April 11, 2013

New Program at ASU Beebe

Starting this Fall

Options:Seeking an associates degree by taking the

60 recommended hours (see slide # 6)May obtain a Certificate of Proficiency by

taking only the public procurement section of courses (non-degree seeking student)

The curriculum is not finalized and currently not on the ASU Beebe website. However, you may now apply to be prepared to start in the fall semester.

Admission Status:Degree seeking student:

Must make application, provide immunization records, have a placement score (ACT or Compass), high school or college transcript

Non-Degree seeking student:Must make application

$85/hour plus required fees (classes are 3 credit hours)

Cost:

Most of the 16 week classes will be conducted on-line.

Conflict of Interest Laws

By Ray S. Pierce, J.D.

ETHICS (plural noun)

a system of moral principles the rules of conduct recognized in respect to a particular class of human actions or a particular group, culture, etc.

-- Dictionary.com, “Ethics” (last accessed April 9, 2013)

Purchasing EthicsMoral principles or code to be respected

and followed by procurement personnel. Prohibits a breach of the public trust by

any attempt to realize personal gain by a public employee through conduct inconsistent with the proper discharge of the employee’s duties.

-- Flynn & Buffington, The Legal Aspects of Public Procurement (2d Ed.), 2010

Words To Live ByJust because an action

is legal does NOT mean the action is ethical.

Clearly, the law cannot set out to define all ethical and unethical actions. Our own moral compasses have to guide us.

Arkansas Procurement Law

The ethics portion of the Arkansas Procurement Law can be found in Ark. Code Ann. § 19-11-701 et seq.

Statement of PolicyThe Legislature set out the overriding policy

for state employees AND nonemployees.

The general standard of conduct for employees is that working in government is a public trust. Thus, any attempt to realize personal gain through public employment by conduct inconsistent with the proper discharge of the employee’s duties is a breach of a public trust.

-- Ark. Code Ann. § 19-11-704(a)

This ethical standard not only applies to state employees, but also to nonemployees.

“Any effort to influence any public employee to breach the standards of ethical conduct set forth in this subchapter is also a breach of ethical standards.”

-- Ark. Code Ann. § 19-11-704(b)

Employee Conflict of InterestUnder Arkansas law, it is a violation of

law for any state employee to participate, either directly or indirectly, in any matter pertaining to any contract or subcontract, and any solicitation or proposal, in which to the employee’s knowledge:

1.The employee or any member of the employee’s immediate family has a financial interest;

Employee Conflict of Interest

2. A business or organization has a financial interest, in which business or organization the employee, or any member of the employee’s immediate family, has a financial interest; or

Employee Conflict of Interest

3. Any other person, business, or organization with whom the employee or any member of the employee’s immediate family is negotiating or has an arrangement concerning prospective employment is a party.

--Ark. Code Ann. § 19-11-705(a)(1)

What is “direct or indirect participation”?

The statute defines “direct or indirect participation” as including (but certainly not limited to) the “involvement through decision, approval, disapproval, recommendation, preparation of any part of a procurement request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity.”

-- Ark. Code Ann. § 19-11-705(a)(2)

But who is my “immediate family member”?

The statute defines “immediate family member” as “a spouse, children, parents, brothers and sisters, and grandparents .”

-- Ark. Code Ann. § 19-11-701(11)

Oh, no! I think I may have found a possible conflict! What do I do?

The statute sets out that procedure as well: 1.Upon discovery of a possible conflict of interest, an employee shall promptly file a written statement of disqualification with the director and shall withdraw from further participation in the transaction involved. 2.The employee may, at the same time, apply to the (DF&A) director … for an advisory opinion as to what further application, if any, the employee may have in the transaction, or for a waiver….

-- Ark. Code Ann. § 19-11-705(c)

What are these “advisory opinions” of which you speak?

The ethics laws allows an employee or a contractor for the State (but NOT the State Agency, either for itself or on behalf of either) to ask the DF&A Director to issue a written advisory opinion regarding the appropriateness of the course of conduct to be followed in a proposed transaction. Following the course of action set out in the advisory opinion will be considered as having followed the ethics portion of the law.

-- See Ark. Code Ann. § 19-11-715(b).

Waivers?Yep.

Upon request, the director can, if a conflict of interest is found, choose to waive the conflict so as to allow the given transaction to continue if he finds that a)the ethical conflict is insubstantial or remote, or b)the best interests of the State are served by granting the waiver.

-- See Ark. Code Ann. § 19-11-715(c).

PenaltiesThe code sets out the penalties for violating the ethics laws. Criminal penalties include up to five years imprisonment and up to a $10,000 fine (or both).

-- Ark. Code Ann. § 19-11-702

PenaltiesIn addition to criminal prosecution, the code permits civil and administrative remedies as well.

PenaltiesAnd yes, these penalties apply to non-employees as well.

More in the Ethics SectionThere are more restrictions and prohibitions in the Ethics Section, such as laws against:

1.Kickbacks 2.Gratuities (for securing state contracts)

3.Using contingent fees4.Using confidential information for personal gain

5.Other restrictions and prohibitions on private-sector employment upon leaving state government.

Read these at your leisure. Don’t read them at your peril.

Now That You Know All ThisRemember, government service is a public trust. But to those who may wish to breach that trust for their own personal gain, there’s one more slide.

2013 Legislative ChangesSB422/Act 453 – Exemptions from procurement

lawHB2031/Act 1020 – Priority buying of surplus

property by not-for-profits SB440/Act 308 – Technology access for the blind

or visually impairedSB340/Act 554 – Guaranteed Energy Savings HB1383/Act 494 – Making Bidding Requirements

Uniform for Historic Sites Contracts

Office Supply ShowTuesday, May 7th; 12:30UA Cooperative Extension Auditorium

2301 South University AvenueLittle Rock, AR

Join us for informational presentations and a small vendor exhibit.

Arkansas NIGPRecently held their annual conference in Hot

SpringsHad good delegate attendance and vendor

exhibitors

Chapter meets quarterly, join us!!!Next meeting, May 16th at noonClinton Airport, Little Rock for a behind the

scenes tour of the renovated airportMore details will be posted on the

www.arnigp.org website.If not a member & on the listserv, contact Peggy

Jackson, President at peggy.jackson@uaccb.edu

NIGP National Meetingwww.nigp.orgOrlando, FloridaAugust 24 – 28th

If the ARNIGP Chapter has 10 or more to register, each person receives a 15% registration discount. E-mail Peggy Jackson quickly to let her know you’re interested in attending.

Peggy.jackson@uaccb.edu

AASIS updates Susan Rojas

Sue.Rojas@dfa.arkansas.gov501-683-2255

Status of UpdatesIssue identified – Inability to adopt an Outline Agreement (OA) into a Purchase Requisition (PR)

Identified by OSP during Transparency updatesLinking PR and Purchase Order (PO) with OA

allows more accurate reportingCurrently being tested at AASISCommunication pendingTraining material being developedNot yet in ProductionLimited Usage to large OA such as MRO

(Grainger) or Office Supplies (Office Depot)37

Proposed Solution Test OA 4600016588

OA has only material groups

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Go to OSP website at www.dfa.arkansas.gov to find your commodity or service.Click on the Commodity name for further information.To contact OSP master data staff, call 501-324-9316 or email osp-vendor@dfa.arkansas.gov

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Go to ME33K, enter your OA number and look for the material groups.

Outline Agreement RecapItem Category M – Material UnknownContains only required Material GroupsLump Sum (UoM = ZLS)Net Price = $1.00Used only on select OAs

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Create your PR at transaction ME51N.

Enter your specific agency information such as delivery address, plant, pgroup etc

By selecting the matchcode in the material field, we can search by material group on the “M: Material Number/Material Description” tab

Enter the material group found on that line of your OA (61500) then hit the green check.

Select the Material Number which most closely meets your needs then hit the green check.

Proposed Solution (cont.)

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Enter the OA number and line item in the Source of Supply tab or the Agreement and Item fields to link your PR to the OA

Proposed Solution (cont.)

Purchase Requisition RecapSource OA via OSP websiteNotate Material Groups on OAMust include Material Number on PR

that is associated with OA’s Material GroupSearch in Material field

Must use correct PR quantity and Unit of MeasureContact OSP if no alternate found

Must include OA number and item number on “Source of Supply” tab

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Proposed Solution (cont.)Test PO 4501312922

PO contains material numbers to make orders more specific

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PR and OA are

referenced

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Alternate Unit of Measure is listed on the Quantities/Weights tabIf not available in material master data, please contact OSP

Proposed Solution (cont.)

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Image of PO

Purchase Order RecapCan be follow on to PRMust include Material Number associated with

OA’s Material GroupMust use correct PO quantity and net priceMust change OPU (Order Price Unit of

Measure)Found on Quantities/Weights tab of POOrder Unit will remain ZLSOrd. Price Unit will reflect actual Unit of Measure

EA, PAC, BAG, BOX, BT etc.

Must reference OA in POAdopt required OA lines via “Document

Overview”49

Have AASIS Questions or Issues?Call ASC Help Desk: 501-683-2255 orCreate Help Desk Ticket

Select “Help”Select “Create Support Message”Complete message and Save/Send

Susan Rojas, OperationsSue.Rojas@dfa.arkansas.gov

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Property Officer & Asset Manager Training

Tuesday, May 21st; 9:30 – 3:00UA Cooperative Extension AuditoriumDetailed agenda coming soon!State employees who have responsibility and

ultimate accountability for the physical assets of their

agency should attend.  

Upcoming Forums:May 9th

Reverse Auctions -Tim Walbert, Pulaski Technology College

June 13th

Proposed Rules after the 2013 Legislative Session