Purchasing Ethics and Confidentiality (C-33)
Original Implementation: Unpublished
Last Revision: January 27, 2009
Credibility and public confidence are vital throughout the purchasing and contracting process. If any involved party displays a lack of honesty, integrity or openness, the entire program is injured. Even the shadow of doubt can be as harmful as the conduct itself.
For the purpose of protecting both the integrity and objectivity of its employees in the performance of their university obligations it is the policy of the university that conflicts of interest should be avoided where possible or otherwise disclosed and managed.
Therefore, any SFA employee involved in any form of procurement or the procurement process may not:
- participate or work on a contract by taking action as an employee through decision, approval, disapproval, recommendation, giving advice, investigation or similar action knowing that the employee, or any person or entity with whom the employee has a Family Relationship, Financial Relationship or Personal Relation, has an actual or potential financial interest in the contract, including prospective employment;
- solicit or accept gifts or gratuities which might tend to influence purchasing decisions;
- be employed by, or agree to work for, a vendor or potential vendor;
- knowingly disclose confidential information for actual or anticipated personal gain, or for the actual or anticipated gain of another person.
Employees will be required to annually file a Disclosure of Substantial Interest form identifying any possible conflict of interest situations that may arise in regard to any type of procurement process, including but not limited to p-card, purchase requisition, purchase order or purchase voucher. The Disclosure of Substantial Interest form must be completed no later January 31 of each year for the calendar year and shall be completed during the year as needed to identify applicable changes. The information provided in the annual disclosure will be retained in Procurement Services, will be considered confidential information and will be released only to those individuals involved in purchasing decisions and only as needed; i.e., procurement, accounts payable, department heads, vice presidents, president, general counsel, etc.
Definitions:
Family Relationship – means
- employee’s spouse/partner
- employee’s children, grandchildren, parents, grandparents, brothers and sisters (including half brothers and sisters)
- the spouses of any of the persons listed in the above bullet
- the spouse’s/partner’s parents, brothers, sisters and children
- any firm in which any of the above persons is a partner or sole proprietor, or any corporation in which any of those persons holds 5% or more stock either directly or indirectly, or any other individual living in the same household.
Financial Relationship – means
a partnership or other commercial relationship involving a joint venture between the employee and another person or entity. Examples are: research grants, consultancies, honoraria and travel, self-managed equity interest in a company, employment of an immediate family member in a company and/or other benefits or substantial gifts from a company.
Personal Relationship – means
relationship with a person or entity sufficiently close that a reasonable person would believe that it would be difficult for the SFA employee to deal with the person as he or she would deal with a stranger.
Specific rules apply to purchases from an SFA employee or any person or entity with whom the employee has a Family, Financial or Personal Relationship. See Purchasing From Employees Policy C-27.
If not related to a particular transaction, university employees may accept from vendors and others: (1) unsolicited advertising or promotional material such as pens, pencils, scratch pads, and calendars; (2) occasional business lunches or food and refreshments of insignificant value; and (3) other items of nominal or minor value (i.e., a box of candy or fruitcake, etc.) that are merely tokens of appreciation. Refer to Ethics Policy E-56 for the statutory definition of a "benefit." Refer to Gifts, Prizes and Awards Policy C-58 regarding the giving of gifts, prizes and awards.
Written disclosure specific to the procurement must be signed by all parties involved in the procurement process for major contract awards of $1 million or more in value. All such written disclosures will be retained in Procurement Services. Reference Ethics Policy E-56 for specific information regarding the disclosure.
Specific disclosure is required for Consultant Contracts by any officer or employee with a financial interest or an individual related to the officer or employee with a financial interest. Reference Professional and Consultant Services Policy C-45 or Ethics Policy E-56 for specific information regarding the disclosure.
When an actual violation of any of these standards is discovered, the person involved shall promptly file a written statement concerning the matter with the director of Procurement and Property Services. If an actual violation occurs or is not disclosed and remedied, the employee involved may be either reprimanded, suspended, or dismissed. The vendor or potential vendor may be barred from receiving future contracts and/or have an existing contract canceled.
Purchasing professionals have the right under law to have any ethics question reviewed and decided by the State Ethics Commission. If you wish to learn whether a specific action violates the ethics rules, please contact the State Ethics Commission, 1101 Camino La Costa, Austin, Texas 78752 or call them at 1-800-325-8506.
Cross Reference: Ethics Policy E-56, Professional and Consultant Services Policy C-45; Purchasing From Employees Policy C-27; Texas Government Code 2262.004; Texas Government Code 2254.032
Responsible for Implementation: Vice President for Finance and Administration
Contact for Revision: Director of Procurement and Property Services/HUB Coordinator
Forms: Disclosure of Substantial Interest