APPENDIX A TO STATEMENT OF DR. GEORGE M. Low NATIONAL AERONAUTICS AND SPACE ADMINISTRATION OFFICE OF THE ADMINISTRATOR To: All employees. From: AD/Deputy Administrator. Subject: Acceptance of gifts, gratuities, or entertainment. In my memorandum of October 24, 1975, to all NASA employees, I reported to you that I had asked the General Counsel to work with me in developing more specific policies and procedures concerning NASA's standards of conduct for all employees. It became apparent during that effort that there was a need to clarify and generally to restrict the regulations concerning the acceptance of gifts, gratuities, entertainment, or any other thing of value from private concerns. Attached for your information is an extensive amendment to NASA's Standards of Conduct regulations, which amendment, among other things, completely revises the regulations concerning the acceptance of gifts, gratuities, or entertainment. Each of you has a personal responsibility to become thoroughly familiar with these new regulations and to govern your conduct in strict compliance with all of the provisions. The new regulations define more precisely NASA's general policy against the acceptance by a NASA employee or his spouse or minor child, from a private person or organization having relationships with NASA, of any gift, gratuity, entertainment (including food, refreshments, tickets or invitations to performances and other events), favors, loans, transportation, accommodations, or any other thing of monetary value, unless specifically and clearly permitted by one of the exceptions listed in §1207.735-201 (d). Those exceptions are to be strictly construed, and if, after consulting with appropriate counselors, there is any question as to whether a particular exception to the general rule is applicable, the exception should not be used. The attached regulations incorporate a reference to the newly enacted criminal provision concerning the acceptance of excessive honorariums, 18 U.S.C. 616. If you have any questions concerning the applicability of that provision, for example, to outside teaching or lecturing, you should consult with the General Counsel, who will seek the advice of the Department of Justice in appropriate instances. We are now in the process of revising the Standards of Conduct handbook (NHB 1900.1A) to incorporate the attached amendment. Your installation's principal legal officer and personnel officer will continue to serve as ethics counselors. If you have any questions regarding the attached amendment or any other provisions of the handbook, I urge you to seek their advice and counsel. GEORGE M. Low. [From the Federal Register, Monday, Jan. 19, 1976] CHAPTER VNATIONAL AERONAUTICS AND SPACE ADMINISTRATION PART 1207-STANDARDS OF CONDUCT ACCEPTANCE OF GIFTS, GRATUITIES, OR ENTERTAINMENT The principal purposes of these amendments to the Standards of Conduct regulations of the National Aeronautices and Space Administration are (1) to provide more specific guidance to NASA employees on NASA policy concerning the acceptance of gifts, gratuities, entertainment or any other thing of value, and (2) to limit the exceptions to the general policy proscribing the acceptance by NASA employees of any gift, gratuity, entertainment or any other thing of value from persons doing business with NASA. Section 201 (b) of Executive Order 11222, 30 FR 6469, 3 CFR 1965 Supp., authorizes agency heads to issue regulations, coordinated and approved by the Civil Service Commission, to implement the policy established by the Executive Order concerning the acceptance of gifts, etc., by agency employees and to provide for such exceptions as may be necessary and appropriate in view of the nature of their agency's work and the duties and responsibilities of their employees. NASA has determined that there is a need to clarify and generally to restrict the exceptions applicable to NASA employees. The underlying objective is to provide greater insurance against a NASA employee acting in any manner, with respect to the acceptance of anything of value from a person or organization doing business with NASA, that could create the appearance of a conflict of interest. At the same time, recognizing the advantages to NASA in certain circumstances in permitting a NASA employee to provide services on a reimbursable basis to an industrial, technical or professional association, the amended regulations would permit reimbursement for transportation, accommodations and subsistence, under tight procedural requirements, from such an organization. The amendments also update the references to statutory provisions that relate to an employee's conduct, including 18 U.S.C. 616 concerning the acceptance of excessive honorariums. Since these amendments are concerned only with internal administrative responsibilities and standards of conduct for NASA employees, notice and public procedure thereon is not required. The amendments have been coordinated and approved by the Civil Service Commission. AUTHORITY: Sec. 203. National Aeronautics and Space Act of 1958, as amended, 72 Stat. 429, 42 U.S.C. 2473; E.O. 11222, 30 FR 6469, 3 CFR 1965 Supp.; 5 CFR 735.104. § 1207.735-101 [Amended] 1. Paragraph (e) of § 1207.735-101 is reserved as follows: (e) [Reserved] 2. Paragraph (f) of § 1207.735-101 is amended by adding paragraphs (18), (19), and (20), reading as follows: (18) The prohibition against a public official appointing, employing, promoting or advancing a relative of the official in his agency, or advocating any such actions in his agency for such a relative (5 U.S.C. 3110). (19) The prohibition against (i) the disclosure of crop information and speculation thereon (18 U.S.C. 1902); and (ii) the issuance of false crop reports (18 U.S.C. 2072). (20) The prohibition against the acceptance of excessive honorariums (18 U.S.C. 616). 3. Subpart B is revised in its entirety to read as follows: SUBPART B—ACCEPTANCE OF GIFTS, GRATUITIES, OR ENTERTAINMENT SUBPART B-ACCEPTANCE OF GIFTS, GRATUITIES, OR ENTERTAINMENT § 1207.735-200 Scope of subpart. This part establishes NASA policy with respect to the acceptance of gifts, gratuities, entertainment (including food, refreshments, tickets or invitations to performances and other events), favors, loans, transportation, accommodations, or any other thing of monetary value by NASA employees. Any violation of these regulations and/or any of the criminal statutes referred to herein will subject the employee to administrative disciplinary action and/or criminal prosecution. § 1207.735-201 Policy. (a) It is NASA policy not to interfere in the private lives of NASA employees and their families. However, certain conduct involving acceptance of gifts, gratuities, entertainment (including food, refreshments, tickets or invitations to performances and other events), favors, loans, transportation, accommodations, or any other thing of monetary value, must be regulated in view of the nature of the official duties of the employee and the special responsibilities that are assumed by a person who accepts Federal employment. (b) Except as provided in paragraphs (d), (f), and (g) of this section, the direct or indirect solicitation or acceptance by a NASA employee or his spouse or minor child of any gift, gratuity, entertainment (including food, refreshments, tickets or invitations to performances and other events), favors, loans, transportation, accommodations, or any other thing of monetary value from any person, corporation, or group: (1) Has or is seeking to obtain contractual or other business or financial relationships with NASA; or (2) Has interests which may be substantially affected by such employee's performance or nonperformance of his official duty; or (3) Is in any way attempting to affect the employee's official action. (c) There are certain exceptions to the foregoing general rule which are set forth in paragraph (d) of this section. Those exceptions are to be strictly construed. In determining whether one or more of the exceptions apply in any particular circumstance, each NASA employee shall avoid any situation having an appearance which might, whether justifiably or not, bring discredit to or embarrass the Government or NASA. Each NASA employee will so govern his conduct in the light of this part as to have no difficulty in justifying his actions if required to do so. (d) The following are exceptions to the general rule set forth in paragraph (b) of this section: (1) Acceptance of food and soft drinks of nominal value at a contractor's plant on an infrequent basis when the conduct of official business within the plant will be facilitated and when no provision can be made for individual payment. An employee shall avoid all other situations, e.g., in private clubs, where there would be no provision for individual payment for his food or refreshments. (2) Instances in which the interests of the Government are served by participation of a NASA employee in widely attended luncheons, dinners, and similar gatherings sponsored by industrial, technical, or professional associations for the discussion of matters of mutual interest. Participation in such events is permitted only when the host is the association and not a private company and only when approved by the employee's supervisor as being a part of or related to his official duties. Acceptance of gratuities, food, or refreshments from a private company in connection with such association's activities, is forbidden. (3) Acceptance of gifts, favors, or entertainment, where there is a family relationship between the employee, or between his spouse, children, or parents, and the donor, where the circumstances make it clear that it is that relationship rather than the business of the persons concerned which is the motivating factor for the gift, favor, or entertainment, and where it is clear that the gift, favor, or entertainment is paid for by the donor and not by a private company. (4) Acceptance of modest food and refreshments at the host's home, where there is an obvious personal relationship between the employee and the host, where it is clear that it is that relationship rather than the business of the persons concerned which is the motivating factor for the food and refreshments, and where it is clear that the food and refreshments are paid for by the host and not by a private company. (5) Purchase of articles at advantageous rates where such rates are offered to Government employees as a class. (6) Acceptance of loans from banks or other financial institutions on customary terms to finance proper and usual activities of employees, such as home mortgage loans. (7) Acceptance of unsolicited advertising or promotional material, such as pens, pencils, note pads, calendars, or other items of trivial value, clearly less than $5.00. (8) Acceptance of contractor-provided local or intrastate transportation while on official business when alternative arrangements are clearly impracticable or where such acceptance will facilitate the conduct of official business. Acceptance of intrastate transportation is permitted only when specifically authorized in the employee's travel authorization, or otherwise authorized in writing by the employee's supervisor, as being in the interest of the Government. (9) Acceptance of transportation, accommodations, subsistence, or services furnished under a reimbursable arrangement with NASA, from an industrial, technical, or professional association, when authorized in the employee's travel authorization as being in the interest of the Government. When transportation, accommodations, subsistence, or services are furnished in kind by such an association, appropriate deductions shall be made in the travel, per diem, and other allowances otherwise payable to the employee. When transportation, accommodations, subsistence, or services are provided under a cash reimbursable arrangement, the reimbursement must be paid directly to NASA by check payable to the National Aeronautics and Space Administration; the employee will be reimbursed for necessary expenses by NASA in accordance with applicable laws and regulations. In no case shall a NASA employee accept benefits which are under prudent standards extravagant or excessive in nature. (10) Special situations in which the Associate Administrator for Center Operations, after consultation with the General Counsel, determines in advance in writing that the interest of the Government will be served by an employee's participation, in his official capacity and as a designated NASA representative, in a public ceremony or other event at the expense of a private company. (11) Acceptance of transportation or other services provided by a private company in special situations in which the Administrator or the Deputy Administrator determines in advance in writing that acceptance of such transportation or other services will facilitate the conduct of official business and be in the best interest of the Government. (e) A gift or gratuity, the receipt of which is prohibited under paragraph (b) of this section, will be returned to the donor. If return is not possible, the gift or gratuity will be turned over to a public or charitable institution and a report of such action, and the reasons why return was not feasible, will be made to the employee's supervisor. When possible, the donor should also be informed of such action. (f) An employee will not solicit a contribution from another employee for a gift to an official superior, make a donation as a gift to an official superior, or accept a gift presented as a contribution from an employee receiving less salary than himself (5 U.S.C. 7351). However, this paragraph does not prohibit a voluntary gift of nominal value or a donation in a nominal amount made on a special occasion such as marriage, illness or death, or retirement. (g) An employee will not accept a gift, present, decoration, or other thing from a foreign government unless authorized by Congress as provided by the Constitution and in 5 U.S.C. 7342 (see NASA instruction NMI 1030.1A). $1207.735-202 Statutory prohibitions. The prohibitions set forth in § 1207.735-201 are to be construed as being in addition to and not in limitation of: (a) The prohibitions of 18 U.S.C. 201 as amended, relating to the corrupt solicitation or receipt of, or agreement to receive, anything of value in connection with an employee's performance of his official duty; and (b) The prohibitions of 18 U.S.C. 203, as amended, relating to the unlawful solicitation or receipt of, or agreement to receive, compensation for services rendered by an employee in connection with matters affecting the Government. 4. Section 1207.735-305 is revised to read as follows: § 1207.735-305 Compensation, honorariums, travel expenses. (a) An employee may accept compensation or an honorarium for permissible outside employment or other outside activity which is nonofficial in character unless otherwise prohibited by this subpart. (b) (1) Except as provided in §1207.735–201(d)(9) and in paragraph (b) (2) of this section, travel expenses will be borne by the Government when official employment activities of NASA employees are involved, including attendance at meetings of nongovernmental organizations. Conversely, when nonofficial outside employment activities are involved, appropriated funds will not be utilized for travel or subsistence. (2) Contributions and awards incident to training in non-Government facilities and travel, subsistence, and other expenses incident to attendance at meetings may be accepted by NASA employees, provided that such contributions, awards, and payments are made by non-profit organizations pursuant to 5 U.S.C. 4111 (formerly the Government Employees Training Act), and that the employee has obtained specific written authorization to accept the contribution or award. (c) No employee shall accept (1) any honorarium of more than $1,000 (excluding amounts accepted for actual travel and subsistence expenses) for any appearance, speech, or article, or (2) honorariums aggregating more than $15,000 in any calendar year (18 U.S.C. 616). The provisions of this paragraph apply whether the appearance, speech or article is approved as permissible outside employment under Subpart C of this part, or pertains to the private interests of the employee. 5. Section 1207.735-309 is amended by adding paragraph (d) reading as follows: § 1207.735-309 Related statutory provisions. (d) 18 U.S.C. 616 provides: Whoever, while an elected or appointed officer or employee of any branch of the Federal Government 69-394-767 (1) accepts any honorarium of more than $1,000 (excluding amounts accepted for actual travel and subsistence expenses) for any appearance, speech, or article; or (2) accepts honorariums (not prohibited by paragraph (1) of this section) aggregating more than $15,000 in any calendar year; shall be fined not less than $1,000 nor more than $5,000. Effective date. This amendment takes effect on January 19, 1976. APPENDIX B TO STATEMENT OF DR. GEORGE M. Low NOTE THE STANDARDS OF CONDUCT CERTIFICATION IN THIS SOLICITATION. Bidders or offerors are cautioned to comply with the terms of the "Standards of Conduct Certification" in this solicitation. Failure of a bidder or offeror to comply with the certification may result in a determination of nonresponsibility by the Contracting Officer. STANDARDS OF CONDUCT CERTIFICATION (FEBRUARY 1976) (Applicable if the bid or offer exceeds $1,000,000) The National Aeronautics and Space Administration has established policies which govern the acceptance of gifts, gratuities, entertainment (including food, refreshments, tickets or invitations to performances and other events), favors, loans, transportation, accommodations, or any other thing of monetary value by NASA employees. These policies are found in Title 14, Code of Federal Regulations, Chapter V, Part 1207, Subpart B (see Federal Register, Vol. 41, No. 12, January 19, 1976). It is imperative that employees of NASA contractors and subcontractors be made aware of the limitations on the activities of NASA employees and honor the spirit and intent of such limitations. Accordingly, as a condition of competing for the award of a contract resulting from this solicitation, the bidder or offeror shall institute and implement a written company policy which will appropriately provide for dissemination of information regarding the above NASA policies to company employees, provide a code of conduct for company employees with respect thereto, and further provide for disciplinary action for any company employee responsible, directly or indirectly, for causing a violation of the company policy. The bidder or offeror is also required to execute the certificate set forth below. The person executing the certificate, through the act of signature, represents that he has the authority to bind the bidder or offeror to the terms of the certificate. Failure to institute and implement a meaningful company policy in accordance with the above will result in a determination that the bidder or offeror is not a responsible contractor for this procurement. CERTIFICATE Bidder/offeror represent that, at the time of submission of this bid/proposal, a written company policy has been made effective which provides for appropriate dissemination to company employees the NASA policy regarding acceptance of gifts, gratuities, or entertainment by NASA employees (14 CFR, Chap. V, Part 1207, Subpart B; see Federal Register, Vol. 41, No. 12, January 19, 1976); a code of conduct for company employees with respect thereto; and, for disciplinary action to be taken against company employees who, directly or indirectly, are responsible for causing a violation of the company code of conduct. Upon request of the Contracting Officer, the above company policy will be made available for review. Signature-Title Date The successful bidder/offeror agrees to insert the substance of the above, including the certificate, in all subcontracts for which the price is expected to equal or exceed $1,000,000 in amount. Senator PROXMIRE. On the first page of your statement, Dr. Low, you say that NASA initiated a number of actions at the time when articles about defense contractors first appeared in the press. Am I |