or actual conflicting employment and financial interests. One is a criminal - statute, 18 U.S.C. 208, which by its terms prohibits an employee's participation in certain activities where he has a conflicting personal financial interest. The other is a requirement under Executive Order 11222 that employees occupying certain Government positions must report all personal financial interests by filing a statement of employment and financial interests. The statute and the statement of employment and financial interests have the common objective of deterring the occurrence of conflicting financial interest situations: One by sanctions and the other by disclosure. But whereas the statute prohibits and punishes, the statement of employment and financial interests is intended to serve as an aid to the employee and those who review his statement in the avoidance of the conflicting situation through advice and counseling.

(b) The statement of employment and financial interests required under this subpart are in addition to, and not in substitution for, or in derogation of, any similar requirement imposed by law, order or regulation. The submission of a statement or supplementary statement by an employee does not permit him or any other person to participate in a matter in which his or the other person's participation is prohibited by law, order, or regulation, unless he obtains a waiver under procedures set out in this subpart. § 1200.735-402 Statutory prohibitions against acts affecting a personal financial interest.

(a) The provisions of 18 U.S.C. 208(a) prohibit any employee from participating personally and substantially in the course of his Government duties in any judicial or other proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter in relation to which matter, to his knowledge, the following persons or organizations have a financial interest:

(1) The employee, or his spouse, minor child, or partners;

(2) A business or nonprofit organization in which the employee is serving as an officer, director, trustee, partner, or employee; or

(3) A person or business or nonprofit organization with whom or with which the employee is negotiating, or has any

arrangement with, concerning prospective employment.

(b) The prohibitions in paragraph (a) of this section may be waived under certain circumstances which are set out in § 1200.735-403.

(c) Illustrative of the types of matters in which NASA employees commonly participate and which may fall within the prohibitions described in paragraph (a) of this section are the following:

(1) The negotiation, administration, or auditing of contracts or agreements; (2) The selection or approval of contractors or known subcontractors under a NASA prime contract;

(3) The technical monitoring or direction of work under a contract;

(4) Participation on boards or committees of the type listed in § 1200.735404 (a) (4); or

(5) Project monitoring.

(d) Unless a waiver is granted pursuant to § 1200.735-403, no NASA employee or civilian or military personnel of other Government agencies regularly detailed to NASA will participate personally and substantially in the course of his Government duties in any specific matter of a type listed in paragraph (c) of this section, or in any other matter of a type referred to in paragraph (a) of this section if, to his knowledge, any of the persons or organizations identified in paragraph (a) of this section have a financial interest relating to that specific matter.

§ 1200.735-403 Waiver of statutory prohibition.

(a) The prohibition of 18 U.S.C 208 (a) may be waived in connection with a specific matter of the type which comes under the statute if the employee makes a full disclosure in writing of the nature of the matter involved and of the financial interest relating thereto and receives, in advance of his participation in such matter, a written determination that such financial interest is not so substantial as to affect the integrity of his services and, therefore, that the employee may participate personally and substantially in that matter. The procedures set forth in Appendix A of this subpart will be followed in connection with granting a waiver as described in this section.

(b) The prohibition of 18 U.S.C. 208 (a) also may be waived by general regulation applicable to all NASA employees so as to permit an employee and civilian

and military personnel of other Government agencies regularly detailed to NASA to participate personally and substantially in a specific matter, notwithstanding the existence of a financial interest relating to that matter, where it has been determined that such a financial interest is too remote or too inconsequential to affect the integrity of a NASA employee's service in any matter in which he may act in his governmental capacity. Such a determination has been made by the Administrator with respect to the categories of financial interests set forth in Appendix B of this subpart.

§ 1200.735-404

Statement of employ

ment and financial interests.

(a) The following categories and types of employees will file a statement of employment and financial interests containing the kind of information required by the Civil Service Commission on NASA Form 1270:

(1) Employees paid at a level of the Federal Executive Salary Schedule established by the Federal Executive Salary Act of 1964, as amended, except the Administrator who is subject to separate reporting requirements under section 401 of Executive Order 11222.

(2) Employees in Grade GS-16 and above of the General Schedule established by the Classification Act of 1949, as amended, and those employees holding NASA excepted positions and comparable and higher positions not subject either to the Classification Act or section 203(b)(2) of the National Aeronautics and Space Act of 1958, as amended.

(3) Employees at the GS-13 level and above, unless otherwise exempted pursuant to paragraph (b) of this section, whose basic duties and responsibilities require the exercise of judgment in making or recommending a Government decision or in taking or recommending Government action in regard to:

(i) Contracting or procurement, including the evaluation or selection of contractors; the negotiation, approval, or award of contracts; the supervision of activities performed by contractors, including the administration, monitoring, audit, and inspection of contractors and contract activities; the initiation or approval of requests to procure supplies, equipment, or services, other than those common items available from NASA or GSA inventories;

(ii) Administering or monitoring grants or subsidies, including grants to educational institutions and other nonFederal organizations;

(iii) Auditing financial transactions; (iv) Using or disposing of excess or surplus property (GS-12 and above); (v) Establishing or enforcing safety standards and procedures; and

(4) All employees, regardless of grade, occupying or serving in the following positions or on the following Boards or Committees:

(i) Attorney-advisers and patent attorneys,

(ii) Patent-advisers,

(iii) Source Evaluation Boards or Committees,

(v) Contract Adjustment Board, (vi) Board of Contract Appeals, (vii) Architect-Engineer Selection Boards, and

(viii) Site Selection Boards.

(5) Other employees identified by the Director of a Field Installation or, at Headquarters, by the Assistant Administrator for Administration as holding positions requiring the incumbent thereof to exercise judgment in making or recommending Government decisions or actions where such decisions or actions may have an economic impact on the interest of any non-Federal enterprise.

(b) An employee described in subparagraph (3) of paragraph (a) of this section may be exempted from the requirement for filing a statement of employment and financial interests when the Director of the Field Installation involved or, at Headquarters, the Assistant Administrator for Administration determines that the employee's duties are at such a level of responsibility and are subject to such a degree of supervision and review that the possibility of his becoming involved in a conflict of interest is remote.

(c) Procedures for filing statements of employment and financial interests are contained in Appendix C of this subpart.

(d) The following procedures will be followed with regard to the maintenance of statements of employment and financial interests. Each Field Installation Director, and for Headquarters, the Assistant Administrator for Administration will maintain on a current basis a master list of employees required to file statements under this subpart. It will

be this official's responsibility to determine that the list includes all those employees falling within the criteria for reporting set forth in this subpart and that the requirement for filing statements is fully carried out on a timely basis. In the event of any question regarding the interpretation of these criteria, the official will consult the Agency Counselor of NASA directly.

(e) Employee statements will be given the same degree of confidential handling as security files. Statements forwarded to the appropriate personnel office in accordance with this subpart will be in sealed envelopes. Statements will be retained in a special locked cabinet or safe to which only the designated employees will have access. The head of the local personnel office will designate within his office one employee at a supervisory level who is authorized to open and examine statements for completeness. When a form is not complete, it shall be returned for proper completion. When a form is complete, it shall be promptly forwarded to a Deputy Counselor (Legal) for review pursuant to Subpart E. Statements will be retained in a special locked cabinet or safe to which only the designated employees will have access. Transmission of statements for legal review will be in a sealed envelope bearing the inscription "To Be Opened Only By (bearing the name of the individual authorized to review such statements)." Within each NASA legal office, procedures for limiting access to statements and for their safekeeping, as rigorous as those set forth for personnel offices, will be maintained. There will be no discussion or disclosure of the details of financial statements except as necessary to carry out the provisions of Subpart E. Information from a statement shall not be disclosed outside of NASA except as the Administrator or the Civil Service Commission shall determine for good cause shown.

(f) This subpart does not require an employee to include in a statement of employment and financial interests, or supplementary statement, any information relating to the employee's connection with, or interest in, a professional society or a charitable, religious, social, fraternal, recreational, public service, civic or political organization or a similar organization not conducted as a business enterprise. For the purpose of this subpart, educational and other institutions doing research and development or

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related work involving grants of money from or contracts with the Government. are deemed "business enterprises" and are required to be included in an employee's financial interest statement.

APPENDIX A-WAIVER PROCEDURES (SEE
§ 1200.735-403)

1. Employees appointed under authority of section 203(b)(2) (A) (“NASA Excepted Positions") or section 203(b) (10) (“Alien Scientists") of the National Aeronautics and Space Act of 1958 (42 U.S.C. 2473(b)(2) (A) and 2473(b)(10); or under 10 U.S.C. 1581(a) ("P.L. 313 Scientists").

a. The employee will address a written. request for a waiver to the Administrator. The request will describe the specific matter involved, the nature and extent of the employee's participation therein, and the exact. nature and amount of the financial interest. relating to the specific matter.

b. The employee, if stationed at NASA Headquarters, will forward his request to theAdministrator via the Official-in-Charge of the Administrator, Program or Staff Office in which the employee is located. The official will transmit the request with his comments and recommendations on the proposed waiver to the Administrator.

c. The employee, if stationed at a NASA field installation, will forward his request to the Administrator via the Director of the Field Installation. The Director will transmit the request with his comments and recommendations on the proposed waiver to the Administrator.

d. The determination required by the statute will be made only by the Administrator or Deputy Administrator in the case of employees holding appointments under the statutes cited at paragraph 1 of this appendix.

2. All other employees:

a. Headquarters. (1) All other NASA employees and civilian and military personnel of other Government agencies regularly detailed to NASA, stationed at NASA Headquarters, will forward their requests for a waiver to the Official-in-Charge of the Administrator, Program or Staff Office in which the employee is located. The waiver request will contain the same information required in paragraph la of this appendix. The official will transmit the request with his comments and recommendations on the proposed waiver to the Assistant Administrator for Administration.

(2) The Assistant Administrator for Administration is authorized to make the determination required by the statute. This authority may not be redelegated.

b. Field installations. (1) All other NASA employees and civilian and military personnel of other Government agencies regularly detailed to NASA, stationed at a field installation will forward their requests for a waiver to the Director of the installation, via the head of the major organizational component in which the employee is.

located. The waiver request will contain the same information required in paragraph la of this Appendix. The head of the major organizational component will transmit the request to the Director of the field installation with his comments and recommendations on the proposed waiver.

(2) The Directors and Deputy or Associate Directors of NASA Field Installations are authorized to make the determination required by the statute. This authority may not be redelegated. An information copy of each such determination or of the disapproval of the employee's request will be forwarded to the Assistant Administrator for Administration, NASA Headquarters. APPENDIX B-CATEGORIES OF FINANCIAL INTERESTS EXEMPTED FROM THE PROHIBITION OF 18 U.S.C. 208(a) (SEE § 1200.735-403)

1. The following exemptions apply to financial interests which are held directly by a NASA employee or his spouse or minor child, whether jointly or individually, or by a NASA employee and his partner or partners as joint assets of the partnership:

a. Ownership of bonds other than corporate bonds, regardless of the value of such interest. This exemption extends also to any financial interests that the organization whose bonds are so owned may have in other business entities.

b. Ownership of shares in a mutual fund, regardless of the value of such interest. This exemption extends also to any financial interests that the mutual fund may have in other business entities.

2. If a NASA employee or his spouse or minor child has a present beneficial interest or a vested remainder interest under a trust, the ownership under the trust of shares in a mutual fund will be exempt regardless of the value of such interest. This exemption extends also to any financial interests that the mutual fund may have in other business entities.

3. If a NASA employee is an officer, director, trustee, or employee of an educational institution, or if he is negotiating for, or has an arrangement concerning prospective employment with such an institution, a direct financial interest which the institution has in any matter will not itself be exempt, but any financial interests that the institution may have in the matter through its holdings of securities issued by business entities will be exempt, provided the NASA employee is not serving as a member of the investment committee of the instiution or is not otherwise advising it on its investment portfolio. 4. If a NASA employee has continued to participate in a bona fide pension, retirement, group life, health or accident insurance plan, or other employee welfare or benefit plan that is maintained by a business or nonprofit organization of which he is a former employee, his financial interest in that organization will be exempt, except to the extent that the welfare or benefit plan is a profit-sharing or stock-bonus plan.

(1) Ninety days after the effective date of this part if employed on or before the effective date; or

(2) Thirty days after entrance on duty but not earlier than 90 days after the effective date of this part.

(3) Ten days after his position is specifically identified as one requiring the incumbent thereof to file a financial statement under § 1200.735-404(a) (5).

(4) After selection and at least 5 days before service on the boards or committees listed in § 1200.735-404 (a) (4).

2. Changes in, or additions to, the information contained in an employee's statement of employment and financial interests shall be reported in a supplementary statement at the end of the quarter in which the changes occur. Quarters end March 31, June 30, September 30, and December 31. If there are no changes or additions in a quarter, a negative report is not required. However, for the purpose of annual review, a supplementary statement, negative or otherwise, is required as of June 30 each year.

3. Interests of employee's relatives: For purposes of this reporting requirement, the interest of a spouse, minor child, or other member of an employee's immediate household is considered to be an interest of the employee. "Members of an employee's immediate household" means those blood relations who are residents of the employee's household.

4. Information not known by employees: If any information required to be included on a statement of employment and financial interests or supplementary statement, including holdings placed in trust, is not known to the employee but is known to another person, the employee shall request that other person to submit the information in his behalf. The employee concerned should avoid gaining knowledge about such interests in order to prevent the possibility of invoking 18 U.S.C. 208.

Subpart E-Advisory Service and Enforcement

§ 1200.735-500 Scope of subpart.

This subpart (a) establishes an advisory service for employees for the purpose of interpreting and advising on questions arising under this part and (b) prescribes the types of remedial and dis

ciplinary actions which may be taken to enforce the requirements of Subparts A, B, C, D, and E of this part.

§ 1200.735-501

Use of advisory service.

When questions or problems arise concerning matters covered by this part NASA employees will seek the advice and consultative services of the counselors designated in § 1200.735-502.

§ 1200.735-502 Designation of counselors and statement of functions.

(a) The General Counsel is designated as the Agency counselor. His functions consist of the following:

(1) Act as the principal point of contact with the Civil Service Commission on matters covered by this part; and

(2) Provide general guidance to Deputy Counselors for the purpose of achieving uniform interpretation of this part.

(b) Deputy Counselors:

(1) The following officials are designated as Deputy Counselors under this subpart:

(i) NASA Headquarters

(a) The Director of Personnel, NASA; (b) An Assistant General Counsel, as designated by the Agency Counselor; and (c) The Headquarters Personnel Officer.

(ii) NASA field installations-
(a) The Chief Counsel, and
(b) The Personnel Officer.

(2) Functions of the Deputy Counselors:

(i) The Director of Personnel, NASA, will oversee the activities of the Deputy Counselors (Personnel officers) under the general guidance of the Agency Counselor.

(ii) Deputy Counselors (Legal) will be responsible for:

(a) Reviewing statements of employment and financial interests, filed pursuant to the provisions of Subparts D and E of this part, and

(b) Advising the Deputy Counselors (Personnel officers) on questions regarding the interpretation and application of statutes, Executive Orders, Court Decisions, the decisions of the Comptroller General, and other legal matters arising under this part.

(iii) Deputy Counselors (Personnel) will be responsible for:

(a) Counseling employees on all other problems and questions arising under this part which are not specifically within the

responsibility of the Deputy Counselors (Legal), and

(b) Consulting, as necessary, with the Deputy Counselors (Legal) on questions and problems arising under this part.

(iv) Deputy Counselors may carry out their responsibilities through designated subordinates. The Deputy Counselors, however, shall retain ultimate responsibility for the functions assigned to them under this § 1200.735-502.

§ 1200.735-503 Review, enforcement, reporting, and investigating.

(a) Each statement of employment and financial interests submitted under this part shall be reviewed by the appropriate Deputy Counselor (Legal). If that review discloses a conflict of interest or apparent conflict of interest the employee shall be given an opportunity to explain the conflict or apparent conflict, and every effort shall be made to resolve the matter. If the matter cannot be resolved at a lower level, it shall be reported to the Agency Counselor. If the Agency Counselor decides that remedial action is necessary, he shall take such action immediately to end the conflict or apparent conflict of interest.

(b) NASA employees should consult with their Deputy Counselors with regard to any questions concerning this part. Resolution of problems disclosed by such consultations will be accomplished at the lowest possible supervisory level in the agency through counseling or by taking administrative action to eliminate real or apparent conflicts of interest. The services of the NASA Inspections Division will be requested by the Deputy Counselor, when necessary, to conduct investigations to ascertain all relevant facts.

(c) Any NASA employee receiving an allegation of a possible violation under the provisions of this Part 1200 on the part of any other NASA employee, or other Government employee detailed to NASA, shall, unless it is based on mere gossip or rumor, promptly report it directly to the Director of Inspections or his local representative, as provided for in NASA Management Manual Instruction 17-8-4.

(d) A violation of the regulations contained in this part may be cause for appropriate disciplinary action. All disciplinary or remedial action taken hereunder will be in conformance with applicable laws, Executive orders, Civil Service Commission regulations and NASA regulations. Appropriate discipli