Arnold AFB Legal Office provides rules for awards between Department of Defense and contractor team members

  • Published
  • By Eric Norton
  • AEDC/PA
Near the end of each quarter and again at the end of each calendar year, there is one activity common to military and civilian leaders alike: the nomination of individuals and teams for quarterly, annual and special awards.

Good leaders recognize their people for the hard work and effort they put in to ensure the mission succeeds. Especially important are the people and teams who go above and beyond in a particular area. Many times the most exceptional performer or team includes a DOD contractor, who very regularly plays an essential role in mission accomplishment.

It may seem counter-intuitive, but DOD rules sometimes constrain government leaders’ ability to recognize exceptional performance by those contractor team members.

Department of Defense Instructions (DODI) generally apply to all Air Force organizations. An excerpt of DODI 1400.25 states that “DOD Components must not permit any persons, organizations or companies having a commercial or profit-making relationship with the DOD to participate in DOD’s civilian awards programs and must not create awards or awards programs to recognize such persons, organizations or companies.”

Although this seems to hamper Air Force leaderships’ ability to recognize top performers, the DODI explains that the prohibition is meant to “avoid issues in connection with contractual relationships and obligations, actual or perceived conflicts of interest, and actual or perceived acts of favoritism…”

The exception to this primary rule includes a very high standard. A DOD award can be considered for a contractor employee if his or her contribution is unrelated to and outside the DOD contractual relationship, and the recognition is clearly in the public interest. In that instance, the Instruction limits recognition to a letter of appreciation to the individual or to the group by the closest DOD supervisor involved.

An Air Force Instruction adds to what is contained in the DODI. AFI 36-1004, The Air Force Civilian Recognition Program, 29 August 2016, paragraph 7.2.2 states that people or organizations involved in contractual relationships with DOD are not eligible for awards created for the general public. The lone exception is when their contributions are “substantially beyond that specified or implied with the contract terms, and is clearly in the public interest.” The Instruction goes on to explain that DOD policy is to “not recognize private citizens or private entities that have a commercial or profit making relationship with DOD, unless the contribution is substantially beyond that specified or implied in the terms of the contract establishing the relationship, or the recognition is in the public interest.”

Although the rules appear to limit Air Force leadership’s options, DOD’s prohibition of contractor participation in government awards programs actually protects both sides of the contractual relationship. Abiding by these rules helps support the Air Force’s evaluation of contractor performance when the contract ends. It also helps the contractor avoid the appearance of favoritism either during performance or when a new contract is available for bid. Additionally, there is certainly no prohibition of contractors creating their own awards programs. An alternative option to presenting awards to a deserving contractor team member is to contact his or her supervisor in support of an internal award.

Contractor team members are essential to accomplishing the Air Force mission, and their contribution can be extremely valuable. As the award season approaches, protect both sides of the contractual relationship by remembering the DOD rules for awards and recognition programs. Direct questions to the Arnold Air Force Base Legal Office, (931) 454-7814.