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Northern Arizona University
Purchasing Policy and Procedure

Conflict of Interest

POLICY:

A. Any University employee who has, or whose relative has, a substantial pecuniary or proprietary interest (as defined in Arizona Revised Statutes, Section 38-502), in any contract with, sale to, purchase from or service for the University shall make known that interest to the University and shall refrain from participating in any manner in such contract.

B. The procurement of supplies, equipment, or services from any employee of the University is not authorized unless it is made through public competitive bidding. Purchasing Services is not required to request competitive bids for procurement of small dollar value merely to allow University employees to bid.

C. No individual or firm including, but not limited to, independent contractors, architects, engineers, designers, and other drafters preparing specifications or plans under a contract, shall receive any direct or indirect benefit from the utilization of such specifications or plans. Specifically, the aforementioned persons and parties may not submit a bid or proposal to provide goods or services to the University if they have prepared the specifications or plans requiring the goods and services.

PROCEDURE:

Employees must make known any actual or potential conflicts of interest by completing the form entitled "Disclosure of Substantial Interest." This is an on-going responsibility of all NAU employees. Failure to do so constitutes a felony and the law provides that such employee if convicted, "shall forfeit his public office or employment." Click for the disclosure form and return the completed form to Purchasing Services, Building 47A, PO Box 4124.

Each buyer in Purchasing Services shall have an updated summary of "Disclosure of Substantial Interest" information and shall refer to it, as part of normal purchasing procedures, in order to identify potential conflicts of interest. All related party transactions shall be recorded on a central log in Purchasing Services.

In the event that one or more bidders or offerors who are employed in any capacity by Northern Arizona University present a bid or proposal to provide goods or services to the University, the following requirements shall be enforced:

1) No employee of Northern Arizona University shall supply to Northern Arizona University any equipment, material, supplies or services unless pursuant to an award or contract let after public competitive bidding.

2) Any bid or proposal received from an employee who has not filed a Disclosure of Substantial interest form with the Director of Procurement disclosing the specific business, activity or other relationship that creates the potential conflict of interest in the award or contract at issue, will be rejected, or if awarded, shall be subject to cancellation.

Sources: Arizona Revised Statutes §38-501 to 38-510