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Subpart A-General

that agency a disclosure form, set forth

in appendix B, if that person has made 8601.100 Conditions on use of funds. or has agreed to make any payment to (a) No appropriated funds may be ex

influence or attempt to influence an ofpended by the recipient of a Federal

ficer or employee of any agency, a contract, grant, loan, or cooperative

Member of Congress, an officer or emageement to pay any person for influ

ployee of Congress, or an employee of a encing or attempting to influence an

Member of Congress in connection with officer or employee of any agency, a

that loan insurance or guarantee. Member of Congress, an officer or employee of Congress, or an employee of a

8601.105 Definitions. Member of Congress in connection with For purposes of this part: any of the following covered Federal (a) Agency, as defined in 5 U.S.C. actions: the awarding of any Federal 552(f), includes Federal executive decontract, the making of any Federal partments and agencies as well as indegrant, the making of any Federal loan, pendent regulatory commissions and the entering into of any cooperative Government corporations, as defined in agreement, and the extension, continu- 31 U.S.C. 9101(1). ation, renewal, amendment, or modi- (b) Covered Federal action means any fication of any Federal contract, grant, of the following Federal actions: loan, or cooperative agreement.

(1) The awarding of any Federal con(b) Each person who requests or re

tract; ceives from an agency a Federal con

(2) The making of any Federal grant; tract, grant, loan, or cooperative

(3) The making of any Federal loan; agreement shall file with that agency a

(4) The entering into of any cooperacertification, set forth in appendix A,

tive agreement; and, that the person has not made, and will

(5) The extension, continuation, renot make, any payment prohibited by

newal, amendment, or modification of paragraph (a) of this section.

any Federal contract, grant, loan, or (c) Each person who requests or receives from an agency a Federal con

cooperative agreement. tract, grant, loan, or a cooperative

Covered Federal action does not inagreement shall file with that agency a

clude receiving from an agency a comdisclosure form, set forth in appendix mitment providing for the United B, if such person has made or has States to insure or guarantee a loan. agreed to make any payment using Loan guarantees and loan insurance nonappropriated funds (to include prof- are addressed independently within its from any covered Federal action), this part. which would be prohibited under para

(c) Federal contract means an acquisigraph (a) of this section if paid for with tion contract awarded by an agency, appropriated funds.

including those subject to the Federal (d) Each person who requests or re Acquisition Regulation (FAR), and any ceives from an agency a commitment other acquisition contract for real or providing for the United States to in personal property or services not subsure or guarantee a loan shall file with ject to the FAR. that agency a statement, set forth in (d) Federal cooperative agreement appendix A, whether that person has means a cooperative agreement enmade or has agreed to make any pay- tered into by an agency. ment to influence or attempt to influ- (e) Federal grant means an award of ence an officer or employee of any financial assistance in the form of agency, a Member of Congress, an offi- money, or property in lieu of money. cer or employee of Congress, or an em by the Federal Government or a direct ployee of a Member of Congress in con- appropriation made by law to any pernection with that loan insurance or son. The term does not include techguarantee.

nical assistance which provides serv(e) Each person who requests or re- ices instead of money, or other assistceives from an agency a commitment ance in the form of revenue sharing, providing for the United States to in- loans, loan guarantees, loan insurance, sure or guarantee a loan shall file with interest subsidies, insurance, or direct

United States cash assistance to an in- zation, or any other Indian organizadividual.

tion with respect to expenditures spe(f) Federal loan means a loan made by cifically permitted by other Federal an agency. The term does not include law. loan guarantee or loan insurance.

(m) Reasonable compensation means, (g) Indian tribe and tribal organization with respect to a regularly employed have the meaning provided in section 4 officer or employee of any person, comof the Indian Self-Determination and pensation that is consistent with the Education Assistance Act (25 U.S.C. normal compensation for such officer 450B). Alaskan Natives are included or employee for work that is not furunder the definitions of Indian tribes in nished to, not funded by, or not furthat Act.

nished in cooperation with the Federal (h) Influencing or attempting to influ Government. ence means making, with the intent to (n) Reasonable payment means, with influence, any communication to or ap- respect to perfessional and other techpearance before an officer or employee nical services, a payment in an amount or any agency, a Member of Congress, that is consistent with the amount noran officer or employee of Congress, or mally paid for such services in the prian employee of a Member of Congress vate sector. in connection with any covered Federal (0) Recipient includes all contractors, action.

subcontractors at any tier, and sub(i) Loan guarantee and loan insurance grantees at any tier of the recipient of means an agency's guarantee or insur funds received in connection with a ance of a loan made by a person.

Federal contract, grant, loan, or coop(j) Local government means a unit of erative agreement. The term excludes government in a State and, if char an Indian tribe, tribal organization, or tered, established, or otherwise recog- any other Indian organization with renized by a State for the performance of spect to expenditures specifically pera governmental duty, including a local mitted by other Federal law. public authority, a special district, an (p) Regularly employed means, with intrastate district, a council of govern respect to an officer or employee of a ments, a sponsor group representative person requesting or receiving a Fedorganization, and any other instrumen- eral contract, grant, loan, or cooperatality of a local government.

tive agreement or a commitment pro(k) Officer or employee of an agency in viding for the United States to insure cludes the following individuals who or guarantee a loan, an officer or emare employed by an agency:

ployee who is employed by such person (1) An individual who is appointed to for at least 130 working days within a position in the Government under one year immediately preceding the title 5, U.S. Code, including a position date of the submission that initiates under a temporary appointment;

agency consideration of such person for (2) A member of the uniformed serv- receipt of such contract, grant, loan, ices as defined in section 101(3), title 37, cooperative agreement, loan insurance U.S. Code;

commitment, or loan guarantee com(3) A special Government employee mitment. An officer or employee who is as defined in section 202, title 18, U.S. employed by such person for less than Code; and,

130 working days within one year im(4) An individual who is a member of mediately preceding the date of the a Federal advisory Committee, as de- submission that initiates agency confined by the Federal Advisory Com- sideration of such person shall be conmittee Act, title 5, U.S. Code appendix sidered to be regularly employed as

soon as he or she is employed by such (1) Person means an individual, cor person for 130 working days. poration, company, association, au- (q) State means a State of the United thority, firm, partnership, society, States, the District of Columbia, the State, and local government, regard- Commonwealth of Puerto Rico, a terriless of whether such entity is operated tory or possession of the United States, for profit or not for profit. This term an agency or instrumentality of a excludes an Indian tribe, tribal organic State, and a multi-State, regional, or

interstate entity having governmental duties and powers.

$ 601.110 Certification and disclosure.

(a) Each person shall file a certification, and a disclosure form, if required, with each submission that initiates agency consideration of such person for:

(1) Award of a Federal contract, grant, or cooperative agreement exceeding $100,000; or

(2) An award of a Federal loan or a commitment providing for the United States to insure or guarantee a loan exceeding $150,000.

(b) Each person shall file a certification, and a disclosure form, if required, upon receipt by such person of:

(1) A Federal contract, grant, or cooperative agreement exceeding $100,000; or

(2) A Federal loan or a commitment providing for the United States to insure or guarantee a loan exceeding $150,000, unless such person previously filed a certification, and a disclosure form, if required, under paragraph (a) of this section.

(c) Each person shall file a disclosure form at the end of each calendar quarter in which there occurs any event that requires disclosure or that materially affects the accuracy of the information contained in any disclosure form previously filed by such person under paragraphs (a) or (b) of this section. An event that materially affects the accuracy of the information reported includes:

(1) A cumulative increase of $25,000 or more in the amount paid or expected to be paid for influencing or attempting to influence a covered Federal action; or

(2) A change in the person(s) or individual(s) influencing or attempting to influence a covered Federal action; or,

(3) A change in the officer(s), employee(s), or Member(s) contacted to influence or attempt to influence a covered Federal action.

(d) Any person who requests or receives from a person referred to in paragraphs (a) or (b) of this section:

(1) A subcontract exceeding $100,000 at any tier under a Federal contract;

(2) A subgrant, contract, or subcontract exceeding $100,000 at any tier under a Federal grant;

(3) A contract or subcontract exceeding $100,000 at any tier under a Federal loan exceeding $150,000; or,

(4) A contract or subcontract exceeding $100,000 at any tier under a Federal cooperative agreement, shall file a certification, and a disclosure form, if required, to the next tier above.

(e) All disclosure forms, but not certifications, shall be forwarded from tier to tier until received by the person referred to in paragraphs (a) or (b) of this section. That person shall forward all disclosure forms to the agency.

(f) Any certification or disclosure form filed under paragraph (e) of this section shall be treated as a material representation of fact upon which all receiving tiers shall rely. All liability arising from an erroneous representation shall be borne solely by the tier filing that representation and shall not be shared by any tier to which the erroneous representation is forwarded. Submitting an erroneous certification or disclosure constitutes a failure to file the required certification or disclosure, respectively. If a person fails to file a required certification or disclosure, the United States may pursue all available remedies, including those authorized by section 1352, title 31, U.S. Code.

(g) For awards and commitments in process prior to December 23, 1989, but not made before that date, certifications shall be required at award or commitment, covering activities occurring between December 23, 1989, and the date of award or commitment. However, for awards and commitments in process prior to the December 23, 1989 effective date of these provisions, but not made before December 23, 1989, disclosure forms shall not be required at time of award or commitment but shall be filed within 30 days.

(h) No reporting is required for an activity paid for with appropriated funds if that activity is allowable under either subpart B or C.

Subpart B-Activities by Own

Employees $601.200 Agency and legislative liai.

son. (a) The prohibition on the use of appropriated funds, in $ 601.100 (a), does not apply in the case of a payment of reasonable compensation made to an officer or employee of a person requesting or receiving a Federal contract, grant, loan, or cooperative agreement if the payment is for agency and legislative liaison activities not directly related to a covered Federal action.

(b) For purposes of paragraph (a) of this section, providing any information specifically requested by an agency or Congress is allowable at any time.

(c) For purposes of paragraph (a) of this section, the following agency and legislative liaison activities are allowable at any time only where they are not related to a specific solicitation for any covered Federal action:

(1) Discussing with an agency (including individual demonstrations) the qualities and characteristics of the person's products or services, conditions or terms of sale, and service capabilities, and,

(2) Technical discussions and other activities regarding the application or adaptation of the person's products or services for an agency's use.

(d) For purposes of paragraph (a) of this section, the following agencies and legislative liaison activities are allowable only where they are prior to formal solicitation of any covered Federal action:

(1) Providing any information not specifically requested but necessary for an agency to make an informed decision about initiation of a covered Federal action;

(2) Technical discussions regarding the preparation of an unsolicited proposal prior to its official submission; and,

(3) Capability presentations by persons seeking awards from an agency pursuant to the provisions of the Small Business Act, as amended by Public Law 95-507 and other subsequent amendments.

(e) Only those activities expressly authorized by this section are allowable under this section.

8601.205 Professional and technical

services. (a) The prohibition on the use of appropriated funds, in $ 601.100 (a), does not apply in the case of a payment of reasonable compensation made to an officer or employee of a person requesting or receiving a Federal contract, grant, loan, or cooperative agreement or an extension, continuation, renewal, amendment, or modification of a Federal contract, grant, loan, or cooperative agreement if payment is for professional or technical services rendered directly in the preparation, submission, or negotiation of any bid, proposal, or application for that Federal contract, grant, loan, or cooperative agreement or for meeting requirements imposed by or pursuant to law as a condition for receiving that Federal contract, grant, loan, or cooperative agreement.

(b) For purposes of paragraph (a) of this section, "professional and technical services” shall be limited to advice and analysis directly applying any professional or technical discipline. For example, drafting of a legal document accompanying a bid or proposal by a lawyer is allowable. Similarly, technical advice provided by an engineer on the performance or operational capability of a piece of equipment rendered directly in the negotiation of a contract is allowable. However, communications with the intent to influence made by a professional (such as a licensed lawyer) or a technical person (such as a licensed accountant) are not allowable under this section unless they provide advice and analysis directly applying their professional or technical expertise and unless the advice or analysis is rendered directly and solely in the preparation, submission or negotiation of a covered Federal action. Thus, for example, communications with the intent to influence made by a lawyer that do not provide legal advice or analysis directly and solely related to the legal aspects of his or her client's proposal, but generally advocate one proposal over another are not allowable under this section because the lawyer is not providing professional legal services. Similarly, communications with the

intent to influence made by an engi- nical services” shall be limited to adneer providing an engineering analysis vice and analysis directly applying any prior to the preparation or submission professional or technical discipline. of a bid or proposal are not allowable For example, drafting or a legal docuunder this section since the engineer is ment accompanying a bid or proposal providing technical services but not di by a lawyer is allowable. Similarly, rectly in the preparation, submission technical advice provided by an engior negotiation of a covered Federal ac

neer on the performance or operational tion.

capability of a piece of equipment ren(c) Requirements imposed by or pur

dered directly in the negotiation of a suant to law as a condition for receiv

contract is allowable. However, coming a covered Federal award include

munications with the intent to influthose required by law or regulation, or

ence made by a professional (such as a reasonably expected to be required by

licensed lawyer) or a technical person law or regulation, and any other re

(such as a licensed accountant) are not quirements in the actual award docu

allowable under this section unless ments. (d) Only those services expressly au

they provide advice and analysis dithorized by this section are allowable

rectly applying their professional or under this section.

technical expertise and unless the ad

vice or analysis is rendered directly $ 601.210 Reporting.

and solely in the preparation, submis

sion or negotiation of a covered FedNo reporting is required with respect

eral action. Thus, for example, commuto payments of reasonable compensa

nications with the intent to influence tion made to regularly employed offi

made by a lawyer that do not provide cers or employees of a person.

legal advice or analysis directly and Subpart C-Activities by Other

solely related to the legal aspects of

his or her client's proposal, but genThan Own Employees

erally advocate one proposal over an8601.300 Professional and technical

other are not allowable under this secservices.

tion because the lawyer is not pro

viding professional legal services. (a) The prohibition on the use of ap

Similarly, communications with the propriated funds, in $601.100 (a), does

intent to influence made by an enginot apply in the case of any reasonable

neer providing an engineering analysis payment to a person, other than an of

prior to the preparation or submission ficer or employee of a person request

of a bid or proposal are not allowable ing or receiving a covered Federal ac

under this section since the engineer is tion, if the payment is for professional

providing technical services but not dior technical services rendered directly

rectly in the preparation, submission in the preparation, submission, or ne

or negotiation of a covered Federal acgotiation of any bid, proposal, or appli

tion. cation for that Federal contract, grant,

(d) Requirements imposed by or purloan, or cooperative agreement or for meeting requirements imposed by or

suant to law as a condition for receivpursuant to law as a condition for re

ing a covered Federal award include ceiving that Federal contract, grant,

those required by law or regulation, or loan, or cooperative agreement.

reasonably expected to be required by (b) The reporting requirements in

law or regulation, and any other re$ 601.110 (a) and (b) regarding filing a

filing a quirements in the actual award docudisclosure form by each person, if re

ments. quired, shall not apply with respect to (e) Persons other than officers or emprofessional or technical services ren- ployees of a person requesting or redered directly in the preparation, sub- ceiving a covered Federal action inmission, or negotiation of any commit- clude consultants and trade associament providing for the United States tions. to insure or guarantee a loan.

(f) Only those services expressly au(c) For purposes of paragraph (a) of thorized by this section are allowable this section, “professional and tech- under this section.

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