Overview
FAR 3.803 identifies specific exceptions to the general prohibition against using appropriated funds to influence Federal transactions, primarily focused on legitimate agency liaison activities and professional or technical services. It distinguishes between prohibited lobbying and allowable activities such as providing technical information, legal advice, or capability presentations.
Key Rules
- Agency and Legislative Liaison: Reasonable compensation paid to an organization's own employees is permitted for activities not directly related to a specific covered Federal action, such as discussing product characteristics, service capabilities, or providing information requested by Congress.
- Pre-Solicitation Discussions: Technical discussions regarding unsolicited proposals and capability presentations for small business awards are exempt from the prohibition if they occur prior to a formal solicitation.
- Professional and Technical Services: Payments to both employees and outside consultants (e.g., lawyers, engineers) are permitted if the services are rendered directly for the preparation, submission, or negotiation of a bid or proposal.
- Defining Technical Services: To qualify for the exception, services must involve the application of a professional discipline (e.g., an engineer analyzing equipment performance). General advocacy or influence that does not provide specific technical or legal analysis is not exempt.
- Disclosure Exemption: The requirement to disclose lobbying activities does not apply to the payment of reasonable compensation to "regularly employed" officers or employees of the contractor.
Practical Implications
- Compliance for Bid Teams: Contractors can safely utilize internal and external subject matter experts (SMEs) to draft technical proposals and legal documents without violating lobbying restrictions, provided those experts stay within their technical domain.
- Marketing vs. Lobbying: Business development teams must ensure that their communications during the "pre-solicitation" phase focus on general capabilities and technical applications rather than attempting to influence the specific terms of a pending procurement.
- Documentation: Firms should maintain records that distinguish between general business development (allowable) and efforts to influence specific contract awards through non-technical means (potentially prohibited).