OSU PaCS 102-02: Conflict of Interest

Purpose

To establish the responsibilities of persons with purchasing authority who acquire goods and services for the University from vendors.

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Applicability

All employees with authorization to negotiate contracts, select vendors and commit Oregon State University in the procurement of goods and services.

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Background

The mere appearance of a conflict of interest can be as serious and damaging as an actual conflict of interest involving instructional, research, financial or administrative goals, processes, or outcomes.  Reports of conflicts based on appearances can undermine public trust in ways that may not be adequately restored even when the mitigating facts of a situation are brought to light.  Apparent conflicts, therefore, should be evaluated and managed with the same vigor as known conflicts.  The Anti-Kickback Act of 1986 was passed to deter vendors from making payments of any kind for the purpose of improperly obtaining favorable treatment in the issuance of a contract or purchase order.   See Oregon Administrative Rule 576-008-0205 and Oregon Revised Statute 244.04.

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Definition

Conflict of Interest

Situations in which financial or other personal considerations may compromise or have the appearance of compromising an employee's professional judgment in the execution of any phase of the procurement process.  

Purchasing Authority

The ability to negotiate contracts, select vendors and commit Oregon State University in the procurement of goods and services.

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Policy

All individuals with purchasing authority on behalf of the University must avoid any behavior that involves a real conflict of interest and any appearance, however remote, of using their affiliation with the University as a means of furthering personal interests.

Situations where an employee has a financial or other interest in a vendor who the University is or is considering doing business with and where that employee is in a position to influence relevant business decisions may be considered a Conflict of Interest and should be address via the processes outlined below.  Conflict of interest problems may be resolved by full disclosure as well as making appropriate arrangements that clearly exclude that employee from participating in the decisions.

Employees with purchasing authority should not request or accept from any individual or organization doing or seeking to do business with the University, a favor, gratuity or special consideration for themselves or any member of their family that will result in any direct or indirect financial gain.

Employees with purchasing authority should not engage directly or indirectly in a personal financial transaction that primarily relies upon information obtained through his or her University employment and is not otherwise common knowledge.

University staff (other than Procurement and Construction Contracting staff who will be engaged in the procurement process through participation on a vendor selection committee) must first sign a formal Conflict of Interest Release document before their participation in the selection process can commence.

All members of Business Services, Procurement and Construction Contracting are required to have read and reviewed the Conflict of Interest policy with the Associate Director for Business Services.

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Procedure

All Conflicts of Interest should be reported to the Associate Director for Business Services or via the Anti-Kickback and Conflict of Interest Hotline (541) 737-1333.

All questions regarding potential Conflicts of Interest or interpretations of the Conflict of Interest policy should be referred to the Associate Director for Business Services or via the Anti-Kickback and Conflict of Interest Hotline (541) 737-1333.

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Additional Information

See PaCS 102-05: Gifts and Gratuities.

See PaCS 305-05: Ethical Relationships With Vendors.

Anti-Kickback and Conflict of Interest Hotline, (541) 737-1333.

Anti-Kickback and Conflict of Interest Hotline web page.

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