How is this not a conflict of interest?

Started by A.Member, October 05, 2011, 04:49:10 PM

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A.Member

The North Central Region (NCR) region has an aircraft maintenance contract with an individual to have him perfom all aircraft maintenance for NCR.  This contractor (a paid position) is also the Chief of Staff for the Region.  Thus, he has a direct say in how and when aircraft maintenance is performed.   This puts him in a position to personally benefit financially from the arrangement.

The interesting part is he was originally appointed as Vice Commander of NCR several months ago but NHQ intervened and told the new NCR Commander that this person could not serve in that capacity specifically because of what I mentioned above (the conflict of interest); this according to a letter sent to all NCR members from the NCR Commander.   So, with that being the case, how does it still fly that he is allowed to serve as Chief of Staff or any position of authority?  In no other organization would such an arrangement by allowed to continue; it would not pass a legitimate audit.   

Do similar arrangements exist in other Wings/Regions? ie. a paid staff/contractor is also a member in position of authority (particularly a senior position)?   The two need to be very separate - to the point that perhaps the contractor should at best only hold a patron status or possibly not be a member at all.   

I limit my CAP involvement to the squadron level, for a number of reasons, not the least of which includes some of the silly wannabe politics at Wing and higher levels.  That said, whether it be this organization or any other, it's difficult not to raise questions on something that seems so blatantly wrong.  This issue seems to be a prime candidate for an IG case falling under the Fraud, Waste, and Abuse umbrella as defined by CAP and USAF.   While I am not privy to details, it's my understanding that at least one Wing in the Region has raised some long standing concerns about this arrangement and the cronyism among current leadership in NCR.  If so, I hope NHQ takes the issue seriously.
"For once you have tasted flight you will walk the earth with your eyes turned skywards, for there you have been and there you will long to return."

Extremepredjudice

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lordmonar

I am assuming that he had the contract before he was appointed to the CoS position.

There is no conflict of intrest in that the relationship was disclosed before the appointment.
There is no conflict of intrest as there is very little discretionary maintenance when it comes to CAP aircraft.....it either needs to be fixed or it does not.
The CoS is not the primary point of control for maintenace....it would either be the DO or the LG......not the CoS.

I understand your position.....and it could be a conflict of intrest.......but it could just as easily not be an issue with a little honesty and discretion.

This is not an uncommon situation.  An aviation professional who also is a CAP member.....where have we seen this before?

The question about conflict of interest would have been more appropriately drawn up when the consolidated maintenance contract was first drawn up (assuming that he was a member at that time).   If there was not any undue influence or insider bidding going on.

Maybe Ned could chime in on this more.
PATRICK M. HARRIS, SMSgt, CAP

JeffDG

Disclosure and segregation should be sufficient.

Simply split out the Director of Maintenance and have them report directly to the CC or CV rather than the CoS.  I can see how CV would have been a bigger heartburn, as the role necessarily has responsibility for all Wing operations, but the Region staff can be reorged a bit to cut the CoS out of the conflict.

FW

The appropriate regulation is CAPR 35-10

"b. Avoid any Conflicts of Interest. No CAP member may use corporate property, information, or their position for improper personal gain or benefit."

As long as there is proper disclosure and, all other issues are agreed upon, it's OK.


NCRblues

I do not think this is a conflict of interest BUT....

It does give off the APPERANCE of conflict, and appearance is a heavy hand in the political realm of anything (cap or real politics)

This should not surprise anyone in NCR, given who the commander is and how popular he is...  ::)
In god we trust, all others we run through NCIC

PHall

Quote from: NCRblues on October 05, 2011, 06:54:57 PM
I do not think this is a conflict of interest BUT....

It does give off the APPERANCE of conflict, and appearance is a heavy hand in the political realm of anything (cap or real politics)

This should not surprise anyone in NCR, given who the commander is and how popular he is...  ::)

Grinding that axe are we?

NCRblues

Quote from: PHall on October 05, 2011, 08:11:49 PM
Quote from: NCRblues on October 05, 2011, 06:54:57 PM
I do not think this is a conflict of interest BUT....

It does give off the APPERANCE of conflict, and appearance is a heavy hand in the political realm of anything (cap or real politics)

This should not surprise anyone in NCR, given who the commander is and how popular he is...  ::)

Grinding that axe are we?

I have made it very clear in the past in person and on this board I have no love for the man "commanding" NCR.

He ignores regulations (weight restrictions on uniforms) was removed from command of NCR previously for less than stellar performance and integrity issues...so forth and so on.

You know the whole saying about trying the same thing over and over again and expecting different results?

I refuse to believe that not a single other person was ready to command NCR other than him.

Plus, I have freedom to say or think whatever I feel about someone, inside or outside CAP.

I don't like him, it's a choice that I have come to over time, watching and observing his actions as a commander.
In god we trust, all others we run through NCIC

peter rabbit

From CAPR 66-1:

5.   Conflict of Interest.  All professional organizations must avoid real and perceived conflicts of interest.  To this end, CAP members who have authority to approve maintenance of CAP aircraft shall not authorize or contract for such maintenance with any business entity where they or any member of their household are employed or where they or any member of their household maintain any share of ownership.  In cases where this type conflict of interest may exist, or be perceived to exist, the wing or region commander shall appoint a knowledgeable person to contract or authorize this maintenance.  In all cases, wing and region commanders shall ensure that all decisions regarding contracted maintenance services are based on the most economical and practical considerations.

CAP GC Form 22 is designed so a CAP member can disclose a potential conflict of interest, and also has additional advice regarding real or perceived conflicts of interest. If the CS participates in any way (such as participating in finance committee decisions regarding maintenance) in CAP deciding what maintenance should be done or whether amounts should be paid for maintenance, there is a real conflict. That said, the perception of a conflict of interest would make many people step down from the CS position just to avoid the issue. What has the CS said when asked/talked with about this?

lordmonar

As far as I know....aircraft maintenance does not go through the finance committee for approval.

As far as that goes.....all he has to do is recluse (sp?) himself when discussing maintenance issues.

Again......if everyone is above board on this (and it apprears to me that they are) then there is no conflict of interest.

PATRICK M. HARRIS, SMSgt, CAP

FW

Aircraft Maint. is taken care of by NHQ corp. staff.  Contracts for aircraft maint. are also done thru national.  Once a contract for maint is approved, National makes all decisons.   The director for Aircraft at National is responsible for insuring all maintanence costs are correct and in line with the contract. The contract spells out costs per hour for service or, costs for 100 hour and annual inspections.  NHQ is also responsible for quality control. 

The Director personally goes over every invoice.  Any attempt at FWA would be found and dealt with immediately.  Remember, we are dealing with government funds here.  We can't be fooling around with our grant to allow conflict of interest problems...

BTW; other members have contracts with CAP to provide services (for profit).  Last year's vehicle purchase went thru a member's dealership.  Full disclosure was made and, the bidding process was conducted according to established GAO regulations and policies.

RADIOMAN015

Well I always wondered why CAP contracts being advertised and award weren't listed on a website for all to review.   I know with most federal government contracts one can see the requests for bids & awarded bid
see: https://www.fbo.gov/ that would really add to CAP's "transparency", especially when federal funds are being used for these contracts ???
RM 

RiverAux

How many local FBOs are going to be checking some web site just in case a CAP contract is available? 

AirDX

Quote from: RiverAux on October 06, 2011, 11:07:50 PM
How many local FBOs are going to be checking some web site just in case a CAP contract is available?

The smart ones.

You can set up fbo.gov to generate e-mails based on search criteria for various opportunities.  You don't even have to check it.
Believe in fate, but lean forward where fate can see you.

FW

To my knowledge, CAP doesn't advertise contract solicitations on government web sites (CAP is itself, a  government contractor). CAP sends out "RFPs" to prospective contractors. CAP has a manager to coordinate all contracts.  The EX approves all contracts when government funds are used.  When member dues are involved, either the NB, NEC or BoG (or any individual corporate officer) approves them (depending on the nature of the contract).  We even have a regulation dealing with these issues; CAPR 70-1...

Hardshell Clam

Maybe this is something that should be discussed with the office of inspector general and not in a public forum?  I would recommend you prepare your complaint and submit it to the appropriate command.

I would also suggest that attempting to make your case here is inappropriate and that there appears be other issues involved.