ETHICS
FDOT CONSTRUCTION ACADEMY
Brian W. Pickard, P.E.
Pinellas Operations Engineer, Clearwater, FL
Florida Department of Transportation
LAWS THAT REQUIRE ETHICAL
CONDUCT
• Florida statutes
• Federal laws
ETHICS CARD
FDOT ETHICS POLICY
• POLICY Effective: August 5, 2014
• The Department of Transportation (Department) recognizes the importance of
maintaining high ethical standards among its employees. The public expects
its government officials to conduct the State’s business in an ethical, honest,
and open manner.
FDOT ETHICS POLICY HIGHLIGHTS
• No employee may accept a benefit of any sort
under circumstances in which it could reasonably
be inferred that the benefit was intended to
influence a pending or future decision of the
employee, or to reward the employee’s past
decision.
FDOT ETHICS POLICY HIGHLIGHTS
• Employees should also avoid any conduct
(whether in the context of business, financial, or
social relationships) that might undermine the
public trust, regardless of whether that conduct is
unethical or lends itself to the appearance of
unethical behavior
FDOT ETHICS POLICY HIGHLIGHTS
GIFTS
• Gifts (regardless of value) received from family or personal
friends in the ordinary course of friendship (including but
not limited to birthday and/or anniversary gifts and gifts of
hospitality), can be accepted, provided that any such
personal friend is not:
• (a) a lobbyist; (b) a partner, member, employer, employee,
or principal of a lobbyist; or (c) a person having a special
monetary interest (either individually or through a
corporation or organization) in a matter pending before
the Department; or
FDOT ETHICS POLICY HIGHLIGHTS GIFTS
• (d) a person who (either individually or through a corporation or organization)
provides goods or services to the Department under a contract or an
agreement; or (e) a person who (either individually or through a corporation
or organization) is seeking business from the Department.
FDOT ETHICS POLICY HIGHLIGHTS FOOD AND
REFRESHMENTS
• On-site consumption of food and refreshments at
receptions and/or other events, provided the
employee’s attendance at such event is an
appropriate exercise of the employee's official
duties, unless the food and refreshments at such
event are paid for by a lobbyist, principal of a
lobbyist, or a vendor doing business or seeking to
do business with the Department.
FDOT ETHICS POLICY HIGHLIGHTS
• It is not considered a gift or expenditure if the employee fully reimburses the
other person for the cost of the item.
• Generally, full reimbursement is considered to be the cost of the item to the
person providing it.
• Section 112.3148(7), F.S. and Rules 34-13.210, 3413.500, and 34- 3.510, Florida Administrative
Code, provide guidance.
FLORIDA LAW
PART III OF CHAPTER 112, FLORIDA STATUTES
APPLIES TO EMPLOYEES AND APPOINTED OFFICIALS
1.
Solicitation or Acceptance of Gifts:
No Gifts with intent to influence.
Anything of value:
•
Gifts
•
Reward
•
Loan
•
Promise of future employment
•
Services
FLORIDA LAW
PART III OF CHAPTER 112, FLORIDA STATUTES
APPLIES TO EMPLOYEES AND APPOINTED OFFICIALS
2.
State employees can not do business with the State
3.
Unauthorized Compensation: employees shall not
accept compensation, payment or things of value,
if given to influence
4.
No conflicting contractual relationships
5.
Employees may not use information not available to
general public for personal gain
RECOMMENDED STANDARDS
Do not accept any gifts, regardless how small.
Do not become involved in any way with a business
doing business with the FDOT.
FLORIDA LAW FOR PROFESSIONAL
ENGINEERS
• Chapter 471 Florida Law
http://www.fbpe.org/pdfs/chapter471.pdf
• Chapter 61G15, Florida Administrative Code
http://www.fbpe.org/pdfs/chapter61g15.pdf
If you are a PE or in the process of obtaining your
PE, get a copy of the above and read it.
FAR (FEDERAL ACQUISITION
REGULATIONS) NEW PROPOSED RULE
FEDERAL CONTRACTS EXCEEDING $5 MILLION, WITH PERFORMANCE
PERIODS OF 120 DAYS OR MORE
• Contractors must display Fed’s Fraud Hotline Number
• Adopt a written code of ethics and business conduct
• Establish an employee ethics and compliance training program
• Establish an internal control system
PROFESSIONAL ENGINEERING
ETHICS
FUNDAMENTAL CANONS
1.
2.
3.
4.
5.
6.
Hold paramount the safety, health, and welfare of the
public.
Perform services only in areas of their competence.
Issue public statements only in an objective and truthful
manner.
Act for each employer or client as faithful agents or
trustees.
Avoid deceptive acts.
Conduct themselves honorably, responsibly, ethically,
and lawfully so as to enhance the honor, reputation, and
usefulness of the profession.
http://www.nspe.org/Ethics/CodeofEthics/index.html
REPORTING FRAUD TO OIG
• Call when you think ...
...someone is using DOT property or people for personal
gain; ...someone is intentionally misleading DOT for
financial gain;
...someone is taking some benefit to "look the other
way"; or ...you're not sure if you should call to report
suspicions.
Call the Fraud Hotline: 1-800-255-8099
Report On-line: http://www.dot.state.fl.us/inspectorgeneral/Fraud
CONTRACT FRAUD CASE
EXAMPLE
• The following is an example of contract fraud.
This usually takes the form of providing a
product that is substandard or not meeting the
agreed-upon specifications or failing to
perform assignments or making false
certifications or representations about
products or services.
FALSE CERTIFICATIONS
• Investigation: There were allegations that a contractor
submitted false certifications to the department regarding
payment to subcontractors.
• Determination: The investigation disclosed that the
contractor submitted forms to the department certifying
they had paid all subcontractors.
• Results: Contractor was suspended from doing business
with the department for three years and declared nonresponsible.
SUMMARY OF CASE
CLOSURES
• Investigative activity is conducted to identify
facts and circumstances to prove or disprove
each allegation. The results of the
investigations are documented and published
by the Inspector General and disseminated to
internal and external customers.
FALSE CLAIMS
• Accusations: were made that a prime contractor
submitted false claims for removal of soil material and
billed inappropriately for barrier walls.
• Results: The allegations were proved and a
settlement with the department was negotiated.
FALSE DOCUMENTATION
• Accusations: Prime contractor submitted false
documentation requesting final payment. It was
determined that the prime contractor had submitted
false Certification – Disbursement of Previous Periodic
Payment to Subcontractors forms and a notarized
Contractor’s Affidavit and Surety Consent form.
• Results: The allegation was proved and the prime
contractor was suspended by the department.
FALSIFIED DOCUMENTS
• Accusation: Contract employee failed to complete
required site visits, associated sampling and
knowingly falsified department Concrete Plant visit
Report forms.
• Results: The allegation was proved and
department procedures were changed.
NON- COMPLIANCE ISSUES
• Accusation: A contractor’s management had
instructed their employees to alter batch plant quality
control reports on a regular basis, and the contractor
had used non-compliant recycled rock for the their
department concrete mixes.
• Results: The allegations were disproved.
NON- CERTIFIED AGGREGATE
• Accusations: A supplier provided non-certified
aggregate material to a department project. It was
determined that the delivery tickets produced by the
supplier were inaccurate and non-certified aggregate
was delivered.
• Result: The allegation was proved and the
department received a credit for delivered noncertified aggregate.
FALSIFYING BIDS
• Accusation: Two firms owned by the same
individuals and sharing employees had colluded to
submit bids as though they were separate entities.
• Results: Allegations were proved and the
contractors voluntarily agreed not to bid, or act as a
subcontractor, nor supply any materials on any
department projects for a period of six months.
VERIFICATION OF PROJECT
DOLLARS
• Accusation: Allegations were made that project dollars
were completely exhausted from one project, a
contractor’s employee instructed other contractor
employees to charge their work against projects that still
had funds available.
• Results: Allegations were proved and the contractors
voluntarily agreed not to bid, or act as a subcontractor, nor
supply any materials on any department projects for a
period of six months.
WHAT IS ETHICS?
• Ancient Greek - ethikos
• Ancient Roman - moralis
Both terms mean, roughly: “pertaining to
Character”.
But today, Ethics is much more and very
difficult to define.
ETHICS IS OTHERS.
WHAT IS ETHICS ?
• Ethics is a major branch of philosophy,
encompasses right conduct and good life.
• The standards that govern the conduct of a
person, especially a member of a profession
•
• Rules of behavior made and accepted by
business to provide fair and moral practice
OPERATING PHILOSOPHY
At Johnson Bros. we believe in the testament of the 3R’s:
Respect for Self; Respect for Others; Responsibility for Your Actions.
Our values are also rooted in Integrity, Teamwork, Building People,
and Serving our Customers and ourselves by doing the right thing.
Paramount to doing the right thing is always doing those things safely.
“I have many responsibilities, but the most important thing I do is
establish our culture. That is how we treat each other within our
company and how we treat others outside our company.”
Eric Kishel, CEO Johnson Bros.
APPLIED ETHICS
LAST YEAR OIG RECEIVED 91 ALLEGATIONS
WITH 18 INVESTIGATIONS RESULTING IN 11
DISCIPLINARY ACTIONS
EMPLOYEE MISCONDUCT CASE
EXAMPLES
• Theft: The Comptrollers office, reported that during an audit for
travel records, they discovered a suspicious entry regarding the
purchase of a rental car with a department purchasing card (P-Card).
While questioning the department employee they discovered the
employee had attributed the rental car charge to another employee
who had not received approval or filed a rental care travel voucher.
Upon further questioning by the Comptroller staff, the employee
stated they had made a mistake and mistakenly represented the
charge.
• Determination: The investigation confirmed the employee rented a
vehicle for personal use and charged it to the Department P-Card
and attempted to cover it up.
EMPLOYEE MISCONDUCT CASE
EXAMPLES
An accusation was made that a department employee provided
confidential bid information to a company bidding on a tree
removal project. The employee solicited and received a
second lower bid from the awarded contractor, without
affording the same opportunity to two other companies who
bid on the same work. The allegations were proved.
The employee resigned from the Department.
EMPLOYEE MISCONDUCT CASE
EXAMPLES
Accusations were made a central office employee misused
department Information Technology Resources by sending and
receiving personal e-mails, accessing websites unrelated to
department duties, and installing hardware and computer files
unrelated to department duties. Additionally, the subject
accepted funds from a contractor doing business with the
department.
The allegations were proved, and the employee resigned
from the Department.
EMPLOYEE MISCONDUCT CASE
EXAMPLES
Accusations were made that a project manager instructed a
subordinate to ignore incomplete work on a contracted
project, attempted to process payment for incomplete work
on the project and instructed the contractor to perform work
prior to issuing a work order.
The allegations were proved, and the employee was terminated
from the department.
EMPLOYEE MISCONDUCT CASE
EXAMPLES
Accusations were made that a district employee misused
department Information Technology Resources, instructed
consultant employees to complete his college coursework
during work hours and falsified timesheets. Additionally,
accusations were made the district employee received gifts
from consultants and made improper hiring recommendations
to consultant managers. The allegations of misuse of
department Information Technology Resources, instructing
consultant employees to complete his college coursework and
falsification of timesheets were proved.
The employee resigned from the department.
EMPLOYEE MISCONDUCT CASE
EXAMPLES
Accusations were made that a district employee required a
contractor to add equipment to a job that was not required for
the completion of the contract. The allegation also contended
that the employee purposely delayed contract payments and
used derogatory racial slurs. The allegation of the use of a
racial slur was proved, the remaining allegations were
disproved.
The employee received a written reprimand.
EMPLOYEE MISCONDUCT CASE
EXAMPLES
• Supervisor of Contract Administrator
advised the Contract Administrator (his
subordinate) to hire his son as a temporary
employee through the contract
• Six Individuals Disciplined
KNOW AND COMPLY WITH THE
LAW
• Take the time to make sure you know
the applicable rules and regulations
• Do not violate the law
HONESTY
• Be truthful and straight forward in all
your dealings with others
PROFESSIONAL COURTESY
• Respect for others
• Maintain professional courtesy (even under
stress)
• Do not allow disagreements to become
personal
COMMUNICATIONS
• Manage your communications with others
• Email can damage relationships
• Balance Emails with phone calls (one phone conversation for 4-6
Emails)
• Don’t negotiate by Email
• Don’t blind side others
• Call and explain before sending an unwelcome letter
• Never send out a letter or message while upset
emotionally
• It’s OK to write it, but read it again after you have cooled off
before sending
LEADERSHIP
• Establish a project culture
• Safety
• Respect
• Honesty
• Accountability
• Look ahead, establish direction for the project
• You are the coach
• Work towards improving everyone’s performance
SOLVING TECHNICAL ISSUES IS EASY.
MANAGING PEOPLE IS THE
CHALLENGE.
YOU ARE IN THE BUSINESS OF
MANAGING RELATIONSHIPS.
KNOW THE PEOPLE ON YOUR
TEAM.
• How to communicate best with them
• How to gain their support
• How to understand and anticipate their
responses
Personality Representations
Principals and Procedures
Power and Control
Earth
Fire
Step by Step, Linear
Get to the point, Bottom Line
Relationship Connection
Fun and Excitement
Wind
Water
People, Emotion and Feeling
Change
ETHICS TEST
SITUATION NO. 1 CONTACTOR JOB
BARBEQUE
You are the Project Engineer. The
contractor has been performing
well and everything is going
smoothly. The contractor has
reached an important Milestone
and is holding a little celebration at
their project office. They are having
a barbeque Friday afternoon at
lunch time and have invited you to
attend.
What should you do?
SITUATION NO. 2 CONTRACTOR DEFICIENCY
LETTER
A major traffic switch was planned
for last night. Everything was going
well at first. The contractors
signalization subcontractor left the
site before completely checking the
new signals. The signals were not
working correctly.
The contractor could not get the
signal people out to job until 10 am
the next morning causing a major
traffic problem
What should you do?
SITUATION NO. 3 MISTAKE IN
CONTRACTOR’S SA PRICING
You are reviewing an estimate
submitted by your contractor for an
SA.
You find that the contractor has
made a mistake in the calculations
in favor of
the FDOT.
What should you do?
Example:
20,000 cy @ $3.00 = $6,000.
SITUATION NO. 4 UNSAFE CONTRACTOR
WORK PROCEDURE
The contractor is beginning the
setup for a structural erection.
Based upon what you have seen,
you believe that there is a real
safety problem with the way the
work will be performed.
What should you do?
SITUATION NO. 5
FAMILY AND WORK
The Project Administrator has a
son and the Contractor asks if
he could hire him to work on
the current project?
What should you do in this
situation ?
SITUATION NO. 6
FAMILY AND WORK
The Project Administrator for a
project has a son that is looking
for work and asks the
contractor if they are hiring and
would they hire the son ?
a. On the current project
b. On a future project
What should you do?
SITUATION NO. 7
WORK AND CONTRACTOR
The Project Administrator is a
bass guitarist in a band. CEI
consultant asks him to have the
band play at their annual sales
celebration meeting.
a.
CEI has inspector working for
PA.
b.
No one presently working for
PA
What should you do?
SITUATION NO. 8
FAMILY AND WORK
• You manage a FDOT
consultant Contract
and need a clerical
person plus, your
daughter needs a
job. What do you tell
her to do?
ANY QUESTIONS ?
Comments:
Brian W. Pickard, P.E.
Brian.pickard@dot.state.fl.us
727-575-8300