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Standards of Conduct & Ethics in AcquisitionStandards of Conduct & Ethics in Acquisition

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Long Description

Title screen for Module 2, Lesson 3: Program Management and Acquisition Concepts, Standards of Conduct & Ethics in Acquisition with three photos: a group of hands, a group of people talking, and the facade of a columned building.


Introduction

If you are involved in systems acquisition for the Government, you will probably encounter an ethical issue at some point in your career. All Acquisition Workforce Members are required to complete FAC 043 (FED) - Ethics and Procurement Integrity as part of their annual training requirements. In this lesson, we’ll examine some of the ethical issues that may arise during the execution of acquisition programs and the proper approach for handling them.

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Learning Objectives

Upon completion of this lesson, you will be able to:

• Relate ethical principles to the acquisition process

• Identify the core ethical values associated with acquisition decision making


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The Acquisition Environment

T&D


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Transcript and Long Description

[Rachel with hands out and Close-up image of two hands grabbing the same pile of money.

Narrator: Acquisition is highly competitive. Within the Government, there are never enough resources to go around, so programs have to compete with one another for limited funds.

[A diverse group of professionals fades into the mentor and an image of a line of professionals wearing business suits.]

Narrator: Competition is even fiercer in the private sector. Companies depend on winning Government contracts to survive and grow. Once they win those contracts, they must vie for a limited number of professionals available to perform the work, while continually seeking out new opportunities.

[Man behind on paperwork sitting at his desk with head in his hands fades into the mentor and an image of three professionals.]

Narrator: Both Government and industry project managers may be expected to deliver results within unrealistic schedules and budgets. These pressures may influence some individuals to "bend the rules" to accomplish their goals. Even people who would never compromise their ethics may find themselves faced with an ethical dilemma that requires them to make some tough choices.


The Result: Ethical Conflicts

As a result of the challenges and pressures of the environment they work in, acquisition professionals are likely to encounter situations that raise two types of conflicts: conduct violations and ethical dilemmas. Conduct violations are easy to identify, while ethical dilemmas often cross into gray areas that can, at times, be subject to interpretation.

Select each tab for additional information.


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Ethical Dilemmas

Opportunities to commit conduct violations are easy to identify, because they are established by Federal regulations. The core values underlying the regulations require us to make a choice between ethical values and non-ethical values. Ethical values are positive character traits and morals, like honesty and integrity. Non-ethical values are wrong, or socially unacceptable, like dishonesty, unhealthy ambition, power, greed, and self- interest. Conduct violations are the result of a clear choice between right and wrong.

Fraud, accepting bribes, steering contracts to certain vendors, and lying under oath are all conduct violations.

Conduct Violations

Conduct Violations

Opportunities to commit conduct violations are easy to identify, because they are established by Federal regulations. The core values underlying the regulations require us to make a choice between ethical values and non-ethical values. Ethical values are positive character traits and morals, like honesty and integrity. Non-ethical values are wrong, or socially unacceptable, like dishonesty, unhealthy ambition, power, greed, and self- interest. Conduct violations are the result of a clear choice between right and wrong.

Fraud, accepting bribes, steering contracts to certain vendors, and lying under oath are all conduct violations.

Ethical Dilemmas

Ethical dilemmas are more challenging. They involve choices between two apparently ethical values, such as completing a project on time versus treating project team members fairly. In these choices between "right" and "right," something has to give, and it puts the chooser in a difficult position.

Deciding how best to answer a tough question during a program review could be an ethical dilemma. If you tell the truth too plainly, there could be consequences—reduced funding or manpower. If you overstate, embellish, or spin

the facts in a positive way, you may get a positive result, but your stakeholders may not truly understand the program's situation.


DHS Management Directive (MD) 0480.1, Ethics/Standards of Conduct, establishes standards of conduct for DHS employees. It's DHS's policy that:

"All employees will maintain especially high standards of honesty, impartiality, character, and conduct to ensure the proper performance of Government business and the continual trust and confidence of the citizens of the United States. The conduct of employees must reflect the qualities of courtesy, integrity, and loyalty to the United States; a deep sense of responsibility for the public trust; promptness in dealing with and serving the public; and a standard of personal behavior that reflects positively upon and will be a credit to both employees and the Department.

These principles apply to official conduct as well as private conduct that affect in any way the ability of employees or the Department to effectively accomplish the work of the DHS. To ensure that every citizen can have complete confidence in the integrity of the federal Government, each federal employee must respect and adhere to the principles of ethical conduct set forth [in this directive]; 5 CFR Part 2635, Standards of Ethical Conduct for Employees of the Executive Branch; and other applicable laws."

Introduction to Conduct Violations


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CFR

Code of Federal Regulations


Standards of Conduct: Dos and Don'ts

DHS MD 0480.1 lists 14 principles of ethical conduct that DHS employees must adhere to and respect. These principles are organized into the dos and don'ts below.



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DON'Ts

Employees should:

• Place loyalty to the Constitution, the laws, and ethical principles above private gain, as public service is a public trust.

• Put forth an honest effort in the performance of their duties.

• Act impartially and not give preferential treatment to any private organization or individual.

• Protect and conserve federal property and not use it for other than authorized activities.

• Disclose waste, fraud, abuse, and corruption to appropriate authorities.

• Satisfy, in good faith, their obligations as citizens, including all just financial obligations, especially those such as federal, state, or local taxes that are imposed by law.

• Adhere to all laws and regulations that provide equal opportunity for all Americans regardless of race, color, religion, sex, national origin, age, or handicap.

• Endeavor to avoid any actions creating the appearance that they are violating the law or the ethical standards set forth in MD 0480.1.

DOs

MD

Management Directive

DOs

Employees should:

• Place loyalty to the Constitution, the laws, and ethical principles above private gain, as public service is a public trust.

• Put forth an honest effort in the performance of their duties. • Act impartially and not give preferential treatment to any private organization or individual. • Protect and conserve federal property and not use it for other than authorized activities. • Disclose waste, fraud, abuse, and corruption to appropriate authorities. • Satisfy, in good faith, their obligations as citizens, including all just financial obligations, especially those

such as federal, state, or local taxes that are imposed by law. • Adhere to all laws and regulations that provide equal opportunity for all Americans regardless of race, color,

religion, sex, national origin, age, or handicap.

• Endeavor to avoid any actions creating the appearance that they are violating the law or the ethical standards set forth in MD 0480.1.

DON'Ts

Employees should NOT:

• Use public office for private gain. • Engage in financial transactions using nonpublic Government information or allow the improper use of such

information to further any private interests. • Solicit or accept any gift or other item of monetary value from any person or entity seeking official action

from, doing business with, or conducting activities regulated by DHS, or whose interests may be substantially affected by the performance or nonperformance of the employees' duties, except pursuant to such reasonable exceptions as are provided by regulation.

• Engage in outside employment or activities, including seeking or negotiating for employment, that conflict with official Government duties and responsibilities.

• Hold financial interests that conflict with the conscientious performance of duty. • Knowingly make unauthorized commitments or promises of any kind purporting to bind the Government.


Why People Commit Conduct Violations

Although the standards of conduct are quite clear, some people choose to violate them anyway. Sometimes the rewards are so enticing that people are willing to take the risk. Like a professional ball player who takes steroids, they think they can get away with it.


The vast majority of Government workers are not even tempted to commit crimes in connection with their official duties, but while they would not break the law, they sometimes do find themselves in the types of situations that lead to conduct violations. Be aware of the reasons people stray, and guard against these justifications creeping into your professional lives.


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Justifications (Excuses)

Here are some reasons why employees might violate DHS standards of conduct:

• More opportunity, more temptation

• Personal gain

• Personal financial distress

• Increased concern over job security

• Perception there is a decreased chance of getting caught

• Ineffective management controls

• Dog-eat-dog atmosphere

• Cultural influences

• Cynicism

Reasons

Reasons

Here are some reasons why employees might violate DHS standards of conduct:

• More opportunity, more temptation• Personal gain• Personal financial distress• Increased concern over job security• Perception there is a decreased chance of getting caught• Ineffective management controls• Dog-eat-dog atmosphere• Cultural influences• Cynicism

Justifications (Excuses)

Here are some frequently heard "explanations" for unethical behavior:

• "If we don't cut corners, we'll never meet the deadline."• "Don't worry; they'll turn a blind eye to get this fielded."• "If you don't do this, we'll all suffer the consequences."• "But the regulation doesn't specifically say we can't."• "Our competition is doing it. We have no choice."• "Other people are doing this."• "What they don't know won't hurt them."• "Nobody will find out until it's too late."• "National security is at stake here!"• "We can always fix it later."


Knowledge Check

If you held a financial stake in a private company that was one of several vendors who submitted proposals in response to your program office's Request for Proposal (RFP), which of the following standards of conduct would you be in danger of violating?

Employees should endeavor to avoid any actions creating the appearance that they are violating the law or the ethical standards set forth in Management Directive 0480.1.Employees should not engage in outside employment or activities, including seeking or negotiating for employment, that conflict with official Government duties and responsibilities.Employees should not hold financial interests that conflict with the conscientious performance of duty.

Employees should not knowingly make unauthorized commitments or promises of any kind purporting to bind the Government.

Submit


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If you held a financial stake in a company that was an offeror associated with a contract in your program office, you'd be in danger of violating the DHS standard of conduct that states, "Employees should not hold financial interests that conflict with the conscientious performance of duty."


Recap: Conduct Violations

Review the key concepts introduced in this topic:

• DHS Management Directive (MD) 0480.1, Ethics/Standards of Conduct, establishes standards ofconduct for DHS employees.

• DHS MD 0480.1 lists 14 principles of ethical conduct that DHS employees must adhere to and respect.

• Although these standards of conduct are quite clear, some people choose to violate them anyway forpersonal gain.

• DHS employees must be aware of the reasons people commit conduct violations, and guard againstjustifications for unethical behavior creeping into their professional lives.

The next topic is Ethical Dilemmas.


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Introduction to Ethical Dilemmas

T&D


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Transcript and Long Description

[Rachel and image of businessman sitting at a desk, looking torn between two decisions.]

Narrator: A more difficult situation arises when we have to choose between two apparently "right" courses of action,(i.e., face an ethical dilemma).

[Businessman holding up two pieces of paper, one in each hand trying to decide between them. Then Rachel and an image of a businessman sitting at a computer, resting his head on his hands, with a worried look appears.]

Narrator: Ethical dilemmas are often characterized by:

• A choice between two "right" courses of action that are equally justifiable• Conflicts between differing organizational or personal interests• So-called "gray areas"

[Businessman reviewing a document fades to Rachel and a question mark.]

Narrator: As opposed to obvious conduct violations, the best choice is not often obvious in an ethical dilemma. The person faced with the choice must often build a valid case to justify either course of action. So what would you do in an ambiguous situation where the "right" way is not clear?


Core Ethical Values

When faced with an ethical dilemma, a person has to fall back on his or her core ethical values to help guide the decision.

The Josephson Institute of Ethics surveyed hundreds of people from all walks of life and came up with this list of ethical values that they call the "Six Pillars of Character". These core values are underlying principles that guide our actions, even when we are not consciously aware of them.


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Trustworthiness

Build trust and credibility with integrity (e.g., consistency between beliefs, words, and actions), honesty (e.g., truthfulness, sincerity, and candor), promise-keeping, and loyalty (e.g., fidelity to family, friends, and country).

Respect

Honor the worth and dignity of all individuals. Treat others the way you would want to be treated. Act courteously, civilly, peaceably, and nonviolently. Be tolerant and accepting of differences. Avoid rude, offensive, and abusive words and actions.

Responsibility

Be accountable for your words, actions, and attitudes. Exercise self-control. Strive for excellence and self-improvement. Plan ahead. Set a good example for others. Be self-reliant, prudent, proactive, persistent, and hard-working.

Fairness

Be consistent, open, and treat all people equitably. Consider all sides and make decisions on the facts without favoritism or prejudice. Play by the rules, avoid careless accusations, and don\'t take undue advantage of others. Pursue justice and condemn injustice.

Caring

Be kind, compassionate, empathetic, charitable, forgiving, and grateful.

Citizenship

Obey laws in good faith. Do your share to improve the well-being of fellow citizens and the community. Protect the environment, volunteer, and participate in the processes of democracy by staying informed and voting.


Situations to Consider

Situations arise frequently in any complex, high-tempo environment that requires swift decisions. Here are a couple situations for you to think about.

Question 1:

Developmental testing is about to start for your project when you notice that the test plan you authored and approved doesn't cover one area. It's not an official requirement, but it is important and your organization has been having some problems in this area. But, updating the test plan and resubmitting it through the approval process could take weeks, impacting your schedule and your budget.

Do you bring up the omission? What would you do?

Submit

If your organization has been having problems delivering in an important project area, you should probably update your test plan to include that area and resubmit it. This is especially true if there's no opportunity to update the plan at a later date. You should also take action to accelerate the review and approval process and minimize the impact to your schedule and budget, of course. The alternative is to leave the plan as is and try and find some way to influence the testing process to cover the problem area after the fact, but it's probably better to put it on the official schedule. What you don't know from the brief description of the situation is the consequence of your choice. Since it's not an official requirement, there's likely no penalty for taking the easy path, and that's what makes this such a difficult choice.

Question 2:

The justification for next year’s funding for your project is in draft form, prepared by your boss. As a subject matter expert (SME), you know that some of the benefits listed will, or at least may, be available in the long run, but certainly not in next year’s version of the product. You have reason to believe your boss knows the justification is overstated. The deadline to submit your justification is firm, next year's budget keeps you employed, and your boss is not one to take criticism well.

Should you say something?

Submit

If you have the opportunity to review and comment on the draft, you should probably tactfully raise the issue. If the benefits are tangible in the long term, it likely doesn't weaken your project's position all that substantially to state them accurately, and being honest is the right thing to do. The alternative is to maintain the status quo and work individually to ensure those benefits are realized in the long term, or as quickly as possible. There's likely no penalty to taking the easy road. In fact, the brief description makes it sound like you'll help keep your job and avoid your boss's ire. Perhaps there's an alternative way to make your project attractive in the short term, a smaller benefit or benefits. This is another difficult decision.



Organizational Ethics

So far we've discussed personal actions, but all of us work for organizations larger than just one person. Let's examine where personal actions fit into the organizational ethics pyramid.

Select each level of the pyramid below for more information.

Even though our personal actions as employees drive results in our organizations, they also cut across all strata of the pyramid. The personal actions of our leaders, the people who define our core values, and the people who create our policies and procedures all shape our organizational ethics.


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Results

The organization has a reputation for ethical behavior and, as a result, the public\'s trust.

Personal Actions

With a foundation of exemplary leadership and strong core values, the personal actions of individual employees should be beyond reproach.

Policies & Procedures

The organization implements policies and procedures to protect its core values and promote ethical behavior.

Core Values

The organization communicates and emphasizes its core values to its employees.

Leadership

The leader or leaders set the tone for the organization, including acting as exemplars for ethical behavior and demanding ethical behavior from employees.


Knowledge Check

What is a core ethical value?

An underlying principle of our character that helps guide our individual actions

A reason an employee might violate the DHS standards of conduct

One of the 14 standards of ethical conduct listed in DHS Management Directive 0480.1

An ethical dilemma that presents an opportunity to demonstrate strong personal ethics

Submit


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A core ethical value is an underlying principle of our character that helps guide our individual actions.


Lesson Summary

Review the key concepts introduced in this lesson.

In the competitive, rapidly changing acquisition environment, acquisition professionals will be faced with tough ethical dilemmas and be tempted to violate DHS standards of conduct or compromise their ethics.

DHS Management Directive (MD) 0480.1 lists 14 principles of ethical conduct that DHS employees must adhere to and respect. Although these standards are crystal clear, some people judge the rewards to be worth the risks, and violate them anyway. They are looking for personal gain, are concerned over their job security, believe they won't get caught, are influenced by a corrupt culture, get caught up in the dog-eat-dog atmosphere, or are just cynical in their roles.

Regardless of the reason, guard against justifications and excuses for unethical behavior in your professional lives. When faced with an ethical dilemma, draw on your core ethical values to help you make the right choice: trustworthiness, respect, responsibility, fairness, caring, and citizenship. Collectively, our personal actions as employees help define our organization's ethical culture and reputation and cut across all strata of the organizational ethics pyramid—from leadership to results.


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References

To find out more about ethics in acquisition, refer to the resources below.

The Department of Homeland Security Office of General Counsel Ethics Office

Brian Howell, Ethics Attorney-Advisor and Deputy Agency Ethics Official

[email protected], 202-768-6866

The U.S. Office of Government Ethics

The U.S. Office of Government Ethics is an agency within the Executive Branch of the federal Government established in 1978. The Office of Government Ethics exercises leadership to prevent conflicts of interest and partners with other departments/agencies to foster high ethical standards for employees and strengthen the public's confidence that the Government's business is conducted impartially and with integrity.

http://www.usoge.gov

The Josephson Institute of Ethics Center for Public Service

The Josephson Institute of Ethics is a 501(c)(3) nonprofit organization founded in 1987 by Michael Josephson. The institute develops and delivers services and materials to increase ethical commitment, competence, and practice in all segments of society, and has conducted programs for over 100,000 influential public officials, school administrators, military and police officers, journalists, senior corporate and nonprofit executives, and judges and lawyers.

http://josephsoninstitute.org/

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