Subpart 3.8
Limitations on the Payment of Funds to Influence Federal Transactions
FAR Subpart 3.8 prohibits the use of appropriated funds to influence federal officials in contract actions and requires strict compliance, disclosure, and inclusion of specific contract clauses to ensure transparency.
Overview
FAR Subpart 3.8 establishes strict limitations on the use of appropriated funds to influence or attempt to influence federal officials in connection with the awarding, making, or modifying of federal contracts, grants, loans, or cooperative agreements. It implements statutory prohibitions, defines key terms, outlines exceptions and exemptions, and prescribes required solicitation provisions and contract clauses. The subpart also details the process for handling suspected violations and the imposition of civil penalties. Its primary purpose is to ensure transparency and integrity in federal contracting by preventing improper lobbying and undue influence.
Key Rules
- Statutory Prohibition and Requirement
- Contractors and their employees are prohibited from using appropriated funds to influence federal officials regarding contract actions.
- Exceptions and Exemptions
- Certain communications and activities are exempted, such as agency requests for information or technical discussions.
- Policy and Processing Violations
- Agencies must investigate suspected violations and may impose civil penalties for noncompliance.
- Solicitation Provision and Contract Clause
- Solicitations and contracts must include specific provisions and clauses to ensure compliance.
Responsibilities
- Contracting Officers: Must include required clauses, monitor compliance, and report suspected violations.
- Contractors: Must avoid prohibited activities, certify compliance, and disclose lobbying activities as required.
- Agencies: Responsible for investigating violations and enforcing penalties.
Practical Implications
- This subpart exists to prevent improper influence in federal contracting and promote fair competition.
- Contractors must be vigilant about compliance, as violations can result in significant penalties and reputational harm.
- Common pitfalls include failing to disclose lobbying activities or misunderstanding what constitutes a prohibited action.