members are treated as private financial interests of the DoD personnel.

(2) Using “inside information.” DoD personnel shall not engage in any personal, business, or professional activity, nor enter into any financial transaction that involves the direct or indirect use of "inside information" for personal advantage to themselves or others. This prohibition against "inside information" obtained while at the Department of Defense continues even after the individual terminates Government service or employment. See § 40.3.

(3) Using official DoD position. DoD personnel shall not use their DoD positions to induce, coerce, nor in any manner influence any person, including subordinates, to provide any personal benefit, financial or otherwise, to themselves or others.

(i) Contributions of gifts to superiors. DoD personnel shall not solicit a contribution from other DoD personnel for a gift to an official superior, make a contribution or a gift to an official superior, or accept a gift or contribution from subordinate DoD personnel. This prohibition also applies to gifts or contributions to immediate family members of an official superior. This paragraph does not prohibit voluntary gifts of reasonable value or voluntary contributions of nominal amounts (or acceptance thereof) on personal occasions such as marriage, transfer out of the chain of command, illiness, or retirement, Provided That any gift acquired with such contributions does not exceed a reasonable value under the circumstances.

(ii) Use of civilian and military titles. DoD personnel shall not use their official titles or positions in connection with any commercial enterprise or to endorse any commercial product, subject to the following:

(A) Such personnel may make speeches or publish books or articles that identify them by reference to their title or position, provided that the material is approved for public release in accordance with DoD procedures. See DoD Directive 5230.9.1

1 Copies may be obtained, if needed from the U.S. Naval Publications and Forms

(B) Retired military personnel and members of Reserve components not on active duty may use their military titles in connection with commercial enterprises, provided they indicate their retired or reserve status. However, the use of military titles is prohibited if it casts discredit on any DoD Component or gives the appearance of sponsorship, sanction, endorsement, or approval by any DoD Component. Overseas commanders of DoD Components may restrict further the use of titles, including use by retired military personnel and members of Reserve components not on active duty, in overseas areas to avoid confusing foreign governments or foreign nationals on the status of such individuals.

(iii) Endorsements. The high visibility of DoD officials generates requests from charitable and nonprofitable organizations to use an official's name and title in conjunction with fund-raising activities. The use of names and titles of DoD officials, even regarding fund-raising activities of charitable organizations, may give an improper impression that the Department of Defense endorses the activities of a particular organization, thereby resulting in unauthorized assistance for the organization or sponsors of the activities. The presence of DoD officials may be sought, under the guise of bestowing awards upon the official, to promote attendance at programs. DoD officials shall not allow the use of their names or titles in connection with charitable or non-profit organizations, subject to the following:

(A) The Department of Defense may assist only those charitable programs administered by the Office of Personnel Management under its delegation from the President and those other programs authorized by regulations of the DoD Components. See DoD Directive 5035.1.1

(B) This prohibition does not preclude speeches before such organizations by DoD officials if the speech is designed to express an official position in a public forum.

Center, Code 301, 5801 Tabor Avenue, Philadelphia, PA 19120.

1 See footnote 1 to § 40.4(b)(3)(ii)(A).

(C) This prohibition does not preIclude volunteer efforts on behalf of charitable or nonprofit organizations by individuals who do not use their official titles in relation to solicitations and who do not solicit from individuals or entities with whom they do business in their official capacity. See DoD Directive 5410.18 and 5410.19.

(iv) Relationship with Defense Contractor. DoD personnel shall not use the Department's relationship with defense contractors or potential defense contractors to induce, coerce, or seek any favors or actions other than those authorized by the contract, or by law.

(4) Statements or commitments with respect to award of contracts. DOD personnel other than contracting officers shall not make any commitment or promise relating to award of a contract nor make any representation that reasonably may be construed as such a commitment.

(5) Membership in associations. DoD personnel who are members or officers of nongovernment associations or organizations shall not engage in activities on behalf of the association or organization that are incompatible with their official DoD positions. See 32 CFR Parts 91 and 237a.

(6) Commercial dealings involving DoD personnel. To eliminate the appearance of coercion, intimidation, or pressure from rank, grade, or position, DoD personnel shall not make personal commercial solicitations or solicited sales to DoD personnel who are junior in rank or grade, or their family members, at any time, on or off-duty.

(i) This prohibition includes, but is not limited to, the solicitation and sale of insurance, stocks, mutual funds, real estate, and any other commodities, goods, or services.

(ii) This prohibition does not include the sale or lease, by a person, of a privately-owned former residence or of personal property not held for commercial or business purposes.

(7) Assignment of reserves for training. DoD personnel who assign reserves for training shall not assign them to duties in which they will obtain information that they or their private sector employers may use to gain unfair advantage over civilian

competitors. Reservists must disclose to superiors or assignment personnel information necessary to ensure that no conflict exists between their duty assignment and their private interests. Reservists on promotion boards shall not participate in promotion decisions that may directly or predictably affect their private financial interests.

(8) Dealing with personnel. DoD personnel shall not knowingly deal, on behalf of the Government, with present of former military or civilian personnel of the Government whose participation in the transaction violates a statute described in § 40.7 or any provision or policy set forth in this part.

(9) Honoraria. DoD personnel shall not accept honoraria or other salary supplementation for performance of official duties. See § 40.7(a)(4). DoD personnel shall not suggest charitable contributions in place of such honoraria. Even when acting in a personal rather than official capacity, there are the following restrictions:

(i) DoD personnel shall not accept an honorarium of more than $2,000 (excluding expenses for travel, subsistence and agents' fees or commissions) for any appearance, speech, or article made in a personal capacity. See 2 U.S.C. 441i.

(ii) DoD personnel shall not accept an honorarium from groups doing business with the Department of Defense if such acceptance may result in a conflict of interest or the appearance of a conflict of interest. Before accepting any honorarium, DoD personnel shall consult their DAEO or designee.

(10) Pursuit of employment. DoD personnel shall not participate, personally and substantially, on behalf of the Government in any particular matter in which an organization with which they are pursuing employment, or have any arrangement concerning future employment, has a financial interest. "Pursuing employment" inIcludes the sending of letters or résumés in pursuit of employment, as well as discussions concerning employment. See § 40.7 (a)(3) and (5).

(i) DoD personnel who have any contact regarding future employment with an entity shall not participate in

any official action involving the entity. Written and formal disqualification shall be required. Disqualification statements shall be filed with the individual's supervisor or superior, the individual's immediate subordinates, and the DAEO or designee.

(A) Disqualification statements need not be filed if the discussions are with entities not having, nor expected to have, business with the DoD individual or office.

(B) Disqualifications need not be filed if the first contact is initiated by the business entity and the DoD personnel terminates discussion immediately.

(C) A disqualification may be withdrawn at such time as employment discussions end without an employment agreement.

(ii) Additionally, persons involved in the performance of procurement functions and related duties should see the detailed reporting and disqualification procedures to which they are subject. See §§ 40.7(a)(5) and 40.13.

(11) Outside employment of DoD personnel. DoD personnel may not engage in outside employment or other outside activity, with or without compensation, that is not compatible with the performance of their Government duties, may reasonably be expected to bring discredit upon the Government or DoD Component concerned, or is otherwise inconsistent with the requirements of part. This includes the requirement to avoid actions that reasonably may be expected to create a conflict of interest or the appearance of conflict of interest.

(i) No enlisted members of the Armed Forces on active duty may be ordered or permitted to leave their post to engage in a civilian pursuit or business, or a professional activity in civil life if it interferes with the customary or regular employment of local civilians in their art, trade, or profession. See 10 U.S.C. 974.

(ii) Off-duty employment of military personnel by an entity involved in a strike is permissible if the person was on the payroll of the entity before the strike began and if the employment is otherwise in conformance with this part. After a strike begins and while it continues, no military personnel may

accept employment with the involved entity at the strike location.

(iii) DoD personnel are encouraged to engage in teaching, lecturing, and writing, subject to the standards set out in this part. See paragraph (b)(11) of this section. DoD personnel shall not, either with or without compensation, engage in activities that are dependent on information obtained as a result of their Government employment, except when the information does not focus specifically on the agency's responsibilities, policies and programs, and:

(A) The information has been published or is generally available to the public,

(B) The information would be made available to the public under the Freedom of Information Act, 5 U.S.C. 552

or

(C) The Head of the employing DoD Component, or designee, gives written authorization for the use of nonpublic information on the basis that the use is in the public interest. See DoD Directive 5230.9.

(iv) Presidential appointees shall not receive compensation or anything of monetary value for any consultation, lecture, discussion, writing, or appearance, when the subject matter is as follows:

(A) Is devoted substantially to DoD responsibilities, programs, or operations, or

(B) Draws substantially on official material that has not become part of the body of public information.

(12) Gratuities, reimbursements, and other benefits from outside sources. DoD personnel and members of their families shall not accept gratuities from those who have or seek business with the Department of Defense or from those whose business interests are affected by DoD functions.

(i) No matter how innocently the gratuity is tendered or received, acceptance may be a source of embarrassment to the Department of Defense, may appear to affect the objective judgment of the DoD personnel involved, and may impair public confidence in the integrity of Government.

(ii) DoD personnel and their families shall not solicit, accept, nor agree to accept any gratuity for themselves,

members of their families, or others, either directly or indirectly from, or on behalf of, any defense contractor or any source that:

(A) Is engaged in or seeks business or financial relations of any sort with any DoD Component,

(B) Conducts operations or activities that are either regulated by a DoD Component or significantly affected by DoD decisions,

(C) Has interests that may be substantially affected by the performance or nonperformance of the official duties of DoD personnel, or

(D) Is a foreign government or representative of a foreign government that is engaged in selling to the Department of Defense, where the gratuity is tendered in the context of the foreign government's commercial activities. See DoD Directive 1005.13.1

(c) Exceptions—(1) Gratuities exceptions. Exceptions shall be applied narrowly in keeping with the prohibitions in paragraph (b)(13) of this section. The prohibitions in paragraph (b)(13) of this section do not apply to the following:

(i) Continued participation in employee welfare or benefit plans of a former employer when permitted by law and approved by the appropriate supervisor with the advice of the DAEO or designee;

(ii) Acceptance of unsolicited advertising or promotional items that are less than $10.00 in retail value;

(iii) Acceptance of trophies, entertainment, prizes, or awards for public service or achievement in an individual capacity, or given in games or contests that do not relate to official duties and are clearly open to a broad segment of the public generally, or that are approved officially for DoD personnel participation;

(iv) Benefits available to the public (such as university scholarships covered by DoD Directive 1322.61 and free exhibitions by DoD contractors at public trade fairs;

(v) Discounts or concessions realistically available to all personnel in the DoD Component, provided that such discounts or concessions are not used

1 See footnote 1 to § 40.4(b)(3)(iii)(A).

to obtain any item for the purpose of resale at a profit;

(vi) Participation by DoD personnel in civic and community activities that also involve a DoD contractor, when any relationship between DoD personnel and the contractor is indirect (such as participation in a Little League or Combined Federal Campaign luncheon that is subsidized by a defense contractor);

(vii) Activities engaged in by officials of a DoD Component and officers in command, or their representatives, with local civic or military leaders as part of authorized community relations programs of the DoD Component in accordance with Parts 237 and 238 of this title;

(viii) The participation of DoD personnel in widely attended gatherings of mutual interest to Government and industry, sponsored or hosted by universities or industrial, technical, and professional associations (not by individual contractors) provided that they have been approved in accordance with 32 CFR Part 237a;

(ix) Situations in which participation by DoD personnel at public ceremonial activities of mutual interest to industry, local communities, and the DoD Component concerned serves the interests of the Government and acceptance of the invitation is approved by the DAEO of the employing DoD Component, or his or her designee;

(x) When an official Government business and when the DoD personnel reports the circumstances in writing to the superior or supervisor and to the DAEO or designee as soon as possible:

(A) Space available use of previously scheduled ground transportation to or from the contractor's place of business provided by the contractor for its own employees, and

(B) Contractor-provided transportation, meals or overnight accommodations when arrangements for Government or commercial transportation, meals, or accommodations are clearly impracticable;

(xi) Attendance at vendor training sessions when the vendor's products or systems are provided under contract to the Department of Defense and the training is to facilitate the use of

those products or systems by DoD personnel;

(xii) Attendance or participation of DoD personnel in gatherings (including social events such as reception) that are hosted by foreign governments (when not in their DoD contractor capacity) or international organizations when:

(A) Acceptance of the invitation is approved by the DoD Component DAEO or designee,

(B) Attendance or participation is authorized by other exceptions such as paragraph (c)(1)(vii) or (c)(1)(xiii) of this section or

(C) The social event involves a routine or customary social exchange with officials of foreign governments (including military forces) in pursuit of official duties;

(xiii) Customary exchanges of gratuities between DoD personnel and their friends and relatives and the friends and relatives of their spouse, minor children, and members of their household when the circumstances clearly indicate that it is the relationship, rather than the business of the person concerned, that is the motivating factor for the gratuity and it is clear that the gratuity is not paid for by the U.S. Government or any DoD contractor;

(xiv) Acceptance of transportation and related travel expenses from a potential employer in connection with a job interview, provided that the recipient, before departure on that trip, notifies his or her immediate superior or supervisor of these travel arrangements and that he or she files a written disqualification statement concerning any possible official actions involving the potential employer, including some evidence that the potential employer offers the same benefits to all similarly situated applicants, not only those employed within the Department of Defense;

(xv) On an occasional basis only, acceptance of coffee, donuts, and similar refreshments of nominal value offered as a normal courtesy incidental to the performance of duty;

(xvi) Acceptance of benefits resulting from the business activities of a spouse, where it is clear that such benefits are accorded the spouse in the

normal course of the spouse's employment or business, and have not been proffered or made more attractive because of the DoD personnel's status;

(xvii) Situations in which, in the sound judgment of the individual concerned or his or her supervisor or superior, the government's interest would be served by DoD personnel participating in activities otherwise prohibited. In any such case, a written report of the circumstances shall be made in advance, or, when an advance report is not possible, within 48 hours, by the individual or his or her supervisor or superior to the DAEO or designee.

(2) Training, orientation, and refresher courses. The guidance in paragraph (c)(2) (i) through (iv) of this section applies when defense contractors provide training, orientation, and refresher courses to Government personnel. These courses range from executive orientation courses in which all expenses are borne by the defense contractor to annual seminars devoted to technical developments in which the only "gratuity" may be lectures given free of charge.

(i) When a course is given pursuant to a contractual undertaking with the Government, the course itself is not a gratuity. The furnishing of meals, lodging, and transportation to the extent required by the contract also is not a gratuity. If lodging, meals, transportation, or other accommodations are furnished as a part of a contract, travel and other expenses chargeable to the Government shall be reduced according to applicable regulations.

(ii) Attendance at tuition-free training or refresher courses, or other educational meetings, offered by defense contractors (although not required to do so by the defense contract) may be authorized when attendance is clearly in the best interest of the Government, and provided that the contractor waives all claims against the Government for such training. In these cases, the training or instruction shall not be regarded as a gratuity.

(iii) Selection of personnel to attend courses described in paragraph (c)(2) (i) and (ii) of this section shall be made by the Government and not by the defense contractor. Invitations to