Outside employment could lead to COI
By Mr. Marc Potter, Senior Analyst, Conflict of Interest (COI)
A second job, separate from your military duties, could have serious implications for the Department of National Defence and the Canadian Forces (DND/CF).
A recent decision by the Canadian International Trade Tribunal (CITT) sheds light on a new risk related to the awarding of government contracts – the outside employment of CF personnel and DND employees.
In Calian vs PWGSC, the CITT ruled that the hiring of two non-commissioned members (NCMs) by Valcom Inc, a competitor, created enough of an apparent COI to render the procurement process invalid. It is worth noting that the two NCMs in question were not involved in the contracts procurement process and had no way of influencing it. The CITT concluded that the simple fact that a potential supplier had hired two members of the department involved gave it unfair advantage, and so created a situation of COI.
“Up until now, conflicts of interest arising from outside employment mainly affected the reputation of the organization,” says Colonel Yvon Desjardins, Defence Ethics Program Director. “The CITT decision not only recognized that the risk was real, but stressed the need for greater caution to ensure that the outside employment of CF members and DND employees does not jeopardize the procurement process.”
As a result of the CITT decision, DND and CF managers must show greater vigilance and implement measures to help prevent situations that could lead to the potential cancellation of contracts.
“Commanding officers are not necessarily aware of their staff’s outside employment,” Colonel Desjardins says. “These jobs pose a serious risk, and managers must exercise greater control over them. A contract cancelled due to a conflict of interest not only harms the reputation of the organization but also results in hundreds of hours of lost work and possibly thousands of dollars already invested in the project.”
Before starting a second job, you must obtain written authorization from your commanding officer, as outlined in Queen’s Regulations and Orders (QR&O) 19-42 Civil Employment. If your CO approves, and your second job is with a company directly or indirectly involved in defence-related matters, you must declare it by submitting a Confidential Report to the Conflict of Interest Section of the Defence Ethics Program.
When your Confidential Report is analyzed, you may be contacted for clarification of your report. Most often, cases are reviewed and closed within three business days.
Read Calian vs PWGSC at www.citt-tcce.gc.ca/procure/determin/pr2g008_e.asp.
Consult QR&O 19-42 at www.admfincs.forces.gc.ca/qr_o/vol1/tofc19_e.asp or at http://admfincs.mil.ca/qr_o/vol1/tofc19_e.asp for information about civilian employment.
Learn about the Defence Ethics Program at www.forces.gc.ca/ethics/index_e.asp or at http://ethics.mil.ca/index_e.asp.
Find a downloadable version of the Confidential Report at www.admfincs.forces.gc.ca/admfincs/subjects/daod/7021/forms/form1a_e.doc or at http://admfincs.mil.ca/admfincs/subjects/daod/7021/f orms/form1a_e.doc.
For information or advice on issues related to conflicts of interest, contact Mr. Marc Potter at Potter.MH@forces.gc.ca or at 613-995-0229.