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B-203079 1 (1982-03-22)

handle is hein.gao/gaobadkei0001 and id is 1 raw text is: 

0/


IECISION


B-203079


b)ATEi


March 22, 1982


MATTER OF;


Sales Activities of Jetired
officers--Application of 37


Regular
u.s.c. §


801(c)


DICIES6T:


Regular officers, employed by companies
which sell supplies and war materials
to the Pepartment of Defense or its
agencies, who visit Army and Air Force
Exchange Service stores to perform war-
ranty repairs on their employer's products
purchased from store, perform their duties
as noncontracting technical specialist and
are not in violation of 37 U.S.C. § 801(c).


         2. Visits by retired Regular officers to Army
             and Air Force Exchange Service stores for
             purposes of demonstrating employer's pro-
             duct and conducting seminars to induce
             procurement by the Government are in vio-
             lation ofr37 U.S.C. § 801(c).  However,
             stocking stores with employer's sales
             literature, taking sales inventory and
             conducting product demonstrations and
             seminars to explain the use of previously
             procured products or to influence sales to
             store customers do not violate the statute,
             since those activities do not directly
             influence Government procurement.

     The issues are whether certain activities of retired
Regular officers constitute violations of the selling
restrictions of 37 U.S.C. § 801(c). Specifically, cer-
tain of these officers, employed by contractors who
sell supplies or war materials to the Department of
Defense and its agencies, hold positions that entail
visiting Army and Air Force Exchange Service stores on
behalf of the employer to (1) demonstrate company pro-
ducts, (2) perform warranty repairs on company products
purchased from the stores, (3) stock the stores with
company advertisements, and (4) conduct sales inventory
to determine rate of sales.

     In clarification of these duties, the officers
contend that their activities are not in violation of


THE COMPTRO  OFfh GJERAL
OP THE UNITOMSTATIUS
WASHINGTONt,(.0.1205463


FIL.E:

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