GIFTS FROM OUTSIDE SOURCES

• GENERALLY, EMPLOYEES MAY NOT ACCEPT GIFTS:

Given because of their official position, or from prohibited sources:

• Those doing or seeking to business w/ Postal Service
• Those substantially affected by the employee's official duties
• Those seeking official action by the Postal Service
• Those regulated by the Postal Service

A GIFT IS:

• ALMOST ANYTHING OF MONETARY VALUE
• Meals
• Parties, Events
• Transportation
• Lodging
• Event Tickets
• Merchandise
• CASH or its equivalent (such as gift certificates) are NEVER ACCEPTABLE IN ANY AMOUNT

A GIFT IS NOT:

• Modest refreshments
• Presentation items (mugs, plaques, pens)
• Items paid for by USPS
• Items for which you paid market value
• Most prizes in public contests
• Frequent flyer miles
• But no "steering" your business!
• Some free tickets might be postal property

EXCEPTIONS PERMIT ACCEPTANCE OF SOME GIFTS:

• Gifts based on personal relationships (family or close friends)
• $20 or less value/$50 per source per year
• Travel/entertainment for employment talks
• But beware conflicts!
• Certain awards/honorary degrees
• Certain gifts in foreign countries
• Free attendance at gatherings, in some instances

GUIDELINES FIRST ISSUED 10/95.

PM POLICY ISSUED 1/97 AS PART OF NEW BUYING METHOD.

PM REVISION 5/97 ALLOWS PLACEMENT OF NEW SUPPLIER ON EXISTING LIST WITHOUT PUBLICIZING.

SUPPLIER-SPECIFIC PERFORMANCE EVALUATION FACTORS ESTABLISHED IN NEW PM; MUST BE USED IN PREQUALIFICATION (PM 3.2.5.B.4).

$20/$50 EXCEPTION PERMITTING GIFT ACCEPTANCE

• Employees can accept a gift worth $20 or less from a prohibited source on a single occasion.
• Employees can accept up to $50 worth of gifts from the same source over a calendar year -- but only a $20 gift per occasion.
• At conferences, expos, etc., employees do not have to aggregate each gift received at the conference. Each company is considered a different source, even though they each gave gifts at the same conference. An employee may therefore accept 10 gifts worth $20 each from 10 different sources at the same conference.
• Employees can accept up to $50 worth of gifts from the same source over a calendar year -- but only a $20 gift per occasion
• The $20 limit applies to each individual gift, even if many different companies contributed to purchase the gift. For example, an employee may not accept an $80 briefcase, even if 4 companies purchased and awarded it jointly. This also applies to an $80 gift from one association, if most members of the association are prohibited sources.

HANDBOOK COVERAGE WILL ADDRESS GENERAL GUIDANCE AND COMMODITY-SPECIFIC GUIDANCE.

WIDELY ATTENDED GATHERINGS

CONSIDERATIONS:

• Supplier experience or past performance.
• Supplierâ s track record in terms of having performed same requirements for others.
• Special supplier attributes (special tooling equipment, special areas of expertise.)

FREE ATTENDANCE AT EVENTS

Exceptions permit attendance:

- If you are making a presentation or on a panel, you can attend free that day.
- From sponsor of widely-attended gatherings.
- Must obtain determination of agency interest in
order to attend duration of event (other than day
of presentation.)
- If you are not participating in the event, you must
obtain determination of agency interest in order to attend the event.
- Free attendance offered by other than the event sponsor.
- Must obtain determination of agency interest.
- Can only accept free attendance if value of $250 or less.

SOME BLANKET STATEMENTS:

• PQ should generally be a simple, fast and fair process.
• We will go into more detail regarding how pq will reduce future risks and time investment during the purchasing process.
• Concept of separating "wheat" from "chaffe" should be pretty clear.

WIDELY-ATTENDED GATHERINGS

Determination of agency interest depends on:

Further USPS interests?
- Widely-attended? (75 or more, many viewpoints)
- Invitation from someone whose interests are affected by USPS? Affected by employee specifically?
- Invitee treated differently from other invitees?
- NEVER accept free travel expenses, lodging,
entertainment collateral to the event, other than
group meals, or anything not provided all attendees.
- USPS must pay these expenses.

Obtain determination from ethics official.

You may only accept free attendance.

• Again, emphasize the concept of using prequalification to identify the "best of the best" suppliers.
• Also, convey the idea of "eliminating" through prequalification those suppliers which clearly would not stand a chance of receiving a contract award. In the long run, this will benefit both the postal service and the supplier community.

CONFLICTS OF INTEREST

(Including "moonlighting," and seeking

future employment)

CONFLICTS OF INTEREST:

NO PERSONAL & SUBSTANTIAL PARTICIPATION

IN PARTICULAR MATTERS IF:

• You have a financial interest in the matter.
• Certain others have a financial interest.
• Spouse.
• Minor children.
• Others living with you.
• Prospective employers.
• General partner.
• Organization for which you serve as officer, director, general partner, or employee.
• CRIMINAL PENALTIES APPLY!!

SOME TYPICAL CONFLICT SITUATIONS:

- Outside concurrent employment compensated
or uncompensated.
- Prospective employment.
- Stock ownership in contractors.
- Spouse employed by contractors.

OPTIONS FOR RESOLUTION:

• Disqualification or Recusal.
• Simple non-participation.
• Notify supervisor.
• Should seek written advice from ethics official.
• Waiver.
• Must obtain from ethics official.
• Divestiture.
• Seek advice from ethics official -- tax consequences!

SEEKING OTHER EMPLOYMENT

- No prohibition against job searches.
- Prohibits activities while in postal job.
- If conflict of interest, those rules apply.
- If concurrent job, beware mailing businesses.
- Cannot work for competitors.
- Other restrictions re: mail-related businesses.

SEEKING OTHER EMPLOYMENT MEANS:

• Less than negotiations.
• More than unsolicited resume.
• Any response to an inquiry other than unequivocal rejection.
• Deferring discussion is not a rejection.

Conflict rules can be triggered early, so ask an ethics official for advice early in the process.

OUTSIDE CONCURRENT EMPLOYMENT

FEDERAL REGULATIONS PROHIBIT CERTAIN CONCURRENT JOBS (or self-employment):

• Manufacturing of uniforms or other products (such as mail boxes) required for use by postal employees or customers.
• Transportation of mail under postal contract to or from facility at which employee works or within delivery area.
• Providing consultation, advice or subcontracting services re: operations, programs, or procedures of USPS to those with postal contracts or to those who may compete for postal contracts.
• Commercial Mail Receiving Agencies.
• Others who deliver mailable matter outside US Mail -- such as our competitors -- except that newspaper delivery is not prohibited.

OUTSIDE CONCURRENT EMPLOYMENT

MUST HAVE PRIOR PERMISSION FOR CERTAIN OUTSIDE EMPLOYMENT

• If you have official dealings w/ employer on behalf of USPS.
• If the employer is substantially dependent upon, or potentially affected to a significant degree by, postal rates, fees, or classifications, or substantially dependent upon providing goods or services to, or in connection with, the Postal Service.