Overview
FAR 3.802 implements 31 U.S.C. 1352, prohibiting the use of appropriated funds to lobby federal officials or Congress regarding specific federal actions and mandating disclosure of any lobbying activities.
Key Rules
- Prohibition on Appropriated Funds: Recipients of federal contracts, grants, or loans are strictly forbidden from using appropriated funds to pay any person for influencing or attempting to influence government officials in connection with covered federal actions.
- Definition of Funds: The term "appropriated funds" specifically excludes profit or fee earned from a federal action.
- Presumption of Non-Federal Funds: If a contractor can demonstrate they possess sufficient non-federal money, the government will assume that any lobbying activities were funded by those private sources rather than federal funds.
- Mandatory Documentation: Offerors must submit a declaration that includes both a certification of compliance and a disclosure of lobbying activities, governed by FAR provisions 52.203-11 and 52.203-12.
- Ongoing Disclosure: Contractors are required to provide periodic updates to their lobbying disclosures even after the contract has been awarded.
Practical Implications
- Accounting Separation: Contractors must maintain rigorous accounting practices to clearly distinguish between appropriated federal funds and private funds (or profits) to prove that any lobbying expenses were paid from allowable sources.
- Compliance Burden: Offerors must ensure they submit required certifications at the proposal stage and establish internal triggers to update disclosures throughout the contract lifecycle to remain in compliance with statutory requirements.