private gain. This means that government employees must place the interest of the government first. Employees shall not hold conflicting financial interests Employees shall not hold financial interests that conflict with the conscientious performance of duty. In the private sector, "partners" and their employees may be able to invest in each other. Such action is prohibited by government Ethics rules. Employees shall not use public office for private gain Government employees may not use their public office for their own personal gain, or for the gain or endorsement of friends or entities with which they are connected.

10 Employees shall not engage in conflicting outside employment Government employees may not seek or negotiate employment with a contractor when such actions conflict with their Government duties and responsibilities. So, the sort of "networking" that may lead to career advancement that is both commonplace and permissible in the private sector, may be an ethical or even criminal violation for a government employee. Employees shall not give preferential treatment Government employees must act impartially with respect to private organizations and individuals. In contrast, commercial partners usually make a conscious choice to give preferential treatment to each other. The Government, however, cannot favor its "partners.