sina ‘authority of the Admin. of Gan. for detaile istration fee in the amount # Tue 8115" Praquent ‘traveler nd Bank of America Visa card holder, Advance authorized by AT. a . POV/METRO/TAXI, ING AUTHORIZED ATREORT. Qttsoial Long, ng, Sincence/ toca Phone/fax cali authorised aw necessary and yg authorized wp to 1500 above the standerd Ioaging per diem eee es etnorited, ype of rental oars ma Line, aise standard 4ND. te che a othordged rs ‘Travel voucher met ibniteed to Santi for processing vpon completion of TOY. ‘Variation Authorised { ae | oe jarvice: $35004/09/0a «DOCUMENT HGTORY {unt 1998 Gelco Inforwation Network GSD, Inc. odie tenaeneesenene nem APPROVED ‘OBLIGATED 3:552M ‘Financial 1 certify that, the electronic signatures listed above are ESF 452sea FAES than il pan ah 1] me | i feta HBG é medal BHM | |e abe i a un a . le Te 1vBe vibe teat i Mie ies ee | 4 esti Usk HAGA tl 63te] tj [abel (ie REG REWENRRRRRWRERE) Pt Ee DUTT er LT mae 25uaaa E EETEELELYE px/zt para —_ tt —t — Ct it — Tt a yom heal Leal jaa) [om] [aWI | Se‘os/ouy/da DOCUMENT HISTORY Sopyright 1998 Gelco Information Network GBD, tne 05/01/03 4caaPM CREATED ____E,ggytity thay, the otectronte etgnatures itsted above are & ae oO 1 ! | | i i i Io Q gm \ se Peal. — frome. to Dulles Apert UA POV mileage Zo miles. i ape Ei Peeire Kank Report ‘Smardon Wetel doe 2nignte, qiagiook2 mbinc-oc~ : eee ete =teciy ! 848-08 Kz Ferive Wagite Weel Ge EC nigie giitico xe ston . ord Taxes $204E KE 8h 122'5R ‘ Yolet Perkovg, eR.00xe =F 48-00 baoere of BOP i ne (gered) B17 x Bros F TOS bs i oe 26-421" ote ae ape 184 | ttc Gos Hio-84 Lie and frerbre Kena @ 8 i ors argo tat wy z eee Baa en Ser eZ, ee ke Pe | Dopere Kere on 2s" ees | Con $00 wtacce «a “yoo | Reteen Co © Big Wed $202: 1d Hee « Conf, Fin = 030734407 Ts ye Bae ae cd” Rion Gh Fes = SSSDyA IOSD ~ +6 Dry Ceann's, em Hir-00 2i By i Ket rs { a 9786 USA . 1 FAX 800,702.1887 AHYATT REGORT & SPA i PereBeee net S8esseeseeza BBeee 3: ke 38 & s ‘tegrated oad reso be hd pereenaly Mabe piace nasal ynes smpey' oneae te mp ay potest amore743-9777 211 ST wore all hired at salaries exceeding $100,000 per annum. All three RCUH personnel had some involvement in the proposal submissions for the proposed contract award # 02-D-3151 to RCUH. However, RCUH records show that labor for the three personnel were charged against two U.S. Navy grants. No bid and proposal (B & P) labor charges were noted in the RCUH records for these personnel, reference (5), exhibit (58) enclosures #12, #16, and #19 pertain. Further, records show that through the University of Hawaii (UOH), RCUH submitted claims for payment of labor and related travel costs for these three personnel, as direct coste to the two U.S. Navy grants, reference (B), exhibit (58) enclosuré (2) pertains. 3. On 16 January 2001, ST Has interviewed concerning his proposal work for contract + 02-D-3151 and conflicts with his full labor charges to Navy (NAVAIR) Grant # N0Q421-01-1-076, RCUH charge/project # 657764. However, WAMMMMMMMBnaintained he worked on the contract proposal (RCUH Project Kai'e'e) during off duty hours, on weekdays and weekends. Inquiries were also conducted concerning allegations initially reported via reference (D), that during 2003 MMMEMD and two other Navy civilian personnel with current/former responsibilities for Office of Naval Research (ONR) sponsored Projects, grants, and contracts in Hawaii received gratuities from Orincon, a Navy contractor with business in Hawaii, ‘land the two other Navy civilian personnel reportedly obtained from Orincon, tickets valued at $250 (each) to attend the Ready-To-Learn fund raising dinner held on Kauai on 22 April 2003, The Ready-To-Learn dinner is an annual event sponsored by Senator Daniel INOUYE of Hawaii. Senator INOUYE is a ranking menber of the Senate Appropriations Committee and a source of funding for SINNED ONR Programs in Hawaii. Inquiries with ONR Inspector General personnel concerning this matter surfaced General Ledger (GL) records from Orincon showing that the company paid $5000 for a table supporting the 2003 Ready-To-Learn event. Orincon GL records also show that SEED reimbursed orincon $50 in connection with this event. ONR travel records reflect that during the 21 - 26 April 2003 period, WlMMEp traveled on government orders from Washington DC to Lihue, BI (Kauai) to "Attend Meetings at MIDPAC office at PMRF." This investigation is continuing. FOR QmOWETSE ONLY Page 2EEE eee ree eee eee ~ ) suey: X/MavArRSyscou..absEN? RIVER, MD/eOssrBLe Ph UkeMeNT TRREGUL U.S. NAVAL CRIMINAL INVESTIGATIVE SERVICE NARRATIVE 1, Subsequent to reference (C), an additional interview was conducted vith ZPD participant (Pon 16 January 2004. initially was interviewed during February 2003, reference (C) exhibit (59) details, QMMMNMMpvas one of three personnel hired by RCUM at the direction of ONR SME involved with the proposal submissions for the proposed contract award # 02-D-3151 to RCUH, reference (A), exhibit (21) pertains. CUH records show that {ater Fer ao fulty chargod Co 0.0" Navy grane #HOOHDI 1-1-0176 (# 1-0176). No bid and proposal (B & P) labor charges were noted in the RCUH records for! reference (B), exhibit (58) enclosure (16) shows. The records further show that through the University of Hawaii, RCUH submitted claims for payment of SEMEN 3abor and related travel costs, as direct costs to U.S. Navy grant # 1-0176, reference (B) details. During this 16 January 2004 interview, SEED reported that his employment with RCUH began from contacts with (iM 2 subordinate to Simp at the Mid-Pacific (MIDPAC) Branch Office, ONR Haveli, 7 reported that [MEM interviewed him for the position and he began RCUH employment circa 1 Novenber 2001. SIMI said he functioned at RCUH as an Electrical Engineer providing advice to the government. SEEMED contended that he was not aware that a Navy grant funded his RCUH position until he had been at the PHRF (Pacific Missile Range Facility, Kauai, HI) for about 6 months. subsequently learned tha MED (Cniversity of Hawaii) was the PI (Principal Investigator) for the grant that funded his position. Until then, SMP primarily reported to SNEED related that after about 2-3 months of employment, SED 22( GED 2cked EEE £ he would be willing to participate in writing the proposal for Project Kaite'e (RCUH proposal for contract # 02-D-3151), to which he agreed. SZ stated that all efforts on the Project Kai'e'e proposal were done Working after hours out of his hone. {_/|/maintained his RCUH hours were spent working on the grant. SNMNNP said the grant that funded his RCUK position was very "general." More details for the interview wit (MMMM re provided in exhibit (62). 2. During November 2003, information was obtained via the Office Of Inspector General, NAVAIRSYSCOM, concerning the possible solicitation and receipt of an illegal gratuity by ana all civilian personnel with current/former responsibilities for Office of Naval Research (ONR) sponsored projects, grants, and contracts in Hawaii, reference D details. MMMM is/as the GS-15 Technical Director, Mid-Pacific (MIDPAC) Branch, ONR, Hawaii. MMMM is an Intergovernental Personnel Act (IPA) employee for the Advanced Avionics Department (AIR 4.5 AD), NAVAIRSYSCOM, 49MIN is an IPA asset employed through a NAVAIRSYSCOM agreement with the MIT Lincoln Laboratory, a federally funded research and development (R & D) center, exhibit (63) pertains. However, S00N0P reportedly functions as the Deputy Technical Director, MIDPAC Branch, ONR, Hawaii. As a government 1PA asset MMMMMMMPis subject to a number of laws governing ethical conduct of Federal employees under Title 18, United States Code, exhibit (64) shows. SMNMgpis an employee of the Naval Air Warfare FOR Qggatff USE ONLY WARNING aes ‘i OGM PROPERTY tT NAL EETOATE ERE Aveuovren vet cnenieoromneene EY(24 0UN02~ DOWA~0507-4GNA a Noy SUBJ: I/NAVAIRSYSCOM,..TURENT RIVER, MD/POSSIBLE Ph cURuENT IRREGUL U.S. NAVAL CRIMINAL INVESTIGATIVE SERVICE Center, Aircraft Division (NAWC-AD), Patuxent River, MD detailed to ON, According to the allegation, requested orincon, a Navy contractor with business in Hlowaii, to purchase tickets valued at $250 (each), for her, S/R and GMP to attend the 2003 Ready- Toclearn fund raising dinner held on Kaual. ‘The Ready-To-Learn dinner was reportedly held on Kauai on 22 April 2003 and involved participation by Senator Daniel INOUYE of Hawaii, a keynote speaker for the event. 3, During the November 2003 - January 2004 period, initial inquiries were conducted concerning the Ready-To-Learn dinner, reference (D) details. The inguiries determined that the Ready-To-Learn event is an annual dinner to raise funds for textbooks and supplies for Hawaii schools. This evant is supported by Senator INOUYE, a ranking member of the Senate Appropriations Committee and a source of funding for QMMMEENENPONR programs in Hawaii, The allegations in reference (D) are similar to those in captioned investigation in that SNMNNMBis the focal point. Accordingly, further investigative inquiries for reference (D) matters will be conducted under this investigation. 4. On 10 February 2004, three Office of Government Ethics (OGE) Confidential Financial Disclosure Reports (Form 450's) filed by SMEBM vere obtained, The records were provided by investigator mm AMINED 222igned to the Office of Inspector General, ONR, Arlington, VA, ‘The Form 450 report ig an OGE form that certain senior governnent officials and military menbers must file annually. as a GS-15 Program Manager assigned to ONR-35 (Science and Technology (S and 1) Department), is subject to this reporting requixement. The Form 450 reports filed by {INNNPwith the ONR Office of Counsel for ‘the 2001 - 2003 periods reflect mostly negative entries for reportable assets, income, liabilities, outside employment, and gifts, exhibit (65) details. TC 5. on 23 February 2004, reporting agent met with investigators a> SERED 2A QUNBNMNNEED ot the ONR Inopector General (IS) office in Arlington, VA. The meeting was held to obtain any available documentation relating to the reported solicitation and receipt of gratuities by MMP from Orincon (Supra). The documentation obtained from ONR included General Ledger (GL) records fron Orincon Showing that Orincon paid $5000 for a table supporting the 2003 Ready-To-Learn dinner. Orincon Gl, records also show that reimbursed the company $50 in connection with the 2003 Ready-To-Learn dinner. ONR travel records reflect that during the 21 - 26 April 2003 period, HNN traveled on government orders fron Washington DC to Lihue, HI (Kauai) to "Attend Meetings at MIDPAC office at PYRF." An analysis of key documents obtained during the meeting with ONR TG investigators (D> and @P is provided with exhibit (66). 6. During the next reporting period, NAWC-AD official > (supra) will be interviewed about his reported participation with in attending the 2003 Ready-To-Learn fund raising dinner. An NCIS letterhead request for additional RCUH records pertaining to Navy grant #'s N00421-01-1-0176 and # NOO14-01-1-0662 (reference (B) pertains) will be finalized and submitted to the appropriate RCUH FOR O@B@WRPUSE ONLY WARNING Page 4 ee eer ncembctirencmanence seerocoremmrnrcoenounovema acon ore : 8D(24JUN02-DCWA-0307-4GNA SUBJ: r/wavarrsyscou«.c°dRéNt RIVER, MD/POSSIBLE pee batt TRREGUL U.S. NAVAL CRIMINAL INVESTIGATIVE SERVICE official. This investigation is continuing. 7. R copy of this report is being provided to Assistant U.S. Attorney (AUSA) Ted MEEKER, Civil Division, U.S. Attorney's Office, District of Hawaii, for consideration of civil actions under the Civil False Claims Act (31 U.S.C. section 3729). Participant (9) b Special Agent, DCIS Hawaii Post DISTRIBUTION NCISHQ: 0023. INFO: DCWA/HIHN Commander, Office of Naval Research (M) Office of the Inspector General Att 800 North Quincy Street Arlington, VA 22217-5660 Commander, Naval Air Systems Command (Mf) Office of the Inspector General AIR-00G1 (Attn: <> 47123 Buse Road Patuxent River, MD 20634 U.S. Attorney's Office (M) District of Hawaii Atth: AUSA Ted MEEKER PUKK Federal Bldg. 300 Ala Moana Blvd., Room #6-100 Honolulu, HI 96850 Navy Inspector General (H) tr FOR Og pe USE ONLY WARNING 33\ Page 5 last V2 ‘Zoyre a B€ Oec.o82D OR TPEREONS WADAE OFFAL IE REOURE ACES reo ora re omc von ccemeD MTA ers@ re) NAVAL CRIMINAL INVESTIGATIVE SERVICE DELETED PAGE INFORMATION SHEET Page(s) _ 488 — +8y See ee eee ee withheld entirely at this location. One or more of the following explain this decision: Deleted under exemption(s), 2 Documents originated with other governnient agency(ies). Referred for review and direct response to you, Pages contain information furnished by other government agency(ies). We will advise you of. releasability of information following consultation with agency(ies). Comments: Aasgeatey General Department & Belonse LOO _Avmy Naoy Deve i Ar\enakon, VA 22202 ~ W104 ee Deleted pages(s) No duplication fee for this pageB NS U.S. NAVAL CRIMINAL INVESTIGATIVE SERVICE INVESTIGATIVE ACTION 1OMARO4 CONTROL: 24JUNO2-DCWA~0307-4GNA, I/NAVAIRSYSCOM , PATUXENT RIVER, MD/POSSIBLE PROCUREMENT IRREGULARITIES WITH THE DEVELOPMENT OF THE MODULAR COMMAND CENTER (MCC) RECEIPT OF IPA AGREEMENT DOCUMENTATION FO*——' 1. On 29 October 2003, reporting agent received via facsimile transmission, copies of two recent Intergovernmental Personal A {TPA} Assignment’ Agreements between the Naval Air Systems Conmand (NAVAIRSYSCoM) and MIT Lincoln Laboratory for employment with NAVAIRSYSCOM during the 2000 - 2002 period. The agreements were provide by @ Chief Scientist (6s- 15) at NAVAIR Code 4.5.7. Part 10 of the agreements certify to WAM veview and acknowledgement of Federal conflict-of-interest and employee conduct laws and regulations applicable to his IPA assignment, enclosure (A) details. IPA Enclosure (A) Facsimile Cover Sheet and two attached IPA Assignment Agreements between NAVAIRSYSCOM) and MIT Lincoln Laboratory for Say 2 900703 REPORTED 5Y: OFFICE: NCISFO WASHINGTON Dc EXHIBIT (¢3) FORO! USE ONLY WARNING Pago 1 i vain ‘ova way sett OY TOPEREONE HAE Orr UTES REGU Actene ‘eReTo Comoe May oT ae DCLO4nD TOT PUT CONCEMED TOUT HED Aovemronrnn ei Ca esa HENCE SIEnc/ Ay totNAVAL CRIMINAL INVESTIGATIVE SERVICE DELETED PAGE INFORMATION SHEET Page(s)__H#pB—RGS == withheld entirely at this location. One or more of the following explain this decision: Deleted under exemption(s), Documents originated with other government agency(ies). Referred for review and direct Tesponse to you. Pages contain information furnished by other government agency(ies). We will advise you of releasability of information following consultation with agency(ies). Comments:_ Commande Naval Ace Systems Commausaf k0 40. Lulyeneranta Poa Bday 43S, Sude i Taskivont Ruer, ms 90670 ~|SSO Deleted pages(s) No duplication fee for this pagea y U.S. NAVAL CRIMINAL INVESTIGATIVE SERVICE i“ INVESTIGATIVE ACTION OewaRo4 CONTROL: 24JUN02-DCWA-0307-4GNA. I/NAVAIRSYSCOM, PATUXENT RIVER, MD/POSSIBLE PROCUREMENT IRREGULARITIES WITH THE DEVELOPMENT OF THE MODULAR COMMAND CENTER INVESTIGATIVE ACTION: INTERNET QUERIES CONCERNING INTERGOVERNMENTAL PERSONAL ACT 1. On 6 March 2004, reporting agent (RA) conducted Internet queries using the Yahoo search engine concernins al a Personal Act (IPA) Program. The queries produced enclosure (A), an outline of the provisions of the IPA program published by the U.S. Office of Personal Management (OPM). As reflected in enclosure (A), IPA's are subject to Federal laws governing ethical and criminal matters, including Title 18, U.S. Code (USC) section 203 - receiving compensation from outside source(s), and Title 18 USC 208 - acts affecting a personal financial interest. Enclosure (A) U.S. Office of Personal Management Document - Provisions of the IPA Program/6 March 2004 REPORTED BY: OFFice: NCISEO WASHINGTON Dc EXHIBIT (4) FOR QpaeemRt USE ONLY WARNING Page 4 ® vein Clonee Yo 9ec.8ED OL To Peon RE OPPEUL XTC REG ACC ‘ero comms roan oe nro cones WO eae Scercnpenninannenneaas HyTe Pee Sy Ne oO U.S. Office of Personnel Management Intergovernmental Personnel Act Mobility Program Provisions of the IPA Mobility Program ___ Revised Intergovernmental Personnel Act ~ Purpose of Program Coverage Certification ‘Other Organizations" Length of ment Reimbursement for Assignment Travel, Relocation, and Per Diem Standards of Conduct and Conflict-of-interest Provisions Arranging an Assignment Termination of an Assignment Changes to the Assignment Agreement Oversight Revised Intergovernmental Personnel Act (IPA) mobility program regulations (5 CFR part 334), effective May 29, 1997, allow federal agencies to operate in a more efficient and productive manner. These new regulations contain two major changes. * Agencies are now responsible for certifying the eligibility of "other organizations” for participation in the mobility program. Previously, this certification was done by the Office of Personnel Management. ‘+ Agencies need no longer submit assignment agreements to the Office of Personnel Management. ‘The information in this publication will assist agencies in their day-to-day management of the mobility program. questions or comments about these procedures. Purpose of Program Assignments to or from state and local governments, institutions of higher education, Indian tribal governments and other eligible organizations are intended to facilitate cooperation between the Federal Government and the non-Federal entity through the temporary assignment of skilled personnel. These assignments allow civilian employees of Federal agencies to serve with eligible non-Federal organizations for a limited period without l9ss of employee rights and benefits. Employees of State and local governments, Indian tribal governmenfs, institutions of higher education and other eligible organizations may serve in Federal agenojes for similar periods. The legal authority for assignments under the Intergovernmental Personnel Act is 5 USC sections 3371 through 3375. The regulations can be found in Code of Federal Regulations (CFR), part 5, chapter 334. Each assignment should be made for purposes which the Federal agency head, or his or her designee, determines are of mutual congem and benefit to the Federal agency and to the non-Federal organization. Each proposed assignment should be carefully examined to ensure that it is for sound public purposes bttp://www.opm. gov/omsoe/ipa/Mobility htm 3/6/2004 49 Fae Aii A and furthers the goals and objectives of the participating organizations. Assignments arranged to meet the personal interests of employees, to circumvent personne! ceilings, or to avoid unpleasant personnel decisions are contrary to the spirit and intent of the mobility assignment program. ‘The goal of the Intergovernmental Personnel Act mobility program is to facilitate the movement of employees, for short periods of time, when this movement serves a sound public purpose. Mobility assignments may be used to achieve objectives such as: «strengthening the management capabilities of Federal agencies, State, local and Indian tribal governments, and other eligible organizations; « assisting the transfer and use of new technologies and approaches to solving governmental ‘effective meats of involving state and local officials in developing and implementing Federal policies and programs; and, « providing program and developmental experience which will enhance the assignee's performance in his or her regular job. Coverage 5 CFR part 334 provides definitions of organizations and individuals covered by the Intergovernmental ‘Act provisions of 5 USC section 3174. Individuals excluded from participation in the Intergoveramental Personnel Act mobility program include: 'o Federal, State or local government employees serving under noncareer, excepted service, noncompetitive, time-limited, temporary of term appointments; o Elected Federal, State or local government officials; © Members of the uniformed military services and the Commissioned Corps of the Public Health Service and the National Oceanic and Atmospheric Administration; and oo Students employed in research, graduate, or teaching assistant and similar temporary positions. Certification of "Other Organizations” ‘The Intergovernmental Personnel Act regulations specify that “other organizations" are eligible to participate and define what an “other organization" is. They also require that entities interested in participating in the mobility program as an “other organization” have eligibility certified by the Federal gency with which they are entering into an agreement. If an organization has already been certified by an agency, this certification is permanent and may apply throughout the Federal Government. Another agency can accept this certification or require an organization to submit the appropriate paperwork for review. Requests for certification should include a copy of: « the organization's articles of incorporation; bylaws; « Internal Revenue Service (IRS) letter of nonprofit status; and any other information describing the organization's activitics as they relate to the public management concems of governments or universities. Length of Assignment Assignment agreements can be made for up to two years, and may be intermittent, part-time, or full- time. The agency head, or his or her designee, may ‘extend an assignment for an additional two years 3/6/2004 http://www.opm.gov/omsoe/ipa/Mobility htm HEFwhen the extension will be to the benefit of both organizations. 5 CFR part 334 states that an employee who has served for four continuous years on a single assignment may not be sent on another assignment without at least a 12-month retum to duty with his or her regular employer. Successive assignments without a break of at least 60 calendar days will be regarded as continuous service under the mobility authority. ‘The regulations prohibit a Federal agency from sending on assignment an employee who has served on mobility assignments for more than a total of six years. The Office of Personnel Management may waive this provision upon the written request of the agency head. In the case of assignments made to Indian tribes or tribal organizations, the agency head (or designec), ‘may extend the period of assignment to any length of time where it is determined that the assignment will continue to benefit both the Federal agency and the Indian tribe or tribal organization, Reimbursement for Assignment Cost-sharing arrangements for mobility assignments are negotiated between the participating The Federal agency may agrceto pay all, some, ot none ofthe costs associated with an assignment. Costs may include basic pay, supplemental pay, fringe benefits, and travel and relocation ‘expenses. ‘Agencies may consider the income from certain private consulting work as part of the academic pay of university employees, Specifically, when the regular tour of duty for a university employee includes an allotrasat-of time for consulting, or when the employee is performing any job-related consulting that cannot be continued during the assignment, the income received from the consulting may be regarded as part of the employee's academic pay. Agencies should not authorize reimbursement for indirect or administrative costs associated with the assignment. This includes charges for preparing and maintaining payroll records, developing reports on the mobility assignment, and negotiating the agreement. Other prohibited costs include tuition credits, office space, furnishings, supplies, staff support and computer time. Cost-sharing arrangements should be based on the extent to which the participating organizations benefit from the assignment. The larger share of the costs should be absorbed by the organization which benefits most from the assignment. Exceptions might occur when an organization's resources do not permit costs to be shared on a relative benefit basis. Travel, Relocation, and Per Diem ‘A Federal agency may pay the travel expenses authorized under the Federal Travel Regulation (FTR) GI CFR chapters 301-304) chapter 301 of a Federal employee or non-Federal employee on an Intergovernmental Personnel Act assignment. An agency may pay a per diem allowance at the assignment location in accordance with FTR part 301-7, or the following limited relocation expenses: « travel and transportation expenses of the employee to and from the assignment location under FTR part 302-2; ‘* travel and transportation expenses of the employee's immediate family to and from the assignment location under FTR part 302-2; ‘« transportation and temporary storage expenses of the employee's household goods and personal 3/6/2004 FAY http://www.opm.gov/omsoe/ipa/Mobility htmo 2 effects under FTR part 302-8; ‘+ temporary quarters subsistence expenses under FTR part 302-5 at the time the assignment commences and at the time the assignment is completed; a miscellaneous expense allowance under FTR part 302-3; and * the expenses of non-temporary storage of the employee's household goods and personal effects under FTR part 302-9, when the employee is assigned to an isolated location. An agency may select between payment of a per diem allowance at the assignment location or the limited relocation expenses, but may not pay both. However, an agency may pay per diem for travel away from the assignment location, even if it pays the limited relocation allowances, so long as the employee does not travel to his/her official station An agency should consider the cost to the Federal Government to be a major factor when determining whether to pay a per diem allowance at the assignment location or limited relocation allowances. An agency should also consider the duration of the assignment. A per diem allowance is meant for shorter assignments. The payment of per diem for an indeterminate period or a period of more than one year is taxable to an employee, so an agency should not pay a per diem allowance for an assignment expected to last more than one year, or for an indefinite period, fan agency pays a per diem allowance at the assignment location, the per diem allowance may be paid only for the individual on the mobility assignment. If an agency pays relocation, the agency may pay transportation expenses for the immediate family of the employee. An agency, however, cannot pay the expenses of selling or purchasing a residence, nor the expenses of property management services while the employee is on the assignment. An agency may not authorize a temporary change of station under subparts C and D of FTR part 302-1 to transfer an employee to the assignment location. The employee must sign a service agreement for one year or the length of the assignment, whichever is shorter, to be eligible for payment of per diem atthe assignment location or limited relocation expenses. The employee will be responsible for repaying any expenses if he or she fails to complete the service agreement, unless the reasons for failing to complete the agreement are beyond his or her control. In addition, Federal agency officials may waive the requirement to pay back expenses if they feel the Waiver is justified. The service agreement does not cover travel expenses paid when the employee travels away from the assignment location. Standards of Conduct and Conflict-of-interest Provisions A non-Federal employee on assignment to a Federal agency, whether by appointment or on detail, is subject to a number of provisions of law goveming the ethical and other conduct of Federal employees. Title 18, United States Code, prohibits certain kinds of activity: ‘+ receiving compensation from outside sources for matters affecting the Government (section 203), ‘acting as agent or attorney for anyone in matters affecting the Government (section 205), * acting or participating in any matter in which he or she, the immediate family, partner; or, the organization with which he or she is connected has a financial interest (section 208), * receiving salaries or contributions from other than Government sources for his or her Government services (section 209), + soliciting political contributions (sections 602 and 603), ‘+ intimidating to secure political contributions (section 606), « failing to account for public money (section 643), # converting property of another (section 654), isclosing confidential information (section 1905); and, htp://www.opm.gov/omsoe/ips/Mobility.htm 3/6/2004