3.803 Exceptions.

(a) The prohibition of paragraph 3.802(a) does not apply under the following conditions:

(1) Agency and legislative liaison by own employees.

(i) Payment of reasonable compensation made to an officer or employee of a person requesting or

receiving a covered Federal action if the payment is for agency and legislative liaison activities not

directly related to a covered Federal action. For purposes of this paragraph, providing any

information specifically requested by an agency or Congress is permitted at any time.

(ii) Participating with an agency in discussions that are not related to a specific solicitation for any

covered Federal action, but that concern-

(A) The qualities and characteristics (including individual demonstrations) of the person’s products

or services, conditions or terms of sale, and service capabilities; or

(B) The application or adaptation of the person’s products or services for an agency’s use.

(iii) Providing prior to formal solicitation of any covered Federal action any information not

specifically requested but necessary for an agency to make an informed decision about initiation of a

covered Federal action.

(iv) Participating in technical discussions regarding the preparation of an unsolicited proposal prior

to its official submission.

(v) Making capability presentations prior to formal solicitation of any covered Federal action when

seeking an award from an agency pursuant to the provisions of the Small Business Act, as amended

by Pub. L. 95-507, and subsequent amendments.

(2) Professional and technical services.

(i) Payment of reasonable compensation made to an officer or employee of a person requesting or

receiving a covered Federal action, if payment is for professional or technical services rendered

directly in the preparation, submission, or negotiation of any bid, proposal, or application for that

Federal action or for meeting requirements imposed by or pursuant to law as a condition for

receiving that Federal action;

(ii) Any reasonable payment to a person, other than an officer or employee of a person requesting or

receiving a covered Federal action, if the payment is for professional or technical services rendered

directly in the preparation, submission, or negotiation of any bid, proposal, or application for that

Federal action, or for meeting requirements imposed by or pursuant to law as a condition for

receiving that Federal action. Persons other than officers or employees of a person requesting or

receiving a covered Federal action include consultants and trade associations.

(iii) As used in paragraph (a)(2) of this section "professional and technical services" are limited to

advice and analysis directly applying any professional or technical discipline. For example, drafting

of a legal document accompanying a bid or proposal by a lawyer is allowable. Similarly, technical

advice provided by an engineer on the performance or operational capability of a piece of equipment
rendered directly in the negotiation of a contract is allowable. However, communications with the

intent to influence made by a professional or a technical person are not allowable under this section

unless they provide advice and analysis directly applying their professional or technical expertise

and unless the advice or analysis is rendered directly and solely in the preparation, submission or

negotiation of a covered Federal action. Thus, for example, communications with the intent to

influence made by a lawyer that do not provide legal advice or analysis directly and solely related to

the legal aspects of his or her client’s proposal, but generally advocate one proposal over another,

are not allowable under this section because the lawyer is not providing professional legal services.

Similarly, communications with the intent to influence made by an engineer providing an

engineering analysis prior to the preparation or submission of a bid or proposal are not allowable

under this section since the engineer is providing technical services but not directly in the

preparation, submission or negotiation of a covered Federal action.

(iv) Requirements imposed by or pursuant to law as a condition for receiving a covered Federal

award include those required by law or regulation and any other requirements in the actual award

documents.

(b) Only those communications and services expressly authorized by paragraph (a) of this section are

permitted.

(c) The disclosure requirements of paragraph 3.802(b) do not apply with respect to payments of

reasonable compensation made to regularly employed officers or employees of a person.

Parent topic: Subpart 3.8 - Limitations on the Payment of Funds to Influence Federal Transactions