Ethics in Procurement Presented by Procurement Services Why

Ethics in Procurement Presented by Procurement Services

Why take training specifically related to procurement ethics? Good question. § Specific risks and responsibilities exist for those University employees trusted with any part of the procurement process. This includes University employees who may play any one of the following roles: § § § Identifying a need for goods and/or services Providing funding approval for the identified goods or services Receiving the goods and/or services Approving the payment for the specified goods/services Serving as an Evaluation Committee member formal solicitations resulting in the selection of a vendor § Serving as a designated contract administrator § If you serve in any one of these roles, this training, and the information included, applies to you and conveys your responsibilities. 2

Objective of this ethics training The objective of this training is not to identify every ethical issue that may arise, but, rather to; § Identify potential, real, or perceived ethical issues; § Raise awareness related to the ethical responsibilities associated with your role in purchasing goods and services for the University; § Find resources to assist with making ethical procurement decisions; and § Apply critical thinking in order to make ethical procurement decisions. 3

University Policy 1002 – ODU Code of Ethics establishes the high ethical expectations for all University employees. § Related to Procurement, this University policy specifically references the Virginia Public Procurement Act. § The Virginia Public Procurement Act (VPPA) requires that all procurements be conducted in a fair and impartial manner. 4

VPPA Requirements The VPPA also requires that state or University employees avoid any impropriety or the appearance of any impropriety. This is especially important when dealing with vendors and contractors. § A “vendor” is a firm that is interested in conducting business with the University. § A “contractor” is a firm that has gone through a solicitation process and has been awarded a contract, thus, a ‘contractor’. 5

VPPA Requirements (continued) It is important to ensure that all vendors are treated fairly and equitably. § This means ensuring that information afforded to one vendor related to a specific upcoming purchase is communicated to all interested vendors. § This also means that all contractors are treated fairly and equitably. § This means that all contractors are provided with non-preferential treatment and are treated the same. All contractors should be afforded the same opportunities for inclusion regardless of contract dollar value. 6

VPPA Requirements (continued) These requirements are in place to ensure public trust in the procurement process, as well as confidence within the vendor and contractor community, that they will be treated fairly and equitably by all University staff. 7

Some questions to consider when faced with decisions related to your role in procurement transactions: § How would you feel if your action was featured on the front page of the local paper? § Does it abide by the law? § Does it align with the University’s policies and procedures and Governor’s Executive Order? § Looking back a year from now, will this decision seem like a good idea? § Are you willing to accept responsibility for your decision? § Could you make every aspect of your decision public and feel good about it? § Are you treating all vendors as you would like to be treated if you were an outsider trying to do business with the University? 8

Resources Policy – University policy as well as procurement related policies and procedures cover a wide variety of situations. However, they may not cover every situation that arises. § If you are unclear or unsure of a given situation, your Supervisor may be a resource to consult for guidance. § Procurement Services may be contacted if you have any questions related to a matter dealing with vendors and/or contractors. § The University Audit department is also an excellent source if an unusual situation arises in which additional guidance may be needed. 9

Related Ethics guidance and information § University Policy 1002 ODU Code of Ethics § Virginia Public Procurement Act “Ethics in Public Contracting” section for additional information. (VPPA, Article 6, Ethics in Public Contracting”, § 2. 2 -4367 – 2. 24377) of Title 2. 2 of the Code of Virginia § Rules Governing Procurement of Goods, Services, Insurance and Construction by a Public Institution of Higher Education of the Commonwealth of Virginia Governed by the Restructured Higher Education Financial and Administrative Operations Act § 57. Ethics in public contracting. § Conflict of Interest Act (§ 2. 2 -3100 et seq. ) 10

Thank You Thank you for your time and attention to the Ethics in Procurement training. In order to certify completion, please take a few moments to select the best answer to the following three scenarios. The following scenarios provide some real-world situations you may face. Take a moment to review and select the most appropriate response. 11

Scenario 1: My department has gone through a solicitation process resulting in a term contract with a contractor. As a token of that contractors’ appreciation, they often provide a nice gift basket of fruits and chocolates delivered to the front desk of your department around the holiday. The basket includes a card that says, “A thank you for doing business with us. ” Which is the best option? a. The front desk receptionist may accept the gift basket personally, as long as they consume it within 30 days and send a thank you within the same 30 days. b. The receptionist may accept the basket on behalf of the department and encourage departmental colleagues and customers to enjoy it. c. The receptionist may accept the basket, as long as they share it with at least one co-worker and document it within 30 days. 12

The correct answer is b. Your department may accept a gift basket, or other item of nominal value, as long as it is shared within the department. 13

Scenario 2: The University is hosting an event for faculty and staff. Contractor A happens to have several staff members on site that day working with a department. Which of the following would be most appropriate for this situation: a. Invite Contractor A’s staff that is on campus that day to the University event. They are here on campus anyway. b. Invite Contractor A’s staff that is on site that day. Also invite all contractors who are on campus that day. Fair and equitable treatment for all. c. If it’s a University event specifically for faculty and staff, don’t invite contractors. There are other opportunities to work and interact with contractors. 14

The correct answer is c. There are situations in which it may not be reasonable to open an equal opportunity to all vendors so consider alternative venues for communication with the Contractor. 15

Scenario 3: I’ll be co-presenting a session at an upcoming Conference sponsored by a contractor that my department does business with. The Contractor has agreed to pay for my travel to the Conference. Which is the best option? a. Woohoo! Free trip. Attend the Conference, present the agreed upon session, let the Contractor pay for all my travel expenses. b. Agree to present at the Conference. Have my department pay for my travel costs. c. Presenting is a lot of work, so decline and say no thank you. 16

The correct answer is b. b. You are encouraged to present and positively represent the University. Travel should be paid by your department. (or c if you’re extremely busy) c. Presenting is a lot of work, so decline and say no thank you. 17

Scenario 4: A Contractor has been providing services to the University for several years. As the Contract Administrator, you have developed a professional relationship with the Contractor and its employees. The Contractor is sponsoring a “Thanks for Doing Business Golf Outing”, and has extended an invitation to its preferred customers, including you, all expenses paid. Should you: a. Accept the invitation, play and enjoy all the festivities on the Contractor’s ‘dime. ’ b. Accept the invitation to play golf, but don’t accept any gratuities, e. g. , food, drinks, awards/prizes. c. Respectfully decline the invitation to avoid any appearance of impropriety. 18

The correct answer is c. Respectfully decline the invitation to avoid any appearance of impropriety. 19

Ethics in Procurement Training This completes the Ethics in Procurement Training. Please select the link below so certification of completion can be registered. If you have any questions or would like additional information, please feel free to reach out to Procurement Services. Thank You Link to completion certification