Section X: Ethics/Conflicts of Interest/Anti-Kickback


10.1000: Code of Ethics

The purpose of this act is to set forth the standards of conduct for officials and employees at Utah State University in areas where there are actual or potential conflicts of interest between public duties and their private interests. Employees in the Purchasing Department are prohibited from disclosing or using confidential information, using position to secure privileges or exemptions, or accepting employment, which would impair independence of judgment.

All employees should be aware of The State of Utah Ethics Act, 67-16, and act accordingly.

10.2000: Accepting Gifts or Loans (When Prohibited)

No public officer or public employee shall knowingly receive, accept, take, seek, or solicit directly or indirectly any gift or loan for himself or herself, or another, if:

  • It tends to influence him or her in the discharge of his or her official duties.
  • Individual recently has been, or is now, or in the near future may be involved in any governmental action directly affecting the donor or lender. This subsection shall not apply to the following.
    • An award publicly presented in recognition of public services.
    • Any bona fide loan made in the ordinary course of business by an institution authorized by the laws of this state or any other state to engage in making such loans.
    • Political campaign contributions if the same are actually used in a political campaign of the recipient public official or public employee.
  • University officials should not attempt to influence the awarding of business contracts.

10.3000: Conflict of Interest. Policy statement

  • To clarify and define conflict of interest.
  • To identify situations, which might give rise to a conflict of interest.

10.3100: Definitions

  • "Suppliers" include actual or potential suppliers of materials and services, real estate firms, and financial institutions; "Immediate Family" meaning parents, siblings, spouses, and children.
  • "Customers" include consultants, engineers, sub-contract agreements, and suppliers.
  • "Conflict of Interest"; an employee stands in a fiduciary relationship to the University and a conflict of interest will exist when his/her judgment or action in the conduct of the University's business, or affect the employee's duty to give undivided loyalty to the University.

10.3200: Employee Responsibility

It is the responsibility of each University employee to protect the interests of the University in its dealings with customers, suppliers, and other employees.

Each employee shall avoid those situations which do, or which may, appear to present a conflict between his/her personal interest and the best interest of the University.

While it is impossible to set forth each and every situation in which a conflict of interest may arise, a conflict of interest is most likely to arise in one or more of the following situations:

  • When the employee, a member of his/her immediate family, or a trust, in which he/she is involved, has a direct or indirect financial interest in, or obligation to, an actual or prospective supplier or customer of the University.
  • When an employee conducts business on behalf of the University with any business in which he/she or any relative has direct or indirect financial interest.
  • An employee, members of her/his immediate family, or a trust in which the employee has a financial interest accepts gifts or entertainment from an actual or potential supplier to the University.
  • An employee uses information obtained in the course of employment for personal or family financial gain.

No employee with the responsibility of requesting, approving or issuing orders, contracts, or commitments for materials that may be furnished to the University shall hold any interest in any supplier of those goods or services.

No employee with the responsibility of requesting, approving or issuing orders, contracts or commitments for materials that may be furnished to the University shall enter into any commitment with a business that is owned or operated by a relative of that employee, without prior disclosure of said relationship.

10.3400: Payments to University Employee's

Any service, regardless of professional or otherwise, performed by a University employee claiming outside business status will be processed through the payroll system.

10.4000: Anti-Kickback

10.4100: Procedures

Definitions:
"Kickback" as used in this clause means any money, fee, commission, credit, gift, gratuity, thing of value, or compensation of any kind which is provided, directly or indirectly, to the University, University employee, prime contractor, or subcontractor the purpose of which is to improperly obtain or reward for favorable treatment in connection with a prime contract or in connection with a subcontract relating to a prime contract.

"Person" as used in this clause, means a corporation, partnership, and business association of any kind, trust, joint-stock company, or individual.

"Prime Contract" as used in this clause, means a contract or contractual action entered into by the University for the purpose of obtaining supplies, materials, equipment, or services of any kind.

"Prime Contractor Employee" as used in this clause, means any officer, partner, employee, or agent of the prime contractor.

"Subcontract" as used in this clause means a contract or contractual action entered into by a prime contractor or subcontractor for the purpose of obtaining suppliers, materials, equipment, or services of any kind under a prime contract.

"Subcontractor" as used in this clause, (1) means any person, other than the prime contractor, who offers to furnish or furnishes any supplies, materials, equipment, or services of any kind under a prime contract or a subcontract entered into in connection with such prime contract, and (2) includes any person who offers to furnish or furnishes general supplies to the prime contractor or a higher tier subcontractor.

"Subcontractor Employee" as used in this clause, means any officer, partner, employee or agent of a subcontractor.

10.4200: The Anti-Kickback Act of 1986 (41 U.S.C. 51-58)

The Act prohibits any person from:

  • Providing or attempting to provide or offering to provide any kickback.
  • Soliciting, accepting, or attempting to accept any kickback.
  • Including directly, or indirectly, the amount of any kickback in the contract price charged by a prime contractor to the University or in the contract price charged by a subcontractor to a prime contractor or higher tier subcontractor.

10.4300: Violations

  • The contractor shall have in place and follow reasonable procedures designed to prevent and detect possible violations of this clause in its own operations and direct business relationships.
  • When the contractor has reasonable grounds to believe that a violation of this clause may have occurred, the contractor shall promptly report in writing the possible violation. Such reports shall be made to the Inspector General of the contracting agency, the head of the contracting agency if the agency does not have an Inspector General, or the Vice President for Business and Finance at Utah State University.
  • The contractor shall cooperate fully with any Federal agency investigating a possible violation of this clause.
  • The contracting officer may (a) offset the amount of the kickback against nay monies owed by the United States under the prime contract, and/or (b) direct that the prime contractor withhold, from sums owed a subcontractor under the prime contract, the amount of any kickback. The contracting officer may order the monies withheld under Section (4) (b) of this clause be paid over to the Government unless the Government has already offset those monies under subdivision (4) (a) of this clause. In either case, the prime contractor shall notify the contracting officer when the monies are withheld.
  • The contractor agrees to incorporate the substance of this clause in all subcontracts under this contract.

All required forms can be found on Purchasing Services website. http://www.usu.edu/purchasing/forms.

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