Employment Activity Limitations of Retired Military Officers

GAO was asked whether certain activities of retired regular officers constitute violations of statutory selling restrictions and whether the determination of a violation depends upon whether the company's product or item has been contracted for prior to an officer's visits or to the exchange stores may be contracted for subsequent to his visits. Federal law provides that, for a period of 3 years after his retirement date, payment may not be made to an officer engaged in selling, contracting, or negotiating to sell supplies or war materials to an agency of the Department of Defense (DOD) or one of the uniformed services. GAO has held that, when a retired officer participates in some phase of the procurement process affecting DOD officials who are in a position to influence procurement, that officer is in violation of the statute. However, employment in nonsales, executive, or administrative positions which require agency contacts in the capacity of a noncontracting technical specialist or consultant and involve no sales activities, are activities outside the scope of the statute. GAO has also held that, even if an employer's product has been previously contracted for, if there exists a possibility that the activities or contacts of a retired officer within the restricted period could influence additional contracts for supplies or materials, such activities are in violation of the statute. Therefore, the fact that a prior sales transaction has been executed is not determinative of whether an officer's activities constitute a violation of the statute.