[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR2635.703]

[Page 565]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
                CHAPTER XVI--OFFICE OF GOVERNMENT ETHICS
 
PART 2635--STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES OF THE EXECUTIVE 
BRANCH--Table of Contents
 
                      Subpart G--Misuse of Position
 
Sec. 2635.703  Use of nonpublic information.

    (a) Prohibition. An employee shall not engage in a financial 
transaction using nonpublic information, nor allow the improper use of 
nonpublic information to further his own private interest or that of 
another, whether through advice or recommendation, or by knowing 
unauthorized disclosure.
    (b) Definition of nonpublic information. For purposes of this 
section, nonpublic information is information that the employee gains by 
reason of Federal employment and that he knows or reasonably should know 
has not been made available to the general public. It includes 
information that he knows or reasonably should know:
    (1) Is routinely exempt from disclosure under 5 U.S.C. 552 or 
otherwise protected from disclosure by statute, Executive order or 
regulation;
    (2) Is designated as confidential by an agency; or
    (3) Has not actually been disseminated to the general public and is 
not authorized to be made available to the public on request.

    Example 1: A Navy employee learns in the course of her duties that a 
small corporation will be awarded a Navy contract for electrical test 
equipment. She may not take any action to purchase stock in the 
corporation or its suppliers and she may not advise friends or relatives 
to do so until after public announcement of the award. Such actions 
could violate Federal securities statutes as well as this section.
    Example 2: A General Services Administration employee involved in 
evaluating proposals for a construction contract cannot disclose the 
terms of a competing proposal to a friend employed by a company bidding 
on the work. Prior to award of the contract, bid or proposal information 
is nonpublic information specifically protected by 41 U.S.C. 423.
    Example 3: An employee is a member of a source selection team 
assigned to review the proposals submitted by several companies in 
response to an Army solicitation for spare parts. As a member of the 
evaluation team, the employee has access to proprietary information 
regarding the production methods of Alpha Corporation, one of the 
competitors. He may not use that information to assist Beta Company in 
drafting a proposal to compete for a Navy spare parts contract. The 
Federal Acquisition Regulation in 48 CFR parts 3, 14 and 15 restricts 
the release of information related to procurements and other contractor 
information that must be protected under 18 U.S.C. 1905 and 41 U.S.C. 
423.
    Example 4: An employee of the Nuclear Regulatory Commission 
inadvertently includes a document that is exempt from disclosure with a 
group of documents released in response to a Freedom of Information Act 
request. Regardless of whether the document is used improperly, the 
employee's disclosure does not violate this section because it was not a 
knowing unauthorized disclosure made for the purpose of furthering a 
private interest.
    Example 5: An employee of the Army Corps of Engineers is actively 
involved in the activities of an organization whose goals relate to 
protection of the environment. The employee may not, other than as 
permitted by agency procedures, give the organization or a newspaper 
reporter nonpublic information about long-range plans to build a 
particular dam.