Advisory Opinion 94-4-1093
Public Health/Contracting with Department

ISSUE: WHETHER AN EMPLOYEE IN ONE COUNTY DIVISION MAY CONTRACT WITH ANOTHER DIVISION IN THE SAME DEPARTMENT?

Opinion: The Board of Ethics finds that the employee would not incur a conflict of interest when contracting with another division in the same department because the employee was not a participant in a County action and did not act to influence the contractual process. However, all firms or individuals who contract with the County, and who are subject to Consultant Disclosure requirements, have a responsibility to ensure that the requirements set forth in K.C.C. 3.04.120 are met. Failure to disclose information that could present a conflict of interest can result in a voiding of the contract.

Statement of Circumstances: A division within the Department of Public Health contracts for its transcription services. Contracts are made available for competitive bid through the Request for Proposal (RFP) process. During a previous contract period, an employee in another Public Health division submitted a proposal which was selected on the basis of demonstrated qualifications and the merits of the proposal. However, the employee failed to disclose his or her status as a County employee on the Consultant Disclosure Form included in the contract materials. The Board of Ethics has been asked to determine whether this situation could result in a conflict of interest?

Analysis: Under the Code of Ethics, a conflict of interest can occur whenever a County employee has a financial interest in a County action, or when an employee seeks or accepts a private advantage or personal benefit from a County action when such acceptance may conflict with the performance of official duties or when acceptance is likely to impair independent decision-making. In this particular instance, there does not appear to be a conflict of interest because although the employee derives a personal benefit from having a contract with the County, i.e., in the form of compensation, the employee did not participate in, influence, or attempt to influence his or her selection as a contractor and was therefore not a participant in a County action. Section 3.04.017(J) of the Code of Ethics defines participation as:

to be involved in a county action personally and substantially as a county employee either directly or through others through approval, disapproval, decision, recommendation, the rendering of advice, investigation or otherwise.

Although there does not appear to be a conflict of interest in this instance, the employee's failure to disclose his or her status as a County employee on the Consultant Disclosure Form has the potential to raise problems in other situations where contractual arrangements involving County employees might involve conflicts of interest. Section 3.04.120 of the Code requires that:

The private consulting firm and/or individual shall further make known to both the King County board of ethics and the King County executive any other information known to it regarding any potential interest or conflict of interest other than that disclosed pursuant to the provisions of Section 2.14.010 of this code.

This requirement exists to prevent conflicts of interest and potential complaints or legal actions which might result from them. It is the responsibility of each consulting firm or individual to complete the Consultant Disclosure Form accurately.

References: King County Code of Ethics, sections 3.04.017 (J) and 3.04.120 (B).

ISSUED THIS ___________ DAY OF ___________________, 199__.

Signed for the Board: Dr. J. Patrick Dobel, Chair

Members:

Dr. J. Patrick Dobel, Chair
Timothy Edwards, Esq.
Rev. Paul Pruitt

JPD/mag

cc:

Gary Locke, King County Executive
Metropolitan King County Council Members
Susan Baugh, Director-Ombudsman, Office of Citizen Complaints
David Lurie, Director, Department of Public Health
Robert I. Stier, Senior Deputy Prosecuting Attorney and Counsel to the Board of Ethics
Emiko Mizuki, Support Services Manager, Department of Public Health
Department and Division Contract Administrators