Ethics Chapter 1

1. EthicsChapter 1

2. Learning Objectives Enabling Objectives • Describe ethical behaviors in a foreign contracting environment • Identify ethical resources in a contingency environment Terminal Objectives Recognize the importance of ethical behavior in a contracting environment

3. Ethics “I believe integrity in a contingency environment starts at home. If you don't have it when you get there, it is too late !!” Charlie E. Williams Jr. Deputy Assistant Secretary (Contracting) Assistant Secretary (Acquisition) Air Force

4. While no training could cover every possible ethical situation you may encounter as a CCO, your Service Core Values will help keep you on the straight and narrow

5. Wake-up Call 83 ongoing criminal investigations related to contract fraud in Afghanistan, Iraq and Kuwait As of 2007

6. Recent Events • AF SSgt accepted $15,000 bribe in exchange for awarding a $373K contract for a cold-storage warehouse • Sentenced to 3 months Confinement, fined $500/month for 35 months, Reduced to E1 • Army Officer Indicted for Bribery – alleged to have received $9.6 million in bribes while a contracting officer in Kuwait • Trial pending • Army Officer shot and killed herself in Baghdad …suicide occurred a day after she admitted to an Army investigator that she had accepted at least $225,000 in bribes • Estate’s assets frozen by federal investigators If you act unethically…you will get caught and pay the price

7. Cultural Differences • There are many cultures where bribes, gratuities, exchanges of gifts, etc. are common business practice • If confronted with this situation, then you must: • Explain to the contractors that the US military does not conduct business in this manner • Notify their superior • Write a memo for record documenting what transpired • It is possible that the contractors* will insist that you accept a gift. In this case, you must: • Reiterate that this is not how the US military conducts business • Inform the contractor that the gift will in no way affect contracting decisions • If a contractor is insistent and there is no diplomatic way to avoid accepting the gift, the CCO should: • Accept the gift on behalf of the US military • Immediately notify their superiors • Consult with Legal • Turn the “gift” over to finance or other authority as directed by command for safe keeping • Write a memo for record documenting what transpired • *Note – Gifts from foreign contractors do not fall under AFI 51-901, Gifts from Foreign Governments It is never appropriate for a CCO to solicit gifts, gratuities or bribes

8. Recent CCO Experiences • Major in Afghanistan was told he would be “taken care of” if the contractor’s proposal was accepted without negotiating • Capt in Kosovo was offered a “gift” for information on a competitors proposal • Lt in Qatar was informed by a contractor that it was “his turn” to win the next construction project • TSgt in Iraq was offered an IPOD at a steeply discounted price by a contractor he regularly purchased supplies from • SRA in Kuwait was offered a luxury vehicle in exchange for “special consideration” on a contract • All of these examples were properly resolved…with no wrongdoing on the AF CCO’s part! Ethical dilemmas happen in every AOR and to CCOs of every rank…be prepared to deal with them

9. Resources There are multiple resources available to Contingency Contracting Officers • Supervisor • JAG • Chief of the Contracting Office • Chain of Command • OSI, CID, NCIS, etc • Guest speaker from CID

10. Practical Exercise Ethics ex #1

11. Practical Exercise Ethics #2 TBD