|
| About UMD - Code of Conduct |
|
We will conduct our government business with the highest degree of integrity and honesty. All employees involved directly or indirectly with a federal contract such as Medicare Advantage, Medicare Prescription Drug Benefit (Part D), FEP or Medicare fee for service are expected to comply with all contract requirements as well as the internal policies and procedures developed to ensure compliance with the laws and regulations governing the contracts.
Maintaining Integrity
We must demonstrate the same integrity in dealing with government officials as we do with our customers, suppliers and stakeholders. We must maintain public trust at all times by ensuring that all of our government relations and activities are conducted in accordance with our values, principles, standards and all applicable laws.
Avoiding Impropriety as a Government Contractor
The laws, regulations and ethical standards that apply to business interactions with the various branches and levels of federal, state, and local government often differ from those that apply to our dealings with non-government customers and suppliers. Company employees who are involved in establishing and maintaining relationships with government officials are responsible for knowing and complying with the applicable laws, rules, regulations and official policies that apply to those activities. As always, we should establish working relationships based on integrity, mutual respect, trust and our ethical standards.
When dealing with government officials and employees, we must avoid even the appearance of impropriety. A large body of law has been developed to regulate conduct in the government contracting arena. While the details of these laws are complex, the principle behind them is simple: we must always avoid any activity that could be perceived as an attempt to improperly influence, obtain and/or reward favorable treatment in obtaining a contract or in administrative process associated with performing a government contract. Failure to do so may expose the government employee and our Company and its employees to fines and penalties. Examples of actions that might be viewed as the appearance of improper influence include:
- Offering or providing any payments, gifts, gratuities, favors, or preferential treatment to a government employee or any member of his or her immediate family.
Question: Our Company is bidding on a state contract. We have had several meetings with state officials that have extended through the lunch hours. Is it okay to treat them to sandwiches in the building cafeteria?
Answer: No. We should not do anything that may improperly influence, or appear to improperly influence the bidding process. Indeed, offering even a lunch may violate some state or federal laws. To avoid violation of the law, or even the appearance of a conflict, you each should pay your own way.
- Holding employment discussions with a government employee or his or her family member when the government employee has responsibility for a matter affecting the Company.
Guidelines for Representing the Company
Company employees represent the Company in government-related negotiations, investigations and other activities including any dealings with federal, state and local commissions, should follow these basic guidelines:
- Be aware of and have consideration for the public interest in all governmental dealings.
- Respect the goals, agenda, roles and opinions of government and regulatory officials, as well as the professional and political pressures under which they operate.
- Always provide accurate information that includes all facts needed to assure the information submitted is not misleading. If a misrepresentation, misstatement, misunderstanding, material omission or other mistake is discovered, we must take action to remedy the situation on a timely basis. We can avoid such misunderstandings by restating and confirming in writing areas of agreement reached with the government representative.
- Be familiar with the ground rules, whether codified or not, of all government interactions. We must recognize the differences in rules and procedures among the many different types of government relations.
- Understand that any Company information, even proprietary data, may, under certain circumstances, come under public scrutiny. When preparing documents, ensure that they are accurate so that there will not be any misunderstandings if they are ever publicly disseminated or involved in a government proceeding. If involved in a government proceeding, and we are legally required to provide information or it is in the Company’s best interest to do so, we should be direct and forthcoming with accurate information that includes all facts needed to assure the information submitted is not misleading. This includes responding to government requests for relevant data if we are legally required to respond to same or if it is in the Company’s best interests to do so. You must obtain approval from the Legal Department as to how to respond to these types of requests or inquiries.
- When testifying to a Company position in regulatory proceedings, only present facts and opinions that are consistent with our knowledge and understanding of positions that are, in fact, adopted by the Company.
Political Contributions and Lobbying Activities
Because the Company’s ability to participate in political activities is constrained by federal, state and local law, all organizational political activity must be approved by the Company’s Legal Department or Compliance Officer. Company employees are strictly prohibited from including political contributions on their expense reports and must not allow Company assets to be used for a political cause, candidate or campaign.
Employees, as individuals, may take an active interest in local, state and national government and participate in political activities consistent with applicable laws including making personal contributions in support of candidates or political organizations of their choice. However, such individual participation may not involve the use of Company funds, or otherwise violate the law, including claiming such contributions as expense reports or other reimbursement requests. Further, employees who speak out on public issues must not give the appearance of speaking or acting on the Company’s behalf, and make certain that any statements are personal and not Company sponsored.
Question: A Company employee has a cousin who is a state representative who is about to get married. Can the employee give the cousin a wedding gift?
Answer: Yes, so long as the gift is not related to any lobbying on the Company’s behalf, and is not paid for by the Company.
Procurement Integrity Requirements
For companies that are involved in federal procurement, the law states that no contractor shall obtain either government service selection or competitor bid on proposal information from any source. It is Company policy to comply with the law in this area. Consult the Legal Department or the Compliance Officer for the specific requirements in this area.
- Never solicit or obtain unauthorized government source selection information including competitive information, source selection criteria, and agency reports or studies of our competitors. This may include, but not be limited to, bid prices in response to a sealed bid, proposed costs or prices submitted in response to a solicitation other than for sealed bids, source selection plans, technical evaluation of proposals or plans, cost or price evaluations of proposals, competitive range determinations, rankings of bids/proposals of our competitors or reports and evaluations of source selection panels/boards or advisory councils.
- Never solicit or obtain competitor proprietary information.
Contractor bid or proposal information means any of the following information submitted to a Federal agency as part of or in connection with a bid or proposal to enter into a Federal agency procurement contract, if that information has not been previously made available to the public or disclosed publicly:
- Cost or pricing data
- Indirect costs and direct labor rates.
- Proprietary information about manufacturing processes, operations, or techniques marked by the contractor in accordance with applicable law or regulation.
- Information marked with a proprietary legend.
Employing Federal Government Personnel
There are very strict laws and regulations that govern recruiting and hiring current and former federal government personnel, including both military and civil service employees. These rules apply not only to persons the Company hires as employees, but to individuals the Company retains as consultants. Violation could result not only in sanctions against the former government employee, but the Company could be held criminally or civilly liable.
The prohibitions one generally thinks of when referring to the federal conflict-of-interest statutes, or “revolving door” requirements as they often are called, are those that restrict the work former government employees may perform once they leave government service and thereafter work for a government contractor. However, there are some laws that prohibit employment discussions with government personnel who have responsibility for a matter involving the Company unless the employee obtains permission from the agency. Even exchanging a resume can be considered employment discussions.
The rules in this area are many and complex. In all cases, it is necessary to conduct a thorough screening and review of the candidate’s current and prior federal government service before the Company holds employment discussions with the individual. Contact the Legal Department prior to discussing employment issues with a federal government official.
Unallowable Costs
Many costs are “unallowable” for reimbursement from the federal government. Such costs must be identified, appropriately accounted for, and excluded from proposals or requests for reimbursement. It is the Company’s policy that costs that are expressly unallowable, or for which no good-faith basis for allowability exists, will be identified and accounted for as unallowable costs. Reimbursement from the federal government will be requested only for those costs that are allowable in accordance with laws and regulations. Employees may be required to certify their belief that a proposal or cost submission does not contain any “unallowable” costs, and in particular, does not contain unallowable costs for advertising, public relations, donations, entertainment, fines and penalties, lobbying, defense of fraud proceedings, and goodwill.
Gifts, Gratuities, and Payments to Government Employees
State and federal laws regarding gifts, gratuities, and payments to government employees must be strictly observed. As a general rule, no payments of money, gifts, services, entertainment or anything of value may be offered or made available in any amount, directly or indirectly, to any state or federal government official or employee.
Consult the Compliance Officer or other Compliance personnel before offering anything to a government employee, even the most modest of items or refreshments.
Question: I work in government programs, and I’ve just gone through a very grueling audit. The results of the audit play a big role in whether our contract is renewed because we are in the midst of the procurement process as well. It was the good-natured and helpful attitude of one of the federal procurement officials that helped me get through it! I know the official loves to sew, so I got a pair of sewing shears as a thank you for helping “cut through” the red tape during the audit. I would like to give them to the official over lunch – my treat! Any objections?
Answer: Federal law prohibits giving anything in value exceeding $20.00 to a federal employee. In dealing with government employees or representatives, it is important to take the time to make sure you know what the rules are. When in doubt, remember that, generally, gifts of any kind to a government employee are prohibited. Scissors and lunch are out, but you can always say thanks.
Labor and Materials Charging
Labor and materials costs must always be charged accurately and to the appropriate cost center or account, regardless of the financial status of the program, project or contract, or the budget status of a particular account or line item.
Labor charging records and all other business records must be complete and accurate. Falsification of time records or other records is strictly prohibited, will result in disciplinary action, and, under government contracts, may be a crime. Correction of time records can be accomplished only in accordance with established procedures and must be supported by appropriate documentation and approvals.
Question: I work with the Medicare B contract, but part of my time has been loaned to other areas. It takes too much time to break down my hours into several different cost centers. I think, for efficiency’s sake, I should just mark down all my time to government programs. It can’t be that big of a deal, can it?
Answer: Yes, it is a big deal. Failure to accurately charge labor and materials is likely a violation of law, or contract, or both. In addition, falsification of time records can result in the Company being excluded from federal programs. Accurate labor charging is also essential for planning, budgeting, and staffing.
Preparation and Submission of Reports, Proposals and Budget Requests to the Federal Government
Reports, proposals, budgets, and other records that the Company furnishes to the federal government contain important certifications and representations. For example, many of the Company’s proposals for contracts and budget requests require the submission and certification of cost data, or information relating to the Company’s anticipated costs. Other submissions involve performance data, such as timeliness and accuracy reports.
These certifications and representations impose on the Company significantly different disclosure and other legal obligations than exist in the private sector. Where the law requires disclosure, all employees who are involved in the preparation of a proposal to the government must ensure that all data is in accordance with government requirements.
It is the responsibility of all employees who prepare, sign, or in any way support the Company’s certifications and representations to ensure that these important documents be prepared carefully, accurately, and in accordance with the requirements of our Medicare, FEP, and other government contracts. If an employee falsifies data that is submitted to the government, even if there is no attempt to obtain payment for the Company, a crime may have been committed. Both the employee and the Company could be subject to criminal prosecution, penalties and fines. In addition, both the individual and the Company could be prohibited, through suspension and debarrment or exclusion, from receiving government contracts and grants in the future.
Question: Every month, and sometimes annually, I have to complete a certification for the government attesting to certain information. I don’t always have time to verify everything that I’m certifying to, but I have faith that things are running smoothly. This is just more government-generated paperwork that is meaningless anyway, right?
Answer: No. Businesses in the healthcare industry and who perform government contracts are experienceing increased federal and state government scrutiny. Ignorance and good intentions are no defense for inaccurate information on these certifications. A false certificate can lead to civil and criminal penalties for both you and the Company.
Government Investigations
We will cooperate with all government investigations and reasonable requests for information.
From time to time, the Company may be asked to cooperate with a government investigation, or to respond to a request for information from the government about how we conduct our business. The request may come through official channels from the government to Company management, or an employee could be contacted individually by a member of an enforcement agency, such as the Federal Bureau of Investigation, the Office of Inspector General, or the Department of Justice.
When the Company receives official requests for information or cooperation, it will notify employees of their responsibilities and duties in connection with providing such information and cooperation. If an employee is contacted individually by government investigators and is asked to meet to discuss activities in connection with employment by the Company, the Company requires that you immediately notify the Legal Department and inform them that you have been contacted. The decision of whether to cooperate with a government inquiry is a personal decision, and you will not be disciplined, punished, or otherwise retaliated against if you decide to do so. However, if you decide to speak with government investigators, you must be accurate and truthful in all your answers to their questions, because if you are not, both you and the Company could be subject to criminal prosecution.
Although Company employees are free to cooperate individually with government investigators, employees should not provide Company documents or data in response to a government request for information without first obtaining authorization from the Legal Department. |
 |
