Procurement and Contract Services Policy & Procedures Manual
Section 100: Purchasing and Contract Ethics
Effective: 01/04/2010
Revised:  10/13/2015

 

 

The following policy provides guidance in the ethical and objective practices associated with procuring goods and services at OSU.  All purchases and contracts must be conducted in a manner that utilizes the highest ethical standards.  Any purchases or contracts not conducted in compliance with this policy could potentially result in a financial conflict of interest.

Financial conflicts of interest are unrelated to those associated with research.  All research conflicts of interest are managed by the Office of Research Integrity:  http://research.oregonstate.edu/ori

101-001: Financial Gain or Avoidance of Financial Loss

Employees are responsible for being good stewards of the resources entrusted to them.  As such, 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 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.  It is inappropriate for employees to purposely direct or influence a university purchase in a manner that provides them with personal financial gain that would not be available to them or avoid a financial loss, if it were not for their position as an OSU employee. 

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 householdif the OSU employee is not involved in the selection, award or administration of the purchase/contract and all of the following requirements are met:

  1. The OSU employee must complete the “Disclosure of Real or Potential Conflict of Interest” form and submit to the Procurement office for review.
  2. It has been determined by Procurement that no real conflict of interest exists or if a conflict exists, it has been mitigated.
  3. The OSU employee, employee’s relative or member of the employee’s household must be determined to be an Independent Contractor for the services being proposed. In the case of an OSU employee as a vendor, the goods or services sought for purchase or contract must be substantially different from the work the employee performs in their employment with OSU.

Procedure:

  1. Submit a Purchase Requisition and the completed “Disclosure of Real or Potential Conflict of Interest” form to pacs@oregonstate.edu.  If a real conflict of interest exists, Procurement must determine that:
    1. there are no current OSU contracts in place for the subject goods and services that will meet the department’s needs;
    2. a best effort is made to obtain price comparisons, documenting that the purchase or contract represents the best value to the University;
    3. the OSU employee, relative or member of the household has no additional knowledge or information about the purchase that would place them in an unfair advantage to receive this business from OSU; and
    4. an appropriate process has been conducted to resolve or mitigate the real or potential conflict of interest while complying with OSU Standards and other applicable regulations. 

The Department may work with Procurement to develop any necessary mitigation plan.

Purchases or contracts that violate this policy may be considered an unauthorized purchase or contract and will 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 honorariums from other entities in excess of $50 for providing services related to their official duties.  OSU employees may solicit or accept honorariums in excess of $50 if the services provided is in connection with private activity of the OSU employee and that activity does not relate to their official duties.

101-004: Other State Employees Honorarium Guideline

OSU may not contract with or pay an honorarium in excess of $50 to State of Oregon employees for which the honorarium is being paid in connection with that employee’s official duties. 

101-005: Personal Purchases using OSU Funds

Employees may not make personal purchases using OSU funds.

101-006: Personal Purchases using OSU Contracts as an OSU Employee

OSU employees may not use OSU contracts or a relationship with the contracted vendor to obtain more favorable pricing, terms and/or conditions than is available to the public or other employee groups in private or public sectors.