Michigan Public Purchasing Officers AssociationBuy the Bay Conference

October 6, 2011

Rob Rickard, CPPOOregon Secretary of State’s Office

Retired!

The Ten Commandments of Ethical Government Purchasing

3

Thought to Remember!

The 10 Commandments were not called the 10 Voluntary Guidelines!

Principle for SuccessPrinciple for Success

Love Thy Neighbor as Thyself.

QUESTION?QUESTION?You just completed a purchase for your agency’s normal

operations needs. The supplier says that since your order exceeded the “minimum” order size, you are entitled to a “bonus” gift. What is your next action?

1. Graciously refuse the gift, explaining the ethics code.

2. Have the gift sent to your agency (but you will take it home for your own use. After all you placed the order.)

3. Have the gift sent to your home.

4. Have the gift sent to your agency and put a property tag on it, making it agency property.

Commandment #1Commandment #1Thou shalt not take Gifts!

– Nordstrom card

– Hunting trip

QUESTION?QUESTION?An out-of-town supplier who sells a significant amount of

product or service to your agency is in your area on business. He has tickets for a Lions Game you would like to attend. He offers you the tickets because he has another commitment that evening. What do you do?

1. Accept the tickets, but offer to pay market price for them.

2. Politely refuse the tickets, explaining the ethics code.3. Accept the tickets and give them to your boss.4. Accept the tickets and sell them in a raffle so you can

donate the money raised to a local charity.

Commandment #2Commandment #2• Thou shalt not use thy position

for personal gain! (Shame)

– Education Director

– ODF&W site manager

Commandment #3Commandment #3Thou shalt not taketh thy free

lunch (It tasteth not sweet)

– IT evaluation team

– Agency Director

QUESTION?QUESTION?Your supervisor (or some other “high-ranking official” of the

agency) stops by your desk and asks you to “get a good buy” on an item they need for their personal use at home. What is your next step?

1. Update your resume because you know the outcome will not be fun or pretty.

2. Place the order with one of your existing suppliers because you are sending lots of business their way anyway. They should help out with a personal need.

3. Obtain quotes and give them to the supervisor and let them place the purchase order.

4. Get quotes, place the order, but have the invoice sent to your supervisor.

5. Politely refuse, pointing out the policies of the agency that do not allow personal gain from the agency business.

This is the This is the onlyonly

way we we see ethics! ethics!

Commandment #4Commandment #4Thou Shalt Love thy supplier (but

keepeth an eye on him/her)

– Supplier who expresses interest or current supplier

– Supplier who customer hateth!– ODOT inventory

Supplier InteractionSupplier Interaction

ORS 279A.015 (5), Allow impartial and open competition, protecting both the integrity of the public contracting process and the competitive nature of public procurement.

Commandment #5Commandment #5Thou shalt not partake of the

conflict of interest (Thou Canst be as objective as thou thinketh!)

– Facilities manager – janitorial supplies

– Spouse wanteth contract

Commandment #6Commandment #6Thou shalt communicate to all

(supplier and customer) clearly (and honestly)

– Supplier

– Customer

– Staff – Higher Ed advertisement

Supplier RelationsSupplier Relations

• Supplier (vendor) resources –Agency website

• Supplier training –

Suppliers Requesting Information

Suppliers Requesting Information

• Suppliers to agency staff (other than purchasing)

• Suppliers to friends of family within agency

• Suppliers to past associates

Commandment #7Commandment #7Thou shalt not use thine agency’s

resources for thine own personal gain

– ODF&W biologist

– County maintenance worker

– Makest thou those suggestions for efficiency

Commandment #8Commandment #8Thou shalt document thy

babblings

– Phone conversations

– Other verbal transactions

– Letter of understanding

Commandment #9Commandment #9Thou shalt not allow the end to

justify the means (Just because it feels good don’t make it right!)– Fred the food buyer

– Fire Dept. manager

– ODOT buyer

Commandment #10Commandment #10Thou shalt avoid the sweat shops

– Toner cartridges

– Copy centers

– Losing suppliers

Commandment #11 (My cup runneth over)

Commandment #11 (My cup runneth over)

Thou shalt not bless an action thou knowest is wrong!

– ODOT evaluation scores

– Redmond airport

Commandment #12Commandment #12Thou shalt not straddle the fense

– Higher ed IT manager

– ODOT Bridge manager

Commandment # 13Commandment # 13Thou shalt not commit an

offense because thy brother did (and got away with it)

– Stone Cold Laboratories

Commandment #14 (Finally!)

Commandment #14 (Finally!)

Thou shalt commit random acts of kindness!

– Single mom

–Softball game

ResourcesResources

• Josephson Institute of Ethics, • www.josephsoninstitute.org

• Ethics Resource Center www.ethics.org

● Shake That Ethics Brain!www.ethicsbrain.com

Questions?Questions?