LOS ANGELES COMMUNITY COLLEGES

ADMINISTRATIVE REGULATION C-13
TOPIC: Conflict of Interest Checking Procedure

I. Introduction 1

II. Conflict of Interest Checking Procedure (“COICP”) 2

A. College-Based Contracts 2

1. Contract Initiator Review 2

2. Review by Vice President of Administrative Services 2

3. Review by College President 2

4. Review by the Educational Services Center 2

B. Educational Services Center-Based Contracts Below Bidding Thresholds 3

1. Contract Initiator Review 3

2. Review by Head of Office 3

3. Review by Deputy Chancellor 3

4. Review by the Chancellor 3

5. Conflict Alternatives 3

C. Contracts Awarded by Formal Bidding 4

1. Awards to the Lowest Bidder 4

2. Awards by Scoring or Judgment 4

3. Duty to Self-Monitor and Self-Identify 4

D. Other Potential Conflicts of Interest 4

III. Pre-Award Review 4

I. Introduction

On April 26, 2012, the Chancellor issued an interim directive mandating a conflict-of-interest checking process for the building program, and directed the development of a comparable procedure for the District’s operational matters. (Chancellor’s Directive #152, or “the Directive”) The Directive shall continue to apply to the building program. This regulation describes the procedure for contracts for regular operational matters as well as specially-funded programs, except for those contracts are managed under the program for Proposition A and AA and Measure J.

Conflicts of interest may occur as a direct, financial conflict of interest, or may involve non-financial interests, such as contract awards to a closely-related family member. The District has procured a digital database system for the filing of disclosure forms required consistent with the Fair Political Practices Commission regulations (“Form 700”). In recognition that the financial disclosures did not address non-financial conflicts of interest, the Directive included a Conflict of Interest form to address those interests “Form C-13A”). Form C-13A and the related procedure have now been applied to all formal competitive processes, and all contract ratifications pursuant to Procurement Policies and Procedures 04-05 through 04-08 will include an affirmative step of checking for direct, financial conflicts of interest. This Administrative Regulation is to confirm and document those processes.

This procedure is to be used in conjunction with the District’s other established procedures for procurement and public works.

II. Conflict of Interest Checking Procedure (“COICP”)

A.  College-Based Contracts

1.  Contract Initiator Review When a contract is initiated at a college based on authority delegated to the College President, the College Procurement Specialist (“CPS”) shall review any Form 700 filed by that initiator. If the CPS does not identify a potential conflict of interest for the contract initiator, the CPS may proceed with the contract.

2.  Review by Vice President of Administrative Services If the CPS identifies a potential conflict of interest for the contract initiator, the CPS shall review any Form 700 filed by that Vice President of Administrative Services. If the CPS does not identify a potential conflict of interest for the Vice President of Administrative Services, the CPS shall obtain a written determination from the Vice President of Administrative Services regarding the potential conflict of interest for the contract initiator and the outcome of the contract award.

3.  Review by College President If the CPS identifies a potential conflict of interest for the Vice President of Administrative Services, the CPS shall review any Form 700 filed by that College President. If the CPS does not identify a potential conflict of interest for the College President, the CPS shall obtain a written determination from the College President regarding the potential conflict of interest for the contract initiator and the outcome of the contract award.

4.  Review by the Educational Services Center If the CPS identifies a potential conflict of interest for the College President, the CPS shall follow the COICP for Educational Services Center-Based Contracts.

B.  Educational Services Center-Based Contracts Below Bidding Thresholds

1.  Contract Initiator Review For contracts based at the Educational Services Center (“ESC”), the Deputy Chancellor’s designee, or for Facilities Planning and Development, the Chief Facilities Director’s designee (“Lead Contract Staff person or “LCS”), shall review any Form 700 filed by that initiator. If the LCS does not identify a potential conflict of interest for the contract initiator, the LCS may proceed with the contract.

2.  Review by Head of Office

a.  If the LCS identifies a potential conflict of interest for the contract initiator, the LCS shall review any Form 700 from the applicable Head of Office. If the LCS does not identify a potential conflict of interest for the applicable Head of Office, the LCS shall obtain a written determination from the applicable Head of Office regarding the potential conflict of interest for the contract initiator and the outcome of the contract award.

b.  For purposes of this Administrative Regulation, Head of Office shall mean one of the following: the Vice Chancellors, the Deputy Chancellor, the Chief Facilities Executive, the Chief Financial Officer, the Directors, the General Counsel, the Vice President of Administrative Services assigned to the ESC and the Personnel Director.

3.  Review by Deputy Chancellor If the LCS identifies a potential conflict of interest for the applicable Head of Office, the LCS shall review any Form 700 filed by the Deputy Chancellor. If the LCS does not identify a potential conflict of interest for the Deputy Chancellor, the LCS shall obtain a written determination from the Deputy Chancellor regarding the potential conflict of interest for the contract initiator and the outcome of the contract award.

4.  Review by the Chancellor If the LCS identifies a potential conflict of interest for the Deputy Chancellor, the LCS shall review the Form 700 filed by the Chancellor. If the LCS does not identify a potential conflict of interest for the Chancellor, the LCS shall obtain a written determination from the Chancellor regarding the potential conflict of interest for the contract initiator and the outcome of the contract award.

5.  Conflict Alternatives

a.  If the LCS identifies a potential conflict of interest for the Chancellor, the LCS shall consult with the Office of General Counsel regarding recommendations for potential alternatives and advice regarding decision-making authority.

b.  If the matter involves a contract for the Office of General Counsel, the LCS may consult directly with the counsel designated as the alternate counsel for the Internal Audit Unit on whistleblower complaints.

C.  Contracts Awarded by Formal Bidding

1.  Awards to the Lowest Bidder Where a formal bidding process is conducted, and the award is based on the lowest, responsible and responsive bidder, the LCS shall be responsible for providing a written caution to the primary author(s) or developer(s) of the specifications that specifications may not be prepared in a manner that unduly skews or narrows the specifications to apply to only a single provider.

2.  Awards by Scoring or Judgment

a.  Where a formal, competitive process is conducted that involves the exercise of judgment, a selection from amongst lowest bidders, or another type of scoring, the LCS shall conduct obtain a completed Form C-13A and review the Form 700 for each person who will be involved in the scoring process, prior to review of the bids or proposals.

b.  When a participant’s Form 700 or Form C-13A identify potential conflicts of interest, the LCS shall follow the procedures in Section II(B)(2) through (5) as may be necessary.

3.  Duty to Self-Monitor and Self-Identify People participating in scoring processes are expected to be mindful of potential conflicts of interest, and report them to the LCS person promptly upon discovery.

D.  Other Potential Conflicts of Interest The District has in place Procurement Policies and Procedures that mandate quotes or other measures designed to ensure appropriate diligence for obtaining the best terms for the District. The Deputy Chancellor or designee(s) shall pursue appropriate methods of obtaining review regarding both financial and non-financial conflicts of interest for contracts not included in this procedure.

III. Pre-Award Review

A.  Prior to submission for approval by the Board of Trustees, the CPS or LCS shall be responsible for reviewing whether the recommended vendor has been identified on a Form 700 on file for any current employee or consultant. If a potential conflict of interest is identified, the CPS or LCS shall follow the COICP for ESC-based contracts beginning with the Head of Office before placing it on the draft Board agenda.

Original Issue Date: November 14, 2014

Initiated by: Office of General Counsel

Dates of Changes:

References:

The Los Angeles Community College District does not discriminate on the basis of disability in the admissions or access to, or treatment of or employment in, its programs or activities. Requests for alternate formats can be made by contacting the ADA Compliance Administrator, Mardy Kuntzelman, 770 Wilshire Boulevard, Los Angeles, CA 90017, (213) 891-2213 voice, (213)891-2408 TTY, (213) 891-2295 fax, .

C-13 Page 5 of 5