Ethics

1. Ethics FDOT Construction Academy Brian W. Pickard, P.E. Volkert Engineering, Inc.

2. Florida statutes Federal laws Laws That Require Ethical Conduct

3. Fraud Awareness Video • Click on the following to view the video for Fraud Awareness.

4. Ethics Card

5. Solicitation or Acceptance of Gifts: No Gifts with intent to influence. Anything of value: Gifts Reward Loan Promise of future employment Services Florida LawPart III of Chapter 112, Florida StatutesApplies to Employees and Appointed Officials

6. State employees can not do business with the State Unauthorized Compensation: employees shall not accept compensation, payment or things of value, if given to influence 4. No conflicting contractual relationships 5. Employees may not use information not available to general public for personal gain Florida LawPart III of Chapter 112, Florida StatutesApplies to Employees and Appointed Officials

7. Recommended Standards Do not accept any gifts, regardless how small. Do not become involved in any way with a business doing business with the FDOT.

8. Chapter 471 Florida Law http://www.fbpe.org/pdfs/chapter471.pdf Chapter 61G15, Florida Administrative Code http://www.fbpe.org/pdfs/chapter61g15.pdf Florida Law for Professional Engineers If you are a PE or in the process of obtaining your PE, get a copy of the above and read it.

9. Contractors must display Fed’s Fraud Hotline Number Adopt a written code of ethics and business conduct Establish an employee ethics and compliance training program Establish an internal control system FAR (Federal Acquisition Regulations) New Proposed RuleFederal contracts exceeding $5 million, with performance periods of 120 days or more

10. Hold paramount the safety, health, and welfare of the public. Perform services only in areas of their competence. Issue public statements only in an objective and truthful manner. Act for each employer or client as faithful agents or trustees. Avoid deceptive acts. Conduct themselves honorably, responsibly, ethically, and lawfully so as to enhance the honor, reputation, and usefulness of the profession. http://www.nspe.org/Ethics/CodeofEthics/index.html Professional Engineering EthicsFundamental Canons

11. Contract Fraud CaseExample • The following is an example of contract fraud. This usually takes the form of providing a product that is substandard or not meeting the agreed-upon specifications or failing to perform assignments or making false certifications or representations about products or services.

12. False Certifications • Investigation:There were allegations that a contractor submitted false certifications to the department regarding payment to subcontractors. • Determination: The investigation disclosed that the contractor submitted forms to the department certifying they had paid all subcontractors. • Results: Contractor was suspended from doing business with the department for three years and declared non-responsible.

13. Summary of CaseClosures • Investigative activity is conducted to identify facts and circumstances to prove or disprove each allegation. The results of the investigations are documented and published by the Inspector General and disseminated to internal and external customers.

14. False Claims • Accusations:were made that a prime contractor submitted false claims for removal of soil material and billed inappropriately for barrier walls. • Results: The allegations were proved and a settlement with the department was negotiated.

15. False Documentation • Accusations:Prime contractor submitted false documentation requesting final payment. It was determined that the prime contractor had submitted false Certification – Disbursement of Previous Periodic Payment to Subcontractors forms and a notarized Contractor’s Affidavit and Surety Consent form. • Results:The allegation was proved and the prime contractor was suspended by the department.

16. Falsified documents • Accusation:Contract employee failed to complete required site visits, associated sampling and knowingly falsified department Concrete Plant visit Report forms. • Results:The allegation was proved and department procedures were changed.

17. Non- compliance Issues • Accusation:A contractor’s management had instructed their employees to alter batch plant quality control reports on a regular basis, and the contractor had used non-compliant recycled rock for the their department concrete mixes. • Results: The allegations were disproved.

18. Non- Certified Aggregate • Accusations: A supplier provided non-certified aggregate material to a department project. It was determined that the delivery tickets produced by the supplier were inaccurate and non-certified aggregate was delivered. • Result:The allegation was proved and the department received a credit for delivered non-certified aggregate.

19. Falsifying Bids • Accusation: Two firms owned by the same individuals and sharing employees had colluded to submit bids as though they were separate entities. • Results: Allegations were proved and the contractors voluntarily agreed not to bid, or act as a subcontractor, nor supply any materials on any department projects for a period of six months.

20. Verification of Project Dollars • Accusation: Allegations were made that project dollars were completely exhausted from one project, a contractor’s employee instructed other contractor employees to charge their work against projects that still had funds available. • Results: Allegations were proved and the contractors voluntarily agreed not to bid, or act as a subcontractor, nor supply any materials on any department projects for a period of six months.

21. Ancient Greek - ethikos Ancient Roman - moralis What is Ethics? Both terms mean, roughly: “pertaining to Character”. But today, Ethics is much more and very difficult to define.

22. Ethics is others.

23. Ethics is a major branch of philosophy, encompasses right conduct and good life. The standards that govern the conduct of a person, especially a member of a profession Rules of behavior made and accepted by business to provide fair and moral practice What is Ethics ?

24. OPERATING PHILOSOPHY At Johnson Bros. we believe in the testament of the 3R’s: Respect for Self;  Respect for Others; Responsibility for Your Actions. Our values are also rooted in Integrity, Teamwork, Building People, and Serving our Customers and ourselves by doing the right thing. Paramount to doing the right thing is always doing those things safely.  “I have many responsibilities, but the most important thing I do is establish our culture. That is how we treat each other within our company and how we treat others outside our company.” Eric Kishel, CEO Johnson Bros.

25. Applied EthicsLast Year OIG received 91 allegations with 18 investigations resulting in 11 disciplinary actions

26. Employee Misconduct Case Examples • Theft: The Comptrollers office, reported that during an audit for travel records, they discovered a suspicious entry regarding the purchase of a rental car with a department purchasing card (P-Card). While questioning the department employee they discovered the employee had attributed the rental car charge to another employee who had not received approval or filed a rental care travel voucher. Upon further questioning by the Comptroller staff, the employee stated they had made a mistake and mistakenly represented the charge. • Determination: The investigation confirmed the employee rented a vehicle for personal use and charged it to the Department P-Card and attempted to cover it up.

27. Employee Misconduct Case Examples An accusation was made that a department employee provided confidential bid information to a company bidding on a tree removal project. The employee solicited and received a second lower bid from the awarded contractor, without affording the same opportunity to two other companies who bid on the same work. The allegations were proved. The employee resigned from the Department.

28. Employee Misconduct Case Examples Accusations were made a central office employee misused department Information Technology Resources by sending and receiving personal e-mails, accessing websites unrelated to department duties, and installing hardware and computer files unrelated to department duties. Additionally, the subject accepted funds from a contractor doing business with the department. The allegations were proved, and the employee resigned from the Department.

29. Employee Misconduct Case Examples Accusations were made that a project manager instructed a subordinate to ignore incomplete work on a contracted project, attempted to process payment for incomplete work on the project and instructed the contractor to perform work prior to issuing a work order. The allegations were proved, and the employee was terminated from the department.

30. Employee Misconduct Case Examples Accusations were made that a district employee misused department Information Technology Resources, instructed consultant employees to complete his college coursework during work hours and falsified timesheets. Additionally, accusations were made the district employee received gifts from consultants and made improper hiring recommendations to consultant managers. The allegations of misuse of department Information Technology Resources, instructing consultant employees to complete his college coursework and falsification of timesheets were proved. The employee resigned from the department.

31. Employee Misconduct Case Examples Accusations were made that a district employee required a contractor to add equipment to a job that was not required for the completion of the contract. The allegation also contended that the employee purposely delayed contract payments and used derogatory racial slurs. The allegation of the use of a racial slur was proved, the remaining allegations were disproved. The employee received a written reprimand.

32. Take the time to make sure you know the applicable rules and regulations Do not violate the law Know and Comply with the Law

33. Be truthful and straight forward in all your dealings with others Honesty

34. Respect for others Maintain professional courtesy (even under stress) Do not allow disagreements to become personal Professional Courtesy

35. Manage your communications with others Email can damage relationships Balance Emails with phone calls (one phone conversation for 4-6 Emails) Don’t negotiate by Email Don’t blind side others Call and explain before sending an unwelcome letter Never send out a letter or message while upset emotionally It’s OK to write it, but read it again after you have cooled off before sending Communications

36. Establish a project culture Safety Respect Honesty Accountability Look ahead, establish direction for the project You are the coach Work towards improving everyone’s performance Leadership

37. Solving technical issues is easy.Managing people is the challenge.You are in the business of managing relationships.

38. How to communicate best with them How to gain their support How to understand and anticipate their responses Know the people on your team.

39. Principals and Procedures Power and Control Earth Fire Step by Step, Linear Get to the point, Bottom Line Relationship Connection Fun and Excitement Water Wind People, Emotion and Feeling Change Personality Representations

40. Ethics Test

41. Situation No. 1 Contactor Job Barbeque You are the Project Engineer. The contractor has been performing well and everything is going smoothly. The contractor has reached an important Milestone and is holding a little celebration at their project office. They are having a barbeque Friday afternoon at lunch time and have invited you to attend. What should you do?

42. Situation No. 2 Contractor Deficiency Letter A major traffic switch was planned for last night. Everything was going well at first. The contractors signalization subcontractor left the site before completely checking the new signals. The signals were not working correctly. The contractor could not get the signal people out to job until 10 am the next morning causing a major traffic problem What should you do?

43. Situation No. 3 Mistake in Contractor’s SA Pricing Example: 20,000 cy @ $3.00 = $6,000. You are reviewing an estimate submitted by your contractor for an SA. You find that the contractor has made a mistake in the calculations in favor of the FDOT. What should you do?

44. Situation No. 4 Unsafe Contractor Work Procedure The contractor is beginning the setup for a structural erection. Based upon what you have seen, you believe that there is a real safety problem with the way the work will be performed. What should you do?

45. Situation No. 5 Family and work The Project Administrator has a son and the Contractor asks if he could hire him to work on the current project? What should you do in this situation ?

46. Situation No. 6 Family and work • The Project Administrator for a project has a son that is looking for work and asks the contractor if they are hiring and would they hire the son ? • On the current project • On a future project • What should you do?

47. Situation No. 7 Work and Contractor • The Project Administrator is a bass guitarist in a band. CEI consultant asks him to have the band play at their annual sales celebration meeting. • CEI has inspector working for PA. • No one presently working for PA • What should you do?

48. Any Questions ? Comments: Brian Pickard Brian.pickard@Volkert.com 813-600-8330