Our Commitments to Government Customers

When working with government customers, we must be aware and abide by the special laws, regulations and procedures that apply to government contract work. It is important to note that many government contracting rules are far more detailed than the guidelines set forth in this section. In addition, state, local and foreign governments may also have special rules that apply. To ensure compliance, all of us who work on government contracts must familiarize ourselves with and follow the laws, rules and regulations that pertain to our work.

The consequences for violating government contracting rules are serious, both for our Company and the individuals involved. If you have questions or concerns, seek advice from our CIO.

Selling to Government Customers

At times, we may inadvertently come to know confidential information relating to government procurement. Common examples of this type of information include nonpublic bid or proposal information, cost or pricing data, proprietary information about techniques or indirect costs or agency source information. We may never seek to obtain this information and cannot use it in any way, especially to prepare a bid or proposal. If you become aware of confidential information related to government procurement, notify our CIO immediately.

The law also imposes stringent requirements on us when we develop and negotiate contract proposals. We must always ensure the cost data we provide to government contract negotiators is accurate and complete. The pricing data we submit must contain all the facts that a prudent buyer or seller would reasonably expect to affect pricing.

Finally, we must exercise caution when engaging third parties. At no time may we engage any company that is owned by a government employee to be a Tracking Innovations subcontractor, vendor or other business partner. In addition, we may not engage any agent or consultant who claims to have influence with government officials or who you believe will exert improper influence to win a government contract.

Working on Government Contracts

Text Box: Q.
My team has been working very hard to complete a government-issued contract, but we are
behind schedule.
We can meet our deadline if we leave out one time-consuming test. The test is a mere formality
and will have little effect on the final product. Is it okay if my team skips the test in order to meet the
deadline?
A.
No. We must conduct all tests that are required by the contract and accurately record all
test results. If we deviate from contract specifications, our Company could face expensive fines and be excluded from doing
future business with the government.

When we are part of a team working on a government contract, special rules and regulations apply to us. First and foremost, we must always be truthful and accurate when dealing with government employees, officials and agencies. This means that we must:

Know and comply with all contract requirements
Ensure all reports, certifications and statements to the government are current, accurate and complete
Before charging time or costs to a project, make sure it is permissible and allowable to do so
Assign all time allocations and costs to the proper category, as well as the appropriate contract
Retain records in accordance with contract requirements
Never dispose of written records or other documentation until the required retention period has ended
Use government property for specified purposes only, and never for personal or non-contractual use

Regulations also require that we fulfill our contracts completely and in accordance with contract terms. Deviating from a contract’s specifications without authorization—such as by making substitutions in materials or vendors or by failing to perform required tests and inspections—is prohibited.

Exchanging Gifts and Entertainment with Government Employees

Text Box: Q.
I’m working closely with a government employee on a contract. Next week,
she’ll be traveling to our offices for a project update and to discuss next steps. I would like to take her
to lunch while she is visiting as a business courtesy. Is it okay to take her out to an inexpensive
lunch?
A.
This may be permissible, but you should seek guidance from our CIO before offering to
pay for the lunch. Remember, the rules governing the types of gifts and entertainment we can offer government employees
are much stricter than those governing our interactions with commercial contacts.

Many U.S. government agencies have strict rules prohibiting giving gifts, meals and favors to government employees. While the rules vary by agency, it is our responsibility to know these rules and follow them. Common areas where issues arise include the following:

Paying for business meals with Tracking Innovations’ funds
Providing entertainment, such as sporting events
Giving gifts of more than nominal value

Even if you plan to give a gift or favor or to offer entertainment that does not fall within the categories listed above, you must still ensure that it does not violate the guidelines of the agency with which you are working. Seek guidance from our CIO prior to offering a gift or entertainment, no matter how nominal in value it may be.

Of course, no offer of a gift or entertainment may be made with the intent to influence a government employee’s actions. For more information, see the “Following Anti-Bribery Laws” section of our Code.

Discussing Employment with Government Employees

We must always comply with the strict rules and regulations that govern hiring or discussing an employment opportunity with a government employee (or his or her family member) who is involved in administering our contracts. While it may be possible to hire government employees or their family members in certain instances, the proper precautions must be taken. Before engaging in even preliminary suggestions or discussions, you must obtain permission from our CIO.

Protecting Government-Classified Information

In connection with the work we do on behalf of the government, each of us must also take steps to protect government-classified information. We may only make this information available to other associates who have a need to know the information and hold the appropriate government clearance.