Overview
This section establishes the ethical framework for federal procurement, requiring that government business be conducted with absolute impartiality and above reproach. It mandates the avoidance of both actual conflicts of interest and the appearance of such conflicts to maintain the highest level of public trust.
Key Rules
- Impartiality: Government business must be conducted without preferential treatment for any party, ensuring complete objectivity in all transactions involving public funds.
- Appearance of Impropriety: Beyond avoiding actual conflicts of interest, government personnel must avoid any actions that could even appear to be a conflict.
- Public Disclosure Standard: Official conduct must be of such a high standard that the individual would have no hesitation in making a full public disclosure of their actions.
- Gratuity Prohibition: Government employees are generally prohibited from soliciting or accepting any gift, favor, loan, or item of monetary value from entities seeking business with, regulated by, or affected by the employee's agency.
- Agency-Specific Oversight: Individual agencies are required to implement their own standards of conduct, which include specific exceptions, disciplinary measures, and financial disclosure requirements.
Practical Implications
- Contractors must strictly adhere to "no-gift" policies, as even small gestures like buying a cup of coffee or a meal for a Contracting Officer can trigger a violation or an investigation into the appearance of a conflict.
- Transparency is the primary safeguard; if a transaction or relationship between a contractor and a government official cannot withstand public scrutiny, it likely violates the standards of conduct outlined in this section.