United States Army Medical Research Acquisition Activity

• 26 pages
• For Official Use Only
• March 25, 2009

• Changing Workplace
  • 60% of workforce
  • “arms length” vs. “partners”
  • Unchanging Laws

“The lines became too easy to cross, and no one was paying attention. I don’t even think most people know where the lines are anymore.”

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Procurement Integrity Act

• 41 USC 423 – the current version went into effect on 1 Jan 97
• Implemented by FAR 3.104, DFARS Part 203 and AFARS Subpart 5103.1
• Disclosing bid proposal or source selection information (for competitive procurements)
• Obtaining bid proposal or source selection information (for competitive procurements)
• Accepting compensation from certain contractors after leaving Federal employment
• Discussing non-Federal employment with certain bidders or offerors

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Permitted Activities

• Information already disclosed publicly or made available to the public
• Information disclosed by contractors. They are not prohibited from disclosing their own CBPI
• SSI & CBPI information disclosed, pursuant to a proper request, to Congress, the Comptroller General, or the inspector general (provided the SSI or CBPI is highlighted and notice given that disclosure is restricted by PIA)

Penalties for Disclosing or Obtaining SSI or CBPI

• Criminal – up to 5 years in prison and/or fine
  • if disclosure in exchange for anything of value, or
  • if disclosure in order to obtain for oneself, or give to anyone else, a competitive advantage in the award of a Federal contract.
• Civil – administrative actions and
  • Up to $50K per violation of any of the four provisions
  • Up to $50K per violation plus twice the amount of compensation an individual received or offered for the prohibited conduct
  • Up to $500K per violation plus twice the amount of compensation an organization received or offered for the prohibited conduct

Enhanced Concerns

• Bribery
• Gifts
• “time off”
• Misuse of contractor personnel
• Personal Services
• Traveling with contractors
• Recommendations and awards for contractor personnel
• Organizational Conflicts of Interest
• Inherently governmental functions

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An “organizational conflict of interest” exists when a contractor is or may be unable or unwilling to provide the government with impartial or objective assistance or advice; and may result when factors create an actual or potential conflict of interest on a current contract or a potential future procurement.

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Inherently Governmental Functions

• Administering contracts, including ordering changes in contract performance or contract quantities, taking action based on evaluations of contractor performance and accepting or rejecting contractor products or services evaluation criteria
• Determining whether contract costs are reasonable, allocable, and allowable
• Performing the functions of a COR
• Terminating contracts

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