Conflicts of Interest in Procurement
VCU employees involved in purchasing and contracting must make decisions impartially, protect public funds and avoid actual or perceived conflicts between their university responsibilities and personal interests. The University has a Conflict of Interest Policy which establishes parameters for individuals involved in procurement transactions.
When employees must not participate
An employee must not participate in a procurement transaction when the employee knows that the employee, the employee’s partner or an immediate family member (household member):
Works for or leads the vendor
Works for a bidder, offeror or contractor involved in the transaction, or holds a leadership position with the company.
Financial interest
Owns or controls a significant financial interest in the company, or may financially benefit from the transaction.
Prospective employment
Is discussing or arranging prospective employment with the company.
Who these restrictions apply to
Anyone who can initiate, recommend, evaluate, approve, disapprove or otherwise influence a purchase, contract, payment or related claim.
These restrictions apply to anyone who can initiate, recommend, evaluate, approve, disapprove or otherwise influence a purchase, contract, payment or related claim.
Other circumstances to consider
In absence of an active procurement process, employees also need to be care not to engage vendors in such a way which gives an appearance of impropriety or influence. Some of those circumstances may include:
- A current or former VCU employee may be engaged as a consultant or contractor;
- A spouse or family member may be paid under a purchase or sponsored project;
- A vendor offers gifts, meals, travel, entertainment or other benefits; or
- A vendor is asked to support an employee event or donate prizes.
A potential conflict may sometimes be managed, but it must be disclosed and reviewed before the employee participates in the transaction.
A potential conflict may sometimes be managed, but it must be disclosed and reviewed before the employee participates in the transaction.
Gifts and vendor-sponsored activities
Employees with official responsibility for procurement transactions must not solicit or accept gifts, payments, services or other benefits from bidders, offerors, contractors or subcontractors.
Vendor gifts should generally be returned promptly. Employees may attend legitimate vendor-sponsored seminars or trade shows for business purposes. Food, beverages and nominal promotional items offered equally to all attendees may be accepted when permitted by university policy.
Contact Procurement Services or the Integrity and Compliance Office before accepting anything when the appropriate treatment is unclear.
Site visits and vendor-paid travel
When a site visit is necessary to evaluate a vendor, VCU should arrange and pay the employee's travel in accordance with university travel requirements.
Employees must not accept direct reimbursement from the vendor. When appropriate, VCU may separately bill the vendor for authorized costs.
Employment with a VCU vendor
An employee or former employee who had official responsibility for procurement transactions may be subject to special requirements before accepting employment with a bidder, offeror or contractor with whom the employee dealt in an official capacity.
Contact the Integrity and Compliance Office before accepting or beginning the outside employment.
Integrity of procurement records
Employees must not falsify, conceal or misrepresent material information associated with a procurement transaction. Procurement records, evaluations, approvals and representations must be complete and accurate.
Compliance tips
When a potential conflict is discovered, VCU employees should stop participating in the activity and contact the appropriate VCU Office for Guidance.
Regarding procurement transactions and vendors, contact the Office of Procurement Services at procurement_services@vcu.edu.
Regarding employee actions related to research, employment, affiliations, gifts and financial interests, direct questions to ucompliance@vcu.edu.
Refer to FAQs for more information.
Which office should I contact?
Integrity and Compliance Office
Contact this office to disclose a potential conflict and obtain guidance regarding conflicts of interest or commitment.
ucompliance@vcu.eduProcurement Services
Contact Procurement Services when the issue concerns a vendor, solicitation, purchase, contract, gift, vendor-sponsored activity or procurement process.
procurement_services@vcu.eduHuman Resources
Contact Human Resources for employee-versus-independent-contractor classification, secondary assignments, retiree requirements and employee payment methods.
Frequently asked questions
Generally, VCU should not issue a purchase order, use a purchase card or enter into a contract with a current employee or an employee-owned business without formal review.
Virginia law generally prohibits state employees from having a personal interest in a contract with their employing agency, subject to limited exceptions. The employee must not participate in selecting the vendor, developing the requirement, approving the transaction or administering the resulting contract.
Contact the Integrity and Compliance Office and Procurement Services before proceeding. An LLC or other business entity does not, by itself, eliminate the employee's underlying financial interest.
Do not assume that an employee can be paid through Procurement merely because the proposed work is outside the employee's normal duties.
Human Resources must determine whether the work should be handled through employment, a secondary assignment or another authorized payment method. Procurement and conflict-of-interest requirements must also be reviewed before any commitment is made.
Possibly, but the former employee's status does not automatically make the arrangement permissible. The department should obtain appropriate review of:
- › Employee-versus-independent-contractor classification
- › Retiree or return-to-work requirements
- › Conflicts involving the employee's former duties
- › Applicable competition requirements
- › Any post-employment procurement restrictions
- › The correct payment method
Creating an LLC, designating the individual as an affiliate or describing the payment as an honorarium does not override these requirements.
Honoraria should be limited to qualifying, nonrecurring activities and should not be used for recurring services or to avoid employment or procurement requirements.
Employment by VCU Health System does not automatically prohibit an engagement with VCU. Before proceeding, confirm:
- › Whether the individual is also employed by VCU
- › Whether the individual's VCU Health duties create a conflict
- › Whether the work is properly classified as independent contracting
- › Whether the appropriate procurement method and approvals have been completed
Do not proceed without conflict-of-interest review.
A VCU employee must not participate in a transaction from which the employee or an immediate family member may financially benefit. Assigning another person to supervise the consultant does not, by itself, resolve the conflict.
The relationship must be disclosed to the Integrity and Compliance Office, and the affected employee must be removed from the selection, approval and administration of the transaction unless otherwise authorized.
Employees involved in procurement should not solicit or accept vendor gifts, payments, entertainment or other personal benefits.
Vendor donations for raffles, employee-appreciation events or similar activities should not be solicited or accepted without advance review. Unsolicited offers should be referred to Procurement Services or the Integrity and Compliance Office before acceptance.
Questions involving gifts from entities that are not vendors or prospective vendors should be directed to the Integrity and Compliance Office.
Related requirements
Employees involved in procurement should be familiar with:
- ✓ Virginia Public Procurement Act, Ethics in Public Contracting
- ✓ State and Local Government Conflict of Interests Act
- ✓ Virginia Governmental Frauds Act
- ✓ VCU Conflict of Interest and Commitment Policy
- ✓ VCU's conflict-of-interest disclosure process