OFFICE OF THE ASSISTANT VICE CHANCELLOR - BUSINESS AND FINANCIAL SERVICES
June 9, 1997
KEY ADMINISTRATORS/KEY SUPPORT STAFF
SUBJECT: Purchasing System Review Audit - ONR
Recently, the campus has been the subject of a federal procurement review conducted by representatives of the Office of Naval Research.
While the outcome of the audit was favorable to UCSD's purchasing system, the audit team found that the campus community needed to be notified about the provisions of the Anti-Kickback Act of 1986.
In compliance with the review team finding, we are providing the following information, relative to the Anti-Kickback Act of 1986, to campus departments involved in any aspect of the procurement process.
Anti-Kickback Act of 1986
Federal Acquisition Regulations (FAR 52.203-7) require that the University have in place and follow reasonable procedures designed to prevent and
detect violations of the Anti-Kickback Act of 1986 in its operations and direct business relationships. "Kickback" as defined by the FAR means any money, fee, commission, credit, gift, gratuity, thing of value, or compensation of any kind which is provided, directly or indirectly, to any prime Contractor, prime Contractor employee, subcontractor, or subcontractor employee for the purpose of improperly obtaining or rewarding favorable treatment in connection with the prime contract or in connection with a subcontract relating to a prime contract.
The University's procedures for enforcing these guidelines are:
(a) compliance with NAEB (National Association of Educational Buyers) standards of conduct for purchasing professionals, as outlined in the Purchasing Policy and Procedure Manual, Section 523.
(b) the Presidential Policy on Acceptance of Gifts and Gratuities under California's Political Reform Act, dated March, 1995, which is consistent with the State of California Political Reform Act of 1978 and is responsive to OMB Circular A110 administrative requirements;
(c) internal and external reviews from ONR and A110 provide checks and balances, and;
(d) UCSD's established levels of authority for approving transactions the purpose of which is to detect any discrepancies or failure to follow required polices and procedures.
(e) If an employee becomes aware of any activity of the type described herein, they should immediately report such activity to the Purchasing Manager. If this person or the person appointed to receive such reports is the person alleged to have received the kickback, then the activity should be reported to the Assistant Vice Chancellor Business and Financial Services. These reports will be examined and, if warranted, investigated.
This policy and the referenced 'NAEB standards of conduct' are available for review from Purchasing's web site at http://www-bfs.ucsd.edu/pur/services/pursvcs/ethicsgs.htm.
This site can be accessed via InfoPath through Administration, link to Business Affairs --> to Business and Financial Services --> to Purchasing.
Should you have any questions, or would like to discuss the details of
these requirements or this policy further, please contact Linda Collins,
Purchasing Manager, extension 43082 or email lcollins@ucsd.edu.
Don Larson
Assistant Vice Chancellor