CONTRACT AND PROCUREMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-00728R000100030016-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 13
• Document Creation Date: December 9, 2016
• Document Release Date: February 2, 2000
• Sequence Number: 16
• Publication Date: March 25, 1948
• Content Type: REGULATION

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Li.. l.mploye(':s will not angago in mutters involving the expenditure
of ovarnmunt funds to' r ' sourcos of supply or service wherein the ernployoo
has n financial . nte,r.,st ~ stock or equity of any kind, without notification
burr. u b channels to tho Lxocutivo, CIA.
5. This policy is not inton.ded to interfere with the receipt of gifts
by Cali pe.rsonn.el from persons from whom they would normally receive such
gifts wore ?l;ho official relationship not present, nor -be interfere with
thu normal owricrsh.ip of stock or similar interest or equity in orCanizations
having contractual rol.atioris.with CIA, provided that s:tch interest is riot
acquired as a result of contractual relationships arising out of the of-
ficial position of tho employee.
6. This policf'is e"tatlished for the protection of CIA and its
individual employees.
STATINTL
R. H. HILLENKOETTER
Rear Admiral, USN
Director of Central Intelligence
DI,;T?JmiT10N: All CIA )!mpl.oyees,
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Mar 25, l9b
MF !O.RAND:IM TO: Asst. Director for Reports and 3#etimatea
Asst. Director for QJperations
Asst. Director for Special Operations
Asst. Director for Collection and Dissemination
Chief, ICAPS
Chief, Advisory Council
Executive for Inspection and, Security
Executive for Administration and Mgt.
General Counsel
Chief, Magement Branch, MM'
Chief, Personnel Branch, AM
Chief, Budget aril Finance Branch, A&M
Chief, Services,Branch, MM
Chief, Reference Center, A& 4
ECT: Contrpot and Procurement Activities
1. No employee of CIA will negotiate or assist in the
negotiation of any contract, lease, or procurement matter of
a snature
ofinvoly~ the expenditure of government mods, with
a supp],y or service in which such employee has stock
or financial interest of az r kind.
2. Officials haying supervision over such matters will be
held personally responsible for insuring strict compliance with
the provisions of this directive.
FOR THST DIR'TOR OF CRITRAL INTIIA,IGE TCE:
E. X. WRIGM
Brigadier General, LISA,
Deputy Director
STATINTL
3/24/46
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STATINTL
C1 1 TI.?AL INTELLIGEITC1 AGENCY
Washington, D. C.
1AD 11NNtl TRATIVE I1,STRUCT~ 3 February 1950
~: C?
UB,JE'CT : Contract and Procuremer:t Activities,
iz ?,SC:~'S:COTT: Memo from Doputy Direc?toz?, CIA, to As:;istant Directors
and Staff Chiufs, dated 25 March 1948, same subject.
1. It is the policy of CIA that employees will not accept gifts,
money or other materials of monetary value from any ind9.vidual or group
of individuals engaged in any aspect of contractual relations with this
Age:icy.
2. Any such ;iits, --homey' or rtiaterials' of monetary value received
at any time by, CIA omployces must be returned im:uodiately to the donor.
A complete report corioerriing dray such activity and its surrounds ng,oircum-
stances will be subrni,;L?ted through channels to the Executive, CIA.
3. Violations of this policy will constitute grounds for immediate
dismissal from the Agency. Employees so disiairsed may be subject to
prosecution under the provi,,ions of Public Law 772, 60th Congress. Perti-
n -rit provisions of the Criminal Code in connection with bribery and graft
provide:
''202. Whoever, being an officer or employee' of, or person
acting for or on behalf' of the United States, in any official
capacity, under or by virtte'of the authority of any depart-
ment or agency thereof, . . . asks, accepts, or receives any
money, or any clleck,' order, contract, promise, undertaking,
obligation, gratui tyr, or security for the payrhent of money,
or for the delivery or coriveyance of anything of value, with
ia'iten.t to have his 'aocision or action on r.ny question, matter,
cause, or proceeding which may at any time be pending, or
which may by law be brought before' him in his official capacity,
or in his place of trust or profit, influenced thereby, shall
be fined not more than three times the s.mount of such r.,oney or
value of such thing or imprisoned not more than three years,
or both; and s;iall forfeit his office or place and be dis-
qualified from holding any office of honor, trust, or profit
under the United States."
11216. Whoever, . . being an officer, employee, or ag,:int
of the United Sc;~.tes, directly or indirectly takes, receives,
or agrees to receive, any money or thing of value, for giving,
procuring or aiding to procure to or for any person, any con-
tract from the LTnited States or from any officer, department
or a ericy thereof;" . . . will be punished according to law.
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L1.. Employees will not ongoxge in,rnatters involving the expenditure
of tov,.:~rnmunt funds to'i'sources of supply or service' wherein the employee
has a firiaticial interest/ stock or equity of any kind, without notification
throush channels to the Exocutivo, CIA.
5. This policy is not intairided to interfere with the receipt of gifts
by CII porsonn.el from persons from whom they would normally receive such
Sifts were the official relationship not present, nor to interfere with
tlt~ normal ownership of stock or similar interest or equity in organizations
having contractual relations with CIA, provided that s,.:tch interest is not
acquired as a result of contractual rolationchips arising out of the of-
ficial Position of the employeo.
6. This policy'is establishod for the protection of CIA and its
individual eriployocs.
STATINTL
R. H. HILLER
Rear Admiral, USN
Director of Central Intelligence
DISThI.EUTION: All CIA Employees-
13 6 NV 9' 83JO6
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STATINTL
Dgx,,"P - _- 1/26/50
STATINTL
NO.
SUJ:JECr'f..
eemd from l q*. Director, CIA, to Asa1stant Directors
and : to `f.-CIiiofsf dated 25 Tlarch 1948, same, subject,
1. it 16 t ho policy of CIA'd that employees will. -not accept i s)
~7h
money or,materials of monetary value from any individual, or gcoup
of individuals engaged In ' any aspect of contractual relations with
provide:
9YDJoJi:1 f-rR.
3* Violations of this Policy vill constitute Ai tediato dismxsaa3.
Ant4
from the A oncy, &P1
&iW :3o disr~.ssdd 'k .be 6ub ject" to prosecu4
tion under the proTAsions of Public Lz 772, 330' t h Congress, ' Pertinent
proviajon: of the Cri ~a1 Code in co ifte: .o~i vdth bribery and g2?aft
channels to the uxecut.ILv?a C
this Agency,
2. nL,r ueh,,poney os materials of: monetary value received at
any tine by 'M'employees must be returned 3 nediate3v to the donor
Onl~ altF t/,y >r:: c
a"h .o npleto repo la oanoern#si ; such acttvit3~submittedd'through
202. W'a`ho?vor, being, an officer or employee of, or parson
acting for or on behalf of the United 3tates~ ?3X n ?? `off .oiai::
capacity, under or by virtue "of the authority of any depart-
* ent or agency thereof, . . asks'.
, accopts or receives any
money, or arty check, order, contract promxsa, ixndartakirl "
obligation, 'atu:%'ty, or security for' the ?payraeri1i of mt eyyp ;.:.
or for the delivery or cony y nce of 'at> rtbin of valued with
intent to have his decision or action on any question, matter
,
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cause, or proceeding which may at any time be pending, or
which may by law be brought before him in his official
oapaoity, or in his plane of trust or profit, influenced
thereby, shall be fined not more than three times the amount
of such money or value of such thing or imprisoned not more
than three years, or both= and shall forfeit his office or
place and be disqualified from holding any office of honor,
trust, or profit under the United States."
"216. Whoever, . . . being an officer, employee, or agent of
the United States, directly or indirectly takes, receives, or
agrees to receive, any money or thing of value, for giving,
procuring or aiding to procure to or for any person, any
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~~ment or agency thereof i . . will be vanished aooordin6 to law. (~/~ /3 l
by CIA personnel from persons from v-hom they would normally receive such
4-0--l-V This policy is not intended to interfere with the receipt of gifts
gifts were the official relationship not present,
Employees will not engage in matters involving the expenditure
of government funds with sources of supply or service wherein the employee
has a financial interest, stook or equity of any kind, without notification,
through abcvncls, to the Executive, CIA.
x o. 4 01M #be~ain'bsnt i,f M. i is interfere with the normal
position of the employeee
ownership of stook or similar interest or equity in organizations having
cent astmal relations with CIA, provided that such interest is not acquired
as a result of contractual relationships arising out of the official
41
DISTRIBUTION, A~ I C4 ~- 9 ~'/ay e S1
/I;. r11t C4 ?r0-1r(I,n6o q e/ A a ' ,v p I Ti
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 Approved For Release P81-00728R000100030016-4
U ASSIFIED
SECRET FORM NO. 'p?. CONFIDENTIAL RESTRICTED
SEP 1917
S FIED
ESTRICTEfCONFIDENTIAL SECRET
~
UE~ WILL CIRCLE CLASS. CATION TOP AND BOTTOM)
- CENTRAL INTELLIGENCE AGENCY
OFFICIAL ROUTING SLIP
INITIALS
DATE
1
2
3
4
5
FROM
INITIALS
DATE
2
3
=APPROVAL 0 INFORMATION I I SIGNATURE
..._~IACTION II DIRECT REPLY Li RETURN
COMMENT I I PREPARATION OF REPLY r-~ DISPATCH
I JCONCURRENCE I- I RECOMMENDATION I_ FILE
REMARKS: ~~~ .dot!
d~G~?
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 1st Draft 10 January 1950
1. The acceptance of any money or thing of value from any
individual, company, firm, or corporation, or official representa-
tive thereof, which has engaged in, is presently engaged in, or
is seeking to engage in contractual relations with this Agency
for the furnishing of supplies, materials or services for monetary
consideration, by any CIA employee, who has or may have such matter
brought before him in his official capacity, Ais prohibited.
2. Any such money or thing of value actually received at
any time by any such CIA employee should be returned immediately
to the donor, and report of the gift and surrounding circumstances
made through official channels to the Executive.
3. Employees who violate this policy will be dismissed from
the Agency.
4. This policy is not intended to interfere with the receipt
of gifts by CIA personnel from persons from whom they would
normally receive such gifts were the official relationship not
present.
5. a. No employee of CIA will negotiate, assist in the
negotiation of, or review any contract, lease, or procurement
matter involving the expenditure of government funds, with a
source of supply or service in which such employee has a stock
or financial interest or equity of any kind, without first in-
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forming the Executive through official channels in each instance.
b. In situations arising under paragraph 5. a, the
Executive will determine in each individual case whether the
nature of the interest orequity of the employee in such case is
of such a nature that it would be improper for the employee
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il.Li? Lil cus oiii.cial capacity., or in his place
of t
t
"216. Whoever, . being an officer, employee.,
or agent of the United States, directly or in-
directly takes, receives, or agrees to receive,
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to participate or assist in the negotiations or review of the
particular action involved.
c. This policy is established for the protection both
of CIA and its individual employees. It is not intended to
interfere with the normal ownership of stock or similar interest
or equity in organizations having contractual relations with
CIA, provided that such interest is not acquired as a result of
contractual relationships arising out of the official position
of the employee.
6. Attention is also called to pertinent provisions of the
Criminal Code in connection with bribery and graft. Particular
attention is directed to Sections 202 and 216 of Public Law 772,
80th Congress, which provide that:
"202. Whoever, being an officer or employee
of, or person acting for or on behalf of the United
1States, in any official capacity, under or by
virtue of the authority of any department or
agency thereof, . . . asks, accepts, or re-
ceives any money, or any check, order, con-
tract, promise, undertaking, obligation,
grattuity, or security for the payment of
money, or for the delivery or conveyance of
anything of value, with intent to have his
decision or action on any question, matter,
cause, or proceeding which may at any time be
pending, or which may by law be brought before
rus
or profit, influenced thereby, shall be
fined not more than three times the amount of
such money or value of such thing or imprisoned
not more than three years, cr both; and shall
forfeit his office or place and be disqualified
from holding any office of honor, trust, or profit
under the United States."
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any money or thing of value, for giving, procuring
or aiding to procure to or for any person, any
contract from the United States or from any officer,
departjnent or agency thereof; . . . W/ /
\7. The memorandum from the Deputy Director to the Assistant
Directors and, gaff fe4hiefs,dated 25 March 191 8 , Subject:
Contract and Procurement-.Activities is re$inded.
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Dlw'T - . , 1/26/50
ADMINISTRA'T'IVE INSTRUCTION
NO.
SUBJECT : Contract and Procurement Activities
RESCISSION: Memo from Deputy Director, CIA., to Assistant Directors
and Staff Chiefs, dated 25 March 1248, same subject.
1. It is the policy of CIA that employees will. not accept (~1
G
money or materials of monetary value from any individual or group
of individuals engaged in any aspect of contractual relations with
this Agency.
2. Any such money or materials of monetary value received at
any time by CIA employees must be returned immediately to the donor,.
J c~' t,r,'; i a L
with a complete report concerning such( c ivity)submitted, through
channels, to the Executive,, CIA.
3. Violations of this policy will constitute/ immediate dismissal
c
from the Agency,and employees so dismissed will be subject to prosecu-
tion under the provisions of Public Law 772, 80th Congress. Pertinent
provisions of the Criminal Code in connection with bribery and graft
provide:
11202. Whoever, being an officer or employee of, or person
acting for or on behalf of the United States, in any official
capacity, under or by virtue of the authority of any depart-
ment or agency thereof, . . . asks, accepts, or receives any
money, or any check, order, contract, promise, undertaking,
obligation, gratuity, or security for the payment of money,
or for the delivery or conveyance of anything of value, with
intent to have his decision or action on any question, matter,
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 Approved For Release 2000/08/30 : CIA-RDP81-00728R000100030016-4
cause, or proceeding which may at any time be pending, or
which may by law be brought before him in his official
capacity, or in his place of trust or profit, influenced
thereby, shall be fined not more than three times the amount
of such money or value of such thing or imprisoned not more
than three years, or both; and shall forfeit his office or
place and be disqualified from holding any office of honor,
trust, or profit under the United States."
"216. Whoever, . . . being an officer, employee, or agent of
the United States, directly or indirectly -rakes, receives, or
agrees to receive, any money or thing of value, for giving,
procuring or aiding to procure to or for any person, any
contract from the United States or from any officer, depart-
'1
ment or agency thereof; . . . will be punished according to law.
4. This policy is not intended to interfere with the receipt of gifts
would normally receive such
the
h
f
y
om
rom w
by CIA personnel from persons
gifts were the official relationship not present=
r?
Employees will not engage in matters involving the expenditure
of government funds with sources of supply or service wherein the employee
has a financial interest, stock or equity of any kind, withoutAnotification,
through channels, to the Executive, CIA.
~;~ T~ ice-the-d ent-of-t3zia- po-l e Ito interfere with the normal
ownership of stock or similar interest or equity in organizations having
contractual relations with CIA, provided that such interest is not acquired
as a result of contractual relationships arising out of. the official
position of the employee.
FOR THE DIRECTOR OF CENTRAL INTELLIGENCE:
DISTRIBUTION: A.
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