(3) Upon review of the initial decision, and any appeal timely filed, the General Counsel shall issue a written decision which shall be based solely upon the record of the proceedings, or those portions thereof cited by the parties to limit the issues. If the General Counsel modifies or reverses the initial decision, findings of fact or conclusions of law that differ from those of the hearing examiner shall be specified. The decision of the General Counsel shall be deemed a final administrative determination.

(k) Administrative sanctions. The General Counsel may take appropriate disciplinary action in the case of any former employee found in violation of 18 U.S.C. 207 (a)-(c) or implementing regulations by:

(1) Prohibiting the former employee from making, on behalf of any other person, except the United States, any formal or informal appearance before, or, with the intent to influence, any oral or written communication to, the Department of the Navy, its officers or employees, on any matter of business, for a period not to exceed five years. This may be enforced by directing present officers and employees of the Department to refuse to participate in any such appearance, or to accept any such communication; and

(2) Taking other appropriate disciplinary action.

(1) Judicial review. Any person found in violation, as described, may seek judicial review of the final administrative determination.

[50 FR 9014, Mar. 6, 1985; 50 FR 15892, Apr. 23, 1985]

§ 721.18 Bedrock standards of conduct for Department of the Navy personnel.

(a) To maintain public confidence in the integrity of the Department of the Navy which is essential to the performance of its mission, all naval personnel shall comply with the standards of conduct listed in this section.

(b) Avoid any action, whether or not specifically prohibited, which might result in or reasonably be expected to create the appearance of:

(1) Using public office for private gain,

(2) Giving preferential treatment to any person or entity,

(3) Impeding Government efficiency or economy,

(4) Losing complete independence or impartiality,

(5) Making a Government decision outside official channels, or

(6) Adversely affecting the confidence of the public in the integrity of the Government.

(c) Do not engage in any activity or acquire or retain any financial interest which results in a conflict between your private interest and the public interest of the United States related to your duties.

(d) Do not engage in any activity that might result in or reasonably be expected to create the appearance of a conflict of interest.

(e) Do not accept gratuities from defense contractors.

(f) Do not use your official position to influence any person to provide any private benefit.

(g) Do not use inside information to further a private gain.

(h) Do not use your rank, title, or position for commercial purposes.

(i) Avoid outside employment or activity that is incompatible with your duties or may bring discredit to the Navy.

(j) Never take or use Government property or services for other than officially approved purposes.

(k) Do not give gifts to your superiors or accept them from your subordinates. (Consult § 721.6 for situations considered to fall outside this rule.)

(1) Conduct no official business with persons whose participation in the transaction would be in violation of law.

(m) Seek ways to promote efficiency and economy in Government operation and public confidence in its integrity.

Sec.

722.7 Availability of forms.

AUTHORITY: 5 U.S.C. 301; 10 U.S.C. 166 and 5031; 50 U.S.C. 1436.

SOURCE: 41 FR 34745, Aug. 17, 1976, unless otherwise noted.

§ 722.1 Purpose.

This Part 722 implements 50 U.S.C. 1436 and Part 166 of this title, which establish requirements and procedures for annual filing and review of reports of Department of Defense (DoD) and defense related employment (form DD 1787) submitted by:

(a) Certain categories of civilian officers and employees of the Department of Defense who were formerly employed by defense prime contractors, and

(b) Certain categories of former military officers and former DoD civilian officers and employees who were subsequently employed by defense prime contractors.

§ 722.2 Scope and effect.

The provisions of this part apply to all Navy and Marine Corps activities, and to the Department of the Navy personnel and former or retired personnel indicated in § 722.3, including personnel of Navy or Marine Corps nonappropriated fund activities. An individual who is required to file a report of DoD and defense related employment (form DD 1787) and fails to do so for any reason is subject under 50 U.S.C. 1436 to a penalty of six months imprisonment, a fine of $1,000, or both.

§ 722.3 Persons required to file form DD 1787.

(a) Criteria. The Department of the Navy personnel and former or retired personnel indicated below shall file form DD 1787 with the Secretary of the Navy, in the manner prescribed in § 722.4, not later than January 15 following the close of any fiscal year in which all the specified conditions

occur.

(1) Civilian personnel formerly employed by defense prime contractors. A civilian officer or employee of the Department of the Navy, including a consultant or part-time employee, shall file form DD 1787, if:

(i) He was employed during any part of the fiscal year by the Department of the Navy or another DoD component at a salary rate at least equal to the minimum rate for grade GS-13;

(ii) At any time during the threeyear period preceding the beginning of the fiscal year, he was employed by or performed services for a defense prime contractor, as defined in paragraph (b) (2) of this § 722.3, at a salary rate of at least $15,000 per year; and

(iii) Such defense prime contractor received $10 million or more of negotiated defense contracts during the fiscal year.

(2) Former civilian personnel subsequently employed by defense prime contractors. A former civilian officer or employee of the Department of the Navy, including a consultant or parttime employee, shall file form DD 1787, if:

(i) During any part of the fiscal year, he was employed by or performed services for a defense prime contractor, as defined in paragraph (b)(2) of this § 722.3, at a salary rate of at least $15,000 per year;

(ii) Such defense prime contractor received at least $10 million of negotiated defense contracts during the fiscal year;

(iii) The employee's last employment with the Department of the Navy was terminated not more than three years prior to the beginning of the fiscal year; and

(iv) At any time during the threeyear period preceding the termination of his last employment by the Department of the Navy, he was paid at a rate at least equal to the minimum rate provided at the time for grade GS-13.

(3) Former military officers subsequently employed by defense prime contractors. A former officer, including a retired officer, of the Navy, Marine Corps, Naval Reserve, or Marine Corps Reserve, who served on extended active duty for at least 10 years and was serving in the grade of lieutenant commander, major, or above, at the time of retirement or release from or termination of extended active duty, shall file a form DD 1787, if:

(i) During any part of the fiscal year, he was employed by or performed, services for a defense prime contractor, as defined in paragraph (b)(2) of this § 722.3, at a salary rate of at least $15,000 per year;

(ii) Such defense prime contractor received at least $10 million of negotiated defense contracts during the fiscal year; and

(iii) The former or retired officer's extended active duty terminated not more than three years prior to the beginning of the fiscal year. (A retired military officer is subject to the reporting requirement, if otherwise applicable, even if his military retirement pay is waived). A Reserve officer, not on active duty who is not a "retired officer" is a "former officer" for the purpose of form DD 1787 even though he currently holds a commission in a Reserve component.

(b) Definitions—(1) Employed or employment is used in a broad sense in this part to include services performed, as a consultant or otherwise, either for a defense prime contractor or for a component of the Department of the Navy or DoD. This definition includes, among other services which might have been performed for a defense prime contractor, representing a contractor at a hearing, trial, appeal, or other action in which the United States was a party and which involved services and materials provided or to be provided to DoD by such contractor, and representing a contractor in any transaction with DoD involving services or materials provided or to be provided by such contractor to DoD.

(2) Defense prime contractor is used in this part to mean any individual, firm, corporation, partnership, association, or other legal entity that enters into a contract directly with DoD, or any component thereof, to furnish services or materials, including construction, to DoD or a component, and which is awarded $10 million or more of negotiated defense contracts (as distinguished from contracts awarded by formal advertising) during a given fiscal year. The definition thus excludes subcontractors, and excludes prime contractors that receive less than $10 million of negotiated defense contract awards in a fiscal year. Also, a

subsidiary of a large corporation may be a separate entity and contract directly with DoD in its own name, in which case the "defense prime contractor" would be the subsidiary corporation, not the parent corporation. Therefore, only the dollar amount of negotiated contracts awarded by DoD components to a subsidiary contracting in its own name during a fiscal year would be considered in determining whether the subsidiary's employees or former employees may be required to file form DD 1787. A list of the "defense prime contractors" meeting the criteria of this definition for the preceding fiscal year is published each December (each September for fiscal years prior to FY 1976) in the FEDERAL REGISTER, appearing as an amendment of 32 CFR 166.11. Such a list will also be disseminated annually to all naval activities by a JAG Notice.

(3) Fiscal year means the period beginning on July 1, 1975, and ending on September 30, 1976, and, after the latter date, means a year beginning on October 1 and ending on September 30 of the following year. It is designated by the calendar year in which it endsfor example, FY 1977, begins on October 1, 1976 and ends on September 30, 1977.

(1 CFR 18.14, and Part 21, Subpart B) [41 FR 34745, Aug. 17, 1976, as amended at 45 FR 8599, Feb. 8, 1980]

Manpower Management (Administrative Office (01B), Department of the Navy, Washington, D.C. 20390;

em

(3) Former or retired Navy or Naval Reserve officers subsequently ployed by defense prime contractors: The Chief of Naval Personnel (Pers14), Department of the Navy, Washington, D.C. 20370;

(4) Former or retired Marine Corps or Marine Corps Reserve officers subsequently employed by defense prime contractors: The Commandant of the Marine Corps (Code MSPA-3), Department of the Navy, Washington, D.C. 20380.

(b) The Director of Civilian Manpower Management, Chief of Naval Personnel, and Commandant of the Marine Corps shall receive for the Secretary of the Navy, as provided in paragraph (a) of this section, all reports of DoD and defense related employment (form DD 1787) submitted by personnel and former personnel of the Department of the navy, and shall review each report in the manner prescribed in paragraph (d) of this section. Not later than February 15 each year, they shall forward to the Assistant Secretary of the Navy (Manpower and Reserve Affairs) three copies of each form received by them, together with a listing of the names of individuals submitting the forms, segregated by the names of the defense prime contractors for which the individuals were employed or performed services. (RCS DD-M&RA(A) 1051 (5370).)

(c) Not later than February 28 each year, the Assistant Secretary of the Navy (Manpower and Reserve Affairs) shall forward to the Assistant Secretary of Defense (Manpower and Reserve Affairs) three copies of each form received pursuant to paragraph (b) of this section, together with a composite listing, in triplicate, of the names of individuals submitting the forms, segregated by the names of the defense prime contractors concerned. (RCS DD-M&RA(A) 1051 (5370).) (Copies of the completed forms and listings are later provided by the Assistant Secretary of Defense (Manpower and Reserve Affairs) to the Congress and are filed for public inspection in the Office of the Secretary of Defense.)

(d) In conducting the review prescribed in paragraph (b) of this section

the Director of Civilian Manpower Management, Chief of Naval Personnel and Commandant of the Marine Corps, as appropriate, shall determine whether:

(1) Each form submitted is required under this part and 50 U.S.C. 1436;

(2) All required information has been furnished; and

(3) The information submitted indicates an apparent violation of a conflict-of-interests law or regulation cited or provided in Part 721 of this chapter. (For example, the fact that a former officer became employed by a defense prime contractor after terminating Government duties involving that contractor might indicate a possible violation of 18 U.S.C. 207 or 208(A), or the fact that a retired Regular officer represents a contractor in transactions or negotiations with DoD components might indicate a possible violation of 18 U.S.C. 281 or temporarily disentitle him from receiving military retirement pay under 31 U.S.C. 801(c).)

(e) If, upon review of a form, it is determined that the form was not required to be submitted or that all required information has not been furnished, appropriate corrective action shall be taken. If it is determined that a conflict-of-interests violation may have been committed, the form will be processed as provided in paragraph (b) of this section, but a copy of the form shall be forwarded, for such additional review, inquiry, advice, or further action as may be warranted, to the Chief of Naval Material if involving a possible violation in connection with the procurement, acquisitions, or disposal of property within the purview of SECNAVINST 4385.1B; or to the Judge Advocate General in any other

case.

88 722.5-722.6 [Reserved]

§ 722.7 Availability of forms.

Supplies of form DD 1787 are available in the Forms and Publications Segment of the Navy Supply System under Stock Number 0102-Lf-0255090.

§ 723.1 General provisions.

(a) Purpose. This part establishes procedures for making application, and the consideration of applications, for the correction of Navy and Marine Corps records (referred to in this part as naval records) by the Secretary of the Navy acting through the Board for Correction of Naval Records (hereinafter referred to in this part as the Board).

(b) Authority. Section 131 of the Legislative Reorganization Act of 1946 (2 U.S.C. 190g) provides that no private bill or resolution, and no amendment to any bill or resolution, authorizing or directing the correction of military or naval records, shall be received or considered in either the Senate or the House of Representatives. Section 207 of the same Act, as amended, and as re-enacted and codified in 10 U.S.C. 1552, provides:

(a) The Secretary of a military department, under procedures established by him and approved by the Secretary of Defense, and acting through boards of civilians of the executive part of that military department, may correct any military record of that department when he considers it necessary to correct an error or remove an injustice. Under procedures prescribed by him, the Secretary of the Treasury may in the same manner correct any military record of the Coast Guard. Except when procured by fraud, a correction under this section is final and conclusive on all officers of the United States.

(b) No correction may be made under subsection (a) unless the claimant or his heir or legal representative files a request therefor

before October 26, 1961, or within three years after he discovers the error or injustice, whichever is later. However, a board established under subsection (a) may excuse a failure to file within three years after discovery if it finds it to be in the interest of justice.

(c) The department concerned may pay, from applicable current appropriations, a claim for the loss of pay, allowances, compensation, emoluments, or other pecuniary benefits, or for the repayment of a fine or forfeiture, if, as a result of correcting a record under this section, the amount is found to be due the claimant on account of his or another's service in the Army, Navy, Air Force, Marine Corps, or Coast Guard, as the case may be. If the claimant is dead, the money shall be paid, upon demand, to his legal representative. However, if no demand for payment is made by a legal representative, the money shall be paid—

(1) To the surviving spouse, heir, or beneficiaries, in the order prescribed by the law applicable to that kind of payment;

(2) If there is no such law covering order of payment, in the order set forth in section 2771 of this title; or

(3) As otherwise prescribed by the law applicable to that kind of payment.

A claimant's acceptance of a settlement under this section fully satisfies the claim concerned. This section does not authorize the payment of any claim compensated by private law before October 25, 1951.

(d) Applicable current appropriations are available to continue the pay, allowances, compensation, emoluments, and other pecuniary benefits of any person who was paid under subsection (c), and who, because of the correction of his military record, is entitled to those benefits, but for not longer than one year after the date when his record is corrected under this section if he is not reenlisted in, or appointed or reappointed to, the grade to which those payments relate. Without regard to qualifications for reenlistment, or appointment or reappointment, the Secretary concerned may reenlist a person in, or appoint or reappoint him to, the grade to which payments under this section relate.

(e) No payment may be made under this section for a benefit to which the claimant might later become entitled under the laws and regulations administered by the Administrator of Veterans' Affairs.

[17 FR 10243, Nov. 11, 1952, as amended at 26 FR 12121, Dec. 19, 1961]

§ 723.2 Establishment, function, and jurisdiction of the Board.

(a) Establishment and composition. Pursuant to the foregoing statutory