Conflict of Interest Policy:

Defense Logistics Agency Employees Whose Spouses Work for Contractors

NSIAD-92-6: Published: Oct 21, 1991. Publicly Released: Nov 5, 1991.

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Pursuant to a congressional request, GAO examined the Defense Logistics Agency's (DLA) policy concerning potential financial conflicts of interest created when a government employee monitors the operations of a contractor where the employee's spouse is employed.

GAO found that: (1) the DLA Standards-of-Conduct regulation is based on government-wide conflict-of-interest policies which prohibit a government employee from participating personally and substantially, through decision, approval, disproval, or recommendation, in any matter in which the employee or the employee's spouse has a financial interest; (2) financial conflicts are generally identified and resolved at the local level; (3) DLA does not maintain agencywide statistics concerning the number and resolution of financial conflict of interest cases; and (4) the DLA regulation is consistent with conflict-of-interest laws and regulations applicable to all government employees and it reflects the government's interest in maintaining high ethical standards while considering employees' individual situations.

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