Policies and Procedures

Procurement from Vendor In which College Employee has an Interest


 
Chapter:                      2
Section:                      10.07
Computer Index Code:          C2S10.07
Origination Date:             5/22/84
Inst. Council Approval Date:  10/10/84
 
 
Subject:  Chapter  2      BUSINESS--VP FOR BUSINESS
          Section  10.07  PROCUREMENT FROM VENDOR IN WHICH COLLEGE
                          EMPLOYEE HAS AN INTEREST
 
 
I.   PURPOSE
 
     To outline college policy and procedures relating to procurement 
     of supplies, services, and construction from a business firm 
     in which a college officer or employee has an interest.
 
 
II.  REFERENCES
 
     Utah Public Officers' and Employees' Ethics Act, 1953 Utah 
     Code Annotated, 67-16-1 et.seq.
 
     Utah Procurement Code, 1953, Utah Code Annotated, 
     63-56-1 et. seq.
 
     Policy and Procedure 9.0 College Procurement - General
 
     Policy and Procedure Chapter III Section 3.5 Conflict of 
     Interest
 
     Policy and Procedure Chapter III Section 2.1 Employee 
     Definitions and Categories
 
 
III. DEFINITIONS
 
     A.   "Business entity" means a sole proprietorship, partnership,
          association, joint venture, corporation, firm, trust, 
          foundation, or other organization or entity used in 
          carrying on commercial business activities for profit 
          making purposes.
 
     B.   "Compensation" means anything of economic value however
          designated which is paid, loaned, granted, given, donated, 
          or transferred to any person or business entity for or in
          consideration of personal services, materials, property, 
          or any other thing whatsoever.
 
     C.   "Substantial interest" means (1) the ownership, either 
          legally or equitably, by an individual, his/her spouse, 
          or his/her minor children, of at least ten percent of the 
          outstanding capital stock of a corporation or a ten percent 
          interest in any other business entity; or (2) the holding 
          of a position in a business entity as an officer, director, 
          or employee.
 
     D.   "Transaction" means a formal or informal contract or 
          agreement, express or implied, to which the college is a 
          party that involves any transfer of consideration or payment 
          of compensation.
 
     E.   "College officer or employee" means a person permanently
          employed by the college on full or part-time basis, but 
          does not include members of the Institutional Council or 
          of any other advisory commission, board, or committee 
          serving on a part time basis, See Pol. and Proc. Chapter 
          III Section 2.1 Employee Definitions and Categories.
 
 
IV.  POLICY
 
     A.   It is the policy of the college to comply fully with all
          applicable provisions of the Utah Public Officers' and
          employees' Ethics Act.  The statements of detailed policies 
          and procedures set forth herein are intended to provide 
          notice to the college community of the requirements of the 
          Act as applied to the procurement of supplies, services, 
          and construction pursuant to the Utah Procurement Code, 
          as amended, and related college regulations.  See Policy 
          and Procedure 9.0 - 9.5 inclusive.
 
     B.   Scope
     
          1.   The policies and procedures set forth herein apply 
               to all transactions (including small purchases and 
               expedited procurement transactions, see Policy and 
               Procedure 9.2) to which the college, or any department 
               or operating unit of the college, is or may be a party 
               without regard for the amount of consideration to be 
               paid thereunder or the source of funding.
 
          2.   For the purpose of applying the policies and procedures
               herein set forth, any reference of "Purchasing Agent"
               shall be construed to mean college Purchasing Agent or,
               when appropriate, the responsible officer of any college
               department or operating unit that is authorized to engage
               in contracting or procurement activities without going
               through the Purchasing Department.
 
     C.   Prohibitions
 
          1.   A college officer or employee is forbidden to participate
               in his/her official capacity with respect to any 
               transaction between the college and a business entity in 
               which the officer or employee has a substantial interest. 
 
          2.   A college officer or employee is forbidden to receive
               compensation (in addition to regular budgeted salary or
               wages for services to the college) as a result of, or in
               connection with, any transaction between the college and
               a business entity in which the officer or employee has a
               substantial interest.
 
          3.   Employees of the college cannot use their position in the
               college (including use of the college mailing address) to
               obtain goods or materials for instruction and then resell
               those goods and materials for personal gain.
 
 
V.   PROCEDURES
 
     A.   Duty of Disclosure
 
          1.   It is the duty of every college officer or employee to
               disclose to his/her immediate superior and to the college
               Purchasing Agent the existence of a substantial interest
               which he/she has in any business entity which the officer
               or employee knows or has reason to believe, may submit a
               bid or sealed proposal for, or otherwise seek to enter
               into, a transaction with the college.
 
     B.   Procurement Procedure
 
          1.   The Purchasing Department shall process requisitions in
               accordance with established college procurement procedures
               and shall attempt to secure bids or proposals from, and 
               to negotiate with, qualified vendors including vendors 
               in which the existence of a substantial interest on the 
               part of a college officer or employee has been disclosed 
               or otherwise called to the attention of the purchasing 
               agent.
 
          2.   All bids and proposals, and the proposed terms and 
               conditions of all negotiated agreements shall be 
               subjected to technical and price evaluation in accordance 
               with established college procurement criteria and 
               procedures, provided, however, that the Purchasing Agent 
               and all other personnel involved in the evaluation and 
               award process must take appropriate steps to assure that 
               there is no participation therein, direct or indirect, 
               by any college officer or employee who is known to have 
               a substantial interest in any business entity whose bid 
               or proposal is under consideration.
 
          3.   If the Purchasing Agent determines that in the best
               interest of the college and in accordance with established
               criteria the proposed procurement contract should be
               awarded or entered into with a business entity in which a
               college officer or employee is known to have a substantial
               interest, the following steps must be taken before the
               contract is executed:
 
               a.   If the proposed contract price will be paid in 
                    whole or in part with funds derived from a federal 
                    contract or grant, the proposed contract must be 
                    submitted to the office of Vice President for 
                    Administration together with a statement of the 
                    circumstances, and a request that any required 
                    waivers be obtained from the cognizant federal 
                    officers or agencies permitting the contract to be 
                    entered into as proposed.  In such cases the 
                    contract may not be executed on behalf of the 
                    college until the Purchasing Agent has received a
                    written memorandum indicating that the requested
                    waivers have been granted.
 
               b.   In all such cases the Purchasing Agent must request
                    and receive from the college officer or employee 
                    who has a substantial interest in the business 
                    entity designated as a party to the proposed contract,
                    a duly executed affidavit in substantially the 
                    following form:
 
                    I,     (name)   , hereby declare that in my 
                    official capacity, I have not participated in, and 
                    that I have not and will not receive compensation 
                    (other than my regularly budgeted salary or wages 
                    from the college) nor will college facilities 
                    or materials or contracted time be used in 
                    connection with proposed contract (or Purchase 
                    Order No.      ).
                                    (date)             (Signature)   
 
 
     C.   Remedies
 
          If any transaction is entered into in violation of policies 
          and procedures set forth herein:
 
          1.   The officer or employee who violated the prohibitions
               specified above, or who knowingly executed and 
               submitted a false affidavit when requested shall be 
               subject to appropriate disciplinary action including 
               possible dismissal from college employment as provided 
               in the Utah Public Officers' and Employees' Ethics Act.
 
          2.   The college shall have the right to rescind or nullify 
               any contract or subcontract entered into in respect 
               to such transaction without returning any part of the 
               consideration that may have been received by the 
               college pursuant thereto.
 
 
 
For More Information, Contact: 
Nancy Sanchez 
Director of Risk Management
(801) 957-4041
E-mail:  nancy.sanchez@slcc.edu
 
http://www.slcc.edu
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