Preventing Bribery and Corruption
You must avoid any activity that would breach the U.S. Foreign Corrupt Practices Act (FCPA), the U.K. Bribery Act (UKBA), Austrian Criminal Law Code, Belgium Criminal Code, local law, or international standards of best practice. DAI holds itself accountable to the UKBA across all projects and activities. You are responsible for assisting DAI to prevent bribery and corruption:
- Bribery. Do not directly, or indirectly, solicit, accept, offer, promise, or give a bribe or other improper payment, gift, favor, or hospitality to obtain or retain business, approvals, or other improper business advantage.
- Facilitation Payments. Do not make small payments to “grease” approvals or actions on the part of government officials. Facilitation payments are prohibited under the UKBA. Under certain circumstances, DAI may pay for the commercial services of an expeditor to process goods through customs. The terms of reference in the associated contract must be explicit and must prohibit payments to “grease” approvals on the part of a government official.
- Kickbacks. Never ask for or accept anything of value from vendors, grantees, or contractors that do business with DAI. You may accept gifts and hospitality of nominal value (a meal offered during a business meeting, for example, or a notepad with an organization’s logo on it).
- Sexual Exploitation. Never make sexual favors a condition for support to beneficiaries.
- Gratuities. Never pay or provide gifts, favors, or hospitality to a government official after you receive a favorable action or decision.
- Contributions. Do not make contributions to candidates for public office or to political parties or other political organizations on behalf of DAI. Personal contributions are permissible.
- Personal Safety Payments. When confronted with a demand for payment from the police, military, or paramilitary or there is an imminent threat to health or safety, a personal safety payment may be made. Report the incident as soon as possible through the ethics reporting channels.
- Hospitality, Nominal Gifts, and Honoraria. DAI-approved advertising items of nominal value (pens, hats, T-shirts, and so on), plaques, and certificates of recognition may be offered to government officials. Modest meals, refreshments, and nonalcoholic beverages in accordance with local customs and practices are also allowed. However, in no event should the value of the courtesy exceed $20 per person/per occasion or $50 per person annually. Honoraria to host government officials must be nominal and occasional for work outside normal duties and working hours to avoid conflicts with official duties and must be consistent with local laws and policies.
Examples or indicators of possible procurement fraud:
- Shared addresses and phone numbers of bidders
- Unjustified or inflated costs in post award modifications
- Multiple awards for similar work to same contractor
- Unreasonably short time limit to bid
- Failure to meet contract specifications
- False, inflated, or duplicate invoices
- False statements and claims
- Product substitution
- Leaking bid price information
- Fictitious vendors
- Manipulation of bids
- Purchase for personal use or resale
- Rigged specifications to favor vendor
- Split purchases to avoid review limits
- Unbalanced bids
- Unjustified sole source awards
- Unnecessary purchases
- Diverting purchases or payments to unintended parties
Preventing Personal Conflicts of Interest
DAI’s success depends upon our ability to make objective, prudent decisions, and to act with integrity. An actual or apparent conflict of interest occurs when an individual’s personal interest biases his or her professional judgement. You must not put yourself in a position where decisions or actions would be influenced by outside employment/directorships, or close personal or family relationships. You are responsible for assisting DAI to prevent conflicts of interest based on bias by promptly and fully informing your supervisor, Human Resources, or Chief Ethics and Compliance Officer of any situation that may appear to be a potential conflict of interest, or to raise any questions or concerns regarding personal conflicts of interest.
The following are common examples of potential personal conflicts of interest that should be disclosed to your supervisor, Human Resources, or Ethics and Compliance Officer:
- Outside Employment: Holding a second job while working fulltime for DAI that affects your ability to do your regular job.
- Financial Interest: Owning a financial interest in a business that competes with or seeks subcontracts or purchase orders from DAI.
- Board Memberships: Serving on the board of a competitor, client, supplier, or other service provider.
- Employment of Relatives and Friends: Hiring or supervising a friend or relative. Awarding or overseeing a subcontract, purchase order, or grant to an entity that is owned by or employs a friend or relative.
- Gifts and Entertainment: Soliciting or accepting any cash, gifts, loans, entertainment, or benefits that are more than modest in value from any competitor, subcontractor, vendor, or grantee.
- Proprietary Information: DAI employees are often entrusted with proprietary information that must not be used for personal gain.
Preventing Organizational Conflicts of Interest
DAI plays by the rules. We take pride in competing fairly and performing top-quality work, untainted by conflicting roles or unfair advantages. Appearances are important when anticipating and managing a conflict of interest. Your intuition is a useful guide in how to respond to possible bias or an unfair advantage. Act immediately so that quick action can be taken to limit any conflict or appearance of a conflict. You are responsible for assisting DAI to prevent conflicts of interest based on unfair advantage by promptly and fully informing your supervisor, Team Leader/Chief of Party, or Ethics and Compliance Officer of any situation that may appear to be a potential organizational conflict of interest, or to k raise any questions or concerns regarding conflicts of interest.
The following are common examples of potential organizational conflicts of interest that should be immediately disclosed or discussed with your supervisor, Chief of Party/Team Leader, or Ethics and Compliance Officer:
- Procurement-sensitive information: Nonpublic information related to a competitive solicitation, such as draft terms of reference/statements of work and client budgets may be considered an unfair advantage and must not be accepted or accessed. Similarly, DAI procurement-sensitive information associated with subcontracts and grants must also be protected from disclosure to assure a fair and trustworthy solicitation process.
- Designing or developing activities for clients: Providing input directly into a competitive solicitation may lead to perceptions that the activity is designed to favor DAI.
- Evaluating our own performance: Evaluations should be conducted by a third party to assure objectivity.
- Proprietary or business sensitive information of competitors: Information on our competitors, including proposal budgets, indirect cost rates, salaries, technical approaches must not be asked for and if received inadvertently, must be protected from further exposure.
Promoting Fair Competition and Good-Faith Dealings
In soliciting for equipment, supplies, and services, we promote fair competition to ensure that DAI and its clients obtain the best value for money and are best positioned to achieve he smooth implementation of development projects. We treat vendors, subcontractors, consultants, and awardees fairly, in accordance with DAI values. DAI policies and procedures are designed to quickly and fairly select those vendors, subcontractors, and other implementing partners most likely to succeed, considering price, quality, and ability to deliver. DAI’s procurement process includes opportunities for vendors and offerors to ask questions about the solicitation and to report concerns to the Chief of Party/Team Leader, Ethics and Compliance Officer, or ethics hotline.
Effective management of solicitations—with clear prohibitions on kickbacks, bribes, or conflicts of interest—strengthens the relationship with our vendors and subcontractors. Such practice sets a standard for fair competition and good-faith dealings that is essential to effective contracting. Contact your project support team for guidance on best practices and procurement policies.
In addition, DAI complies with all applicable fair competition and antitrust laws. These laws attempt to ensure that businesses compete fairly and honestly, and they prohibit conduct seeking to reduce or restrain competition. If you are uncertain whether a contemplated action raises unfair competition or antitrust issues, contact DAI’s General Counsel.
Gifts and Entertainment
DAI employees, members of their families, and DAI subcontractors must comply with the Foreign Corrupt Practices Act, the U.K Bribery Act, and local anti-corruption laws in not giving or offering gifts (including equipment, money, unusual discounts, or favored personal treatment) to government officials for the purpose of receiving approvals, government services, or obtaining or keeping business.
Making the Right Decision—and Documenting It
Ethics are the foundation of successful performance. While it may sometimes seem tempting to take shortcuts for the sake of expediency in the pursuit of project goals, this can be avoided with timely and proper project planning. If you are confronted with an urgent problem that appears to necessitate making an exception to a DAI policy, immediately consult with your senior managers and Chief of Party/Team Leader. Do not delay in documenting the reasons for the policy exception, making sure to describe the issue, circumstances, and outcome of the decision.
Protecting Information and Data
You must be vigilant in protecting proprietary and confidential information obtained in the performance of DAI’s work. Any information which, if released, would have an adverse impact on an individual’s privacy or a business/organization’s competitiveness, or on client programs or their foreign relations, is considered proprietary or confidential and must be controlled and restricted. Examples include proprietary or confidential information include nonpublic procurement-sensitive information, financial reports, financial performance documents, financial plans, medical and personal information, and DAI proposal details. You may not disclose any nonpublic information related to the client, implementing partners, or beneficiaries for any reason. If you need to send confidential information outside DAI, use appropriately encrypted emails or websites. Sharing such information outside of DAI may require senior management approval or a nondisclosure agreement (available from the General Counsel), so please consult senior management before acting.
Handling Nonpublic, Procurement-Sensitive Information
Fair procurement competition requires a level playing field in which no firm has an unfair advantage by virtue of having more information than competitors. Good procurement practice requires that all potential bidders/offerors have the same information to prepare well-informed and responsive proposals. Unfair receipt of information or access to data—such as DAI budget estimates, procurement plans, bids and bidders, and other nonpublic information—distorts the solicitation process and may result in an inappropriate award. Accordingly, you must control procurement-related information internally so that its release is managed fairly and appropriately.
You must also be aware that receipt of nonpublic, procurement-sensitive information from potential clients may also give the appearance of an unfair advantage, which may in turn jeopardize DAI’s eligibility to compete on solicitations. If you receive information on funding levels, program design documents, draft solicitations, or other procurement-sensitive information that is not publicly available, do not forward it within DAI. Immediately contact your supervisor, Chief of Party/Team Leader, or the Ethics and Compliance Officer to discuss next steps.
If your answer to any of these following questions is “yes,” the information is confidential and should be protected.
- Is this information a company’s trade secret?
- Would DAI be disadvantaged or harmed if others knew this information?
- Would your project be jeopardized if the information was not held in confidence?
- Does the information include personal identifications that may jeopardize an individual’s privacy?
Ethical Decision-Making Tool
When time does not permit you to consult with senior management, this tool will help you make an ethical decision.
- What is the specific problem and possible solutions?
- Is your preferred solution legal?
- Is it the right thing to do?
- Does it reflect DAI values and comply with DAI policies and this code of conduct?
- Would you discuss your actions without hesitation with colleagues, friends, or family?
- How will the decision look if published in a newspaper or covered by the media?
Complying with International Trade Sanctions
Carrying and sending goods from one country to another is subject to the customs laws of the transit nations. Certain goods and services including, but not limited to, electronic equipment, food products, chemical substances, and valuable items can be subject to heightened customs and export controls. When you carry or ship items abroad on behalf of DAI, do your research about the country of origin, any countries through which the items will be transported, and the destination country. Make sure you only carry or ship goods abroad if you are sure there are no restrictions at any location throughout your itinerary. Additionally, certain activities or transactions with specified countries and regimes, entities, or individuals can be subject to sanctions. Make sure you do your due diligence on all partners, customers, clients, etc., prior to undertaking business activities. Questions can be directed to firstname.lastname@example.org or DAI’s General Counsel.
Exercising Due Diligence and Vetting/Screening
At DAI, you play an important part in how we manage projects, comply with client/donor requirements, and mitigate risks, and that responsibility entails ensuring the eligibility, responsibility, and capability of subcontractors, consultants, or grantees to perform and finance the assigned work (or must be able to obtain the necessary capacity and financing) given its current workload. Depending on the nature of the award, it should have adequate accounting and operational controls; a satisfactory record of performance, integrity, and business ethics, including safeguarding against SEAH; and must be otherwise qualified and eligible to receive an award under applicable laws and regulations.
Individuals, companies, and organizations are subject to eligibility restrictions from various governments and/or clients. Part of the eligibility determination may include excluded parties/restricted parties screening, vetting of recruitment candidates, consultants, grantees, subcontractors, and vendors against established web-based databases, as well as due diligence to determine the suitability and capability of an organization to perform work. Clients may also require specific vetting of individuals and entities. It is our responsibility to comply with the spirit and letter of these requirements to prevent client funds from use by terrorists, drug traffickers, criminals, and other prohibited entities, and align our risk mitigation decisions with DAI’s core values and our ethics and safeguarding policies.
Failure to exercise comprehensive due diligence, screening, and vetting can result in significant penalties, may damage DAI’s ability to win future projects, and may result in loss of project funds, time, or benefits to beneficiaries. Contact DAI’s General Counsel if you have questions.
- The U.S. Government’s System for Award Management (including excluded entities)
- U.S. Office of Foreign Asset Control (OFAC)
- World Bank Listing of Ineligible Firms and Individuals
- MCAT Process
- DAI Global Conduct Quarterly—Managing Our Partners, April 2017
- DAI Global Conduct Quarterly—Recruitment, August 2018
Cooperating with Audits and Investigations
Audits and investigations are an important oversight responsibility of DAI and our clients. You are expected to cooperate with audit and investigation efforts and provide timely and reasonable access to personnel for interviews and documents for review. When contacted by an outside auditor or investigator, please notify your supervisor, senior management, Human Resources, or your Chief of Party/Team Leader, as well as the Internal Audit office or Director for Risk Management, and the Ethics and Compliance Officer.