ࡱ> FHE` bjbj .0v;8:4n"h" """""""$#h^&3"GGG3"H"GX "G "r[ T[! *|  "^"0" :'6:'[![!&:'! p3"3"QX"GGGGd~ ~ H" US Government Restrictions on Contractor Lobbying (The Byrd Amendment) Synopsis of the Statute: The Byrd Amendment, 31 U.S.C. 1352, restricts federal contractors lobbying activities. The statute defines lobbying as contacting Congressional or Executive Branch officials to try to secure a contract, grant, or cooperative agreement, or an amendment to such instruments (subject to the exceptions set out below). Contractors may not pay for lobbying with money derived from federal contracts and grants. Additionally, even if the contractor pays for the lobbying with money not derived from Government contracts, the contractor has to file a public lobbying disclosure. Applicability: The Byrd Amendment is applicable to every federal contract, grant, or cooperative agreementand subcontractover $100k. Federal Acquisition Regulation (FAR) Subpart 3.8. Bidders have to complete a lobbying certification, FAR 52.203-11. The awarded contract, grant, or cooperative agreement will then contain FAR clause 52.203-12 Limitation on Payments to Influence Certain Federal Transactions in Contracts over $100k. Lobbying defined: Lobbying is broader than expected. It covers not just traditional lobbying, such as having retained lobbying firms contact members of Congress. Lobbying under the Byrd Amendment includes using a contractors own employees, as well as outside lobbyists, to influence or attempt to influence members of Congress, their staffers, or Executive Branch officers and employees. One qualifier is that the lobbying has to be in connection with the awarding of any Federal contract, grant, loan, or cooperative agreement, or the modification of any of these instruments. (Therefore, simply lobbying Congress to secure favorable legislation is not covered by the Byrd Amendment, although it may be covered by other federal lobbying statutes). See FAR 3.802. Specific Restrictions on Contractor Lobbying: A Federal contractor or grantee may not use appropriated funds (funds paid by the Government under a contract or grant) to pay any person to lobby either Congressional or Executive Branch personnel. FAR 3.802(a). Even if the contractor uses money other than Federal appropriated funds (such as revenues from commercial work or profit dollars) to pay for lobbying, the contractor has to file a public disclosure form. (OMB Standard Form LLL, a copy of which can be seen at  HYPERLINK "http://www.whitehouse.gov/omb/grants/sflllin.pdf" http://www.whitehouse.gov/omb/grants/sflllin.pdf.) FAR 3.802(b). The contractor submits the lobbying disclosure form to the contracting officer. (A subcontractor submits through the prime contractor). The contracting officer then has to provide a copy to Congress, and the public has access to the disclosures. Exceptions to the Lobbying Definition: Not all contacts with government officials comprise lobbying under the Byrd Amendment. The statute excludes the following transactions from the definitionbut only if carried out by the contractors employees (not retained lobbyists). See FAR 3.802. Conducting agency and legislative liaison activities not directly related to a contract, grant, or cooperative agreement Providing any information specifically requested by an agency or Congress If not related to a specific solicitation: Discussing with an agency the qualities and characteristics (including individual demonstrations) of the contractors products or services, conditions or terms of sale, and service capabilities Conducting technical discussions and other activities regarding the application or adaptation of the contractors products or services for an agencys use If prior to formal solicitation: Providing any information not specifically requested but necessary for an agency to make an informed decision about initiation of a contract, grant, or cooperative agreement Conducting technical discussions regarding the preparation of an unsolicited proposal prior to its official submission Also excluded are payments for professional or technical servicesto the contractors own employees or to outsidersnecessary to bid or perform a contract, grant, or cooperative agreement. FAR 3.802(c)(2). Penalties: Agencies are required to impose and collect civil penalties pursuant to the federal Program Fraud and Civil Remedies Act, 31 U.S.C. 3803. There is a civil penalty of not less than $10,000 and not more than $100,000 for each prohibited expenditure or failure to file the lobbying disclosure form. FAR 3.807. Intentionally false certifications can also lead to criminal prosecution under the federal False Claims Act, 18 U.S.C. 287, the False Statements Act, 18 U.S.C. 2001, and other statutes.     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