Procurement and Contract Services Policy & Procedures Manual
Section 100: Purchasing and Contract Ethics
Effective: 01/04/2010
Revised:  08/05/2011

101-001: Financial Gain or Avoidance of Financial Loss

Employees are prohibited from using or attempting to use their positions to gain financial benefit or to avoid a financial cost for themselves, a relative, a member of their household or their business if the opportunity is available only because of the position held by the employee.

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

Except when purchasing from or contracting with OSU employees as described in 101-002, it is inappropriate for employees to profit from OSU related business such as obtaining credit card bonuses obtained by purchasing items for OSU business on a person’s personal credit card and requesting reimbursement, thus keeping the bonus for personal financial benefit.

101-002: Purchasing from or Contracting with OSU Employees, Relatives of OSU Employees or Members of the OSU Employee’s Household

Any purchase or contract for the provision of goods or services, regardless of the dollar value, is subject to the provisions of this policy.  OSU may only purchase from or contract with OSU employees, relatives of OSU employees (relative as defined in ORS 244) or members of the OSU employee’s household if all of the following requirements are met:

a)    The purchase or contract is NOT for the Department, College or Administrative Unit that the OSU employee is currently working for or has worked for as an employee in the previous 6 months;

b)    The goods or services sought for purchase or contract are substantially different from the work the employee performs in their employment with OSU;

c)    The OSU employee, relative of an OSU employee or member of the OSU employee’s household must be determined to be an Independent Contractor for the services being proposed;

d)    The OSU employee, relative of an OSU employee or member of the OSU employee’s household must have a federal tax identification number separate from their social security number; and

e)    PaCS must conduct a competitive solicitation in accordance with OAR 580-062-0020 (2) or conduct a sole source process in accordance with OAR 580-062-0020 (8). 

PROCEDURE:

1.    Departments or Business Centers must submit a Purchase Requisition or Personal Services Contract to the Procurement and Contract Services Office indicating that they wish to purchase or contract for goods or services from an OSU employee, relative of an OSU employee or member of the OSU employee’s household. 

2.    Procurement and Contract Services will conduct the competitive solicitation or a sole source process as appropriate and in accordance with OAR.

3.    Purchases or contracts that violate this policy will be considered an unauthorized purchase or contract and must follow the process for  Unauthorized Purchases or Contracts contained in PaCS 203.  Violations involving federally funded projects are subject to Conflict of Interest Violations Pertaining to Use of Federal Funds in PaCS 104-003.

101-003: OSU Employee Honorariums Guideline

OSU employees may not solicit or accept honorarium in excess of $50 for which the honorarium are solicited or received in connection with the official duties of the OSU employee.  OSU employees may solicit or receive honorariums in excess of $50 for which the honorarium is received in connection with a private activity of the OSU employee.  This does not authorize OSU to provide honorariums to OSU Employees.

101-004: Other State Employees Honorarium Guideline

OSU may not Contract with or pay an honorarium in excess of $50 to other State of Oregon employees for which the honorarium is being paid in connection with the State of Oregon employees official duties.  State of Oregon employees may solicit or receive honorariums in excess of $50 for which the honorarium is received in connection with a private activity of the State of Oregon employee.

101-005: Personal Purchases using OSU Funds

Employees may not make personal purchases using OSU funds.

101-006: Personal Purchases using OSU Contracts

OSU does not include discounts in OSU Contracts for purchases made by employees for their individual personal use.  Vendors, who are also OSU Contractors, may extend offers, special discounts or other incentives to employees.  Employees may only make personal purchases provided the following circumstances exist: 

a)    the product or service is available to other employee groups (in both private and public sector) on the same terms and conditions, and not exclusively to employees of the public agency; and

b)    the price of the goods or services are not better than the public agency has contracted.  Any more favorable arrangement than the public agency’s Contract may be a conflict of interest.