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Appendix II

APPENDIX II. AWARD CLAUSE

1\. Limitations on payments made to influence certain

Federal contracting and financial transactions. The

restrictions described in this clause are set forth in

41 U.S.C. 1352 and OMB Interim Final Guidance at 54 FR

52306 et seq. (December 20, 1989).

2\. General Prohibition. No appropriated funds may be used

by a recipient of a Federal contract, grant, loan, or

cooperative agreement to pay any person for

influencing, or attempting to influence, Executive or

Legislative branch personnel in connection with the

award of any Federal contract, the making of any

Federal grant or loan, or the entering into of any

cooperative agreement. Exceptions to this prohibition

are described in OMB Interim Final Guidance, \_\_\_.200(a)

and (b), \_\_\_.205, \_\_\_.300.

3\. Certifications. Any person who requests or receives a

Federal contract, grant, or cooperative agreement

exceeding \$100,000, or a Federal loan exceeding

\$150,000, must file a certification that the person has

not made, and will not make, any prohibited payment

from appropriated funds.

4\. Statements. Any person who requests or receives a

commitment to guarantee or insure a loan exceeding

\$150,000 must file a statement that the person will

file a disclosure form (SF-LLL) if the person has made,

or will make, any payment to influence, or attempt to

influence, any Executive or Legislative branch

personnel in connection with that loan insurance or

guarantee.

5\. Disclosure. Every person who requests or receives a

Federal contract, grant, or cooperative agreement

exceeding \$100,000, or a Federal loan, loan guarantee,

or loan insurance exceeding \$150,000, must disclose (on

SF-LLL) any payments made, or agreement to make any

payment, from nonappropriated funds for the purpose of

influencing, or attempting to influence, any Executive

or Legislative branch personnel in connection with the

contract, grant, cooperative agreement, loan, loan

insurance, or loan guarantee. Exceptions to this

disclosure requirement are described in OMB Interim

Final Guidance, \_\_\_.210, \_\_\_.300(b). A new

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Appendix II

disclosure form must be filed:

a\. at the end of each calendar quarter in which a

payment, or an agreement to make a payment, is made

which would have otherwise required reporting at

the time of application; and

b\. if an event occurs during a calendar quarter which

materially affects the accuracy of information

reported on a disclosure form submitted previously.

6\. Subcontractors and subrecipients. Recipients must

inform subcontractors and subrecipients of the

requirements for filing, retention, and forwarding of

certifications, statements, and disclosure forms to the

next tier above the submitter. These procedures are

described in OMB Interim Final Guidance, \_\_\_.110(d)

and (e).

7\. Penalties. Disclosure data will be subject to public

scrutiny and will be submitted to Congress for review.

See OMB Interim Final Guidance, \_\_\_.600(a) and (b).

Any person who makes a prohibited expenditure or who

fails to submit or amend a disclosure form, when

required, is subject to a civil penalty of not less

than \$10,000 and not more than \$100,000 for each such

expenditure or failure. See OMB Interim Final

Guidance, \_\_\_.400(a) and (b). Violations of the law

will be reported to Congress. See OMB Interim Final

Guidance, \_\_\_.605(a) and (d).

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