Ethics & 

Procurement 

Integrity 

What You Need to Know as a Federal Employee Involved in 

the Procurement and Acquisition Process 

U.S. Office of Government Ethics 

www.usoge.gov 
Ethics & 

Procurement 

Integrity 

What You Need to Know as a Federal Employee Involved 

in the Procurement and Acquisition Process 

Contents

 3 Introduction

 3 Conflicts of Interest

 3 Financial Conflicts

 4 Impartiality Issues

 4 Gifts

 4 Gifts From Contractors

 5 Gifts To Contractors

 6 Procurement and Other Nonpublic Information

 6 Procurement Information

 7 Other Nonpublic Information

 7 Restrictions on Employment Discussions

 7 Seeking Employment: General Rules

 7 Seeking Employment with a Bidder or Offeror

 8 Working for a Contractor After Government

 8 Accepting Compensation from a Contractor

 9 General Post-Employment Restrictions 

10 Miscellaneous 

10 Fundraising 

10 Letters of Recommendation 

10 Outside Employment with a Contractor 

10 Conclusion 

11 About OGE 
2
 
Introduction 

As a Federal employee involved 

in the procurement and 

acquisition process, you play 

an important role in preserving the 

integrity of Government contracting 

and assuring fair treatment of bidders, 

offerors, and contractors. A violation 

of ethics rules can cause a bid protest 

or undermine the public’s confidence 

in Government. Improper conduct 

can also result in an administrative, 

civil or even criminal penalty. 

This brochure provides general 

information only. It will help you 

recognize some of the most common 

ethics and procurement integrity 

issues that can come up during the 

contracting process. Where there are 

examples, please note that they just 

illustrate a few common scenarios. 

You might encounter other issues or 

different situations. 

If you have a specific issue, have 

questions, or need additional help, 

contact an ethics official at your 

agency before taking any action. For 

information on how to contact your 

Designated Agency Ethics Official 

(DAEO), consult the DAEO list on the 

Office of Government Ethics website 

at http://www.usoge.gov. 

1 Conflicts of

 Interest 

Ethics laws prohibit Government 

employees from having financial 

conflicts of interest. By keeping in 

mind a few basic concepts, you can 

help ensure that contracts are awarded 

and administered free from improper 

influence or even the appearance of 

impropriety. 

Financial Conflicts 

A criminal law prohibits you from 

working on a Government matter 

(such as a contract) that would affect 

your financial interests. This prohibition also covers the financial interests 

of certain other persons such as: 

♦ your spouse; 

♦ minor child; 

♦ general partner; 

♦ an organization in which you serve 

as an employee, officer, director, 

trustee, or general partner; and 

♦ a person with whom you are 

seeking or have an arrangement 

for future employment. 

A Few Examples of Financial 

Conflicts of Interest 

You would have a financial 

interest in a contract or other 

matter that affects the contractor 

in situations such as these: 

♦ You own stock in a company
 

that is bidding on a contract


 (or that is likely to be a


 subcontractor).
 

♦ You have a pension with, or 

deferred compensation from, 

your former employer, a 

contractor that is participating 

in a procurement with your 

agency. 

♦ You moonlight for a company 

that gets a contract with your 

agency. 

♦ Your spouse works for a 

contractor and her salary would 

be affected if her company is 

awarded (or loses) a contract 

with your agency. 

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If you think you have a financial 

conflict, contact your agency ethics 

official right away. He will help you 

determine whether you will have to 

stop working on the Government 

matter, or whether another remedy 

would resolve the conflict. 

Impartiality Issues 

Even though you may not have 

a financial interest that can be 

affected by a procurement 

activity or contract, circumstances 

might arise that could call your 

impartiality into question. Some 

examples of when your impartiality 

could be questioned include the 

following: 

♦ Your duties require you to work on 

a procurement involving your 

former employer or clients, your 

spouse’s employer or clients, close 

relatives, or others with whom 

you have some kind of business 

relationship. 

♦ You are assigned to a contract 

involving a person you are dating. 

♦ You are required to evaluate bids, 

one of which was submitted by a 

friend. 

If you encounter any situation where 

you think your impartiality would 

reasonably be questioned, you should 

stop working on that matter, and 

contact your supervisor and agency 

ethics official for further advice. 

2 Gifts 

Gifts From Contractors 

As a Government employee, you 

must not solicit or accept gifts from 

contractors and their employees. 

A gift is anything that has 

monetary value, such as food, 

travel, entertainment, discounts, 

and loans. 

Even though you might work closely 

with contractor employees on a daily 

basis, remember that both agency 

contractors and their employees are 

considered “prohibited sources” of 

gifts to you. 

You also must not accept a gift given 

by an organization or individual who 

is seeking business with your agency. 

Thus, the safest course of action is to 

remember this rule: Do not solicit 

anything, or accept a gift, from a 

contractor, prospective contractor, or 

contractor employee, unless clearly 

permitted by an exception in the ethics 

rules or you have received advice 

from your agency ethics official. 

Items You Can Accept 

Examples of items that you generally 

may accept – even from a contractor – 

include: 

♦ Modest food and refreshments, 

such as coffee and donuts that are 

not offered as part of a meal; 

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♦ Gifts valued at $20 or less per 

“source” per occasion, although 

the total value of such gifts must 

not exceed $50 in a calendar year 

from a single source (Note: a 

contractor and its employees are 

considered the same “source.” 

For example, you could not 

accept five $15 lunches from five 

employees who work for the 

same contractor.); 

♦ Gifts based on a personal relationship (This means gifts from 

family members or friends with 

whom it is clear you have a true 

friendship – not a friendly relationship with a contractor that 

was formed on the job.); 

♦ Meals, lodging, transportation, or 

other benefits that are from your 

spouse’s employer, provided that 

the gift was not given or enhanced 

because of your Government job; 

♦ Gifts or discounts available to the 

general public, to all Government 

employees, or to all military 

personnel; 

♦ Free attendance at a conference or 

similar “widely attended gathering” (as long as your agency 

determines that your attendance 

is in the agency’s best interest 

and certain other conditions are 

met); and 

♦ Anything paid for by the Government or secured by the Government under a contract. 

Your agency ethics official can help 

you determine whether you can accept 

a particular gift. 

Some Words of Caution 

Of course, you should not 

accept anything of value from 

a bidder or contractor if you 

think that the integrity of the 

procurement process could 

be questioned. Also, be 

careful not to accept gifts so 

frequently that a reasonable 

person would think you are 

using your public office for 

private gain. Finally, remember that you may never accept 

cash or solicit a gift from a 

contractor or contractor 

employee. 

Gifts to Contractors 

You should be mindful that contractors usually have their own rules and 

policies about gift-giving, especially 

when dealing with the Government. 

You do not want to embarrass a 

contractor employee, or cause him to 

violate his company’s rules. 

5 
 

3 Procurement and 

Other Nonpublic

 Information 

As a Government employee, you 

might have access to procurement and 

other nonpublic information that could 

affect a contract bid or the award 

process. Improper disclosure of such 

protected information could violate 

numerous laws, as well as ethics rules. 

It also could subject you to administrative actions, as well as civil or 

criminal penalties. 

Procurement Information 

You may not knowingly obtain or 

disclose contractor bid or proposal 

information or source selection 

information before the award of the 

contract, other than as permitted 

by law. 

Contractor bid or
 


proposal information
 


This proprietary information 

must be secured to prevent 

disclosure. It includes certain 

nonpublic information submitted 

in connection with a bid or 

proposal, such as: 

♦ Cost or pricing data, including 

indirect costs and direct labor 

rates; 

♦	 Information about manufacturing processes, operations
 

and techniques when marked
 

“proprietary” in accordance
 

with law or regulation;
 

♦	 Information marked as 

“contractor bid or proposal 

information”; and 

♦ Any other information related 

to a specific procurement that 

a company making a bid 

deems proprietary. 

Source selection 

information 

This is information not previously available to the public that 

is prepared for use by an agency 

in evaluating a bid or proposal. 

Such information includes: 

♦ Bid prices for sealed bids or 

lists or prices; 

♦ Proposed costs or prices; 

♦ Source selection plans; 

♦ Technical evaluation plans; 

♦ Technical, cost or price 

evaluations of competing 

proposals; 

♦ Competitive range 

determinations; 

♦ Rankings of bids, proposals 

or competitors; 

♦ Reports, evaluations and 

recommendations of source 

selection panels, boards or 

advisory councils; and 

♦ Any other information marked 

as “source selection 

information.” 

6 
Other Nonpublic 

Information 

In addition to the rules on disclosure 

of specific procurement information, 

ethics rules prohibit you from disclosing any nonpublic information to 

further your private interests, or those 

of another person, such as a contractor 

or contractor employee. Nonpublic 

information includes information 

about a contract or procurement that 

you gain through your job and that 

you reasonably should know has not 

been made available to the public. 

An example of nonpublic information 

would be an agency’s internal decision 

to terminate a particular contract. 

If you have any doubt about whether 

information is protected information, 

or whether you are permitted to 

disclose such information, you should 

get advice from your agency ethics 

official before disclosing or otherwise 

using the information. 

4 Restrictions on

 Employment

 Discussions 

During the course of your Government service, you might decide to 

seek employment in the private sector 

or even with a contractor who does 

business with your agency. There are 

several restrictions that apply to your 

Government work when you seek 

future employment or have employment discussions with contractors. 

Seeking Employment: 

General Rules 

All Government employees are 

subject to the rules on seeking 

employment. These rules are quite 

broad and apply well before you and a 

potential employer actually negotiate 

specific terms and conditions of 

employment. 

You may not work on Government 

matters that would affect the financial 

interests of a contractor with which 

you are seeking employment. This 

rule generally applies even if you 

make an unsolicited contact about 

possible employment. It also applies 

if you do not reject a contractor’s 

unsolicited overture about possible 

employment. 

Once you have reached an agreement 

for future employment with a contractor, you still may not work on any 

Government matters that would affect 

the financial interests of the contractor. And remember, in any case where 

you have an obligation to recuse 

yourself from working on an assignment, you should notify your supervisor as soon as possible about your 

need to recuse. 

Seeking Employment with 

a Bidder or Offeror 

As a Federal employee involved in 

the procurement process, you might 

be subject to additional rules under the 

Procurement Integrity Act when you 

have employment discussions with 

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bidders or offerors. These rules apply 

only if you are performing certain 

functions involving: 

♦ the specification or statement of 

work; 

♦ the solicitation; 

♦ the evaluation of bids or proposals, 

or selecting a source; 

♦ the negotiation of price or terms 

and conditions of the contract; or 

♦ the review or approval of the award 

of a contract. 

I

f you are performing one of

 these functions in a competitive 

procurement for a contract in 

excess of $100,000, and you contact 

or are contacted by a bidder or offeror 

in that procurement about possible 

non-Federal employment, you must: 

♦ promptly report the contact in 

writing to your supervisor and your 

agency ethics official; and 

♦ either 

-- reject the possibility of nonFederal employment; or 

-- consult with your supervisor and 

do not work on that procurement 

until the agency has authorized you 

to do so. 

Note: you must also submit a written 

disqualification notice to the contracting officer, the source selection 

authority, and your supervisor. 

5 Working for a 

Contractor After

 Government 

Depending on your Government 

position and what your role was in a 

procurement, you might be subject to 

certain restrictions when you leave 

Government service. 

Accepting Compensation 

from a Contractor 

You might be banned from accepting 

compensation from a contractor for 

one year after you served in a covered 

procurement-related position or made 

a procurement-related decision for 

your agency. The ban, which is part 

of the Procurement Integrity Act, 

prohibits you from accepting compensation as an employee, officer, director, or consultant of the contractor. 

Who is Covered by the 

One-Year Ban? 

The one-year ban applies if you: 

Served in any of the following 

positions on a contract over 

$10 million: 

♦ Procuring contracting officer; 

♦ Source selection authority; 

♦ Member of a source selection 

evaluation board; 

♦ Chief of a financial or technical 

evaluation team; 

♦ Program manager; 

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♦ Deputy program manager; or 

♦ Administrative contracting officer; 

or 

Personally made any of the 

following decisions on behalf of your 

agency to: 

♦ Award a contract, subcontract, 

modification of a contract or 

subcontract, or a task order or 

delivery order over $10 million; 

♦ Establish overhead or other rates 

for a contractor on a contract or 

contracts valued over $10 million; 

♦	 Approve a contract payment or 

payments over $10 million; or 

♦ Pay or settle a claim over 

$10 million. 

Exception 

This restriction does not prohibit you 

from working for another division or 

affiliate of the contractor, as long as it 

does not produce the same or similar 

products or services as the division or 

affiliate responsible for the contract in 

which you were involved. 

General Post-Employment 

Restrictions 

You should also keep in mind 

that there are criminal postemployment restrictions that apply to 

all Federal employees regardless of 

whether they work for a contractor 

after Government service. You may 

be covered by one or more of these 

restrictions even if you did not 

perform any of the functions or serve 

in any of the roles designated by the 

Procurement Integrity Act (see above). 

The most common restrictions are 

explained below. 

Common Restrictions 

You are permanently barred from 

representing another person before 

the Government on the same matter 

(such as a contract) on which you 

worked as a Government employee. 

Representing means making a 

communication or appearance with 

intent to influence the Government, 

and includes signing a letter, attending 

a meeting, making a presentation, and 

making a telephone call. 

I

f you had official responsibility 

for a matter (such as the award of 

a contract) during your last year 

of Government service, you are barred 

for two years from representing 

another person before the Government 

concerning that same matter. To be 

covered by this restriction, you need 

not have worked on the contract, so 

long as it was under your supervision. 

If you are a “senior employee,” you 

are subject to a third restriction. This 

ban prohibits you from representing 

other persons before the Government 

on any matters before your agency 

for one year after leaving Government 

service. You need not have worked 

on the matter, nor had official responsibility for the matter. Your agency 

ethics official can tell you whether 

you are considered a “senior 

employee.” 

9 
These restrictions are quite broad. 

They can include communications, 

appearances or other representations 

that you might make on behalf of a 

company while performing work 

under a Government contract — not 

just major communications about the 

award or modification of a contract. 

However, they generally do not 

include behind-the-scenes work that 

does not involve communication back 

to the Government. 

When in Doubt, Get Help 

There are other restrictions, as 

well as exceptions, that govern 

this complex area of the law. 

Moreover, the consequences of 

violating these restrictions can be 

severe. You should consult with your 

agency ethics official before seeking 

employment with a contractor to 

determine whether a post-employment 

restriction might apply to your 

situation. 

6 Miscellaneous 

Fundraising 

You may not solicit a contractor or its 

employees for a charitable donation 

because they are “prohibited sources” 

of gifts under the Federal ethics rules. 

This is true even if, for example, you 

are fundraising on your own time and 

outside of the workplace, and you are 

quite friendly with the contractor 

employee. 

Letters of Recommendation 

You generally may provide a letter 

of recommendation for a contractor 

employee, on official agency letterhead, in response to a request for an 

employment recommendation or 

character reference. The letter of 

recommendation must be based on 

your personal knowledge of the ability 

or character of the contractor employee with whom you have dealt 

during the course of your Federal 

employment or whom you are recommending for Federal employment. 

Outside Employment with 

a Contractor 

If you would like to “moonlight” for 

an agency contractor, you should 

consult with your agency ethics 

official before taking any action 

pursuing such outside employment. 

Depending on the facts, you could 

trigger restrictions related to the 

following issues: seeking or negotiating for employment, procurement 

integrity, conflicting financial interests, impartiality concerns, and 

agency-specific rules and procedures. 

Conclusion 

We hope this brochure has 

helped you identify some 

of the ethics and procurement issues that can come up in the 

procurement and acquisition process. 

For more information on these issues, 

contact your agency ethics official. 

10 
About OGE 

The Office of Government Ethics 

(OGE) is the agency that 

exercises leadership in the 

executive branch to prevent conflicts 

of interest on the part of Government 

employees, and to resolve those 

conflicts of interest that do occur. In 

partnership with executive branch 

agencies and departments, OGE fosters 

high ethical standards for employees 

and strengthens the public’s confidence 

that the Government’s business is 

conducted with impartiality and 

integrity. 

www.usoge.gov 

July 2007 

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