Defence Ethics Programme - Post-Employment

Transcript

This presentation is in reference to post-employment and how it applies to you after you retire from the Canadian Armed Forces.

Rules regarding post-employment can be found in DAOD 7021-2, Post-Employment. This DAOD is part of the 7021 series that deals with various issues relating to conflict of interest.

The purpose of this DAOD is to minimize the likelihood that a senior DND employee or senior CAF officer places themselves in a conflict of interest between their recent DND/CAF duties and their new job outside the Government of Canada. These measures are in place to protect the organization from a conflict of interest without unduly limiting an individual’s future employment prospects.

This DAOD applies to Senior CAF Officers at the rank of Lieutenant Colonel/Commander and above in the Regular Force or on full-time service in the Reserve Force. 

For civilians, the DAOD applies to employees occupying a position equivalent to the EX minus 1 level or above.

Perception is an important concept in conflict of interest. The mere perception of conflict of interest can lead to restrictions or prohibitions in one’s post-employment.

Federal Public Servants and CAF members are held to a higher ethical standard than private section employees. It is their duty to ensure that the Federal Public Service and the Canadian Armed Forces are impartial and effective not only in reality, but also in perception. 

We often talk about the concept of the perception of a reasonable person. How our actions are perceived by a reasonable person such as the average Canadian plays an important part in conflict of interest.  Whether a conflict of interest is real, apparent or potential, it all carries the same weight when taking action to resolve a conflict of interest situation.

DAOD 7021-2 - Post-Employment, defines three main restrictions, or prohibitions. The first and second are within the year following departure. The third restriction is ongoing in time.

Firstly, a former senior CAF Officer cannot accept employment with an entity, “a defence industry company” for example, that they personally or through their subordinates, have had significant official dealings in the last twelve months of their CAF service.  For example, if you or your subordinates had significant official dealings with Calian Limited in the last twelve months, you cannot accept employment with them until twelve months after your retirement or release. This is a one year “cooling off” period that former senior CAF member and former senior DND employees are subject to.

Secondly, a former senior CAF member cannot make direct contacts on behalf of an entity, “a defence industry company” for example, back to the DND/CAF for a period of twelve months following their retirement or release. For example, you have accepted post-employment from Lockheed Martin. Neither you nor your subordinates have had any significant official dealings with Lockheed Martin in the last twelve months of your CAF service.  You can work for them, however, you are prohibited from making direct contacts on behalf of Lockheed Martine back to DND/CAF personnel for a period of twelve months.

Definitions of what constitutes “significant official dealings” and “direct contacts” will be explained later in the presentation.

The third prohibition regarding post-employment states that you cannot give advice to clients using information concerning DND/CAF programs or policies that is not available to the public. This prohibition is not limited in time, but until such a time that this information becomes available to the public. This restriction is put in place to ensure that former senior CAF members and former senior DND employees do not pass on “insider information” to their future employer.

Significant official dealings is defined as any dealings, whether through a subordinate or not, that involve dealings of a commercial nature or interactions where an exchange of information occurs. Examples of significant official dealings include, but are not limited to, meetings and business dealings, contract negotiations and contract management.

Making direct contacts is defined as communicating in any way with DND employees or CAF members on behalf of yourself or a company after you retire. This includes business development activities on behalf of your new employer, but also consists of all forms of communications with DND or CAF personnel including face-to-face meetings, exchanging emails, telephone conversations and video conferencing.

Under DAOD 7021-2, Post-Employment, all senior CAF members are required to disclose the following:

All firm offers of employment that could place them in a real, potential, or apparent conflict of interest;
Any such offer that they accept; and
Any intention to create a private company that may lead to having business dealings with the DND/CAF or other Government of Canada organizations.

All senior CAF members who have received offers of employment must complete a DND Form 2840, Post-Employment Declaration, and send it to the Conflict of Interest Section of the Defence Ethics Programme.  They must also include a written declaration from their immediate supervisor confirming any significant dealings they may or may not have had with their future employer.

Once completed, the information is considered Protected B and should be sent encrypted to the Conflict of Interest positional mailbox at: COIDEP-CIPED@forces.gc.ca.

Senior CAF members may request a waiver or reduction of their post-employment restrictions from the Vice Chief of the Defence Staff (VCDS). Senior DND employees must request a waiver or reduction of their post-employment restrictions from the Deputy Minister.

The process is as follows:

The senior CAF member must complete DND Form 2840 and DND Form 2841, Request for a Waiver of Reduction of Post-Employment Restrictions, and send them to ADM(RS) through Conflict of Interest positional mailbox at COIDEP-CIPED@forces.gc.ca or through regular mail to the Conflict of Interest Section/Director Defence Ethics Programme (DDEP).  The information submitted on the forms is analyzed by the DDEP and ADM(RS) provides a recommendation to the VCDS as to whether or not a waiver or reduction should be granted.  Once the VCDS has made a decision, DDEP informs the applicant in writing of the VCDS decision if they are of the rank of brigadier-general/commodore or below. The ADM(RS) informs the applicant in writing of the VCDS decision for those of the rand of major-general or rear-admiral or above.

DAOD 7021-2 outlines various factors that are to be considered in order to determine whether or not a waiver of the post-employment restrictions should be granted.  They are as follows:

  1. Is there any underlying conflict of interest risk or any adverse public perception to the integrity of the DND/CAF if this waiver or reduction were to be granted?
  2. Are there any identifiable and important benefits that would be accrued to the DND/CAF as a result of the requested waiver or reduction being granted?
  3. Is there any potential for the prospective employer or client to gain an unfair commercial or private advantage by granting this waiver or reduction to the former CAF member?
  4. Does the former CAF member possess any sensitive or insider information by virtue of their service?

It is important that former senior CAF members and former senior DND employees are aware of the Public Services and Procurement Canada’s (PSPC) Standard Acquisition and Contract Clause (SACC) 18 – Conflict of Interest – unfair advantage.
PSPS has put this clause in place in order to protect the integrity of the procurement process.  Basically, what is means is that a company can be declared non-compliant by Canada in bidding processes related to areas where a former CAF member or former DND employee would have knowledge from their former official CAF or DND duties deemed to provide a company with unfair advantage, due to the sole fact of their employment within its structure. An example would be if a CAF member was involved in the preparation of a bid solicitation or if they had access to insider information that would provide the company with an unfair advantage.

DAOD 7021-2, Post-Employment allows for reconsideration of any determination made by the VCDS. If the request for a waiver or reduction of post-employment restrictions has been denied by the VCDS, the former CAF member can may seek reconsideration directly by writing to the Chief of Defence Staff. On the civilian side, the former senior DND employee can seek consideration by writing directly to the Deputy Minister(DM) of the Department of National Defence (DND).

Queries regarding conflict of interest and post-employment can be directed to the positional mailbox at COIDEP-CIPED@forces.gc.ca

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This presentation is in reference to post-employment and how it applies to you after you retire from the Canadian Armed Forces.

Rules regarding post-employment can be found in DAOD 7021-2, Post-Employment. This DAOD is part of the 7021 series that deals with various issues relating to conflict of interest.

The purpose of this DAOD is to minimize the likelihood that a senior DND employee or senior CAF officer places themselves in a conflict of interest between their recent DND/CAF duties and their new job outside the Government of Canada. These measures are in place to protect the organization from a conflict of interest without unduly limiting an individual’s future employment prospects.

This DAOD applies to Senior CAF Officers at the rank of Lieutenant Colonel/Commander and above in the Regular Force or on full-time service in the Reserve Force. 

For civilians, the DAOD applies to employees occupying a position equivalent to the EX minus 1 level or above.

Perception is an important concept in conflict of interest. The mere perception of conflict of interest can lead to restrictions or prohibitions in one’s post-employment.

Federal Public Servants and CAF members are held to a higher ethical standard than private section employees. It is their duty to ensure that the Federal Public Service and the Canadian Armed Forces are impartial and effective not only in reality, but also in perception. 

We often talk about the concept of the perception of a reasonable person. How our actions are perceived by a reasonable person such as the average Canadian plays an important part in conflict of interest.  Whether a conflict of interest is real, apparent or potential, it all carries the same weight when taking action to resolve a conflict of interest situation.

DAOD 7021-2 - Post-Employment, defines three main restrictions, or prohibitions. The first and second are within the year following departure. The third restriction is ongoing in time.

Firstly, a former senior CAF Officer cannot accept employment with an entity, “a defence industry company” for example, that they personally or through their subordinates, have had significant official dealings in the last twelve months of their CAF service.  For example, if you or your subordinates had significant official dealings with Calian Limited in the last twelve months, you cannot accept employment with them until twelve months after your retirement or release. This is a one year “cooling off” period that former senior CAF member and former senior DND employees are subject to.

Secondly, a former senior CAF member cannot make direct contacts on behalf of an entity, “a defence industry company” for example, back to the DND/CAF for a period of twelve months following their retirement or release. For example, you have accepted post-employment from Lockheed Martin. Neither you nor your subordinates have had any significant official dealings with Lockheed Martin in the last twelve months of your CAF service.  You can work for them, however, you are prohibited from making direct contacts on behalf of Lockheed Martine back to DND/CAF personnel for a period of twelve months.

Definitions of what constitutes “significant official dealings” and “direct contacts” will be explained later in the presentation.

The third prohibition regarding post-employment states that you cannot give advice to clients using information concerning DND/CAF programs or policies that is not available to the public. This prohibition is not limited in time, but until such a time that this information becomes available to the public. This restriction is put in place to ensure that former senior CAF members and former senior DND employees do not pass on “insider information” to their future employer.

Significant official dealings is defined as any dealings, whether through a subordinate or not, that involve dealings of a commercial nature or interactions where an exchange of information occurs. Examples of significant official dealings include, but are not limited to, meetings and business dealings, contract negotiations and contract management.

Making direct contacts is defined as communicating in any way with DND employees or CAF members on behalf of yourself or a company after you retire. This includes business development activities on behalf of your new employer, but also consists of all forms of communications with DND or CAF personnel including face-to-face meetings, exchanging emails, telephone conversations and video conferencing.

Under DAOD 7021-2, Post-Employment, all senior CAF members are required to disclose the following:

All firm offers of employment that could place them in a real, potential, or apparent conflict of interest;
Any such offer that they accept; and
Any intention to create a private company that may lead to having business dealings with the DND/CAF or other Government of Canada organizations.

All senior CAF members who have received offers of employment must complete a DND Form 2840, Post-Employment Declaration, and send it to the Conflict of Interest Section of the Defence Ethics Programme.  They must also include a written declaration from their immediate supervisor confirming any significant dealings they may or may not have had with their future employer.

Once completed, the information is considered Protected B and should be sent encrypted to the Conflict of Interest positional mailbox at: COIDEP-CIPED@forces.gc.ca.

Senior CAF members may request a waiver or reduction of their post-employment restrictions from the Vice Chief of the Defence Staff (VCDS). Senior DND employees must request a waiver or reduction of their post-employment restrictions from the Deputy Minister.

The process is as follows:

The senior CAF member must complete DND Form 2840 and DND Form 2841, Request for a Waiver of Reduction of Post-Employment Restrictions, and send them to ADM(RS) through Conflict of Interest positional mailbox at COIDEP-CIPED@forces.gc.ca or through regular mail to the Conflict of Interest Section/Director Defence Ethics Programme (DDEP).  The information submitted on the forms is analyzed by the DDEP and ADM(RS) provides a recommendation to the VCDS as to whether or not a waiver or reduction should be granted.  Once the VCDS has made a decision, DDEP informs the applicant in writing of the VCDS decision if they are of the rank of brigadier-general/commodore or below. The ADM(RS) informs the applicant in writing of the VCDS decision for those of the rand of major-general or rear-admiral or above.

DAOD 7021-2 outlines various factors that are to be considered in order to determine whether or not a waiver of the post-employment restrictions should be granted.  They are as follows:

  1. Is there any underlying conflict of interest risk or any adverse public perception to the integrity of the DND/CAF if this waiver or reduction were to be granted?
  2. Are there any identifiable and important benefits that would be accrued to the DND/CAF as a result of the requested waiver or reduction being granted?
  3. Is there any potential for the prospective employer or client to gain an unfair commercial or private advantage by granting this waiver or reduction to the former CAF member?
  4. Does the former CAF member possess any sensitive or insider information by virtue of their service?

It is important that former senior CAF members and former senior DND employees are aware of the Public Services and Procurement Canada’s (PSPC) Standard Acquisition and Contract Clause (SACC) 18 – Conflict of Interest – unfair advantage.
PSPS has put this clause in place in order to protect the integrity of the procurement process.  Basically, what is means is that a company can be declared non-compliant by Canada in bidding processes related to areas where a former CAF member or former DND employee would have knowledge from their former official CAF or DND duties deemed to provide a company with unfair advantage, due to the sole fact of their employment within its structure. An example would be if a CAF member was involved in the preparation of a bid solicitation or if they had access to insider information that would provide the company with an unfair advantage.

DAOD 7021-2, Post-Employment allows for reconsideration of any determination made by the VCDS. If the request for a waiver or reduction of post-employment restrictions has been denied by the VCDS, the former CAF member can may seek reconsideration directly by writing to the Chief of Defence Staff. On the civilian side, the former senior DND employee can seek consideration by writing directly to the Deputy Minister(DM) of the Department of National Defence (DND).

Queries regarding conflict of interest and post-employment can be directed to the positional mailbox at COIDEP-CIPED@forces.gc.ca

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