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Website:  http://ethics.navy.mil   Date: 10/14/2004   Time:  6:53:49 PM

ETHICS NEWS ARCHIVE

  • A few items for your ethical consideration:

    1. We are fast approaching the 30-day past due mark for SF278 filers who failed to secure an extension prior to 15 May; if they fail to file after this 30 day window, they face the $200 late filing fee. If you have anyone in this category, now is a good time to urge them to file their financial disclosure form. Also, by way of reminder, as a "best practice" ethics counselors should consider Letters Of Caution or, if appropriate, Disqualification Letters for those filers who list financial holdings with Defense Contractors. Ethics counselors and supervisors are best-situated to determine if these actions are warranted given the duties and responsibilities of the filer. Also, as a best practice it is a good idea to note somewhere on the form not only the date that the SF278 was received, but also the date in which you commenced your review (this documents that the review was begun within 60 days).

    2. VTC Roundtable: Our next scheduled VTC update is 29 July 2004. Please be thinking about agenda items you would like to have discussed. Forward inputs to me via email or feel free to give me a call.

    3. ETHICS NEWS AND INFORMATION from OGE JUNE 3, 2004

      OGE ISSUES DAEOGRAM ON EFFECTIVE SCREENING ARRANGEMENTS FOR RECUSAL OBLIGATIONS

      On June 1, 2004, OGE issued DAEOgram DO-04-012 regarding effective screening arrangements for recusal obligations. The following are attached to the DAEOgram: (1) a sample memorandum that explains what steps an official is taking to implement his screening arrangement; and (2) a handout for employees who are selected to screen matters for officials with recusal obligations. The DAEOgram may be found at the OGE Website

    4. Useful advisory issued by the Air Force Materiel Command Law Office; Wright-Patterson Air Force Base, Ohio Anthony J. Perfilio, SES, Director:

      SUBJ: Government Employees Giving Gifts to Contractor Employees
      FROM: Mr. Mark Stone, Ethics Attorney
      DATE: May 28, 2004
      NOTICE: This e-mail message should be treated as an information resource rather than as the source for the definitive answer to a specific ethics question. The answer to an ethics question depends on the specific facts involved and the laws and regulations in effect at the time. Accordingly, lawyers who use this e-mail message are responsible for doing their own legal research when answering ethics questions. Also, non-lawyers who use this e-mail message should seek the answers to their specific ethics questions from their servicing ethics counselor.

      Here is a point paper on government employees giving gifts to contractor employees. These rules address such situations as where one or more government employees would like to give a gift to a contractor employee, such as a gift for a birthday, illness or baby shower.

      1. There are rules on government employees accepting gifts from contractor employees. [5 CFR Part 2635, Subpart B] And there are rules on government employees giving gifts to other government employees who are above them in the chain of command. [5 CFR Part 2635, Subpart C] But there are no rules per se on government employees giving gifts to contractor employees. Therefore, it is permissible for government employees to give gifts to contractor employees, subject to the conditions discussed below.

      2. "Appropriated funds may not be used for personal gifts, unless, of course, there is specific statutory authority." [GAO publication, Principles of Federal Appropriations Law, Third Edition, Volume I, January 2004, page 4-155; see also Air Force Instruction 65-601, Budget Guidance and Procedures, Volume I, 24 December 2002, para. 4.29] Therefore, it is not permissible to use appropriated funds to pay for a gift to a contractor employee.

      3. It is not permissible to use non-appropriated funds to pay for a gift to a contractor employee. [See Air Force Instruction 34-201, Use of Nonappropriated Funds (NAFS), 17 June 2002, paragraphs 4.2.15, 12.4 & 12.5.6]

      4. It is permissible for a government employee to use personal funds to pay for or contribute to a gift for a contractor employee.

      5. Government time is supposed to be used for the performance of official duties. [5 CFR 2635.705(a)] Consequently, it is probably not permissible to hold the event where the gift is presented (e.g., the baby shower) on government time. However, holding the event during the lunch hour or after quitting time may be appropriate.

      6. "Temporary duty is conducted to meet mission requirements only." [Air Force Instruction 65-103, Temporary Duty Orders, 23 February 2001, para. 2.1.2] Therefore, it is not permissible for a government employee to travel at government expense solely in order to attend the event where the gift will be presented to the contractor employee.

      7. Of course, it is always possible that there may be unique or unusual circumstances, such that the giving of a gift by a government employee to a contractor employee would be inappropriate for other reasons.

      8. It is permissible for a government employee to accept from a contractor employee a thank you card with respect to the gift. [See 5 CFR 2635.203(b)(2)]

    5. SOCO Advisories: For those who may not subscribe with SOCO for receipt of these, SOCO Advisory 04-05 is now available on the SOCO web site under the Ethics Resource Library under SOCO Advisories. This advisory includes the following topics:

      • 2004 Ethics Counselor Deskbook Posted on SOCO Web Site.
      • Updated Handouts on Post-Government Service Posted on SOCO Web Site.
      • Combatant Commanders Subject to 18 U.S.C. 207(c) Restriction Only as to DoD.
      • Solicitation Prohibited by Federal Personnel in an Official Capacity.
      • Army Colonel Sentenced to Prison for Taking Bribes.
      • OGE Program Review Schedule for the Remainder of 2004.
      • OGE Offers Two Courses in Washington, DC.


    6. News item of general interest: This has good visibility in the DC area, but may not in all other regions. FYI - DarleneDruyan.pdf

    7. SF 278s: Hopefully, you have 'em all; but if not, now is the time to start tracking folks down who may have forgotten. They have less than 30 days before the $200 late fee kicks in, so please encourage the late-comers to submit the form. Concerning initial reviews, there are many sources of help available, but NAVSEA Counsel's office recently shared one of their summary sheets on disclosure reports -- it's written for filers, but is equally useful for Reviewers.

    8. SF-278 Filing Deadline: To Ethics Counsellors - May 15 is the deadline for filing Public Financial Disclosure Reports; please ensure that alcon in your command or organization who have not yet filed are reminded to meet the deadline OR request in writing an extension. Extension requests must be in my office NLT COB Friday 14 May 04 in order to be timely. Email requests from filers sent either directly or through their local ethics counselor or supervisor are fine.

    9. News Items A few items for your information, and an important reminder:

      1. Training:

        The U.S. Office of Government Ethics (OGE) will conduct free introductory ethics courses for ethics officials in May and June at OGE's offices in Washington, DC. The date and course names are:

        Wednesday, May 12, 2004:
        Gifts Between Employees -- 10:00 a.m. - 12:00 noon
        Gifts from Outside Sources -- 1:00 p.m. - 3:00 p.m.

        Wednesday, May 26, 2004:
        Seeking Employment -- 10:00 a.m. - 12:00 noon
        Post Employment -- 1:00 p.m. - 3:00 p.m.

        Wednesday, June 9, 2004:
        Conflicting Financial Interests (Pt 1) -- 10:00 a.m. - 12:00 noon
        Conflicting Financial Interests (Pt 2) -- 1:00 p.m. - 3:00 p.m.

        For more detailed information about the courses and how to register, please refer to DAEOgram DT-04-004 located on OGE's web site at: http://www.usoge.gov/pages/daeograms/2004daeolist.html

  • FY 2005 ETHICS TRAINING SURVEY: OGE is collecting data from ethics officials to determine what courses should be offered in FY 2005 and where those courses should be offered. Previously, OGE forwarded an email to DAEOs and ADAEOs and asked that they complete and return the FY 2005 Ethics Worker Survey by Thursday, May 13, 2004 to Gwen Cannon-Jenkins at gcannon@oge.gov. Any questions about the survey may be directed to Sheila Powers, Training Coordinator, at sapowers@oge.gov. OGE Survey

  • Post Employment Rules: The Staff Judge Advocate for the Naval War College, shared the attached summary of Outside Employment related rules; I am sharing for your information.

  • REMINDER: We are less than thirty days from the deadline for filing SF278s. This is a good time to remind your filers (if you have not already) that they have until 15 May to file; requests for extensions need to be in writing and should be requested on or before the May 15th deadline. Your close attention to detail in the initial review is appreciated. Please do not wait to forward your reports...send them in as you complete your reviews rather than let them accumulate.

  • Premium Travel Rules DOD Policy on Premium Class Travel and Special Interest Item for Audits and Inspections

  • Reporting Gifts of Travel: Agencies are required to report semi-annually to the Office of Government Ethics (OGE) all gifts of travel related expenses in excess of $250 received from non-Federal entitites under 31 USC 1353. Agency reports for the period 1 Oct 03 to 31 Mar 04 are due. In order to meet the OGE deadline, echelon 2 commands with gift acceptance authority under SECNAVINST 4001.2G are due to CNO(N09BL) NLT 16 April 04. NRL, ONR, NCIS, USMC and AAUSN (for offices of the Secretary and Under) are requested to report such gifts directly to AGC(Ethics) no later than 30 April 04. Negative responses are requested. PLEASE NOTE THAT SF 326, SEMIANNUAL REPORT OF PAYMENTS ACCEPTED FROM A NON-FEDERAL SOURCE, MUST BE USED TO REPORT THESE GIFTS. OGE WILL NO LONGER ACCEPT ALTERNATE REPORTING FORMATS. A copy of the SF326 is attached. In addition, the memorandum forwarding the SF 326 should summarize: (1) the toal number of gifts accepted under 31 USC 1353 during the reporting period; (2) the total value of gifts provided in-kind, and (3) the total value of direct payment (reimbursements received).

  • Travel Rules Updated: The Joint Federal Travel Regulation has been updated. See, http://www.dtic.mil/perdiem/trvlregs.html

  • SF 278 Filing Deadline is 60 days away: While we're on the topic of SF278's, by way of friendly reminder, we're at about the 60-day mark away from the filing deadline (15 May 04). This is a good time to issue reminders to those in your organization that owe reports. With respect to initial reviews, please take the time to be thorough, and send them in when you've completed your review -- no need to let them accumulate between now and May/June. Thanks very much.

  • Senior Officers - New Rules: I'm attaching scans of the SASC Guidance Regarding Military Officers in Grades O-9 & O-10 that was distributed last week by DoD SOCO. In addition to covering the issues surrounding what holdings those officers must divest themselves of if they are to be confirmed, it also sets forth the policy prohibiting service on Boards of Directors (including personal capacity) for those officers on Boards of companies that do business with DoD or focus their business on military personnel.

    Also attached is the list of the FY 03 top ten DoD Corporations, The page (http://web1.whs.osd.mil/peidhome/procstat/p01/fy2003/top100.htm) also contains links to the Navy top 50.

  • SOCO Advisory 04-02 is now available at http://www.defenselink.mil/dodgc/defense_ethics/ under "ethics resource library." It includes the following topics:

    1. Updated Guidance on Civilian Employees' Participation in Political Activities now available on SOCO web site.
    2. Beware of Microsoft Software Computer gifts.
    3. Advisory Committee Guidance for Members and for Designated Federal Officers.
    4. 2003 List of 10 Companies Receiving Largest Dollar Volume of Contracts with DoD now available.
    5. Two Social Security Employees Sentenced for Conspiracy to Defraud the Government.


  • SF 278 Time Ethics Counselors - It is that time of year again! Attached is the annual AGC(E) announcement concerning the start of the SF 278 filing season (Ser 04006). Please review the memo and take appropriate action in ensuring that all SF 278 filers coming under your cognizance are reminded of this annual requirement. Also attached is a document describing common concerns and problem areas associated with SF 278 filings and reviews (Ser 04007); it may be helpful to you in providing instructions to your filers and reviewing their SF 278s. By separate correspondence, I will be sending you a list of your civilian filers. Please compare it to your list of filers and let us know if there are any discrepancies. Navy JAG provides parallel notice and guidance for military filers.

  • Roundtable Cancellation: Due to a scheduling conflict, the VIC roundtable scheduled for 29 Jan has been cancelled. The next regularly scheduled event is March 25.

  • Compilation of Federal Ethics Laws: On January 13, 2004, the Office of Government Ethics (OGE) issued a DAEO-gram. It states that OGE has prepared a "Compilation of Federal Ethics Laws" that can be ordered from the U.S. Government Printing Office. This might be a useful item for deployed JAGs who may not always have access to the Internet. The two-page DAEO-gram is on the OGE website at:

    http://www.usoge.gov/pages/daeograms/dgr_files/2004/do04001.pdf

  • Ethics News - 04-01:

    1. Additional Political Activities Info: At this month's interagency meeting of ethics advisors, the U.S. Office of Special Counsel shared a number of useful resource documents on the Hatch Act. As we begin an election year, this information may be helpful in answering questions. When in doubt, questions should be referred to the Office of Special Counsel, but the attached documents may assist in providing employees with basic information regarding their rights and responsibilities.

    2. Follow up to the earlier notes on the new pay system: DOD SOCO has alerted us to the fact that the recent changes in the pay system for senior officials (that effects the scope of 18 U.S.C. section 207c) applies to Inter-governmental Personnel Act (IPAs) as well as to SES, STs, SLs, ALs and the like. In getting the word out to those effected, please include any IPAs. If they meet the pay thresholds, they too will be subject to the so-called "cooling off" restrictions.

    3. Effect of 2004 Pay Adjustments on Ethics Provisions:

      For purposes of the outside earned income and employment restrictions in Title V of the Ethics in Government Act and other coverage purposes during 2004, as of now:

      120% of the minimum rate of basic pay payable for GS-15 of the General Schedule is $103,700.

      15% of the annual rate of basic pay for level II of the Executive Schedule is $23,550.

      For purposes of coverage by 18 U.S.C. 207(c) in 2004, 86.5% of level II of the Executive Schedule is $135,805.

      Locality pay adjustments are not taken into account for these purposes.

      There may be an additional pay increase later this year that could affect the amounts listed above. However, at this time we do not know the amount of that pay increase, whether it would be retroactive or prospective, how much of it would be across the board and how much of it would be allocated to locality pay, and whether there will be any additional pay increase at all.

    4. Hatch Act resources:

      Hatch Act Resources.pdf


  • Year-End Notes: SOCO Advisory 03-14 is now available under the OSD Ethics Resource Library of the SOCO web site. The SOCO web site is http://www.defenselink.mil/dodgc/defense_ethics/. This advisory covers:

    1. 1. The new post employment restrictions for "Senior Employees";
    2. 2. Notice about the posting on our web site of the Office of Public Affairs Policy Guidance on Political Activities; and
    3. 3. A recent Federal criminal case resulting in a 24 year jail sentence for former Pentagon employees committing wrongdoing.


    The political activities guidance is attached, below, for your information -- it also available on the DOD website by clicking on ETHICS RESOURCE LIBRARY then on DOD GUIDANCE

    campaigns_elections.pdf

  • New SES Pay Provisions Have Ethics Impacts: Attached is the recent notice issued by OSD SOCO regarding changes to the scope of 18 USC 207(c)

  • The 2nd Ethics Counselor Course (ECC) will be held at the U.S. Army Judge Advocate General's School (TJAGSA) on 19-23 April 2004. This joint service ethics course is designed to provide attorneys with the material and information necessary to effectively function as an ethics counselor. The course would also be helpful as a refresher to someone who has been away from the ethics practice for a few years. The course is only open to attorneys.

    The Department of the Navy has been allocated 50 slots for the course to be distributed among OGC (20), JAG (20), and USMC (10). OGC quotas are controlled by AGC(E). JAG quotas are controlled by JAG Code 132. USMC quotas are controlled by JAR. TJAGSA will not accept reservations directly from students. Individuals wishing to attend this course must submit a request for a course quota through AGC(E), JAG Code 132, or JAR as appropriate.

    For OGC offices, please submit the names of the attorneys from your command/activity that would like to attend the 2nd ECC to AGC(E) by 12 January 2004. Please prioritize your list of nominees as we will likely not be able to accommodate all the requests with our initial quota allocation. We have been successful in the past in securing additional quotas when other components turn in unused quotas. For that reason, it is important to have a prioritized waiting list ready to go.

  • Roundtable Cancelled The DON Ethics Roundtable scheduled for December 18th has been canceled. The next Roundtable is scheduled for January 29, 2004.

  • Relief Societies: Some of you have asked for clarification concerning the news that the Armed Forces Relief Societies have joined forces to create the Armed Forces Relief Trust and it's effect on the services ability to endorse their solicitations.

    DOD Standards of Conduct Office has provided us with the following clarification: Prior to the estalishment of the Armed Forces Relief Trust, the organizations listed in JER 3-210(a)(1)-(5) (the Service Relief Societies) were exempted from the limitations on the provision of logistical support of non-Federal entity events under JER 3-211, because they did not raise money outside of DoD, and DoD didn't need to ask who they were soliciting. They are now like any other group in 3-210(a)(6). "We know that they are a group composed primarily of DoD employees and their dependents and we know that the funds are for DoD employees and their dependents. Now that they have gone outside, however, we can endorse them only when they are fundraising within DoD when approved by the Head of the DoD Component organization or command. By naming them [in 3-210(a)(1-5)], all we really did was delete the requirement for approval by the Head."

    For those of you who are wondering how this will affect the NMCRS Annual Campaign, it appears that DoD anticipates that it will go on as usual once it's approved by SECNAV. The concern is that now, when NMCRS wants to fundraise, we need to ask about specific events when they want endorsement:

    "So, bottom line, nothing has really changed for them. We just have to be more vigilant and ask about specific events concerning which they want DoD endorsement. They have never been entitled to more than endorsement when fundraising among their own members, and the same support we would provide any other NFE under 3-211. Now we have to ask about an event, make sure it is internal, and get the Commander’s approval."

  • Special Solicitation for California Wildfire Victims On November 10, 2003, OPM issued a memorandum (attached) authorizing a special solicitation on behalf of charities assisting in the relief efforts in support of the victims of the fires. A copy of OPM's November 13, 2003, press release is available on OPM's website in the News and Events section (www.opm.gov). This special solicitation is separate from the on-going CFC. The authority is for a one-time only cash or check workplace solicitation (special fundraising events such as carwashes or raffles are not permitted). Funds raised are not to be counted towards the CFC. The special solicitation is authorized only for those federal agencies located in designated counties (Los Angeles, Orange, Riverside, San Bernardino, Ventura, San Diego, and Santa Barbara) and expires on December 15, 2003. Local heads of Federal agencies in these counties may decide whether or not to conduct the special solicitation. I want to make it clear that this is not a nation-wide authorization. Federal agencies outside of the designated counties wishing to hold a special solicitation must seek separate authorization from OPM. Funds collected must be donated to charities involved in the relief efforts. While activities are free to select the relief charity or charities for which they will solicit funds, it is recommended that the funds be spread among the various relief agencies to avoid any concerns about endorsement or preferential treatment.

  • Gifts of Little Intrinsic Value: Attached for your information and use are two papers recently issued by DOD SOCO. The first, PresentationGifts.pdf, discusses the gift provision at 5 C.F.R. 2635.203(b)(2), which excludes from the definition of a gift, "greeting cards and items with little intrinsic value, such as plaques, certificates, and trophies, which are intended solely for presentation." The paper debunks the ethics myth that an otherwise utilitarian item, e.g., a crystal bowl or book, becomes an item of little intrinsic value simply because it has been engraved or otherwise personalized. The second, TravelContractorFacility.pdf, discusses the circumstances under which an employee may accept transportation services from a contractor while on official business at the contractor's worksite.

  • First Class and Premium Air Travel Some of you have no doubt seen the recent articles in the Early Bird and other locations concerning the October 2003 report from the General Accounting Office (GAO) concerning improper use of 1st class and premium class air travel within DOD. A copy of the GAO Report is attached. It does not paint a pretty picture and several DON travelers are cited as examples of misuse. GAO found that breakdowns in internal controls and a weak control environment resulted in a significant amount of improper first and business class air travel and increased costs to the taxpayers. GAO found that during FY 01 and 02, DOD spent almost $124 million on about 68,000 premium class related tickets - primarily business class. I'm sure that we will hear much more about this in the near future as DOD and the Military Departments implement some or all of GAO's recommendations for addressing the problem. Certainly, that will include training/reminding DOD personnel of the rules concerning commercial air travel, i.e., what circumstances must be present to authorize first and premium class air travel, who are the approval authorities for such travel, and what procedures are to be followed in requesting first and premium class air travel.

    In the interim, please take every opportunity to inform employees within your organizations of the rules regarding commercial air travel. The Deskbook for the 1st Ethics Counselor Course (April 2003) has an excellent outline on Government Travel and Transportation (Tab H) and discusses these rules in detail. The topic for the DOD 2003 on-line ethics training is Travel by Aircraft and Motor Vehicle. The rules on use of 1st and premium class air travel are discussed there as well. I know that many of you are using that on-line program as your annual training for this year and that should serve as a timely reminder.

  • McCormick and Schmick's Restaurants Offer Free Meal on Veteran's Day - CORRECTION: We were advised that the offer of a free lunch or dinner on Veteran's Day had been extended to active duty personnel. Unfortunately, M&S; will not be extending the offer to active duty personnel. A recording from their Director of Public Relations (503-552-8331) clarifies that M&S; will regrettably only be able to offer this program to discharged veterans. Please let you people know about this change.

  • Some items of interest

    1. Civil Office.

    With the recent increase in activation of reservists for extended active duty periods (270+ days), it is important to remember that such activations could trigger the restrictions in 10 U.S.C. 973(b), the Civil Office statute. Except as otherwise authorized by law, it prohibits an officer from holding or exercising, by election or appointment, the functions of a civil office in the Government of a State, the District of Columbia, or a territory, possession, or commonwealth of the United States (or a political subdivision of any such Government). This prohibition also applies to certain civil offices in the Federal Government (i.e., elected office, political appointees confirmed by the Senate, and certain positions in the executive schedule). DOD Directive 1344.10, Political Activities by Members of the Armed Forces on Active Duty, extends this prohibition to enlisted members. The prohibition commences on the first day of active duty and means that members may not perform any function, or take any action in furtherance of their civil office responsibilities. DOD defers to other Federal, State, or local authorities, as appropriate, on the question of whether members must resign from the civil office or whether a leave of absence, recusal, or some other arrangement is sufficient. Please make sure that your folks are aware of this prohibition and that you incorporate it in the ethics briefing you provide to reservists reporting in to your activity/organization. It should also be made part of the mobilization briefings given to the reserve components.

    2. Financial Disclosure Reporting Requirements for SGEs.

    OGE recently issued helpful guidance concerning the financial disclosure reporting requirements for special government employees (SGE). See OGE DAEOgram DO-03-021, October 23, 2003.

    3. 2002 Conflict of Interest Prosecution Survey.

    OGE recently issued its annual (2002) survey of prosecutions involving the conflict of interest criminal statutes. These may provide some good examples for use in ethics training. See OGE DAEOgram DO-03-022, October 31, 2003.

  • Golden Corral Offers Free Meal on Veteran's Day Golden Corral will again host a Military Appreciation Night at its 400+ restaurants on November 10, 2003 (5-9 PM). All veterans, retired, and active U.S. military personnel will receive a free buffet and drink. This discount to all military personnel may be accepted pursuant to 5 CFR 2635.203(b)(4).

  • McCormick and Schmick's Restaurants Offer Free Meal on Veteran's Day: In case you haven't seen it, McCormick and Schmick's Restaurants is offering a free lunch or dinner to veterans on Veteran's Day. We are advised that this offer also extends to active military personnel as well. As this discount is available to all military personnel, it would be excluded from the definition of a gift under 5 CFR 2635.203(b)(4) and the free meal may be accepted. You may use official communications channels to inform employees of this offer (JER 3-208). Let me know if you have any questions.

  • Disaster Relief With the on-going wildfires in the San Diego area, you will no doubt receive questions concerning what employees or organizations can do to help the victims of this unfortunate event. Can we set up collection boxes for clothing and furniture items? Can we have a special fundraising event at the workplace to help out an employee who lost his or her home? These are just a couple of examples of the questions that might arise. Attached is an article that was written following 9-11 that discusses many of these issues and offers some practical guidance. It would be a good place to begin in researching these questions or developing guidance for your organization. Please call if you have questions.

  • October Roundtable: Just a reminder that we have a Department of the Navy Ethics Roundtable scheduled for this Thursday, October 30, at 1330. The Roundtable will be held at Crystal Gateway 4 (1213 Jefferson Davis Highway), NAVAIR Conference Room, 14th Floor. Those wishing to participate by VTC should call 703-604-6033, ext. 2246. The agenda is attached. Please feel free to contact me with any other suggestions for additional topics. As always, feel free to raise any issues during the Roundtable. Hope to see you there.

  • OGE Conference The Office of Government Ethics (OGE) will hold its annual Government Ethics Conference from 2-4 March 2004 at the Marriott Marquis Hotel in New York City. It is anticipated that the Department of the Navy will receive 15 quotas for the Conference which will be allocated as follows: 6 for OGC, 6 for Navy JAG, and 3 for the Marine Corps. It is recommended that these limited quotas be reserved for more experienced ethics counselors. New ethics counselors should plan to attend the one-day pre-conference program described below or the 2nd Ethics Counselor Course in Charlottesville in April 2004. OGE plans to use an on-line registration process for the 04 Conference but advises that they will not approve any on-line registration without prior DAEO approval. I will submit a list of approved registrants to OGE following receipt of nominations as set forth below. Please provide the following information for each nominee: full name, grade or rank, and work address, phone #, fax #, and e-mail. Nominations should be submitted by 5 December 2003.

    • USMC nominations, 703-614-2510 or DSN 224-2510 (phone), 703-695-1934 or DSN 225-1934 (fax)
    • Navy JAG nominations, 703-604-8280 or DSN 664-8280 (phone), 703-604-6996 (fax)
    • OGC nominations 703-604-8211 (phone), 703-604-6955 (fax)


    As noted above, OGE will hold a pre-conference program for new ethics officials on 1 March. Registration for the pre-conference program will be done separately from the main conference. DAEO approval is not required for the pre-conference program and DON ethics counselors wishing to attend that program may directly register with OGE.

  • OGE Training:  OGE recently announced free introductory ethics courses to be held in November and December at its offices in Washington, D.C. The introductory courses offered will be on Thursday, November 13 (Seeking Employment and Post Employment), Tuesday, December 2 (Gifts from Outside Sources and Gifts Between Employees), and Wednesday, December 3 (Conflicting Financial Interests - Parts I and II). Course descriptions and registration procedures are detailed in the attached DAOEgram.

  • Super Bowl XXXVIII:  Super Bowl XXXVIII will be held in Houston, Texas, in January 2004 and it is anticipated that DOD support will be requested from the NFL and sponsors of associated events. Attached is an e-mail from OASD-PA CR&PL; requesting that all such requests be forwarded to their coordination. DOD Components are reminded that they are not to make any commitments to the NFL or other requestors without prior coordination and approval from OASD-PA CR&PL.; Please make sure that your PAO and other appropriate officials are notified of this guidance. Please call if you have any questions.

  • Gifts of Travel Report (31 U.S.C. 1353): Ethics Counselors - As you know, agencies are required to report semi-annually to the Office of Government Ethics (OGE) all gifts of travel related expenses in excess of $250 received from non-Federal entities under 31 U.S.C. 1353. Agency reports for the period 1 Apr - 30 Sep 03 are due to OGE by November 30, 2003. Echelon 2 commands with gift acceptance authority under SECNAVINST 4001.2G and OPNAVINST 4001.1D are required to collect and forward reports of gifts accepted by their headquarters and subordinate organizations to CNO (N09BL) not later than 17 Oct 03. See attached CNO message. NRL, ONR, NCIS, USMC, and AAUSN (for offices of the Secretary and the Under) are to report such gifts directly to AGC(E) not later than 31 Oct 03. Negative responses are requested. Please note that SF 326, Semiannual Report of Payments Accepted From a Non-Federal Source, must be used to report these gifts. OGE will no longer accept alternative reporting formats. A copy of the SF 326 is also attached. The memorandum forwarding the SF 326 should summarize: (1) the total number of gifts accepted under 31 U.S.C. 1353 during the reporting period, (2) the total value of gifts provided in-kind, (3) the total value of direct payments (reimbursements) received. Please call if you have any questions.

  • Gifts of More than Minimal Value Given to Foreign Individuals in FY 03: Ethics Counselors - As you know, the Department of the Navy is required to provide the State Department with a report each year of all gifts given to foreign individuals during the fiscal year that exceed minimal value ($285). Attached is my annual memo on this subject explaining the reporting requirement and requesting that you report any such gifts to me by 24 Oct 03. The State Department's tasking memo, which includes the proper reporting format, is also attached. It is important that you meet this deadline as the Navy's report to State is due not later than 31 Oct 03. Negative responses are required. Please call if you have any questions. Thanks.

  • OGE Training in Denver in November: OGE has just announced that it will be offering a three-day ethics symposium in Denver, CO on November 18-20, 2003. The symposium will consist of plenary sessions, training courses, and roundtable discussions. The symposium is free and registration my be done on-line. More detailed information concerning the symposium and registration procedures can be found in DAEOgram DT-03-017, dated September 26, 2003. It is available on the OGE website (www.usoge.gov). Please call if you have any questions.

  • SF 278 Program: OGE recently announced the issuance of two DAEOgrams concerning the SF 278 program.

    DO-03-015, dated August 25, 2003, advises ethics officials that OMB has approved the current SF 278 (March 2000 edition) for another three year period. The form is unmodified and does not reflect the change to the aggregate reporting threshold for gifts/travel reimbursements from $260 to $285 ($104 to $114 for the de minimum aggregation exception) in Schedule B, Part II. I notified you of this change in my annual SF 278 memo (AGC(E) 030156, dated 29 Jan 03. The unmodified form also does not reflect the recent change to the Privacy Act Statement which added three additional routine uses. OGE did not modify the form to incorporate these changes because a more thorough revision of the form is expected in the next year or two. OGE asks that agencies notify filers of these changes.

    DO-03-016, dated September 16, 2003, advises ethics counselors that OMB has approved a revised OGE Form 201 (Request to Inspect or Receive Copies of SF 278 Executive Branch Personnel Public Financial Disclosure Reports or Other Covered Records). The 12/02 edition should now be used vice the 10/99 addition. The revisions to the form are minor/technical in nature. The 12/02 version is now available in the Forms and Publications section of the OGE website (www.usoge.gov).

    Both DAEOgrams are available on the OGE website.

  • Ethics News:
    • 1. Termination SF 278s. As you know, JER Section 7-203.d provides that a termination 278 may be filed 15 days before but not later than 30 days after termination from a covered position. DOD SOCO has advised us that they were recently informed by OGE that JER section 7-203.d is inconsistent with the Government-wide rule (5 C.F.R. 2634.201(e)), which requires that the termination report be filed within 30 days after termination from a covered position and does not allow for filing before the last day of service in the covered position. The JER will be amended accordingly. Therefore, you should try to make sure that termination reports are not signed and dated any earlier than the actual date of termination. In some cases, however, this is not possible as the employee may depart before his termination date, e.g., taking annual or terminal leave. Under those circumstances, it is permissible to have the employee complete, sign, and date the form before their actual termination date. The ethics counselor must then contact the filer on the termination date (or within 30 days of the termination date) and have the employee verify that the termination report is accurate as of the termination date. The ethics counselor must note this in the comments box on the cover page. OGE concurs that this practice is acceptable.


    • 2. 2004 OGE Conference. OGE announced that the 2004 OGE Conference will be held from 1-4 March 2004 at the Marriott Marquis Hotel in New York City. OGE also announced that they will utilize a new on-line registration procedure for next year's conference. OGE will still require filers to have DAEO approval but it is not yet clear how that will be accomplished. I will let you know about the registration procedures as soon as I know more. I anticipate that the Navy will get 15 slots again this year.

    • 3. Detail of Government Employees from the Executive Branch to the Legislative Branch. OPM has issued proposed regulations governing the detail of Executive Branch employees to the Legislative Branch. 68 Fed. Reg. 53054, September 8, 2003. All such details would have to be approved by the Director, OPM and would be limited to a period of 180 days (OPM could approve one additional 180 day period). OPM will not approve a detail if the duties to be performed would involve a conflict with respect to present or potential differing interests of the executive and legislative branches (like that could ever happen). There are other restrictions as well and OPM would reserve the right to terminate any existing detail if it was determined to be inconsistent with the criteria for approval. Comments on the proposed rules are due to OPM by 10/24/03. If you have folks that are involved in such details, you may want to make them aware of the proposed rules.

    • 4. Encyclopedia of Ethical Failure. If you are in need of some good examples of situations where employees have proven to be ethically challenged, DOD SOCO's Encyclopedia of Ethical Failure is a good source. It was recently updated (August 2003) and can be located on the DOD SOCO website. Go to the Ethics Resource Library and then to DOD SOCO Guidance.

  • Ethics Roundtable: I guess this Roundtable meeting was not meant to be. I was advised this morning that we had been bumped from the VTC facility tomorrow afternoon. Accordingly, the 9/11 Roundtable is canceled. I will take a look at the calendar to see whether it makes sense to schedule it for later this month but I am inclined to just let this one go. The next Ethics Roundtable is scheduled for 10/30/03. As always, I will keep you up to date on any new developments.

  • Government Travel Powerpoint Presentation: DOD SOCO has posted a power point presentation on Government travel on its website if you wish to use it for live training. I have a link to that presentation on the training page of our ethics websites.

  • Rental Vehicles: When you look at the 2003 DOD SOCO annual ethics training presentation on Government Travel, please note the rule concerning personal use of rental vehicles while on TDY. Most of us (at least me, anyway) have always advised employees that they were generally free to use rental cars for whatever purposes they wished while on TDY so long they understood that the Government would not reimburse them for any additional expenses not related to official travel, e.g., additional gas, and that there were potential liability issues when using the vehicle for personal rather than official use. As the training points out, the JTR (para. C2102E) and JFTR (para. 3415G) limit the use of such rental vehicles to "official purposes" which is defined to include "transportation between places where an employee's presence is required incident to official travel; between such places and places of temporary lodging when public transportation is unavailable or its use is impractical; and between either of the foregoing places and to places necessary to obtain suitable meals, drugstores, barbershops, places of worship, cleaning establishments, and similar places required for the sustenance, comfort, or health of the employee to foster the continued efficient performance of Government business." Use of the rental vehicle for site seeing or other personal entertainment purposes would not be authorized. This is not a change to the JTR/JFTR. You should advise employees of this restriction in your training.

  • Ethics Training DOD SOCO has posted the 2003 on-line ethics training (Travel by Aircraft and Motor Vehicles). A link has been created on the training portion of the Navy ethics website. DOD SOCO will also be posting a power point presentation on the same topic (in the next day or two) if you would like to use it for live training on this topic.

    If you plan to use the on-line training to satisfy your annual training requirement, you must make sure that you provide your employees with the names, titles, office addresses, and telephone numbers of the ethics officials available to advise them on ethics issues. 5 CFR 2638.704(b)(5) and 2638.705(b). You can include this in the e-mail, memorandum or other device you use to advise employees of the availability of on-line training should use choose to use that vehicle.

    You should also clearly explain to employees the procedures for recording completion of the on-line training. At the end of the on-line program, there is a screen which allows the employee to print a certificate of completion and to send an e-mail to his ethics counselor certifying completion. With regard to the e-mail certification, DON employees should go to the "All Others" drop down menu (vice the "OSD/JCS" drop down menu) and click on U.S. Navy. The employee should then provide the pertinent information and e-mail it to his ethics counselor (not to me and not to DOD SOCO!). Please make sure that you provide your employees with the e-mail address of the individual within your organization tracking annual ethics training.

  • OGE Courses: OGE recently announced that it will be offering several introductory ethics training courses at its offices in Washington, DC in September. The courses and dates are as follows:

    September 9: 450 Review (9-12) and Gifts Between Employees (1-3)

    September 10: 450 Review (9-12) and Gifts from Outside Sources (1-3)

    September 23: 450 Review (9-12)

    September 24: Conflicting Financial Interests, Part 1 (10-12) and Conflicting Financial Interests, Part 2, (1-3)

    As always, the courses are free and available on a first come - first serve basis. Course descriptions and registration information is provided in the attached memo from OGE.

  • The date for the next DON Ethics Roundtable has been changed from August 21 to September 4. The time and location remain the same. Please mark your calendars accordingly. I will send out another reminder and an agenda on or about August 28. A number of you have inquired as to when the DOD SOCO on-line annual ethics training will be available. DOD SOCO advises that the training module is complete but still needs to be loaded onto the web and tested. DOD SOCO hopes to have it available by the end of next week. I will let you know as soon as it is available. The subject of this year's training module is Government Travel.

  • Ethics Roundtables for 2004 Announced: The dates for the DON Ethics Roundtables for CY 2004 have been set. As you can see, we will continue with the every other month format. The VTC POC can be reached at 703-604-6033, ext. 2246. The dates for CY 2004 are as follows:

    January 29
    March 25
    May 5 or 6 (Ethics Update at OGC Conference)
    July 29
    September 30
    December 1

    Please mark your calendars accordingly. I will again make an effort to send out the agenda a week in advance and will also try to send an e-mail summary following the roundtable for the benefit of those that are unable to participate. I welcome any ideas you have for the roundtable content or format. The roundtables are for your benefit. Please let me know if you have ideas as to how they may be improved to better serve your needs.

  • OGE Symposium: OGE recently announced that it will offer a three-day ethics symposium in San Francisco, CA, September 16-18, 2003. The symposium, which will consist of plenary sessions, training courses, and roundtable discussions, is free. The complete schedule and registration procedures are set forth in the attached OGE announcement.

  • OSC Press Release on Political Activity: The Office of Special Counsel (OSC) recently issued a press release regarding a US Court of Appeals for the 2nd Circuit decision ruling that the Hatch Act prohibited the display of posters depicting the voting records of the 2000 Presidential and Vice Presidential candidates in union spaces at U.S. Postal facilities. American Postal Workers Union v. United States Postal Service, U.S. Office of Special Counsel, and U.S. Office of Personnel Management, Docket No. 02-6257, July 14, 2003. The union unsuccessfully argued that the postings did not constitute prohibited partisan political activity because the activity (posting by government employees) was not coordinated with or done in concert with a political party or candidate. A copy of the OSC press release is attached.

  • Pentagon 911 Memorial - Ethics Advisory: I have received several inquiries concerning the propriety of the subject solicitation. DOD has statutory authority to accept money for and to build a Pentagon Memorial to honor the victims of 9/11. The DOD Personnel Pentagon Memorial Organization (an NFE), which is composed of DOD civilian and military personnel, was established to raise funds for the Memorial. Under the provisions of 5 CFR 950.102, the Head of an agency can authorize solicitations conducted by organizations composed of civilian employees or members of the uniformed services among their own members for organizational support or for the benefit of welfare funds for their members. By memorandum dated July 18, 2003, Secretary Rumsfeld authorized the DOD Personnel Pentagon Memorial Organization to conduct a solicitation among DOD employees in the National Capital Area to raise funds for the memorial. It provides that DOD personnel may endorse the solicitation of this organization in their official capacity (see JER 3-210(a)(6) for authority to officially endorse fund raising efforts of organizations such as the DOD Personnel Pentagon Memorial Organization), although they may not actually solicit funds in that capacity. Employees may solicit funds for the Memorial in their personal capacity provided that they do not solicit from subordinates, prohibited sources, or anyone outside of DOD. SECDEF's authorization is attached. Thus, DON employees may officially endorse this fundraising effort and use official communication channels to provide employees with information about the fundraising effort and how they can make a voluntary contribution should they choose to do so. DON employees should not officially solicit contributions.

  • Professional Expenses: In previous e-mails and Roundtables, we have discussed Section 1112, P.L. 107-107, which authorizes agencies to expend appropriated funds to pay for expenses for employees to obtain professional credentials, including expenses for professional accredidation, State-imposed professional licenses, professsional certifications, and examinations to obtain such credentials. ASN(M&RA;) recently (21 Mar 03) issued the attached guidance implementing this authority. Subject to available funding, Echelon I and II commands may pay (i.e., reimburse the employee) for licenses and other professional credentials. This authority may be delegated to the lowest practicable level. NOTE: this authority may not be used for Schedule C and non-career (political) SES positions, active duty military personnel, local national, and NAF employees.

  • Miscellaneous Items of Interest

    1. OGE Training Courses. OGE will be offering a number of training courses at its offices in Washington. D.C. on August 6, 7, and 12. These introductory courses are free and registration is on a first come - first serve basis. The courses being offered are as follows:

    Wednesday, August 6: Seeking Employment (10:00-12:00) and Post Employment (1:00-3:00)
    Thursday, August 7: Gifts Between Employees (10:00-12:00) and Gifts From Outside Sources (1:00-3:00)
    Tuesday, August 12: OGE 450 Review Course (9:00-12:00 and 1:00-4:00)


    DAEOgram (DT-03-012), dated July 9, 2003, provides a complete course description and registration procedures.

    2. Promotional Materials for Conference Planners. On May 22, 2003, GSA issued issued a final rule amending the Federal Travel Regulations (FTR) by clarifying provisions regarding promotional materials (e.g., frequent flyer miles) that a conference planner receives from a travel service provider. It provides that if an employee is offered such benefits as a result of his/her role as a conference planner or as a planner for other group travel, the employee may not retain such benefits for personal use. Such benefits must be accepted on behalf of the Government and may be used for official purposes only. See 68 F.R. 27936, 22 May 03.

    3. Inherently Governmental Functions and Ethics Counselors Duties. Revised OMB Circular A-76, which became effective on May 29, 2003, establishes new policies and procedures for identifying commercial activities and determining whether they should be provided by public or private sector sources. By June 30 of each year, agencies are required to submit to OMB an inventory of commercial activities performed by Government personnel, an inventory of all inherently governmental activities performed by agency personnel, and an inventory summary report. On June 30, 2003, OGE issued DAEOgram DO-03-11 which provides guidance on which ethics counselor functions may be considered to be inherently governmental and must be performed by Government personnel and which are commercial in nature and may be suitable for contracting out. OGE has determined that the DAEO and Alternate DAEO functions must be performed by Government personnel. OGE has also concluded that that there is a core set of activities performed by those ethics officials who are not DAEOs or ADAEOs that may not be contracted out (e.g., providing written or oral ethics opinions, serving as agency designee, certifying public and confidential financial disclosure reports, determining agency policies, and referring criminal or regulatory matters to the IG for investigation). OGE recognizes that this is not an exhaustive list and that other ethics functions my be considered inherently governmental as well. Similarly, OGE has concluded that there are other activities performed by ethics officials that may be suitable for contracting out (e.g., developing and conducting training, reviewing financial disclosure forms for technical completeness, and preparing draft ethics advice or opinions to be issued by an ethics official who is a government employee). I'm sure there will be more discussion of this issue in the coming months.

    4. DOD Support of the Armed Services YMCA (ASICS). On June 25, 2003, The Under Secretary of Defense issued a memorandum concerning permissible support for the ASYMCA, both officially and in one's personal capacity. All such support must be consistent with the Standards of Ethical Conduct for the Executive Branch (5 CFR Part 2635) and the DOD Joint Ethics Regulation (DOD 5500.7-R). A copy of the memorandum is attached.

    5. SF 278 Reviews. Initial reviews of SF 278s must be completed within 60 days of filing. Unless you have requested and are awaiting additional information from the filer, all initial reviews should now be completed. If you are still holding any SF 278s, please review and forward them to me as soon as possible. I will be contacting you in the next week or so to get a status check on outstanding forms. Thank you in advance for your cooperation in this matter.

  • Ethics Roundtable: For those of you who were unable to participate in the June Ethics Roundtable, the following is a summary of the information presented.

    Announcements:

    1. SF 278s. The due date for filing annual SF 278s was May 15 and the 30 day grace period for late filing expired on June 16. If an individual has not filed, you need to contact the filer. The filer must now submit a $200 late filing fee with his report or request a waiver of the late filing fee. I ask for your continued assistance in making sure that your reviews are timely and thorough. Please do not hold reports until you have collected them from all your filers. Forward reports as they are ready.

    2. Gift of Travel from Non-Federal Sources. The final rule amending 41 CFR Part 304, which implements the authority in 31 USC 1353, became effective on June 16, 2003. After the fact acceptance of a gift of travel is now possible provided the conditions in 41 CFR 304-3.13 are met. Just a reminder that starting with the current reporting period (April 1 - 30 September, 2003), such gifts must be reported to OGE using SF 326, Semi-Annual Report of Payments Accepted From a Non-Federal Source. The information to be reported is essentially the same but in a different format. The form is available on the GSA website at www.gsa.gov/forms. I will send out another reminder in September as we get closer to the reporting date.

    3. OGE Program Review Guidelines. OGE's Revised Program Review Guidelines (May 2003) are now posted on the OGE website (www.usoge.gov). Please take a look as there are several important changes. Of particular note, OGE will be looking closely at an agency's system for taking administrative action when an ethics matter referred to DOJ is declined for prosecution or when violations of the standards of conduct have occurred.

    4. Program Reviews for the Second Half of CY 2003. On June 16, 2003, OGE issued the list of agencies scheduled to receive programs review in the second half of CY 03 (DO-03-010). No Department of the Navy Activities are on the list.

    5. Light Refreshments. In response to the recent GAO decision concerning the use of appropriated funds to purchase light refreshments at conferences (B-288266, January 27, 2003), GSA proposes to revise the Federal Travel Regulation (FTR) and its guidance to note that the FTR allows for meals and light refreshments to be paid with appropriated funds for employees who are in official travel status while attending conferences, as defined in the FTR. The revised FTR and Guidance would also direct individual agencies to make their own determinations regarding the use of appropriated funds for those employees who are attending conferences, as defined by the FTR, but who are not in official travel status in accordance with analogous decisions issued by GAO for training conferences. GSA also sought reconsideration of B-288266 to the extent that it was inconsistent with GSA's proposed revision.

    6. OMB Circular A-76. OMB issued revised OMB Circular A-76 on May 29, 2003 (effective on that date). 68 Fed. Reg. 32134. The revised Circular establishes new rules with respect to team memberships in order to avoid the appearance of conflicts of interest. See Para. D.2 of Attachment B to the revised Circular. As you will recall, GAO had applied the principles of organizational conflicts of interest to federal employees participating in the A-76 process. See, DZS/Baker LLC; Morrison Knudsen Corp., B-281224 (14 of 16 members of the SSEB were directly affected personnel) and The Jones/Hill Joint Venture, B-286194.4 (members of the PWS team also participating on the MEO team). Under the new rules, directly affected government personnel may participate on the Performance Work Statement (PWS) team or the Most Efficient Organization (MEO) team. However, members of the PWS team may not be members of the MEO and vice versa. PWS team members who are not directly affected government personnel may participate on the Source Selection Evaluation Board (SSEB) but directly affected government personnel and any individual having knowledge of the agency tender (e.g., MEO team members) may not participate on the SSEB. OMB did not eliminate the Right of First Refusal for members of the PWS, MEO, or SSEB, as had been earlier proposed. 67 Fed. Reg. 69769.

    In light of the recent revisions to OMB Circular A-76, GAO is questioning whether it should entertain protests from agency employees or their labor unions of decisions to contract out a commercial activity. See 68 Fed. Reg. 35411, June 13, 2003. GAO has historically ruled that these groups are not interested parties for the purposes of filing a GAO protest under CICA. If GAO rules that employees can file a protest with GAO, the provisions of 18 USC 203/205 may be implicated. The employee would arguably not be doing this as part of his official duties. The revised Circular creates an Agency Tender Official (ATO) who represents the agency tender (in-house bid) during source selection and is considered an interested party for the purpose of filing an agency level protest. In that case, I think the ATO would be performing official duties and 203/205 should not be a problem. Absent a change in the regulations, however, I don't know that we could draw the same conclusion if GAO treats him as an interested party in a GAO bid protest. GAO is asking for comments by July 16, 2003.

    Discussion:

    1. OGE Meeting with Senior Ethics Officials (6/17/03). At this meeting, OGE gave an update on its various legislative, regulatory, and other initiatives.

    a. 2004 Annual OGE Conference. OGE announced that next year's conference will be held on March 1-4, 2004. Although no agreement has yet been signed, OGE plans to hold the conference in New York City. Because of the increased costs in New York City, the conference fee will be increased to $500.

    b. Regional OGE Conferences. OGE plans to hold three 3-day regional conferences in 2004 (dates and locations to be determined). These regional conferences will consist of the ethics training courses that OGE presently offers around the country, breakout sessions with regional ethics officials, and export of some of the workshops from the annual conference. There will be no fee for the regional conferences.

    c. Proposed 18 USC 207 Regulations. OGE said that it received comments from 16 agencies on the proposed regulations implementing the post-employment restrictions in 18 USC 207. OGE indicated that the comments were "as expected" and that they were considering those comments as they move towards issuance of the final rule. DON/DOD comments focused on the applicability of 207 to former employees who seek to communicate with the Navy on behalf of a support contractor in the performance of a government contract and the definition of particular matter as it applies to large multi-year or indefinite quantity type contracts. OGE did not discuss their views on the merits of any of the comments received.

    d. Standards of Conduct Project. OGE is beginning a review of the Standards of Conduct for Employees of the Executive Branch, 5 CFR Part 2635. As part of this review, OGE will be interviewing selected agency ethics officials. OGE has also sent a lengthy questionnaire to selected ethics officials asking a numbers of questions concerning the existing rules. I have not been interviewed at this point but have responded to the questionnaire. OGE's goal is to have a draft proposal to present to agency ethics officials at the next meeting with senior ethics officials (Sep 03?) with a formal submission of a proposed changes to OMB by the beginning of 2004. This schedule is probably a bit optimistic.

    e. Conflict of Interest Legislation. OGE's proposed revisions to the criminal conflict of interest laws (18 USC 201-209) is still working its way through the pre-clearance process at DOJ. No word on what is in the proposal or how it is faring at DOJ.

    2. Confidential Financial Disclosure System. As you know, OGE is looking at the SF 450 program. At Tuesday's meeting, OGE gave us an update of their review. Based on the results of their survey (and the survey that DOD conducted), OGE found that there is a lot of dissatisfaction with the current system but little agreement on how it should be fixed. OGE has considered a number of proposals (e.g., eliminate the system entirely, only have new entrants file, or establish minimum rank/grade (GS-13+)) but rejected them for various reasons. OGE is still considering several other ideas, the most promising of which is to allow agencies to develop an alternative filing system (some combination of training, certification, and filing) that best meets agency needs. OGE would have to approve the alternative system. If an alternative system is not developed and approved, agencies would default to OGE's 450 system, in whatever revised from that turns out to be. This is still very early in the process and OGE did not indicate when we might see a draft of the proposed revisions. Stay tuned!

    3. Involuntary Activation of Flag/GOs. Ethics Counselors are reminded that an officer that is involuntarily activated is considered to be a special government employee. The provisions of 18 USC 207(c), the one year cooling off period for senior officials, apply to special government employees who serve on active duty for 60 or more days. Application of the 1 year cooling-off period could have an adverse impact on the Flag or General Officer's civilian employment if his duties require him to communicate with DON officials. The potential applicability of 18 USC 207(c) should be discussed in the ethics briefing provided to Flag/General Officer's.

  • Late Filing Fee for SF-278s: Unless a filer requested and received a filing extension, the due date for annual SF 278s was May 15, 2003. Filers who submit their annual reports after June 16, 2003 are subject to the $200 late filing fee.

  • Revisions to OMB Circular A-76: OMB issued revised OMB Circular A-76 on May 29, 2003 (effective on that date). 68 Fed. Reg. 32134. The revised Circular establishes new rules with respect to team memberships in order to avoid the appearance of conflicts of interest. See Para. D.2 of Attachment B to the revised Circular. As you will recall, GAO had applied the principles of organizational conflicts of interest to federal employees participating in the A-76 process. See, DZS/Baker LLC; Morrison Knudsen Corp., B-281224 (14 of 16 members of the SSEB were directly affected personnel) and The Jones/Hill Joint Venture, B-286194.4 (members of the PWS team also participating on the MEO team). Under the new rules, directly affected government personnel may participate on the Performance Work Statement (PWS) team or the Most Efficient Organization (MEO) team. However, members of the PWS team may not be members of the MEO and vice versa. PWS team members who are not directly affected government personnel may participate on the Source Selection Evaluation Board (SSEB) but directly affected government personnel and any individual having knowledge of the agency tender (e.g., MEO team members) may not participate on the SSEB. OMB did not eliminate the Right of First Refusal for members of the PWS, MEO, or SSEB, as had been earlier proposed. 67 Fed. Reg. 69769.

  • Just a reminder concerning a couple of upcoming deadlines.

    1. SF 278s. Filers must submit their annual SF 278s not later than May 15, 2003. Requests for filing extensions must be submitted to me as soon as possible but before the due date. Please note that I will be out of the office on travel for two weeks beginning on May 12th. If your filer needs an extension, please forward that to me ASAP. Recommend that you contact any of your filers that have not yet submitted their form and remind them of the due date. I again ask for your cooperation in ensuring timely (within 60 days of filing) and thorough reviews of the forms.

    2. Gifts of Travel. Echelon 2 commands with gift acceptance authority were required to submit their semi-annual reports to CNO(09BL) not later than April 15, 2003. NRL (received), ONR, NCIS (received), USMC, ASN Offices, and AAUSN (Secretary and Under Offices) reports are due to AGC(E) not later than May 9, 2003.

  • Deadlines:

    1. SF 278 Training: The Office of Government Ethics (OGE) will be offering SF 278 training on May 1 and May 7, 2003 at its offices in Washington, DC (Suite 500 - 5th Floor, 1201 New York Avenue, NW). There will be two identical sessions on each day (9-12 and 1-4). As always, the courses are free and registration is on a first come first served basis. If you are interested in attending, e-mail Gwen Cannon-Jenkins at gcannon@oge.gov and provide her with your name, agency, phone number, e-mail address, and selected course date/time.

    2. SF 278s. Filers must submit their annual SF 278s not later than May 15, 2003. Requests for filing extensions must be submitted to me as soon as possible but before the due date. Recommend that you send out a reminder notice to your filers. Please carefully review the SF 278s. I again ask for your cooperation in ensuring timely reviews of the forms (within 60 days of filing). Please forward the forms as they are ready and do not hold them until all forms have been received and reviewed.

    3. Gifts of Travel. As you know, agencies are required to report semi-annually to the Office of Government Ethics (OGE) all gifts of travel related expenses in excess of $250 received from non-Federal entities under 31 U.S.C. 1353. Agency reports for the period 1 October 2002 - 31 March 2003 are due to OGE by May 31, 2003. Echelon 2 commands with gift acceptance authority under SECNAVINST 4001.2G and OPNAVINST 4001.1D are required to collect and forward reports of gifts accepted by their headquarters and subordinate commands to CNO (09BL) not latter than April 15, 2003. See the attached CNO message. NRL, ONR, NCIS, USMC, and AAUSN (for Secretary and Under Offices) are to report such gifts directly to AGC(E) not later than May 9, 2003. Your report should summarize: (1) the total number of gifts accepted, (2) the total value of gifts provided in-kind, and (3) the total value of direct payments (reimbursements) to the Navy. Documentation for each gift accepted must be provided. While no specific format is required, the information required in the sample report format in OPNAVINST 4001.1D must be provided. Use of SF 326 will be required for the next reporting period (1 April - 30 September 2003).

    4. 18 U.S.C. 207 Regulations. For those of you that are interested in hearing OGE speak about the proposed regulations implementing 18 U.S.C. 207, OGE will be holding a session on Thursday, April 10, 2003 at 9:30 in the OPM Auditorium at 1900 E Street, NW, Washington, DC. This is a repeat of the session that was offered at the recent OGE Conference. You may register by e-mailing Gwen Cannon-Jenkins at gcannon@oge.gov and providing her your name, agency, and phone number.

    5. PACRIM Ethics Training. In my March 28, 2003 e-mail, I noted some confusion about the registration procedures for the PACRIM training in Korea (14-16 May) and Hawaii (19-21 May). Once you have been registered by the respective POC, they will take care of getting you registered through ATRRS. Hope this clarifies the process.


  • Ethics News

    1. April Ethics Roundtable. The April 17th Roundtable has been cancelled. The Ethics Update session at the OGE Conference (May 1 @ 1600-1700) will serve as our Roundtable.

    2. Payment of Travel Expenses by Non-Federal Sources. In my e-mail of 18 Mar 03, I advised you of the fact that GSA had issued a final rule amending the regulations implementing the procedures for accepting payment of travel expenses from non-Federal sources under 31 U.S.C. 1353. See 68 Fed. Reg. 12602-12610, 17 Mar 03. In addition to providing for a mechanism to accept such gifts after the fact, the final rule also changes the manner in which such gifts must be reported. See sections 304-36.4 and 6.5. In the past, use of SF 326 (Semiannual Report of Payments Accepted from a Non-Federal Source) has been optional. Under the final rule, use of the SF 326 will be mandatory. Because the final rule is not effective until 16 Jun 03, this change will not affect reporting of travel gifts for the period 1 Oct 02 - 31 Mar 03. Recommend that you review the SF 326 and revise, as necessary, your current reporting procedures to ensure that you are collecting the required information.

    3. Involuntary Bumping. As you know, Section 1116, P.L. 107-107, changed the rules concerning employee retention of "promotional items" (including frequent flyer miles) earned from official travel. At the time, there was some discussion as to whether the rules would be changed to treat benefits received by employees who are involuntarily bumped from a flight or other conveyance as "promotional items" such that they could be retained by the employee. GSA advises that the rule will not be changed. Thus, the rule will remain the same, i.e., benefits received by an employee who voluntarily agrees to be bumped belong to the employee while benefits received in the case of an involuntary bump belong to the government.

    4. Pay Raise. President Bush has decided that the 1% retroactive pay raise authorized by the Consolidated Appropriations Resolution for FY 03 shall be allocated as locality pay. Because locality pay is not taken into account for purposes of calculating basic pay rates for various ethics provisions (SF 278 filing, outside earned income restrictions, and applicability of 207(c)), those basic pay thresholds have not changed.

    5. OGE Form 450 Survey. Just a reminder that the due date for submission of the responses to OGE on their OGE Form 450 Survey is 2 Apr 03. See my e-mail of 18 Mar 03. Please take the time to complete the survey. If you have concerns about the 450 program, now is your opportunity to voice those concerns.

    6. PACRIM Ethics Training. I recently informed you of the availability of ethics training in Korea (14-16 May 03) and Hawaii (19-21 May 03). I have been advised that the JAG School has allocated quotas for this course and we may be required to go through the ATRRS system to register. I am checking into this and will let you know as soon as I hear something further. In the meantime, if you are interested in attending, I recommend that you contact the course POC at (808) 438-9470 to put your name in the hat and to provide him with any necessary information. You may also want to provide me with the following information in case a quota must be obtained through ATRRS: full name, grade, SS#, e-mail address, and work phone #.

    7. Junk E-mail. DOD 5500.7-R, section 2-301, permits supervisors to authorize the personal use of government communication systems under certain conditions. One of those conditions is that the use must not overburden the system. One way that this can occur is by allowing employees to provide office e-mail addresses to commercial vendors who in turn forward solicitations that are elaborate, frequent, and lengthy. Please caution employees not to provide their office e-mail addresses for this purpose.

    8. Post-Employment Regulations. In our e-mail of 19 Feb 03, we advised you that OGE had issued proposed rules implementing 18 U.S.C. 207. See Fed. Reg. 63 FR 7844, 18 Feb 03. Comments on these important regulations are due to OGE by 19 May 03. I know the proposed rule is lengthy but I would appreciate your taking some time to look it over and providing me with any comments you might have by 25 April 03 so that I can incorporate them into our comments to OGE.

  • OGE SF 450 Survey: OGE is reviewing the confidential financial disclosure process to determine whether the system is working well or whether any changes need to be made. OGE has asked ethics officials to complete a survey concerning their experiences with the OGE 450. (PDF file | Text file)

    OGE has asked that the surveys be completed by April 2, 2003. Respond directly to OGE. The POC and fax numbers are provided in the survey directions. Please distribute this to your field ethics counselors and encourage them to complete the survey. This is a unique opportunity to let OGE know your views concerning the effectiveness of the OGE 450.

  • PACRIM Ethics Training: Joint service ethics training will be held at Osan Air Base, Korea (14-16 May 2003) and Ft. Shafter, Hawaii (19-21 May 2003). These 3-day ethics training courses are shortened versions of the Ethics Counselor Course given in Charlottesville each April (minus the seminars and guest speakers) and are open to all Department of the Navy attorneys. Please advertise these training opportunities within your respective organizations.

  • Travel Expenses - Non-Federal Source: GSA issued a final rule yesterday amending the regulations concerning acceptance of payment of travel expenses from a non-federal source under 31 U.S.C. 1353, as implemented by 41 C.F.R. Chapter 304. See 68 Fed. Reg. 12602-12610, March 17, 2003. The final rule, which becomes effective for payment of expenses on or after June 16, 2003, now provides a mechanism for after the fact acceptance of gifts of travel (see Section 304-3.13).

  • Proposed Post-Employment Rules: For those who've been holding their breath since January 1, 1991, we finally have a proposed rule. The Office of Government Ethics has published proposed rules under 18 U.S.C. 207 (Post-Employment) in the Federal Register at 68 FR 7844, 18 February 2003. The rules can be accessed through the OGE Website PDF and TXT versions, as well as the OGE DAEOGRAM DO-03-003, February 19, 2003, "Proposed Post-Employment Rule are also available from OGE.

  • Light Refreshments Rule: There is an interim change in the "Light Refreshment Rule." A decision issued by the Comptroller General (B-288266, 27 January 2003) stated that GSA did not have the authority to authorize agencies to pay for light refreshments for those not in a travel status. GSA Travel Advisory #7 advising agencies that until this issue is resolved, "agencies are advised that providing light refreshments during conference breaks cannot be provided to individuals in a nontrave status at Government expense under the authority of the FTR."

  • SF 278 Filing Season

    It is that time of year again. Attached is the annual AGC(E) announcement concerning the start of the SF 278 filing season. Also attached is a document describing common concerns and problem areas associated with SF 278 filings and reviews.

  • Highlights

    The FY 02 DOD Contractor List is now available on the website under Quick Downloads.

    An updated list of organizations approved for co-sponsorship under JER 3-206 has been posted under the Resources section of the website.

    Wyndham Hotels, as part of a settlement of a lawsuit in the State of California concerning unauthorized energy surcharges, are offering a $15 per room per night discount to guests who stayed in Wyndham California hotels between November 1, 2000 and December 1, 2001. To the extent that the energy surcharge was paid by the government (i.e., reimbursed as part of a travel claim), the discount coupon/certificate belongs to the Government and not to the employee. This discount is not considered a promotional item like frequent flier miles.

  • Pay Increases Change Ethics Thresholds: With the recent pay increases, the dollar thresholds for a number of ethics related matters have changed.

    SF 278s. Public filers include those employees whose rate of basic pay is fixed, other than under the General Schedule, at a rate equal to or greater than 120% of the minimum rate of basic pay for GS-15 of the General Schedule. 5 C.F.R. 2634.202(c). 120% of the minimum rate of basic pay for a GS-15 is now $102,168.

    Outside Earned Income Limits for Covered Non-Career Employees. A covered non-career employee (see 5 C.F.R. 2636.303) may not, in any calendar year, receive outside earned income that exceeds 15% of the annual rate of pay for level II of the Executive Schedule. That outside earned income limitation is now $23,205.

    18 U.S.C. 207(c). The one-year cooling off period applies to "senior employees" which includes persons employed in positions for which the basic rate of pay is equal to or greater than the rate of basic pay for level 5 of the SES. For calendar year 2003, the rate of basic pay for an SES level 4 remains $200 less than the rate of pay for SES level 5 and 6. As such, 18 U.S.C. 207(c) will not apply to employees at SES level 4 and below.

  • Ethics Courses from OGE: Several free training courses will be offered by the Office of Government Ethics (OGE) in February.

    February 6, 2003 -

    Gifts from Outside Sources (9-12 a.m.)
    Gifts Between Employees (1-4 p.m.)

    February 13, 2003 -

    Seeking Employment (9-12 a.m.)
    Post Employment (1-4 p.m.)

    February 20, 2003 -
    Conflicts of Interest (9 a.m. - 4 p.m.)

  • Additional information about these courses can be found on the OGE website (www.usoge.gov) under Training Workshops & Seminars. These introductory courses are free and will be held at the OGE Offices in Washington, D.C (Suite 500, 1201 New York Avenue, N.W.). Registration is on a first-come first-served basis.

  • Ethics Conference: At this year's Conference in King Of Prussia, PA, the Office of Government Ethics (OGE) will be offering for the first time a one-day pre-conference workshop on Monday, March 10, designed for ethics counselors who are new to the executive branch ethics program. There is a separate registration and fee ($100) for this pre-conference workshop. The Department of the Navy has two (2) slots for this pre-conference workshop. Interested ethics counselors that are not attending the main OGE Conference or the 1st Ethics Counselor Course in Charlottesville in April 2003 should let me know of their interest in the near future. Additional information about the pre-conference workshop is available on the OGE website (www.usoge.gov) under the 2003 Annual Ethics Conference link. Call me if you have any questions.

  • Financial Disclosure and IPA Detailees In DAEOgram DO-02-029, dated 9 December 2002, the Office of Government Ethics (OGE) provided guidance regarding the application of the financial disclosure requirements to detailees under the Intergovernmental Personnel Act (IPA). The DAEOgram is available on-line on OGE's website (www.usoge.gov). OGE makes a distinction between IPA detailees who are assigned to an "established, classified position" and those "given a set of ad hoc, unclassified duties, relevant only to the specific assignment project." The former, assuming they meet the minimum pay threshold requirement, would be required to file an SF 278. The latter would not. Enclosed is a memorandum that further explains the OGE guidance. Please take a look at the DAEOgram and this memorandum and determine into which category your detailed IPAs fall. Hopefully, a number of your detailed IPAs will fall into the "ad hoc" category and, therefore, will not be required to file the SF 278. My memo discusses what should be done with those filers.

  • 1st Ethics Counselor Course The 1st Ethics Counselor Course (ECC) (previously known as the Basic Ethics Counselor Workshop) will be held at the U.S. Army Judge Advocate General's School (TJAGSA) on 21-25 April 2003. This joint service ethics course is designed to provide new ethics counselors with all the material and information necessary to effectively function as an ethics counselor. The course would also be helpful to someone who has been away from the field for a few years. The course is only open to attorneys.

    The Department of the Navy has been allocated 50 slots for this course to be distributed among OGC (20), JAG (20), and USMC (10) ethics counselors. OGC quotas are controlled by AGC(E). JAG quotas are controlled by Code 13. USMC quotas are controlled by JAR. TJAGSA will not accept reservations directly from students. Individuals wishing to attend this course must submit a request for a course quota through AGC(E), Code 13, or JAR as appropriate.

    For OGC offices, please submit the names of the attorneys from your command/activity that you would like to attend the 1st ECC to AGC(E) by 10 January 2003. Please prioritize your list of nominees as we will likely not be able to accommodate all requests with our initial quota allocation. We have been successful in the past in securing additional quotas when other components turn in unused quotas. For that reason, it is important to have a prioritized waiting list ready to go. Please provide the following information for nominees in your submission:

    • Full name:
    • Grade:
    • Social Security Number:
    • Work Address:
    • Work Phone and fax Numbers:


  • OGE Conference Nominations for the March 11-13, 2003 Office of Government Ethics Conference are due by December 6, 2002. The Department has a limited number of slots (15) to be shared by OGC, JAG and USMC. OGC ethics counselors interested in attending should, if they have not already done so, contact me by the deadline by e-mail at ethics@mail.navy.mil.

  • OGE Annual Conference The U.S. Office of Government Ethics (OGE) will hold its annual conference at the Radisson Valley Forge Hotel in King of Prussia, PA from 10-13 March 2003. The main conference will run from 11-13 March. This year, OGE is offering a pre-conference program designed for ethics officials who are relatively new to the ethics field. This one day program, to be held on 10 March, will provide an opportunity to explore topics that form the foundation of the ethics program. The Department of the Navy has 15 quotas for the Conference which will be allocated as follows: 6 for OGC, 6 for Navy JAG, and 3 for the Marine Corps.

    Nomination Process. Nominations must be submitted by 6 December 2002. Please provide the following information for each nominee: full name, grade or rank, position/title, work address, work phone number, work fax number, and e-mail address. Submit nominations to Ethics@mail.navy.mil.

    Please do not submit nominations or registration forms directly to OGE. All attendees at the Conference must be approved by AGC(E).

  • OGE Review of Confidential Financial Disclosure System OGE is initiating a review of the Confidential Financial Disclosure System and is seeking input on the following matters: (1) the value of the confidential system to your organization, (2) the criteria for designating positions, and (3) whether the resources allocated to this system could be more valuable if used elsewhere, such as in training or counseling. We may have to opportunity to make a change here so give this some serious thought, particularly concerning alternative systems. We need to provide OGE with viable alternatives. OGE will meet with agency ethics officials on this matter on December 3rd. Please provide me with your input by Wednesday, November 27th. Send comments to ethics@mail.navy.mil.

  • Golden Corral Veteran's Day Celebration Many of you may have heard that Golden Corral restaurants will be offering a free dine-in dinner buffet to all veterans, active duty, reserve, and national guard personnel on Veteran's Day, November 11th, from 5-9 pm. As this discount is available to all military personnel, it is excluded from the definition of a gift pursuant to 5 CFR 2635.203(b)(4). Accordingly, DON military personnel may accept this meal from Golden Corral. You may wish to advise your folks accordingly.

  • Reprinting of Standards of Ethical Conduct Booklet OGE recently announced that it has made arrangements with the Government Printing Office for the reprinting of the The Standards of Ethical Conduct for Employees of the Executive Branch booklet (5 CFR Part 2635). Information on the ordering process is available in DAEO Gram DT-02-022 dated 10/17/02.

  • Revised OGE Form 450 OGE also announced that OMB has approved a slightly revised OGE Form 450. The existing version of the OGE Form 450 (4/99) may continue to be used for the 2002 filing season. Thereafter, the new version (9/02) should be used. The new version is available on-line on the OGE website. See DAEO Gram DO-02-024 dated 10/22/02.

  • October Roundtable Agenda

  • Super Bowl XXXVII Support As you know, Super Bowl XXXVII will be held in San Diego in January and it is anticipated that DOD support, in particular DON support, will be requested from the NFL and sponsors of associated events. Attached is an e-mail from ASD(PA) directing all DOD Components to forward all requests for logistic support to its office for review. DOD Components are remined that they are not to make support committments prior to ASD(PA) review and approval.

  • OGE Request for Comment - Contractors in the Workplace: A couple of weeks ago, OGE held a meeting with agency ethics officials to discuss the issue of contractors in the workplace. OGE is trying to gauge whether there are real problem areas that need to be addressed in law or regulation or whether the problems, to the extent that they exist, are best handled on the procurement side of the house through FAR or agency contract provisions. In that regard, OGE has asked us to provide them with: (1) scenarios causing difficulty for your organizations in dealing with contractors in the workplace and how you have resolved them, and (2) documents that have been developed to prevent or address these problems. The attached OGE e-mail provides greater detail on the information being sought by OGE and the format in which it should be provided. If you wish to forward the materials to me, I will send them on to OGE. If you would rather respond directly to OGE, feel free. I would ask that you copy me on anything you send to OGE.

  • OGE Final Rule - Minimal Value: In case you hadn't seen it, OGE published on October 2, 2002, its final rule implementing the change in reporting thresholds for gifts and travel reimbursements for financial disclosure reports as a result of the change in "minimal value." See 67 Fed. Reg. 61761-62. In addition, OGE revised 5 CFR 2635.204(g)(2) to increase to $285 the exception ceiling for nonsponsor gifts of free attendance at widely attended gatherings. Call if you have any questions.
  • Ethics Roundtable in October: The October 2002 DON Roundtable date has been changed from October 24th to October 31st. The time and location remain the same. Please note this change on your calendars.

  • Ethics Roundtables for CY03: The dates of the DON Roundtables for CY 2003 will be as follows:
    • February 20
    • April 17
    • June 19
    • August 21
    • October 30
    • December 18


    The Roundtables will be held from 1330-1500 at Crystal Gateway 4 (1213 Jefferson Davis Highway), Navair Conference Room, 14th Floor. The VTC point of contact can be reached at 703-604-6033, ext. 2246.

    With the exception of October 2003, these dates are the third Thursday of the month. I will make a concerted effort to distribute the Roundtable agenda at least a week in advance. If you have specific issues that you wish to be discussed at a Roundtable, please let me know and I will include them in the agenda. Similarly, I welcome any suggestions for revising the nature or format for the Roundtables. The Roundtables are intended to be for your benefit. If you have ideas about how they can better meet your needs, please let me know. -- David LaCroix.

  • Foreign Gifts - Reporting Requirement: As you know, the Navy is required to provide the State Department with a report each year of all gifts given to foreign individuals during the fiscal year that exceed the "minimal value." Linked is a memo to DON ethics counselors explaining this reporting requirement and requesting that ethics counselors report any such gifts to the Assistant General Counsel (Ethics) by 21 October 2002. It is important that ethics counselors meet this deadline as the Navy's report is on 31 October 2002. Negative responses are requested. The State Department's memo, which includes a reporting format, is also attached. Please note that two different "minimal value" amounts apply for FY 2002. It is $260 for the period of 1 Oct 01 - 31 Dec 01 and $285 for the period of 1 Jan 02 - 30 Sep 02.

  • Foreign Gifts - Minimal Value Update 2: Earlier, we advised that the change in "minimal value" from $260 to $285 would impact reporting of gifts and travel reimbursements on financial disclosure reports (OGE Form 450, Part V and SF 278, Schedule B, Part II). Attached is OGE's recent DAEOgram (DO-02-021, 27 September 2002) explaining this revision. Note, the higher reporting thresholds ($285 for the aggregation level and $114 for the de minimus aggregation exception) apply for the entire reporting period (1 October 2001 to 30 September 2002) for annual OGE 450 filers. The higher reporting thresholds applies to SF 278 filers as well but will only immediately impact termination filers (new entrants are not required to complete Schedule B). The higher thresholds will, of course, be used for CY 2002 SF 278s filed next spring.

  • Foreign Gifts - Minimal Value Update 1: Last week, I notified you of the recent change to the "minimal value" amount (now $285) for receipt of gifts from foreign governments under 5 USC 7342. I also advised that this revised figure was also used in 22 USC 2694 (Gifts to Foreign Individuals) and for setting the limits on expenditures of Official Representation Funds (ORF) for gifts and mementos. Several of you inquired as to whether SECNAVINST 7042.7J (Guidelines for Use of Official Representation Funds) and/or DODD 7250.13 (Official Representation Funds ) would be revised to reflect this change. DODD 7250.13 has been reissued effective 10 September 2002. Among other changes, section E2.4.1.8.3 now sets the limit on authorized gifts at "the minimal value as established under reference (d)." Reference (d) being 22 USC 2694. With this change, DODD 7250.13 will always be linked to the current "minimal value" figure as set by GSA. SECNAVINST 7042.7J, which in turn sets the limit at $260 or the amount determined in DODD 7250.13, will now also always be linked to the current "minimal value" amount as set by GSA (See para. 6.c(1)).

  • Policy Guidance Concerning Political Campaigns and Elections ASD (PA) has issued a message providing "Policy Guidance Concerning Political Campaigns and Elections." (SECDEF MSG 171724Z Sep 02). This message supersedes ASD (PA) message of 17 Dec 99 (Public Affairs Policy Guidance - Election Year 2000) and should be given the widest possible dissemination. The content of the guidance is largely unchanged except for inclusion of additional guidance on the use of military installations as polling places (see para. 17).

  • SF-278 Reporting Period On September 13, 2001, OGE issued a final rule amending 5 CFR 2634.308 concerning the reporting period for incumbent SF 278 filers. The reporting period for Schedules A, B, and C (Part I) is CY 2001 and for Schedules C (Part II) and D (Part I) is CY 2001 and CY 2002 up to the date of filing. However, filers were able to exclude any portion of the reporting period covered by a nomination or new entrant report. Under the revised rule, the reporting period for incumbent filers will be the previous calendar year for Schedules A, B, and C (Part I) and the preceding calendar year through the date of filing for Schedules C (Part II) and D (Part I), regardless of whether any portion of the reporting period was covered by a nomination or new entrant report. Incumbent filers will not, however, be required to report any transactions or gifts/reimbursement (Schedule B) that occurred while the filer was not a federal employee. The final rule, which becomes effective on October 15, 2002, is attached.

    By way of an example, employee X is appointed to an SES position on July 1, 2001 and files his new entrant report within 30 days. He files his incumbent report for CY 2001 on May 15, 2002. The reporting period for Schedules A, B, and C (Part I) is CY 2001 and for Schedules C (Part II) and D (Part I) is CY 2001 and CY 2001 up to the date of filing. Employee X would not have to report on Schedule B any transactions or gifts/reimbursements that occurred prior to July 1, 2001.

  • OGE E-Mail List Service: OGE recently announced the availability of the Ethics News and Information e-mail list service. This e-mail list service will be OGE's primary method for communicating with the ethics community. Information disseminated via the e-mail list service will include DAEOgrams, program review schedules, quarterly publication of advisory opinions, announcements for training courses and the annual conference, vacancy announcements, reminders of report deadlines, relevant federal register notices, policy decisions, and other information. Subscriptions will be limited to government employees and military personnel. The number of subscriptions per agency is unlimited. I encourage each of you to get your names added to the e-mail service list.

    To subscribe, follow these directions:

    1. Go to www.gpo.gov
    2. Click on GPOLISTSERV
    3. Click on On-Line Mailing List Archives
    4. Scroll to the bottom of the list and click on OGE-ETHICSINFO-L
    5. Click on Join or Leave the List
    6. Complete the requested information (e-mail address and name)
    7. Click on Join the List
    8. You will receive a notice on the top of your screen that "A confirmation request is being sent under separate cover."
    9. Close this page by clicking on the "X" in the corner and go to your e-mail system
    10. You will receive an e-mail confirmation that you have been added to the OGE Ethics Mailing List


    Alternatively (if you are on NMCI or a network that blocks access to the subscription script), follow these directions:

    Send an Email to the following address:

    listserv@listserv.access.gpo.gov

    In the body of the message include the following command:

    SUBSCRIBE OGE-ETHICSINFO-L Your Name
    (Use your first and last name instead of "Your Name")

    You'll receive a verification message from the Listserver with instructions on how to confirm your subscription

    Please note, your subscription must be approved by OGE before the confirmation e-mail is received and therefore, it may not be instantaneous.

  • Foreign Gifts - Minimal Value Revision: GSA has issued the final rule amending 41 CFR Section 102-42.10 to revise the "minimal value" amount for foreign gifts accpted under 5 USC 7342. GSA is required to adjust this figure every three years to reflect changes in the Consumer Price Index. The new figure, retroactive to 1 January 2002, is $285. The Federal register announcement is attached. In addition to impacting 5 USC 7342, this "minimal value" figure is used in 22 USC 2694 (Limitation on Purchase of Gifts for Foreign Individuals) and the DOD/DON Official Representation Fund instructions (DODD 7250.13 and SECNAVINST 7042.7J).

    The final rule also amends 41 CFR Section 102-42.140 concerning the sale of foreign gifts accepted on behalf of the government under 5 USC 7342, i.e., those exceeding the "minimal value" threshold, and which the employee would like to purchase. The sale price must be the "commercially appraised" value of the gift. The cost of the appraisal should not be included in the sale price.

    This change also impacts the reporting of gifts for financial disclosure filers. For SF 278 filers, the reporting threshold for gifts is in Schedule B, Part II, is now $285 vice $260. I'm sure that OGE will eventually revise the form to incorporate this change but it is effective immediately by operation of law. 5 U.S.C. app. 102(a)(2). For OGE 450 filers, the reporting threshold for gifts in Part V is now $285 vice $260. OGE advises that this change will be effective as of 1 October 02.

  • Use of Names of DOD Components and Installations: DOD has issued interim policy guidance (29 May 02) concerning the use of names of DOD component and installations by Private Organizations (PO) authorized to operate on base. Such use was prohibited by DODI 1000.15, Private Organizations on DOD Installations (23 Oct 97), see para. 6.1. Under the new interim guidance (attached), POs may include the name or abbreviation of the DOD component, organizational unit or installation in their name provided they take effective steps to ensure that their status as a PO is apparent and unambiguous. These steps would include, as a minimum:

    • PO may not use the seal, logo or insignia of any DOD component, organizational unit, or installation in its letterhead, correspondence, or its title.
    • Any use of the name or abbreviation of a DOD component or installation may not mislead members of the public to assume a PO is an organizational unit of DOD. POs that incorporate names or abbreviations of DOD components, organizational units, or installations must receive prior approval for such use by the head of the appropriate DOD organization.
    • POs shall use a prominent disclaimer on all print and electronic media confirming that the PO is not a part of DOD. This guidance will be included in the next update to DODI 1000.15.


  • European Ethics Training: There will be joint service ethics training in Naples, Italy (15-17 Oct 02) and Heidelberg, Germany (21-23 Oct 02). The 3-day ethics training courses are shortened versions of the Basic Ethics Counselor's Workshop given in Charlottesville each April (minus seminars and guest speakers). These training courses are open to all Department of the Navy attorneys. For POCs, send an e-mail to ethics@mail.navy.mil

  • SF-450 Filing Guidance: The Assistant General Counsel (Ethics) has issued the Navy's 2002 Financial Disclosure and Annual Ethics Training guidance memorandum.

  • Miscellaneous Items of Interest:

    1. Particular Matter. In examining post-employment questions under 18 U.S.C. 207, one of the problematic areas is determining whether the matter on which the former employee seeks to communicate with his former agency is the same "particular matter" that the employee was involved in while with the Government. This issue is particularly difficult when dealing with large multi-year programs. OGE recently issued an opinion, dated July 31, 2002, that provides an excellent discussion of the "particular matter" issue regarding the DOE's proposed Yucca Mountain high-level radioactive waste disposal facility.

    2. Co-sponsorship. I recently sent out by e-mail and posted on the AGC(E) website a list of organizations designated by the DAEO or designee as scientific, technical, educational, or professional organizations for the purposes of co-sponsoring an event in accordance with JER 3-206. Several people have inquired as to whether an organization on the list needs to be reapproved for subsequent co-sponsorship events. The answer is no. Of course, due consideration must be given to the prohibition against preferential treatment. The head of the command or organization wishing to co-sponsor an event with an approved organization must, however, make the determinations required by JER 3-206.b(1)-(2) and (4)-(5) for each proposed co-sponsorship event. In many instances, a contract, grant, cooperative agreement, CRADA, or other transaction is the more appropriate vehicle for accomplishing the desired purpose. For example, a service contract and not a co-sponsorship agreement, is the proper vehicle where the agency is simply looking for administrative assistance in putting on a conference.

    3. Logistic Support to Non-Federal Entity Events. JER 3-211.a. allows commands and organizations to provide employees in their official capacities to express DOD policies as speakers, panels members or other participants, or, on a limited basis, the use of DOD equipment and facilities, as logistical support for an event sponsored by a non-Federal entity (NFE), provided the head of the command or organization has made all of the determinations required by 3-211.a(1)-(7). Please ensure that these determinations are in fact being made before such support is provided. One of these is a determination that no admission fee (beyond that which is necessary to recover the reasonable costs of sponsoring the event) is charged or that DOD support to the event is incidental. In other words, the sponsor of the event is not supposed to be making a profit through the efforts of Government employees. While it is often hard to make this determination, a reasonable effort is required. Events at which multiple speakers are provided by DOD or the Government (speaker cost should thus be low), may be an indication that the fees are not reasonable. Fees for similar events in the area may also provide a benchmark.

  • Ethics Roundtable: There is a DON Ethics Roundtable scheduled for Thursday, August 22, at 1330. The Roundtable will be held at Crystal Gateway 4 (1213 Jefferson Davis Highway), NAVAIR Conference Room, 14th Floor. Those wishing to participate by VTC should call 703-604-6033, ext. 2246. See the Agenda. As always, feel free to raise any additional topics/concerns.

  • Office of Government Ethics Training:

    OGE just announced that it will be providing two free introductory ethics courses at its offices in Washington, D.C. on September 26, 2002. The "OGE 450 Review" course will be held from 9-12 and the "Misuse of Position" course will be held from 1-4. These are excellent courses for attorneys new to the ethics area or needing a bit of a refresher. Registration is on a first come - first served basis. Registration information can be found on OGE's website at:

  • http://www.usoge.gov/pages/training_wrkshops/training_wrkshops.html.

  • 278s and IPAs:

    We have received a few of the new entrant SF 278s for individuals that are detailed under the Inter-Governmental Personnel Act. Thanks for identifying these folks and making sure that they file. Attached for your use is a memo that highlights common areas of concern for IPA filers (i.e., because of their continuing outside employment with the organization from which they are detailed, these filers have reporting requirements that the average filer does not face). Please review it and make sure your IPA filers understand and have satisfy the filing requirements. Thanks.

  • Miscellaneous Items of Interest:

    1. 2002 Ethics Deskbook. DOD SOCO has loaded the 2002 Ethics Counselor Deskbook onto its website and a link to it will soon be created on the AGC(E) website. This is the Deskbook that is given out at the DOD Basic Ethics Counselor Workshop in Charlottesville each April. It is a compilation of updated outlines and materials on all of the important ethics areas (gifts, financial disclosure, NFEs, fundraising, outside activities, conflicts of interest, travel and transportation, post-government employment, etc.). It is a great resource.

    2. SF 278 Filing Extensions and Late Filing Fee Waivers. Currently, AGC(E) can grant filing extensions of up to 45 days for good cause. Filing extensions beyond 45 days (up to 90 days total) must be granted by the Office of Government Ethics (OGE). Currently, waiver of the $200 late filing fee can only be granted by OGE. Both of these rules are about to change. On August 1, 2002, OGE issued amendments to 5 C.F.R. 2634.201 and 5 C.F.R. 2634.704. See 67 Fed. Reg. 49856 and DO-02-19. Under the revised provisions, which become effective on September 3, 2002, an agency reviewing official will now be able to grant the second 45 day filing extension and the DAEO will now be able to waive the late filing fee. I will let you know as soon as possible how these new authorities will be implemented within DON.

    3. 18 U.S.C. 205. OGE recently issued guidance concerning the application of 18 U.S.C. 205 in an effort to correct a misconception within some agencies that section 205 precludes employees from holding positions in or otherwise participating in the affairs of an outside organization even in the absence of any representational activity by the employee on behalf of the organization. See D0-02-018, July 15, 2002. As you know, 18 U.S.C. 205 prohibits an employee from serving as an agent or attorney on before the Government on behalf of another. OGE emphasized that in the absence of representational activity by the employee, 18 U.S.C. 205 should not be implicated by the employee's participation in such outside organizations. Of course, other ethics laws and regulations may be relevant to the employee's outside activities.

    4. Use of Military Installations as Polling Places. As previously noted, P.L. 107-107, section 1607, amended 10 USC 2670 to permit the use of "qualifying" defense facilities as polling places in local, State, or Federal elections if, as of December 31, 2000, the facility was designated as an official polling place by a State or local election official or the facility has been used as such an official polling place since January 1, 1996. Thus, qualifying military facilities will remain available as polling places for future elections. SECDEF or the Secretary of the Military Department concerned may withdraw that availability if he determines that it is necessitated by local security conditions. Installations wishing to have that availability withdrawn must make such a request in writing, must include a detailed justification, and forward the request through the chain of command to the Secretary.

    5. Applicability of Ethics Rules When Meetings are Conducted by High Level Officials with Representatives of Private Interests. OGE has released a memo that discusses the ethics issues that may arise in meetings between high level Government officials and representatives of private interests. This should be helpful in advising senior clients.

    6. Government Purchase and Travel Cards. You have no doubt read about some of the more visible cases of misuse of the Government purchase and travel cards. As you develop your ethics training for the year, you may want to consider incorporating a reminder about the proper use of these items.

  • Awards Approved: AGC(E) memorandum has been issued approving acceptance of cash prizes associated with the San Diego Chapter, NDIA, Fleet Support Awards.

  • FAR 3.104 Rewrite: Federal Acquisition Circular (FAC) 2001-06 was published in the Federal Register on March 20, 2002 (67 Fed. Reg. 13057-13063). Among other things, FAC 2001-06 contains the rewrite of the Procurement Integrity Act (PIA) provisions in FAR 3.104. The final rule, which becomes effective on 4 April 2002, reorganizes FAR 3.104 and simplifies the text. The final rule does not change either the requirements of the PIA or change, in any manner, who is covered by, or the activities covered in, the Office of Government Ethics regulations interpreting the conflict of interest statutes. The final rule has expanded language discussing the interplay between the PIA and other criminal conflict of interest statutes such as 18 U.S.C. 207 and 208. Employees are reminded that their participation in a Federal agency procurement, whether or not considered to be "personal and substantial" for the purposes of triggering the requirements of the PIA, might be considered personal and substantial participation in a particular matter for the purposes of 18 U.S.C. 208, thereby triggering the disqualification requirements of 5 C.F.R. 2635.604 and 606. See the discussion in the Supplementary Information, A. Background, and more particularly, revised FAR 3.104-2(b)(1)-(3)

  • OGE Seminar on Reviewing SF-278s: The Office of Government Ethics (OGE) will conduct an introductory level seminar on reviewing Public Financial Disclosure Reports (SF 278) at the Overseas Private Investment Corporation facility in Washington, D.C. on April 19, 2002. The seminar is free and available on a first come first served basis. If you are new to SF 278 reviews or have not done them for a while, this seminar will be very helpful. Additional information and registration materials are available on the OGE website (go to "www.usoge.gov" and then click on the "Training Workshops and Seminars" icon, and then go to "Developmental Seminars").

  • DoD Contractor List: The DoD Standards of Conduct Office has released the FY 2001 DOD Contractor List on their website.

  • Employee Guide: The Department of the Navy Employees' Guide to Standards of Conduct is now available on the Training Page. This document was originally designed for initial ethics training for new Secretariat employees but can be easily modified for use by field ethics counsels.

  • Frequent Flier Miles: The President signed the FY 2002 National Defense Authorization Act on Friday, December 28, 2001. Section 1116, which allows employees to retain promotional items (including Frequent Flier Miles) earned while on official travel is now law. The DOD Per Diem Committee issued the attached changes to the JTR/JFTR to implement the new law. The JTR/JFTR changes are effective immediately. Employees may now retain for personal use promotional items earned from official travel before, on or after December 28, 2001, provided: (1) the promotional items are obtained under the same terms as those offered to the general public and (2) they are obtained at no additional cost to the Government. Please give this information the widest possible distribution and contact us if you have any questions.

  • Filing Extensions: Extensions of Filing Dates for Certain OGE Form 450 Filers. On 5 November 2001, OGE issued a final rule amending 5 C.F.R. 2634.903(d), authorizing reviewing officials to grant extensions to active duty military personnel, reserve and National Guard members on active duty pursuant to Title 10 or 32, or any other employee, who is deployed or sent to a combat zone or is required to perform services away from his permanent duty station in support of the Armed Forces or other governmental agencies following a declaration of a national emergency by the President. Such extension is to last no longer than 90 days from the last day of service in the combat zone or location away from permanent duty station or from the end of an employee's hospitalization for any injury received or disease contracted while serving during the national emergency. 66 Fed. Reg. 55871. The provision is intended to grant relief to those OGE 450 filers who, because of their deployment or assignment away from their permanent duty station during the national emergency, do not have access to their records and thus would have difficulty in filing the form. Questions should be directed to Dave LaCroix at 703-604-8211. (Federal Register Notice, Text Version). (11/06/2001)

  • ASN (FMC) Issues Guidance Concerning Changes to DOD Travel Card Program: On August 10, 2001, ASN (FMC) issued a memorandum providing guidance on the changes that DOD recently agreed to in order to streamline the travel card program process, reduce the financial risk to the contractor, and assist DOD members in paying their bills in a more timely manner. (Memorandum, text version)

  • DOD SOCO CY 2001 Training Materials Available: The DOD Standard of Conducts Office has prepared training materials for CY 2001. The topic for this year is "Gifts." These training items, which consist of an on-line interactive training program, a PowerPoint slide presentation, and a Microsoft Word version of the on-line training, may be used to satisfy the annual training requirement for financial disclosure filers. This material is available through the training page.

  • Training: New links to OGE, DOJ, and the Air Force Materiel Command have been added to the Training Page.

  • Financial Disclosure Forms: New versions of the OGE Form 450 and the SF 278 are now available on the Forms page. For those users of Microsoft Excel, there is a link to a version that you may use to print and save your data.

  • Federal Travel Regulation (FTR): GSA has amended the FTR governing conference planning.  


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About this Site: This is an official Department of the Navy website provided as a public service of the Office of the General Counsel in cooperation with the Assistant General Counsel (Ethics). The Assistant General Counsel (Ethics) reports to the General Counsel of the Navy. Registered with GILS as: DON Ethics Program Web Site. Before contacting us read our Privacy Policy.

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