(a) No appropriated funds may be expended by the recipient of a Federalcontract, grant, loan, or cooperative agreement to pay any person forinfluencing or attempting to influence an officer or employee of any agency, aMember of Congress, an officer or employee of Congress, or an employee of aMember of Congress in connection with any of the following covered Federalactions: the awarding of any Federal contract, the making of any Federal grant,the making of any Federal loan, the entering into of any cooperative agreement,and the extension, continuation, renewal, amendment, or modification of anyFederal contract, grant, loan, or cooperative agreement.

(b) Each person who requests or receives from an agency a Federal contract,grant, loan, or cooperative agreement shall file with that agency acertification, set forth in appendix A, that the person has not made, and willnot make, any payment prohibited by paragraph (a) of this section.

(c) Each person who requests or receives from an agency a Federal contract,grant, loan, or a cooperative agreement shall file with that agency a disclosureform, set forth in appendix B, if such person has made or has agreed to make anypayment using nonappropriated funds (to include profits from any covered Federalaction), which would be prohibited under paragraph (a) of this section if paidfor with appropriated funds.

(d) Each person who requests or receives from an agency a commitmentproviding for the United States to insure or guarantee a loan shall file withthat agency a statement, set forth in appendix A, whether that person has madeor has agreed to make any payment to influence or attempt to influence anofficer or employee of any agency, a Member of Congress, an officer or employeeof Congress, or an employee of a Member of Congress in connection with that loaninsurance or guarantee.

(e) Each person who requests or receives from an agency a commitmentproviding for the United States to insure or guarantee a loan shall file withthat agency a disclosure form, set forth in appendix B, if that person has madeor has agreed to make any payment to influence or attempt to influence anofficer or employee of any agency, a Member of Congress, an officer or employeeof Congress, or an employee of a Member of Congress in connection with that loaninsurance or guarantee.

For purposes of this part:

(a) Agency, as defined in 5 U.S.C. 552(f), includes Federalexecutive departments and agencies as well as independent regulatory commissionsand Government corporations, as defined in 31 U.S.C. 9101(1).

(b) Covered Federal action means any of the following Federalactions:

(1) The awarding of any Federal contract;

(2) The making of any Federal grant;

(3) The making of any Federal loan;

(4) The entering into of any cooperative agreement; and,

(5) The extension, continuation, renewal, amendment, or modification of anyFederal contract, grant, loan, or cooperative agreement.

(c) Federal contract means an acquisition contract awarded byan agency, including those subject to the Federal Acquisition Regulation (FAR),and any other acquisition contract for real or personal property or services notsubject to the FAR.

(d) Federal cooperative agreement means a cooperative agreemententered into by an agency.

(e) Federal grant means an award of financial assistance in theform of money, or property in lieu of money, by the Federal Government or adirect appropriation made by law to any person. The term does not includetechnical assistance which provides services instead of money, or otherassistance in the form of revenue sharing, loans, loan guarantees, loaninsurance, interest subsidies, insurance, or direct United States cashassistance to an individual.

(f) Federal loan means a loan made by an agency. The term doesnot include loan guarantee or loan insurance.

(g) Indian tribe and tribal organization have themeaning provided in section 4 of the Indian Self-Determination and EducationAssistance Act (25 U.S.C. 450B). Alaskan Natives are included under thedefinitions of Indian tribes in that Act.

(h) Influencing or attempting to influence means making, withthe intent to influence, any communication to or appearance before an officer oremployee or any agency, a Member of Congress, an officer or employee ofCongress, or an employee of a Member of Congress in connection with any coveredFederal action.

(i) Loan guarantee and loan insurance means anagency's guarantee or insurance of a loan made by a person.

(j) Local government means a unit of government in a State and,if chartered, established, or otherwise recognized by a State for theperformance of a governmental duty, including a local public authority, aspecial district, an intrastate district, a council of governments, a sponsorgroup representative organization, and any other instrumentality of a localgovernment.

(k) Officer or employee of an agency includes the followingindividuals who are employed by an agency:

(1) An individual who is appointed to a position in the Government undertitle 5, U.S. Code, including a position under a temporary appointment;

(2) A member of the uniformed services as defined in section 101(3), title37, U.S. Code;

(3) A special Government employee as defined in section 202, title 18, U.S.Code; and,

(4) An individual who is a member of a Federal advisory committee, as definedby the Federal Advisory Committee Act, title 5, U.S. Code appendix 2.

(l) Person means an individual, corporation, company,association, authority, firm, partnership, society, State, and local government,regardless of whether such entity is operated for profit or not for profit. Thisterm excludes an Indian tribe, tribal organization, or any other Indianorganization with respect to expenditures specifically permitted by otherFederal law.

(m) Reasonable compensation means, with respect to a regularlyemployed officer or employee of any person, compensation that is consistent withthe normal compensation for such officer or employee for work that is notfurnished to, not funded by, or not furnished in cooperation with the FederalGovernment.

(n) Reasonable payment means, with respect to perfessional andother technical services, a payment in an amount that is consistent with theamount normally paid for such services in the private sector.

(o) Recipient includes all contractors, subcontractors at anytier, and subgrantees at any tier of the recipient of funds received inconnection with a Federal contract, grant, loan, or cooperative agreement. Theterm excludes an Indian tribe, tribal organization, or any other Indianorganization with respect to expenditures specifically permitted by otherFederal law.

(p) Regularly employed means, with respect to an officer oremployee of a person requesting or receiving a Federal contract, grant, loan, orcooperative agreement or a commitment providing for the United States to insureor guarantee a loan, an officer or employee who is employed by such person forat least 130 working days within one year immediately preceding the date of thesubmission that initiates agency consideration of such person for receipt ofsuch contract, grant, loan, cooperative agreement, loan insurance commitment, orloan guarantee commitment. An officer or employee who is employed by such personfor less than 130 working days within one year immediately preceding the date ofthe submission that initiates agency consideration of such person shall beconsidered to be regularly employed as soon as he or she is employed by suchperson for 130 working days.

(q) State means a State of the United States, the District ofColumbia, the Commonwealth of Puerto Rico, a territory or possession of theUnited States, an agency or instrumentality of a State, and a multi-State,regional, or interstate entity having governmental duties and powers.

(a) Each person shall file a certification, and a disclosure form, ifrequired, with each submission that initiates agency consideration of suchperson 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 UnitedStates to insure or guarantee a loan exceeding $150,000.

(b) Each person shall file a certification, and a disclosure form, ifrequired, 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 insureor guarantee a loan exceeding $150,000,

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

(1) A cumulative increase of $25,000 or more in the amount paid or expectedto 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 toinfluence a covered Federal action; or,

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

(d) Any person who requests or receives from a person referred to inparagraphs (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 undera Federal grant;

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

(4) A contract or subcontract exceeding $100,000 at any tier under a Federalcooperative agreement,

(e) All disclosure forms, but not certifications, shall be forwarded fromtier 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 thissection shall be treated as a material representation of fact upon which allreceiving tiers shall rely. All liability arising from an erroneousrepresentation shall be borne solely by the tier filing that representation andshall not be shared by any tier to which the erroneous representation isforwarded. Submitting an erroneous certification or disclosure constitutes afailure to file the required certification or disclosure, respectively. If aperson fails to file a required certification or disclosure, the United Statesmay 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 notmade before that date, certifications shall be required at award or commitment,covering activities occurring between December 23, 1989, and the date of awardor commitment. However, for awards and commitments in process prior to theDecember 23, 1989 effective date of these provisions, but not made beforeDecember 23, 1989, disclosure forms shall not be required at time of award orcommitment but shall be filed within 30 days.

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

(a) The prohibition on the use of appropriated funds, in § 69.100(a), does not apply in the case of a payment of reasonable compensation made toan officer or employee of a person requesting or receiving a Federal contract,grant, loan, or cooperative agreement if the payment is for agency andlegislative liaison activities not directly related to a covered Federal action.

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

(c) For purposes of paragraph (a) of this section, the following agency andlegislative liaison activities are allowable at any time only where they are notrelated to a specific solicitation for any covered Federal action:

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

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

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

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

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

(3) Capability presentations by persons seeking awards from an agencypursuant to the provisions of the Small Business Act, as amended by Public Law95-507 and other subsequent amendments.

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

(a) The prohibition on the use of appropriated funds, in § 69.100(a), does not apply in the case of a payment of reasonable compensation made toan 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 cooperativeagreement if payment is for professional or technical services rendered directlyin the preparation, submission, or negotiation of any bid, proposal, orapplication for that Federal contract, grant, loan, or cooperative agreement orfor meeting requirements imposed by or pursuant to law as a condition forreceiving that Federal contract, grant, loan, or cooperative agreement.

(b) For purposes of paragraph (a) of this section, “professional andtechnical services” shall be limited to advice and analysis directlyapplying any professional or technical discipline. For example, drafting of alegal document accompanying a bid or proposal by a lawyer is allowable.Similarly, technical advice provided by an engineer on the performance oroperational capability of a piece of equipment rendered directly in thenegotiation of a contract is allowable. However, communications with the intentto influence made by a professional (such as a licensed lawyer) or a technicalperson (such as a licensed accountant) are not allowable under this sectionunless they provide advice and analysis directly applying their professional ortechnical expertise and unless the advice or analysis is rendered directly andsolely in the preparation, submission or negotiation of a covered Federalaction. Thus, for example, communications with the intent to influence made by alawyer that do not provide legal advice or analysis directly and solely relatedto the legal aspects of his or her client's proposal, but generally advocate oneproposal over another are not allowable under this section because the lawyer isnot providing professional legal services. Similarly, communications with theintent to influence made by an engineer providing an engineering analysis priorto the preparation or submission of a bid or proposal are not allowable underthis section since the engineer is providing technical services but not directlyin the preparation, submission or negotiation of a covered Federal action.

(c) Requirements imposed by or pursuant to law as a condition for receiving acovered Federal award include those required by law or regulation, or reasonablyexpected to be required by law or regulation, and any other requirements in theactual award documents.

(d) Only those services expressly authorized by this section are allowableunder this section.

No reporting is required with respect to payments of reasonable compensationmade to regularly employed officers or employees of a person.

(a) The prohibition on the use of appropriated funds, in § 69.100(a), does not apply in the case of any reasonable payment to a person, otherthan an officer or employee of a person requesting or receiving a coveredFederal action, if the payment is for professional or technical servicesrendered directly in the preparation, submission, or negotiation of any bid,proposal, or application for that Federal contract, grant, loan, or cooperativeagreement or for meeting requirements imposed by or pursuant to law as acondition for receiving that Federal contract, grant, loan, or cooperativeagreement.

(b) The reporting requirements in § 69.110 (a) and (b) regardingfiling a disclosure form by each person, if required, shall not apply withrespect to professional or technical services rendered directly in thepreparation, submission, or negotiation of any commitment providing for theUnited States to insure or guarantee a loan.

(c) For purposes of paragraph (a) of this section, “professional andtechnical services” shall be limited to advice and analysis directlyapplying any professional or technical discipline. For example, drafting or alegal document accompanying a bid or proposal by a lawyer is allowable.Similarly, technical advice provided by an engineer on the performance oroperational capability of a piece of equipment rendered directly in thenegotiation of a contract is allowable. However, communications with the intentto influence made by a professional (such as a licensed lawyer) or a technicalperson (such as a licensed accountant) are not allowable under this sectionunless they provide advice and analysis directly applying their professional ortechnical expertise and unless the advice or analysis is rendered directly andsolely in the preparation, submission or negotiation of a covered Federalaction. Thus, for example, communications with the intent to influence made by alawyer that do not provide legal advice or analysis directly and solely relatedto the legal aspects of his or her client's proposal, but generally advocate oneproposal over another are not allowable under this section because the lawyer isnot providing professional legal services. Similarly, communications with theintent to influence made by an engineer providing an engineering analysis priorto the preparation or submission of a bid or proposal are not allowable underthis section since the engineer is providing technical services but not directlyin the preparation, submission or negotiation of a covered Federal action.

(d) Requirements imposed by or pursuant to law as a condition for receiving acovered Federal award include those required by law or regulation, or reasonablyexpected to be required by law or regulation, and any other requirements in theactual award documents.

(e) Persons other than officers or employees of a person requesting orreceiving a covered Federal action include consultants and trade associations.

(f) Only those services expressly authorized by this section are allowableunder this section.

(a) Any person who makes an expenditure prohibited herein shall be subject toa civil penalty of not less than $10,000 and not more than $100,000 for eachsuch expenditure.

(b) Any person who fails to file or amend the disclosure form (see appendixB) to be filed or amended if required herein, shall be subject to a civilpenalty of not less than $10,000 and not more than $100,000 for each suchfailure.

(c) A filing or amended filing on or after the date on which anadministrative action for the imposition of a civil penalty is commenced doesnot prevent the imposition of such civil penalty for a failure occurring beforethat date. An administrative action is commenced with respect to a failure whenan investigating official determines in writing to commence an investigation ofan allegation of such failure.

(d) In determining whether to impose a civil penalty, and the amount of anysuch penalty, by reason of a violation by any person, the agency shall considerthe nature, circumstances, extent, and gravity of the violation, the effect onthe ability of such person to continue in business, any prior violations by suchperson, the degree of culpability of such person, the ability of the person topay the penalty, and such other matters as may be appropriate.

(e) First offenders under paragraphs (a) or (b) of this section shall besubject to a civil penalty of $10,000, absent aggravating circumstances. Secondand subsequent offenses by persons shall be subject to an appropriate civilpenalty between $10,000 and $100,000, as determined by the agency head or his orher designee.

(f) An imposition of a civil penalty under this section does not prevent theUnited States from seeking any other remedy that may apply to the same conductthat is the basis for the imposition of such civil penalty.

Agencies shall impose and collect civil penalties pursuant to the provisionsof the Program Fraud and Civil Remedies Act, 31 U.S.C. sections 3803 (exceptsubsection (c)), 3804, 3805, 3806, 3807, 3808, and 3812, insofar as theseprovisions are not inconsistent with the requirements herein.

(a) The Secretary of Defense may exempt, on a case-by-case basis, a coveredFederal action from the prohibition whenever the Secretary determines, inwriting, that such an exemption is in the national interest. The Secretary shalltransmit a copy of each such written exemption to Congress immediately aftermaking such a determination.

(b) The Department of Defense may issue supplemental regulations to implementparagraph (a) of this section.

(a) The head of each agency shall collect and compile the disclosure reports(see appendix B) and, on May 31 and November 30 of each year, submit to theSecretary of the Senate and the Clerk of the House of Representatives a reportcontaining a compilation of the information contained in the disclosure reportsreceived during the six-month period ending on March 31 or September 30,respectively, of that year.

(b) The report, including the compilation, shall be available for publicinspection 30 days after receipt of the report by the Secretary and the Clerk.

(c) Information that involves intelligence matters shall be reported only tothe Select Committee on Intelligence of the Senate, the Permanent SelectCommittee on Intelligence of the House of Representatives, and the Committees onAppropriations of the Senate and the House of Representatives in accordance withprocedures agreed to by such committees. Such information shall not be availablefor public inspection.

(d) Information that is classified under Executive Order 12356 or anysuccessor order shall be reported only to the Committee on Foreign Relations ofthe Senate and the Committee on Foreign Affairs of the House of Representativesor the Committees on Armed Services of the Senate and the House ofRepresentatives (whichever such committees have jurisdiction of mattersinvolving such information) and to the Committees on Appropriations of theSenate and the House of Representatives in accordance with procedures agreed toby such committees. Such information shall not be available for publicinspection.

(e) The first semi-annual compilation shall be submitted on May 31, 1990, andshall contain a compilation of the disclosure reports received from December 23,1989 to March 31, 1990.

(f) Major agencies, designated by the Office of Management and Budget (OMB),are required to provide machine-readable compilations to the Secretary of theSenate and the Clerk of the House of Representatives no later than with thecompilations due on May 31, 1991. OMB shall provide detailed specifications in amemorandum to these agencies.

(g) Non-major agencies are requested to provide machine-readable compilationsto the Secretary of the Senate and the Clerk of the House of Representatives.

(h) Agencies shall keep the originals of all disclosure reports in theofficial files of the agency.

(a) The Inspector General, or other official as specified in paragraph (b) ofthis section, of each agency shall prepare and submit to Congress each year,commencing with submission of the President's Budget in 1991, an evaluation ofthe compliance of that agency with, and the effectiveness of, the requirementsherein. The evaluation may include any recommended changes that may be necessaryto strengthen or improve the requirements.

(b) In the case of an agency that does not have an Inspector General, theagency official comparable to an Inspector General shall prepare and submit theannual report, or, if there is no such comparable official, the head of theagency shall prepare and submit the annual report.

(c) The annual report shall be submitted at the same time the agency submitsits annual budget justifications to Congress.

(d) The annual report shall include the following: All alleged violationsrelating to the agency's covered Federal actions during the year covered by thereport, the actions taken by the head of the agency in the year covered by thereport with respect to those alleged violations and alleged violations inprevious years, and the amounts of civil penalties imposed by the agency in theyear covered by the report.