PART 1503—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST
PART 1503—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST
Section Contents
1503.000 Scope of part.
Subpart 1503.1—Safeguards
1503.101-370 Personal conflicts of interest.
1503.104-5 Disclosure, protection, and marking of contractor bid or proposal information and source selection information.
Subpart 1503.2—Contractor Gratuities to Government Personnel [Reserved]
Subpart 1503.3—Reports of Suspected Antitrust Violations [Reserved]
Subpart 1503.4—Contingent Fees
1503.408 Evaluation of the SF 119.
Subpart 1503.5—Contractor Responsibility To Avoid Improper Business Practices
1503.500-70 Policy.
1503.500-71 Procedures.
1503.500-72 Contract clause.
Subpart 1503.6—Contracts with Government Employees or Organizations Owned or Controlled by Them
1503.600-70 Scope of subpart.
1503.600-71 Definitions.
1503.601 Policy.
1503.602 Exceptions.
1503.670 Solicitation of disclosure provision.
Subpart 1503.9—Whistle Blower Protections for Contractor Employees
1503.905 Procedures for investigating complaints.
Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).
Source: 49 FR 8837, Mar. 8, 1984, unless otherwise noted.
This part implements FAR part 3, cites EPA regulations on employee responsibilities and conduct, establishes responsibility for reporting violations and related actions, and provides for authorization of exceptions to policy.
Source: 64 FR 47410, Aug. 31, 1999, unless otherwise noted.
1503.101-370 Personal conflicts of interest.
(a) Each EPA employee (including special employees) engaged in source evaluation and selection is required to be familiar with the provisions of 40 CFR part 3 regarding personal conflicts of interest. The employee shall inform the Source Selection Authority (SSA) in writing if his/her participation in the source evaluation and selection process could be interpreted as a possible or apparent conflict of interest. The SSA will consult with appropriate Agency officials prior to the SSA's determination. The SSA shall relieve any EPA employee who has a conflict of interest of further duties in connection with the evaluation and selection process.
(b) Each EPA employee (including special employees, as defined by 1503.600–71(b)) involved in source evaluation and selection is required to comply with the Office of Government Ethics ethics provisions at 5 CFR part 2635.
1503.104-5 Disclosure, protection, and marking of contractor bid or proposal information and source selection information.
(a)(1) The Chief of the Contracting Office (CCO) is the designated official to make the decision whether support contractors are used in proposal evaluation (as authorized at FAR 15.305(c) and as restricted at FAR 37.203(d)).
(2) The following written certification and agreement shall be obtained from the non-Government evaluator prior to the release of any proposal to that evaluator:
“Certification on the Use and Disclosure of Proposals”
RFP #:____________________
Offeror:____________________
1. I hereby certify that to the best of my knowledge and belief, no conflict of interest exists that may diminish my capacity to perform an impartial, technically sound, objective review of this proposal(s) or otherwise result in a biased opinion or unfair competitive advantage.
2. I agree to use any proposal information only for evaluation purposes. I agree not to copy any information from the proposal(s), to use my best effort to safeguard such information physically, and not to disclose the contents of nor release any information relating to the proposal(s) to anyone outside of the evaluation team assembled for this acquisition or individuals designated by the contracting officer.
3. I agree to return to the Government all copies of proposals, as well as any abstracts, upon completion of the evaluation.
____________________
Name and Organization)
____________________
(Date of Execution)
(End of certificate)
(b) Information contained in proposals will be protected and disclosed to the extent permitted by law, and in accordance with FAR 3.104–5, 15.207, and Agency procedures at 40 CFR part 2.
Subpart 1503.2—Contractor Gratuities to Government Personnel [Reserved]
Subpart 1503.3—Reports of Suspected Antitrust Violations [Reserved]
Subpart 1503.4—Contingent Fees
1503.408 Evaluation of the SF 119.
Subpart 1503.5—Contractor Responsibility To Avoid Improper Business Practices
Source: 65 FR 57103, Sept. 21, 2000, unless otherwise noted.
Government contractors must conduct themselves with the highest degree of integrity and honesty. Contractors should have standards of conduct and internal control systems that:
(a) Are suitable to the size of the company and the extent of their involvement in Government contracting.
(b) Promote such standards.
(c) Facilitate timely discovery and disclosure of improper conduct in connection with Government contracts, and
(d) Ensure corrective measures are promptly instituted and carried out.
(a) A contractor's system of management controls should provide for:
(1) A written code of business ethics and conduct and an ethics training program for all employees;
(2) Periodic reviews of company business practices, procedures, policies and internal controls for compliance with standards of conduct and the special requirements of Government contracting;
(3) A mechanism, such as a hotline, by which employees may support suspected instances of improper conduct, and instructions that encourage employees to make such reports;
(4) Internal and/or external audits, as appropriate.
(5) Disciplinary action for improper conduct;
(6) Timely reporting to appropriate Government officials of any suspected or possible violation of law in connection with Government contracts or any other irregularities in connection with such contracts; and
(7) Full cooperation with any Government agencies responsible for either investigation or corrective actions.
(b) Contractors who are awarded an EPA contract of $1 million or more must display EPA Office of Inspector General Hotline Posters unless the contractor has established an internal reporting mechanism and program, as described in paragraph (a) of this section.
As required by EPAAR 1503.500–71(b), the contracting officer shall insert the clause at 1552.203–71, Display of EPA Office of Inspector General Hotline Poster, in all contracts valued at $1,000,000 or more, including all contract options.
Subpart 1503.6—Contracts with Government Employees or Organizations Owned or Controlled by Them
This subpart implements and supplements FAR subpart 3.6 and sets forth EPA policy and procedures for identifying and dealing with conflicts of interest and improper influence or favoritism in connection with contracts involving current or former EPA employees. This subpart does not apply to agreements with other departments or agencies of the Federal Government, nor to contracts awarded to State or local units of Government.
(a) Regular employee means any officer or employee of EPA who is employed or appointed, with or without compensation, to serve more than 130 days during any period of 365 consecutive days, including regular officers of the Public Health Service Commissioned Corps and reserve officers of the Public Health Service Commissioned Corps while on active duty.
(b) Special employee means an officer or employee of EPA who is retained, designated, appointed or employed to perform, with or without compensation, temporary duties either on a full-time or intermittent basis for not more that 130 days during any period of 365 consecutive days and who actually served more than 60 days during such 365-day period.
(a) No contract may be awarded without competition to a former regular or special EPA employee (or to a business concern or other organization owned or substantially owned or controlled by a former employee) whose employment terminated within 365 calendar days before submission of a proposal to EPA.
(b) No contract shall be awarded without competition to a firm which employs, or proposes to employ, a current regular or special EPA employee or a former EPA regular or special employee whose employment terminated within 365 calendar days before submission of a proposal to EPA, if either of the following conditions exits:
(1) The current or former EPA regular or special employee is or was involved in development or negotiating the proposal for the prospective contractor.
(2) The current or former EPA regular or special employee will be involved directly or indirectly in the management, administration, or performance of the contract.
The Assistant Administrator for Administration and Resources Management may authorize an exception, in writing, to the policy in FAR 3.601 and 1503.601 for the reasons stated in FAR 3.602, if the exception would not involve a violation of 18 U.S.C. 203, 18 U.S.C. 205, 18 U.S.C. 207, 18 U.S.C. 208, or EPA regulations at 40 CFR part 3. The Assistant Administrator shall consult with the Designated Agency Ethics Official before authorizing any exceptions.
[60 FR 38505, July 27, 1995]
1503.670 Solicitation of disclosure provision.
The Contracting Officer shall insert the provision at 1552.203–70, Current/Former Agency Employee Involvement Certification, in all solicitations for sole source acquisitions.
[50 FR 14357, Apr. 11, 1985]
Subpart 1503.9—Whistle Blower Protections for Contractor Employees
1503.905 Procedures for investigating complaints.
The Assistant Administrator for Administration and Resources Management is designated as the recipient of the written report of findings by the Inspector General. The Assistant Administrator shall ensure that the report of findings is disseminated in accordance with FAR 3.905(c).
[61 FR 57337, Nov. 6, 1996]