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

104-001: Declaration of Conflict or Potential Conflict of Interest

The procurement of goods and services at OSU must be free of the undue influence of outside interests. There may be 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 part of the procurement  or contracting process.  Any conflicts or potential conflicts of interest regarding the procurement or contracting process must be reported to PaCS before making the procurement or executing the contract.  Conflicts of Interests regarding the research integrity of a research project or proposal are managed through the Research Office process.  Their decision on the conflict of interest relating to research integrity does not mitigate conflicts of interest in the procurement or contracting area.

PROCEDURE:

1.    Actual or potential conflict of interests may be resolved by full disclosure as well as making appropriate arrangements that clearly mitigate the conflict of interest.

2.    Employees should promptly disclose any real or potential conflicts of interest by filling out the “PaCS Disclosure of Real or Potential Conflict of Interest” form and submitting to PaCS for review and advice on mitigating the conflict of interest.

3.    PaCS will review the disclosure and determine if there is a conflict of interest and if the conflict of interest can be mitigated in order to eliminate the conflict.

4.    In some instances, actual or potential conflicts of interest may need to be referred to OSU Office of General Counsel.

104-002: Conflict of Interest for Selection Committee Members

Employees engaged as a Selection Committee Member must first execute the OUS Conflict of Interest Statement before participating in the evaluation or selection of a Contractor or Vendor under a Formal Procurement process.

104-003: Conflict of Interest Violations Pertaining to Use of Federal Funds

In compliance with all applicable Code of Federal Regulations code of conduct requirements, OSU standards of conduct must provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents of the federal fund recipient. 

PROCEDURE:

In cases where it is determined that there has been a violation of PaCS Policies and Procedures pertaining to Conflicts of Interest PaCS will collaborate with the OSU Office of General Counsel, Office of Research Integrity and Office of Post Award Administration, and in some cases, the Human Resources Department in order to work with the Dean or Department head responsible for overseeing the college or department employee.  In consultation with these departments the Dean or Department head will determine an appropriate disciplinary action for the employee responsible for the violation.  Pursuant to Oregon Administrative Rules applicable to violations of university policy, (and/or a collective bargaining agreement in the case of represented employees) personnel may be disciplined for cause, including warning, reprimand, or a more severe sanction for cause, up to and including termination.

104-004: Segregation of Procurement and Accounting Functions

Administrators should structure the entire function and cycle of procurement so that purchasing, purchasing approvals and payment are adequately segregated to ensure ethical practices.  These duties should be divided among departmental personnel so that there is a distinct separation of those duties.  Separating the functions within the cycle of procurement should provide a series of checks and balances of all facets of purchasing.  It is important that administrators are aware of the purchasing function within their department and provide oversight and review of this function, ensuring the continued separation of purchasing duties.

ADDITIONAL INFORMATION:

Oregon Revised Statute 244

Oregon Administrative Rule 580-061-0000

OUS Financial Irregularity Policy

Code of Federal Regulations Title 40 Part 30.42