52.203-12
Limitation on Payments to Influence Certain Federal Transactions
Do not use appropriated funds to influence Federal award decisions, and if lobbying contacts occur, disclose them promptly on SF LLL and flow the rule down to covered subcontracts.
Overview
- FAR 52.203-12 implements the statutory ban in 31 U.S.C. 1352 on using appropriated funds to influence certain Federal transactions, including the award, extension, renewal, amendment, or modification of a Federal contract.
- For contractors, the clause is primarily about preventing improper lobbying with Federal money, requiring disclosures when lobbying contacts occur, and flowing these requirements down to covered subcontracts.
Key Rules
- Prohibition on use of appropriated funds
- Contractors may not use appropriated funds to pay any person to influence or attempt to influence agency officials, Members of Congress, congressional staff, or employees of Members of Congress in connection with a covered Federal action.
- Limited exceptions
- The clause permits certain agency and legislative liaison activities by contractor employees and allows reasonable compensation/payments for professional or technical services directly related to preparing, submitting, or negotiating bids, proposals, applications, or meeting legal award conditions.
- Disclosure obligations
- If lobbying registrants later make lobbying contacts on the contractor’s behalf and no prior OMB Standard Form LLL was submitted, the contractor must submit the form. If previously submitted information changes in Block 10, the contractor must provide an updated form to the Contracting Officer within 30 days after the end of the calendar quarter in which the change occurred.
- Subcontract flowdown
- For subcontracts exceeding the FAR 3.808 threshold at award, contractors must obtain required declarations, retain certifications, forward disclosure forms up the chain, and include the substance of this clause in the subcontract.
Responsibilities
- Contracting Officers: receive updated SF LLL disclosures from prime contractors and monitor clause compliance.
- Contractors: avoid prohibited payments, submit or update disclosures when required, retain subcontractor certifications, and flow the clause down to covered subcontracts.
- Agencies: may impose civil penalties and pursue other remedies for violations.
Practical Implications
- This clause exists to separate legitimate proposal support and technical consulting from improper lobbying funded by taxpayer dollars.
- Contractors should track funding sources for advocacy-related activities, distinguish allowable proposal support from prohibited influence efforts, and maintain a process for quarterly disclosure updates.
- Common pitfalls include failing to update SF LLL, misunderstanding what qualifies as professional/technical services, and missing subcontract flowdown and record-retention requirements.