ESBD_File_353587_21-24537-ethics.pdf

Third-Party Ethics Training

Expectations: Entities Doing Business with TxDOT should conduct themselves in a lawful, professional, and ethical manner that upholds the confidence and trust of the public

TxDOT Standards of Conduct outline how, as a Texas state agency, we conduct business with the highest standards of ethics. TxDOT is committed to an environment where open, honest communications are the expectation, not the exception.

People Accountability Trust Honesty

Values

Ethical Conduct for Entities Doing Business with TxDOT Title 43 Texas Administrative Code §10.101 An entity that does business with the department is required to:

Disclose to TxDOT in writing the existence of a conflict of interest and adequately remedy the conflict

Adhere to all civil and criminal laws related to business;

Maintain good standing with the comptroller, other state agencies, states, and agencies of the federal government

Notify TxDOT in writing and must adequately address:

– A conviction of a bidding crime or of an offense indicating a lack of moral or ethical integrity, such as bribery or payment of kickbacks

– Debarment of the entity by the comptroller, another state agency, another state, or an agency of the federal government

– Any behavior of the entity that seriously and directly affects the entity's responsibility to TxDOT and that is also a violation of law or TxDOT’s rules

Disclose to TxDOT any discovery of credible evidence of:

– A violation of a law involving fraud, bribery, or conflict of interest in connection with the award or performance of its contract;

– A violation by a subcontractor or sub provider on its contract

– An overpayment on its contract

Cooperate fully with the department or any other government agency responsible for audits, investigations, or corrective actions;

Prohibit its employees who have access to non-public information from using the information for personal gain

Title 43 Texas Administrative Code §10.101 An entity that does business with the department is required to:

Refrain from committing acts indicating a lack of moral or ethical integrity and reflecting on the business practices of the entity, including:

– Offering, giving, or agreeing to give a benefit to a TxDOT employee;

– Submitting an offer below anticipated costs, with an expectation of increasing the contract amount after award;

– Disclosing or receiving bid or proposal information in exchange for a thing of value or to give anyone a competitive advantage in the award of a TxDOT contract;

– Retaliating against an employee for disclosing information to TxDOT relating to a violation of law related to a TxDOT contract:

– Knowingly entering into a subcontract with an entity that is suspended or debarred by TxDOT;

– Making false or misleading statements to obtain a benefit, including falsifying or permitting misrepresentation of its qualifications;

– Disposing of waste in an unauthorized area.

Conflict of Interest Framework

Position Any position of trust or authority (direct decision-making authority, advisory, participatory, sphere of influence)

Relationships Friends, family, associates, (public vs. hidden)

Information Internal operations, bidding process, confidential information, competitive advantage, award specifications

Concealment Failure to disclose timely, false statements, altering records, falsifying documents, hiding relationships, omission, circumventing controls

Exchange Benefits (gifts, entertainment, “loans”, tickets, ownership/stock), “consulting” fees, kickbacks

Framework by Colin May, CFE, ACE

HUD-OIG

Conflict of Interest for Entities Doing Business with TxDOT

For-profit entities doing business with TxDOT are responsible for complying with TxDOT’s conflict of interest rules and State law.

Rules aligned with State law and implemented to provide a fair and unbiased contracting system and to ensure high standards of ethics and fairness in the administration of TxDOT programs.

Responsible for timely disclosing potential conflicts of interest to TxDOT. The Compliance Division will work with TxDOT’s General Counsel Division to determine if conflict can be mitigated.

May request a determination of whether hiring a former TxDOT employee would violate revolving door provisions by contacting TxDOT’s General Counsel Division or Compliance Division.

Conflict of Interest for Entities Doing Business with TxDOT

Title 43 Texas Administrative Code §10.6:

A circumstance arising out of existing or past activities, business interests, contractual relationships, or organizational structure of an entity, in which:

1. the entity is or may be unable to give impartial assistance or advice to the department;

2. the entity's objectivity in performing the scope of work sought by the department is or may be otherwise impaired;

3. the entity has an unfair competitive advantage;

4. the entity's performance of services or participation in an agreement provides or may provide an unfair competitive advantage to a third party; or

5. there is a reasonable perception or appearance of impropriety or unfair competitive advantage

Example: A Facilities contractor employed a current TxDOT employee, and that employee performed work for the contractor on a TxDOT project

Conflict of Interest – Particular Matter

Particular Matter A former TxDOT employee may not work on a “particular matter” (e.g. specific contract, claim, application, investigation or proceeding) in which the former employee participated while employed at TxDOT.

A former TxDOT employee in this category may work for the for-profit entity but may not work on “particular matters” that involved them while they worked at TxDOT.

Example: A facilities contractor hired a former TxDOT employee and assigned the employee to work on projects the employee participated on while at TxDOT

Conflict of Interest – Participation in Procurement

A for-profit entity may not hire a former TxDOT employee who, while at TxDOT, participated in a procurement or contract negotiation for a contract awarded to the entity, unless more than two years have passed since the contract was signed.

Example: A Facilities contractor created a conflict of interest by hiring a former TxDOT employee, who participated on the evaluation team for a contract awarded to that entity, within two years of contract signing.

• Failure to notify TxDOT of loss of required lab accreditation for material testing contract

• Alteration of material test results

• Changed plans on a project without a work authorization and invoiced for an unrelated project for the work

• Providing a benefit to a TxDOT employee

• Offering a bribe to another TxDOT contractor

• Bid Collusion

• Failure to pay subcontractors for work performed in a timely manner (Prompt Pay Violation)

Previous Ethical Violations:

Sanctions for Ethical Violation

Title 43 Texas Administrative Code §10.252 TxDOT’s Executive Director may impose a sanction for an ethical violation:

A reprimand Prohibition from participating in a specified agreement A limit on the contract amount or amount of funds that may be awarded or paid to the entity for a period of not more than 60 months Debarment of the entity for a period of not more than 60 months Remove a person's or a firm's precertification and prohibit the person or firm from reapplying for precertification for a set period

Reporting fraud, waste and abuse to TxDOT

If you feel unsure whether a situation is an ethical concern or a conflict of interest, please contact the TxDOT Compliance Division and we can assist in determining if one exists and how to best address/mitigate it.

TxDOT Watch

– TxDOTWatch.com

– (877)769-8936

Compliance Division

– compliance@txdot.gov

– 512-465-7509 mailto:compliance@txdot.gov