Subject: Compass Newsletter March 2015
From: Brian Roemer <[email-masked]>
To: All Staff Abt <[email-masked]>
Date: Fri, 03 Apr 2015 17:17:50 +0000

April 2015

Focus on Abt Policy: Foreign Corrupt Practice Act and UK Bribery Act Policy

The Financial Corrupt Practices Act (“FCPA”) and other anti-bribery acts generally prohibit companies and employees from giving money and other items of value to foreign government officials. As countries around the world continue to enact and enforce their own antibribery laws, companies like Abt that do business abroad must adhere to the antibribery laws of each country. Abt’s FCPA policy was recently revised to reflect compliance with all anti-bribery acts. The revised policy prohibits Abt employees from:

·         Giving of anything of value to or for the benefit of foreign government officials unless an exception applies.

·         Seeking any improper advantage or influence. Even the appearance of such actions will not be tolerated.

·         Using personal funds to accomplish what is otherwise prohibited by company policy.

Would the examples of payment below likely be considered a violation of anti-bribery laws?

·         Payment of $5,000 in cash to expedite customs clearance of goods into a country where the typical fees for normal processing are only a few hundred dollars.

Yes, this would likely be a violation.

·         Payment for reasonable lodging expenses for local ministry of health official to visit a project for official business.

No, this likely wouldn’t be considered a violation.

·         Payment of $500 in cash to a government building inspector to approve the use of a building that Abt built to serve as a health clinic where the inspection itself is free.

Yes, this would likely be a violation.

Spotlight on Abt Code of Conduct:

Eliminating Discrimination and Harassment

Abt Associates is dedicated to creating a workplace environment free from discrimination, harassment, and violence of any kind. Offensive or threatening behavior, whether verbal or physical, will not be tolerated.

Harrassment can take many forms. Some examples are:

·         Inappropriate physical contact

·         Any unwelcome verbal or physical conduct of sexual nature

·         Displaying derogatory, vulgar, suggestive, or obscene images

·         Comments, jokes, insults, slurs or any other offensive language or other unwelcome actions that are offensive or stereotypical based upon age, sex, creed, marital status, citizenship, religion, gender identity, race, color, sexual orientation, national origin, disability, veteran status, or any protected status

·         Threats, acts of violence, or intimidation

·         Retaliation for reporting or threatening to report acts of misconduct

Things to remember:

·         Do not participate in or ignore any offensive, threatening, or violent behavior and report any harassment or discriminatory treatment of you or others to HR or to the Chief Ethics Officer.

·         Not all harassment is overt. Beware of “subtle harassment” such as offensive images or language.

·         Respect for individuals is not limited by location. All employees throughout the world are entitled to a workplace in which their colleagues treat them with dignity and respect. Adherence to Abt’s harassment policy is mandatory everywhere the Company works, regardless of cross-cultural differences.

Compliance Case Study

On December 2014, the Government Accountability Office (“GAO”) sustained a protest filed by International Resources Group (“IRG”) that AECOM, one of six awardees of a water and development IDIQ (“WADI”), had gained an unfair competitive advantage by employing the former director of USAID’s Office of Water.

The former director of USAID’s Office of Water, the USAID office responsible for the WADI procurement, left USAID after the submission of initial proposals for WADI and began working at AECOM. He assisted in the preparation of AECOM’s final proposal revision but maintained that any input he provided was “stylistic or editorial in nature” and was based on information available to the public.  However, the GAO concluded that USAID failed to analyze the full extent of the director’s involvement in the procurement prior to the award of the contract and found that the former director potentially had access to non-public, competitively useful information.

USAID is conducting an investigation into the matter and will take appropriate corrective action if it is determined that a conflict exists. If no appropriate corrective measures are identified, the GAO recommended USAID terminate AECOM’s contract.

This decision serves as an important reminder that conflicts of interest can jeopardize contracts that Abt is awarded, and that a bid protest can be sustained over the existence of a potential conflict, even if not actual, if it is not reasonably neutralized or mitigated.

Compliance Hotline Numbers

The Ethics and Compliance Helpline

Phone: 888-928-4231 (helpline int’l phone access codes)
Web: http://www.integrity-helpline.com/abtassoc.jsp

The Audit Committee Helpline

Phone: 888-309-1558 (helpline int'l phone access codes)

Web: http://www.AbtAssocAuditCommitteeHL.alertline.com

Compliance Steering Committee

Rich Small (CFO/Chief Compliance Officer) – 617-349-2580, [email-masked]

Clarissa Peterson (CHRO/Chief Ethics Officer) – 301-347-1460, [email-masked]

Brian Roemer (General Counsel) – 301-347-5816, [email-masked]