Legal Support Services Deskbook

(revised 12/21/2023)
FDIC LEGAL SUPPORT SERVICES DESKBOOK

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Table of Contents

Table of Contents .........................................................................................................................................2

Purpose.........................................................................................................................................................5

Forms & Related Links..................................................................................................................................5

Alternative Dispute Resolution/Binding Arbitration ............................................................................................... 5

Budget Forms............................................................................................................................................................ 5

Byrd Amendment...................................................................................................................................................... 5

Conflicts of Interest .................................................................................................................................................. 6

Electronic Funds Transfer (EFT) Guidelines............................................................................................................. 6

Expert/Legal Support Services Amendment & Rate Schedule Forms .................................................................... 6

Invoice Forms............................................................................................................................................................ 6

Travel......................................................................................................................................................................... 6

Related Information ................................................................................................................................................. 6

Effective Date............................................................................................................................................................ 6

Inquiries .................................................................................................................................................................... 6

Foreword ......................................................................................................................................................7

Chapter 1 - Working for the FDIC Legal Division..........................................................................................7

1.1 Scope of the Legal Support Services Deskbook ("LSS Deskbook").................................................................. 7

1.2 Identifying the FDIC as a Client........................................................................................................................... 7

1.3 Statutory Compliance......................................................................................................................................... 7

1.4 Equal Employment Opportunity and Diversity.................................................................................................. 7

1.5 Ethical Considerations........................................................................................................................................ 8

1.6 Workpapers and Document Ownership - Assignment of Rights ....................................................................... 9

1.7 Audit Rights ......................................................................................................................................................... 9

1.8 Fees and Expenses .............................................................................................................................................. 9

1.9 Mandatory Registration with SAM.................................................................................................................... 10

1.10 Contacts with the Media and the Public ........................................................................................................ 10

Media Inquiries.................................................................................................................................................... 10

Speaking Engagements ...................................................................................................................................... 10

1.11 Cooperation with the FDIC Office of Inspector General (OIG)....................................................................... 10

1.12 Whistleblower Protections ............................................................................................................................. 11

1.13 Role of FDIC Oversight Attorney ..................................................................................................................... 11

Initiation of Legal Support Services ................................................................................................................... 11

Performing Services............................................................................................................................................ 11

Contacts with Other FDIC Offices ....................................................................................................................... 12

1.14 Alternative Dispute Resolution ("ADR")......................................................................................................... 12
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1.15 Termination..................................................................................................................................................... 12

Chapter 2 - Conflicts of Interest.................................................................................................................13

2.1 FDIC Regulations and Policies.......................................................................................................................... 13

2.2 Required Disclosures ........................................................................................................................................ 13

2.3 Conflict Determination ..................................................................................................................................... 13

2.4 Noncompliance................................................................................................................................................. 14

2.5 Questions Concerning Conflicts ....................................................................................................................... 14

Chapter 3 - Information Security & Confidentiality ..................................................................................14

3.1 Maintaining Confidentiality.............................................................................................................................. 14

3.2 Using FDIC’s Electronic Discovery Group on Legal Matters ............................................................................ 17

3.3 Careful and Secure Handling of FDIC Information & Records......................................................................... 17

3.4 FDIC-Supported Resources for Using Encryption Technology to transmit Confidential "Sensitive" 

Information............................................................................................................................................................. 18

3.5 Secure Telecommunications and Video Surveillance or Equipment ............................................................. 18

3.6 Other Resources................................................................................................................................................ 20

Chapter 4 – Agreements.............................................................................................................................21

4.1 Purpose of Contract.......................................................................................................................................... 21

4.2 Duration of Agreement for Services ................................................................................................................. 21

4.3 Contract Amendment....................................................................................................................................... 22

Structural Changes ............................................................................................................................................. 22

New Tax Identification Number (TIN)................................................................................................................. 22

4.4 Byrd Amendment - Engagements Over $100,000............................................................................................ 23

4.5 Budget............................................................................................................................................................... 23

Completing the Budget Form............................................................................................................................. 24

4.6 Budget Submission........................................................................................................................................... 24

4.7 Amended Budget .............................................................................................................................................. 24

Completing and Submitting the Amended Budget........................................................................................... 25

Chapter 5 - Management of Services.........................................................................................................25

5.1 General Management of Legal Support Services............................................................................................. 25

Reports ................................................................................................................................................................ 27

5.2 Case Plan........................................................................................................................................................... 27

5.3 Case Plan Submission....................................................................................................................................... 27

5.4 Amended Case Plan Submission...................................................................................................................... 27

5.5 Criminal Referrals ............................................................................................................................................. 27

5.6 Cooperation with the FDIC Office of Inspector General .................................................................................. 28
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Chapter 6 - Invoice Package.......................................................................................................................29

6.1 Invoice Package ................................................................................................................................................ 29

6.2 Invoice Package Submission............................................................................................................................ 29

When.................................................................................................................................................................... 30

Where................................................................................................................................................................... 30

6.3 Billable Fees and Expenses............................................................................................................................... 30

Expenses.............................................................................................................................................................. 31

6.4 Non-Billable Fees and Expenses ...................................................................................................................... 31

6.5 Over-Budget Invoices........................................................................................................................................ 32

6.6 Expert's and LSS Provider's Invoice Format.................................................................................................... 33

Fees...................................................................................................................................................................... 33

Block Billing and Vague Description of Services................................................................................................ 33

Time Increments ................................................................................................................................................. 35

Expenses.............................................................................................................................................................. 35

Example of Itemized Expenses ........................................................................................................................... 35

6.7 General Services Administration Travel Reimbursement Guidelines............................................................. 35

Eligibility for Reimbursement............................................................................................................................. 35

Travel Authorization ........................................................................................................................................... 35

Air Travel.............................................................................................................................................................. 35

Rental Cars .......................................................................................................................................................... 36

Lodging................................................................................................................................................................ 36

Subsistence ......................................................................................................................................................... 36

Per Diem Allocation for Overnight Travel .......................................................................................................... 36

Miscellaneous Meal Expense .............................................................................................................................. 37

Use of Privately-Owned Vehicle.......................................................................................................................... 37

Taxicabs or Rideshare Services .......................................................................................................................... 37

Non-Reimbursable Travel Expenses .................................................................................................................. 37

Travel Voucher Completion................................................................................................................................ 38

6.8 Expert Invoice For Fees and Expenses (EIF&E) Form and LSS Provider Invoice For Fees and Expenses (IF&E) 

Form ........................................................................................................................................................................ 38

6.9 FDIC Invoice Package Review........................................................................................................................... 39

6.10 Reconsideration of Disallowances ................................................................................................................. 39

6.11 Audit and Records Retention.......................................................................................................................... 40

6.12 Frequently Asked Questions........................................................................................................................... 40

Chapter 7 – Closeout..................................................................................................................................41

7.1 Final Invoice Package ....................................................................................................................................... 41

7.2 Forwarding Documents to FDIC ....................................................................................................................... 41
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Chapter 8 - Post-Retention Responsibilities .............................................................................................42

8.1 Post-Retention Responsibilities ....................................................................................................................... 42

File Retention...................................................................................................................................................... 42

Contacts with the Public and Media................................................................................................................... 42

Identifying FDIC as a Former Client.................................................................................................................... 42

Compliance with Subpoenas and Other Court Orders...................................................................................... 42

Appendices .................................................................................................................................................42

Appendix A - Statutory Compliance....................................................................................................................... 42

Appendix B - Contacts ............................................................................................................................................ 42

Appendix C - Electronic Billing & Timekeeping Records ....................................................................................... 43

Purpose

This Legal Support Services Deskbook ("LSS Deskbook") has been prepared by the FDIC Legal Division ("Legal 

Division") to provide policies, procedures, and standard forms for legal support services ("LSS") Providers. LSS 

Providers include experts, mediators, consultants, electronic discovery vendors, language translation & 

interpreter services, court reporters, or other service providers apart from attorneys or law firms. The LSS 

Deskbook sets forth many of the FDIC’s requirements that govern the relationship between the FDIC and LSS 

Providers. It is important that in-house attorneys (“Oversight Attorneys”) and LSS Providers read, maintain 

familiarity with, and adhere to the provisions of the LSS Deskbook.

The Legal Division requires its LSS Providers to follow and use the LSS Deskbook under the direction of the 

Oversight Attorneys. Each chapter covers a key area or interest. Appendices provide additional information, 

forms, and worksheets. The LSS Deskbook is publicly available on the fdic.gov website. 

Forms & Related Links

Alternative Dispute Resolution/Binding Arbitration

• Binding Arbitration - FDIC Directive 5310.1 (June 5, 2001) - PDF

• Final Statement of Policy Regarding Binding Arbitration (govinfo.gov) 

Budget Forms

• Expert Budget - PDF

• Legal Support Services (LSS) Provider Budget Form - PDF

Byrd Amendment

• Byrd Amendment Implementation Statement

• Certification Form - PDF (FDIC Certification Form 3700/04A)

• Disclosure of Lobbying Activities Form (gsa.gov)
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Conflicts of Interest

• 12 C.F.R. Part 366 - Minimum Standards of Integrity and Fitness for an FDIC Contractor 

• Oral Representations and Certifications for Expert Legal Support Services Telephone Authorization for 

Expenditures Under $5,000 - PDF

• Representations and Certifications for Expert Legal Support Services Provider - MS Word

Electronic Funds Transfer (EFT) Guidelines

• EFT Requirements

• Substitute Form W-9 Request for Taxpayer ID Number and Certification - PDF

• Payee Information for Automatic Deposit of Payment form - PDF

Expert/Legal Support Services Amendment & Rate Schedule Forms

• Agreement for Services (Expert/Legal Support Services (LSS) Provider) Amendment - PDF

• Agreement for Services (Expert/Legal Support Services (LSS) Provider) Rate Schedule - PDF

Invoice Forms

• Expert Invoice for Fees & Expenses - PDF

• Legal Support Services Provider Invoice for Fees and Expenses - PDF

Travel

• Travel Voucher - PDF

• FDIC's Contractor Travel Reimbursement Guidelines - PDF

• GSA Per Diem Rates (gsa.gov)

Related Information

• Outside Counsel Deskbook

Effective Date

The original effective date of the LSS Deskbook is December 2005. The Legal Division may amend the LSS 

Deskbook from time to time. Unless otherwise noted, amendments are effective on the date published on 

fdic.gov. 

Inquiries 

For further assistance with FDIC's LSS Deskbook policies and procedures, contact the FDIC Oversight Attorney 

administering the agreement or the Legal Division’s Legal Services & Special Contracts Group (formerly known 

as the Outside Counsel Management Group) at LSSCG@fdic.gov or via US Mail at: 

Legal Services & Special Contracts Group

3501 Fairfax Drive (VS-E-6097)

Arlington, VA 22226. 
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Foreword 

The Legal Support Services Agreement (“LSSA”) and the LSS Deskbook, being incorporated by reference into 

the LSSA, form the mutually binding contractual relationship between the FDIC and LSS Providers. LSS

Providers are obligated to comply with all requirements of their LSSA and LSS Deskbook, absent a written 

waiver of a requirement by the Legal Division. 

Waiver of a requirement of the LSSA or LSS Deskbook, including permitting any method or practice by a Legal 

Support Service Provider that is inconsistent with the Deskbook, is an “Exception.” The Legal Division has the 

unilateral authority to grant Exceptions if doing so is in the FDIC’s interest, including when necessary to achieve 

the goals of a particular legal matter. Note that the granting of exceptions is rare, and they should generally only 

be sought in circumstances not otherwise addressed in the LSSA or LSS Deskbook. 

Chapter 1 - Working for the FDIC Legal Division

1.1 Scope of the Legal Support Services Deskbook ("LSS Deskbook")

The Legal Support Services Deskbook (“LSS Deskbook”) describes the policies and procedures that all LSS 

Providers engaged by the FDIC Legal Division must follow. 

1.2 Identifying the FDIC as a Client

LSS Providers may list the FDIC as a client in published materials with adherence to the following restrictions.

LSS Providers may not represent that they have been “approved” as LSS Providers for the FDIC. All LSS 

Providers must comply with applicable ethics rules regarding advertising, including those restrictions 

pertaining to claims of “expert” status, expertise, or specialization. LSS Providers may not quote FDIC materials 

or staff comments concerning performance evaluations.

1.3 Statutory Compliance

The Legal Division requires all LSS Providers to comply with all applicable statutes and regulations, as well as 

orders, policies, procedures, and directives. Refer to Appendix A for a non-exhaustive representative list of 

applicable federal laws and regulations.

1.4 Equal Employment Opportunity and Diversity

The FDIC has a strong commitment to equal opportunity under the law. As a part of the FDIC Legal Division’s 

Diversity & Inclusion Program, the Legal Division seeks to engage firms owned by minorities or women.

Moreover, the FDIC expects its contractors and sub-contractors to take action to ensure that all individuals have 

equal opportunity for employment, without regard to race, color, religion, sex, national origin, disability or 

status as a qualified covered veteran as defined in 38 U.S.C. § 4212(a)(3). "Minority-owned businesses" are those 
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that are at least 51% owned and controlled (through day-to-day management) by one or more persons who are 

members of one or more of the following groups:

• Asian Pacific Americans;

• Black Americans;

• Hispanic Americans;

• Native American Indians;

• Sub-Continent Asian Americans; and

• Members of other groups designated from time to time by the Small Business Administration (SBA). 

“Women-owned businesses” are those that are at least 51% owned and controlled (through day-to-day 

management) by non-minority women. Businesses claiming minority- or women-owned status must certify 

their status as such to the FDIC, and the FDIC may require additional information to verify the status.

The Legal Division works to ensure the inclusion of minorities and women to the maximum extent possible. 

(See 12 C.F.R. Part 361) The FDIC assists minority-owned or women-owned businesses, and minorities and 

women within other businesses with matters relating to the retention of LSS Providers. If interested in such 

assistance, contact the Legal Division’s Diversity, Inclusion & Accessibility Program at: 

Legal Division Diversity, Inclusion & Accessibility Program 

3501 Fairfax Drive (VS-E-6097)

Arlington VA 22226. 

Email: fdicLegalDivisionDEIprogram@fdic.gov 

1.5 Ethical Considerations

LSS Providers must maintain the highest ethical standards and comply with all applicable laws, rules, and 

regulations governing ethical conduct. In particular, LSS Providers must be cognizant of the following:

to avoid any appearance of an ethical conflict, neither the LSS Provider, nor any person associated with the 

potential or engaged LSS Provider, may provide any gift, gratuity, favor, entertainment, loan, or other thing of 

monetary value to any employee of the FDIC. (See 5 C.F.R. § 2635, Subpart B, Standards of Ethical Conduct for 

Employees of the Executive Branch.) While private businesses may host social or holiday functions for business 

associates and others with whom they do business, there are limitations on attendance at these events by FDIC 

employees. With few exceptions, FDIC employees may not solicit or accept gifts or loans from anyone who does, 

or seeks to do, business with the FDIC.

LSS Providers may hire former FDIC employees, but as former employees they are subject to the governmentwide post-employment statute, 18 U.S.C. § 207, which affects what they can do for firms/businesses. Generally, 

however, former FDIC employees may work on matters that they worked on personally or that were under their 

supervision while at the FDIC only when their post-employment employer is not in a position adverse to the 

FDIC.
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If an FDIC employee was involved in negotiating the firm’s/business’ current FDIC LSSA, that individual, upon 

joining the firm/business may not, during the duration of the LSSA renegotiate the rate schedule, request 

changes in billable individuals, or be involved in any matter pertaining to questions of the competence of the 

services provided under the LSSA. 

For more information, contact the Ethics & ADR Unit of the FDIC Executive Secretary Section at (703) 562-2704.

1.6 Workpapers and Document Ownership - Assignment of Rights

Workpapers and other work product (whether in paper or electronically stored ("workpapers"), prepared by LSS 

Providers or accomplished under their direction or control are the property of the FDIC.

Under no circumstances may the engaged firm/business withhold files from the FDIC for any reason, including a 

payment dispute.

1.7 Audit Rights

LSS Providers must permit the FDIC, the FDIC Office of Inspector General, and the Government Accountability 

Office, or their representatives, to conduct audits or reviews of FDIC billings, including previously paid invoices. 

All paid invoices are subject to audit and Legal Division review regardless of disallowance taken during the bill 

review and approval process.

For purposes of subsequent audits and Legal Division review, LSS Providers must retain copies of all invoice 

packages and original underlying support documentation, including time sheets, cancelled checks, invoices, 

and time and expense adjustment records, for at least three years after final payment for services provided.

See Appendix C for further information on record keeping requirements for electronic billing. The FDIC reserves 

the right to obtain additional information upon review of any itemized bill or support documentation.

1.8 Fees and Expenses

LSS Providers must provide legal support services at competitive fixed prices or in hourly rates.

LSS Provider must include in their fixed prices or hourly rates, its costs for doing business, including all 

"overhead," general and administrative costs, fringe benefits, and profit. The LSS Provider may not submit (and 

the FDIC will not pay) invoices for such costs of doing business. LSS Providers may not invoice "markups" above 

any costs actually incurred for supplies or services obtained for the Legal Division. 

The FDIC will only pay reasonable costs for services rendered or supplies provided in the course of engagement 

for legal support services. All invoices for services rendered and expenses incurred must be consistent with the

LSSA. See Chapter 6 for a further discussion of the invoice process. The FDIC will not pay for inflated hours or 

other artificially inflated prices. In performing work on behalf of the FDIC, any discounts received by the LSS 

Provider must be passed on to the FDIC. 
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When an LSS Provider performs work on an FDIC matter on behalf of a law firm that holds a Legal Services 

Agreement (LSA) with the FDIC, the LSS Provider must abide by the rates in its LSSA, unless the LSA law firm has 

negotiated lower rates with the LSS Provider, in which case such discounts must be passed on to the FDIC.

Moreover, an LSS Provider cannot furnish services or levy charges or fees on any FDIC matters that are outside 

of its current LSSA, nor charge higher pricing than that featured within it, without written pre-approval from the 

Oversight Attorney. 

Where practicable, if an LSS Provider is hired as a subcontractor by a firm with an existing LSA with the FDIC, 

consideration should be given to the feasibility of dealing directly with the FDIC through the Oversight Attorney. 

Note: (1) The submission of erroneous bills or requests for reimbursement of inappropriate charges may result 

in civil or criminal sanctions. (2) Under no circumstances may LSS Providers attempt a set-off or recoupment, 

obtain a charging or retaining lien, or withhold files in the event of a dispute over payment for services 

rendered.

1.9 Mandatory Registration with SAM 

The FDIC will only make awards or legal referrals to businesses that are registered in the System for Award 

Management (SAM) database. Registration is via https://sam.gov/content/home. This webpage also contains

user guides and demonstration videos under the Help tab. If you have any questions regarding SAM or the 

registration process, please contact the SAM Assistance Center toll free at (866) 606-8220.

1.10 Contacts with the Media and the Public

Under no circumstances may LSS Providers comment to the media on FDIC matters.

Media Inquiries

LSS Providers must promptly advise the FDIC Oversight Attorney of all media inquiries concerning FDIC matters. 

The Oversight Attorney will refer the inquiry to the FDIC Office of Communications in Washington, D.C., at (202) 

898-6993 for response.

Speaking Engagements

If LSS Providers address the public at seminars or other functions on topics pertaining to the FDIC or laws and 

regulations affecting the FDIC, the LSS Provider must disclose to the audience that they are making the 

presentation on their own behalf and not on behalf of the FDIC.

1.11 Cooperation with the FDIC Office of Inspector General (OIG) 

It is the policy of the FDIC that there is full cooperation with the work of the OIG and prompt reporting to the OIG 

of fraud, waste, abuse, or criminal violations related to FDIC programs or operations. The duties of contractors

and FDIC oversight personnel to report wrongdoing, comply with OIG requests, and maintain confidentiality are 

outlined in detail under FDIC Directive 12000.01. However, apart from matters related to whistleblower reports 
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of fraud, waste, or abuse by FDIC employees and FDIC contractor personnel in connection with FDIC programs 

or operations, you should coordinate production of information or documents through your Oversight Attorney.

Note: Contact the Office of Inspector General via the OIG Hotline at (800) 964-3342 or via email at: 

oighotline@fdicoig.gov. 

1.12 Whistleblower Protections 

(a) All LSS Providers, their employees working on a legal referral or contract, and any subcontract and 

employees working on that subcontract, are subject to the whistleblower rights and remedies 

established at 41 U.S.C. § 4712. 

(b) The LSS Provider must inform its employees, and any subcontractor must inform its employees, in 

writing, in the predominant language of the workforce, of employee whistleblower rights and 

protections under 41 U.S.C. § 4712. Within 30 days of the legal referral or contract, the LSS Provider and 

its subcontractors must distribute the informational document, “Whistleblower Information for 

Employees of FDIC Contractors, Subcontractors, or Personal Services Contractors” to their employees 

performing work in support of the goods and services delivered under the contract 

(https://www.fdic.gov/about/doing-business/acquisition/whistleblower-information.pdf). By agreeing 

to the terms and conditions of the legal referral or contract, the LSS Provider acknowledges receipt of 

this requirement, in accord with 41 U.S.C. § 4712, and commits to its distribution.

(c) The LSS Provider must insert this Subsection 1.12, including this paragraph (c), in all subcontracts, at 

any tier, valued at $250,000 or more. 

1.13 Role of FDIC Oversight Attorney

Attorneys in the Legal Division will act as "Oversight Attorneys" and are responsible for managing all legal 

assignments and litigation, including LSS Providers. LSS Providers must consult with the Oversight Attorney on 

all major strategic or tactical decisions.

Initiation of Legal Support Services 

Before LSS Providers begin providing services for the FDIC, the FDIC Oversight Attorney will identify the 

objectives to be achieved and possible alternative courses of action. As a general matter (depending in part on 

the scope of the assignment), the Oversight Attorney will:

• Define the goals and objectives to be achieved;

• Outline roles and expected duties; and

• Discuss with the LSS Provider the scope of the case plan, the required budget, and a timeline designed 

to achieve the FDIC's goals and objectives in a cost-effective manner (refer to Chapter 5 and Chapter 6).

Performing Services

During the course of provision of services, the Oversight Attorney will:
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• Review the expert’s or LSS Provider’s work;

• Monitor progress against the LSSA or the statement of work for the matter; 

• Review and obtain approval of any significant changes in the case plan;

• Keep FDIC business personnel informed of developments; and

• Coordinate contacts between the LSS Providers and FDIC business personnel, as discussed below.

Contacts with Other FDIC Offices

All contact with non-legal FDIC personnel (except the OIG, in circumstances described in 1.11 above) is only

made through the Legal Division. This policy permits the most efficient utilization of resources and serves to 

avoid duplication of effort and minimize costs. Therefore, LSS Providers must direct all communications to the 

Oversight Attorney, except in the following circumstances:

• When the Oversight Attorney indicates otherwise;

• Immediate action is required and neither the Oversight Attorney nor his/her supervisor can be reached;

• Responding to an FDIC Legal Division review or audit request;

• When communicating with the FDIC's Office of Inspector General as described in 1.11; or

• Seeking limited factual information that can only be obtained in a relatively brief amount of time (such 

as pay off figures for a loan or the address of a borrower); 

• Under special circumstances or in certain types of litigation your Oversight Attorney may arrange for 

more extensive direct contact with FDIC business personnel. This might occur, for example, in a case 

involving an in-depth investigation of an insured depository institution's records.

The FDIC will not pay for fees or expenses related to contacts other than those authorized above. 

1.14 Alternative Dispute Resolution 

The FDIC is committed to the use of Alternative Dispute Resolution (“ADR”) in appropriate situations. The FDIC 

views such techniques as potentially less costly, less time consuming, and a more effective means of resolving 

appropriate disputes. 

1.15 Termination 

The Legal Division reserves the right, in its sole discretion, to discontinue its relationship with any LSS Provider, 

with or without cause, if it is in the best interest of the FDIC. Terminations of services will be in writing. Verbal 

notification will also be confirmed in writing. The Legal Division will contact the LSS Provider and provide 

instructions concerning disposition of files and other FDIC property. 
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Note: The LSS Provider must forward, upon demand of the Legal Division, all files, workpapers, work product, 

and documents (whether on paper or electronically stored) concerning the terminated legal support services 

including all work product of the firm/business. It is important that the LSS Provider promptly forward materials 

at the direction of, and in consultation with, the FDIC Oversight Attorney. Failure to do so may delay or prevent 

payment of the final invoice or result in other sanctions. The LSS Provider agrees that, under no 

circumstances will it withhold files, documents, work product or workpapers in the event of a dispute 

with the FDIC. 

Chapter 2 - Conflicts of Interest 

2.1 FDIC Regulations and Policies

There are specific reporting requirements contained in the regulations at 12 C.F.R. Part 366, as amended or 

superseded. These regulations prescribe minimum standards of fitness and integrity for LSS Providers or their 

employees or agents who provide professional services on FDIC matters. For representations and certifications 

required by the FDIC in accordance with 12 C.F.R. Part 366, see the General Counsel’s Statement of Policy on 

Outside Counsel Conflicts of Interest.

2.2 Required Disclosures

The FDIC will screen all LSS Providers for conflicts of interest before they are eligible to provide services.

Mandatory reporting requirements are contained in the conflicts of interest regulations at 12 C.F.R. Part 366 , as 

amended. The LSS Provider must disclose in writing all actual or potential conflicts and matters that may 

present the appearance of a conflict to the Legal Division as soon as they identify an actual or potential conflict. 

When in doubt about the existence of a conflict, immediately disclose the matter and seek a waiver. Even after 

the report of a conflict or the receipt of a waiver from the Legal Division, the LSS Provider must notify the Legal 

Division of any material change in facts. 

2.3 Conflict Determination 

It is solely within the discretion of the Legal Division to determine whether an actual or potential conflict exists. 

Even the appearance of a conflict may result in the denial of a waiver or imposition of other corrective actions.

The Legal Division will waive conflicts of interest in writing. Generally, the Legal Division grants or denies 

conflicts of interest through the Legal Division’s Conflicts Committee.

The Legal Division considers requests for waivers on a case-by-case basis and does not supply prospective or 

advance waivers of conflicts of interest. 
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2.4 Noncompliance 

Failure to disclose promptly actual or potential conflicts of interest, or matters that may present the 

appearance of a conflict, as well as failure to comply with FDIC’s conflicts of interest policies and procedures 

may result in the following:

• Termination of the services;

• Suspension of new referrals;

• Disallowance in whole or in part of fee bill(s) for services rendered;

• Denial of a conflict waiver; or

• Other corrective actions, including referral to the appropriate state licensing authorities or civil or 

criminal actions.

LSS Providers may not go forward with legal support services on behalf of parties adverse to the FDIC until the 

conflict has been waived or the situation otherwise resolved to the satisfaction of the Legal Division.

In the event the Legal Division terminates legal support services, the LSS Provider must follow FDIC policies and 

procedures, return all files, and otherwise fully cooperate in the orderly transfer of matters as the Legal Division 

directs.

2.5 Questions Concerning Conflicts

For information, contact the Legal Services & Special Contracts Group (formerly known as the Outside Counsel 

Management Group) in Washington, D.C., at (877) 275-3342. 

Chapter 3 - Information Security & Confidentiality

Note: Due to the extreme high importance of the security and confidentiality of FDIC information and records, 

LSS Providers should pay special attention to the contents of this Chapter. For questions regarding your 

responsibility for information security in FDIC Legal matters, you should contact the E-Discovery Group at

LegaleDG@fdic.gov. 

3.1 Maintaining Confidentiality

(a) In assisting the FDIC, LSS Providers may have access to nonpublic, confidential information. The FDIC 

has defined a broad category of such information in any form, paper or electronic as "Sensitive 

Information" in FDIC Directive System Circular 1360.9. LSS Providers, including all employees or 

contractors, must comply with FDIC Directive System Circular 1360.9. This includes an understanding of 
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1) all categories of Sensitive Information, as defined in the Circular and set forth below1; and 2) FDIC 

information security policies and procedures as set forth in the Circular.

(b) LSS Providers are responsible for the security and confidentiality of all Sensitive Information to which 

you may have access. As LSS Providers for the FDIC, you must take appropriate measures to ensure that 

all personnel are trained and familiar with this responsibility. Protecting the security and integrity of 

Sensitive Information extends to all personnel and any other subcontractors that you may hire (only 

with prior Legal Division approval) in any FDIC legal matter. Due to the role and mission of the FDIC in 

the United States monetary and banking systems, Sensitive Information may include a broad spectrum 

of disparate information and records from multiple sources. LSS Providers’ adherence to a strong and 

effective client confidentiality and information security policy is a critical part of your FDIC relationship.

(c) LSS Providers must supply the Legal Division with the name and contact information of your Chief 

Information Security Officer or equivalent as well as a backup contact, either of whom can be reached 

without delay.

Note: Failure to follow the directives outlined in this Chapter may result in termination of the firm’s LSS 

Agreement (LSSA) or other sanctions that the FDIC deems appropriate under the contract, at law or in equity.

(d) The FDIC may contact you to assess the strength of your company’s cybersecurity measures, 

protections, policies or procedures. This may include telephone contacts, email questionnaires, review 

and evaluation of your Information Security directives, policies and procedures or on-site reviews by 

FDIC staff.

(e) All LSS Providers must comply with applicable standards of conduct with respect to confidentiality of 

client information. This duty of client confidentiality includes maintaining the security and integrity of 

records in paper or electronic format and continues after conclusion of services. 

(f) All LSS Providers must have in place a secure computer network. Your network must have significant 

resistance to intrusions and sensitive detection capability to identify possible attacks by any method. 

 

1

 Sensitive Information is defined in Circular 1360.9 as: 

(1) Information that is exempt from disclosure under the Freedom of Information Act (FOIA) such as trade secrets and 

commercial or financial information, information compiled for law enforcement purposes, personnel and medical files, 

and information contained in bank examination reports (see FDIC Rules and Regulations, 12 C.F.R. Part 309, for further 

information); 

(2) Information under the control of FDIC contained in a Privacy Act system of record that is retrieved using an individual’s 

name or by other criteria that identifies an individual (see FDIC Rules and Regulations, 12 C.F.R. Part 310, for further 

information);

(3) PII about individuals maintained by FDIC that if released for unauthorized use may result in financial or personal damage 

to the individual to whom such information relates. Sensitive PII, a subset of PII, may be comprised of a single item of 

information (e.g., SSN) or a combination of two or more items (e.g., full name along with, financial, medical, criminal, or 

employment information). Sensitive PII presents the highest risk of being misused for identity theft or fraud;

(4) Information about insurance assessments, resolution and receivership activities, as well as enforcement, legal, and 

contracting activities; and 

(5) Information related to information technology specific to the FDIC that could be misused by malicious entities (e.g., 

firewall rules, encryption and authentication mechanisms, and network architecture pertaining to the FDIC).
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The FDIC may contact your firm regarding the security of your computer network, as set forth above in 

subsection 3.1(d). Any deficiencies noted, as defined in the sole discretion of the FDIC, must be promptly 

corrected. See the Note above subsection 3.1(d).

(g) All LSS Providers must have internal policies and procedures on Information Security, data back-up, 

data breaches and the handling, use and disposition of confidential client information ("Security Plan"). 

The Security Plan should, at a minimum, require the following:

1) Periodic Risk Assessments - LSS Providers should conduct and fully document periodic internal risk 

assessments that will identify reasonably foreseeable threats to information security.

2) Appropriate Security Programs - These should consist of reasonable physical, technical, and 

administrative security measures to manage and control identified risks.

3) Periodic and Recurring Training & Education - Mandatory periodic employee

training should be certified by the employee and documented by the firm. This training should 

enhance staff understanding of the roles and responsibilities regarding data, physical and 

administrative security. 

4) Testing/Monitoring - LSS Providers should periodically test the sufficiency of security measures. 

This includes testing or monitoring of systems, as well as records review of system activity, audit 

logs, access reports and security incident tracking reports.

5) Review and Adjustment - LSS Providers must respond timely to any threats or risks that arise 

during these periodic internal reviews. This includes, when appropriate, FDIC notification, as 

further specified in this Deskbook.

6) Third Party Consultants - To comply with the obligations imposed by law, FDIC policy, or other 

applicable standards, LSS Providers may be required to engage technical consultants or ThirdParty Assessment Organizations (3PAOs). 

Each LSS Provider must customize its Security Plan to meet business, legal, and client needs. Every 

business is unique and may need additional security measures not referenced in this subsection 3.1(g). 

This subsection 3.1(g) is only intended to aid LSS Providers in considering their responsibilities for 

safeguarding FDIC Sensitive Information. This subsection does not create or expand on any formal FDIC 

Information Security policy, nor does it provide any safe harbor for LSS Providers. The Office of the 

Chief Information Security Officer will determine the proper level of access to FDIC Sensitive 

Information for LSS Providers.

(h) Since LSS Providers are responsible to ensure the security and integrity of FDIC records, especially 

Sensitive Information, a copy or detailed explanation of the Security Plan must be supplied to the Legal 

Division or other FDIC component upon request. Any deficiencies noted, as defined in the sole 

discretion of the FDIC, must be promptly corrected. See the Note above subsection 3.1(d).

(i) As stated above, your firm is solely responsible to ensure the security of FDIC records, especially 

Sensitive Information that may be supplied or made available to you and all consultants, experts, 

or other contractors that you with Legal Division authorization may hire. To better protect LSS

Providers, the FDIC requires that your firm obtain the signature of all such third-party contractors on a 
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Confidentiality Agreement in a form substantially identical to this Confidentiality Agreement. Such 

agreements must be retained in your firm’s records.

(j) To adequately secure all FDIC electronically stored information (“ESI”), particularly Sensitive 

Information, whether it originated from the FDIC in any capacity, or was received from any other party 

in litigation, or from any third party, all such ESI must be hosted and produced utilizing an appropriate 

FDIC-approved vendor under the direction of and authorized by the FDIC Legal Division’s Electronic 

Discovery Group. Further, all employees, consultants, experts or other contractors who will have access 

to any ESI must be properly credentialed with the vendor hosting and producing the ESI. If you have any 

questions concerning this subsection 3.1(j), please direct them to the Electronic Discovery Group (EDG) 

at LegaleDG@fdic.gov, as further described below in section 3.2.

3.2 Using FDIC’s Electronic Discovery Group on Legal Matters 

(a) At the direction of the Oversight Attorney, all LSS Providers retained on an FDIC Legal matter must 

coordinate with EDG to conduct an early legal matter assessment to identify potential sources of 

responsive records, custodians, screening criteria, search parameters, review processes, and scope of 

production. The early legal matter assessment must also consider the resources to be applied in 

responding to requests for FDIC records or testimony.

(b) In addition, prior to any release or disclosure of FDIC records or information, all LSS Providers must first 

consult EDG, and diligent efforts must be made to assure that highly confidential or Sensitive 

Information has been identified and reviewed and appropriate protective measures taken, so that only 

the correct records will be produced or disclosed.

(c) EDG will also work with you and help to coordinate any data hosting issues or requirements that may 

arise as to ESI described above in subsection 3.1(j). If ESI issues are present, it is important to coordinate 

early in the progress of the legal matter. Close communication with EDG is imperative in this situation.

3.3 Careful and Secure Handling of FDIC Information & Records

The Legal Division mandates that LSS Providers and related vendors exercise prudent care in their handling and 

use of FDIC information, including but not limited to:

(a) always using encryption technology when transmitting confidential "Sensitive" information to 

anyone outside of your internal network, including to the EDG, other sources inside of the FDIC or 

to your subcontractors or other consultants;

(b) promptly notifying EDG (LegaleDG@fdic.gov) of any breach or possible breach or loss of FDIC 

information;

(c) ensuring the physical security of FDIC information and records in any format, i.e. keeping Sensitive 

Information out of plain sight, locked in cabinets, behind password-protected screensavers, only on 

encrypted media, and using extreme caution when transporting any FDIC information away from your 

office; and

(d) understanding that you are solely responsible for ensuring the security and integrity of FDIC information 

by all vendors and subcontractors your firm uses.
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3.4 FDIC-Supported Resources for Using Encryption Technology to transmit 

Confidential "Sensitive" Information.

(a) Zix Mail

Contact LSG for further information on using Zix Mail.

(b) PKZIP

Your Information Technology staff should be able to instruct other staff members on how to receive and 

properly transmit secure documents using PKZip for Windows.

3.5 Secure Telecommunications and Video Surveillance or Equipment 

(a) Definitions. As used in this subsection 3.5—

“Backhaul” means intermediate links between the core network, or backbone network, and the small 

subnetworks at the edge of the network (e.g., connecting cell phones/towers to the core telephone 

network). Backhaul can be wireless (e.g., microwave) or wired (e.g., fiber optic, coaxial cable, Ethernet).

“Covered foreign country” means The People's Republic of China. 

“Covered telecommunications equipment or services” means—

(1) Telecommunications equipment produced by Huawei Technologies Company or ZTE 

Corporation (or any subsidiary or affiliate of such entities); 

(2) For the purpose of public safety, security of Government facilities, physical security surveillance 

of critical infrastructure, and other national security purposes, video surveillance and 

telecommunications equipment produced by Hytera Communications Corporation, Hangzhou 

Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or 

affiliate of such entities); 

(3) Telecommunications or video surveillance services provided by such entities or using such 

equipment; or 

(4) Telecommunications or video surveillance equipment or services produced or provided by an 

entity that the Secretary of Defense, in consultation with the Director of National Intelligence or 

the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or 

controlled by, or otherwise connected to, the government of a covered foreign country. 

“Critical technology” means—

(1) Defense articles or defense services included on the United States Munitions List set forth in the 

International Traffic in Arms Regulations under subchapter M of chapter I of title 22, Code of 

Federal Regulations; 

(2) Items included on the Commerce Control List set forth in Supplement No. 1 to part 774 of the 

Export Administration Regulations under subchapter C of chapter VII of title 15, Code of Federal 

Regulations, and controlled—

(i) Pursuant to multilateral regimes, including for reasons relating to national 

security, chemical and biological weapons proliferation, nuclear 

nonproliferation, or missile technology; or
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(ii) For reasons relating to regional stability or surreptitious listening;

(3) Specially designed and prepared nuclear equipment, parts and components, materials, 

software, and technology covered by part 810 of title 10, Code of Federal Regulations (relating 

to assistance to foreign atomic energy activities); 

(4) Nuclear facilities, equipment, and material covered by part 110 of title 10, Code of Federal 

Regulations (relating to export and import of nuclear equipment and material); 

(5) Select agents and toxins covered by part 331 of title 7, Code of Federal Regulations, part 121 of 

title 9 of such Code, or part 73 of title 42 of such Code; or 

(6) Emerging and foundational technologies controlled pursuant to section 1758 of the Export 

Control Reform Act of 2018 (50 U.S.C. 4817).

“Interconnection arrangements” means arrangements governing the physical connection of two or 

more networks to allow the use of another's network to hand off traffic where it is ultimately delivered 

(e.g., connection of a customer of telephone provider A to a customer of telephone company B) or 

sharing data and other information resources. 

“Reasonable inquiry” means an inquiry designed to uncover any information in the entity's possession 

about the identity of the producer or provider of covered telecommunications equipment or services 

used by the entity that excludes the need to include an internal or third-party audit. 

“Roaming” means cellular communications services (e.g., voice, video, data) received from a visited 

network when unable to connect to the facilities of the home network either because signal coverage is 

too weak or because traffic is too high. 

“Substantial or essential component” means any component necessary for the proper function or 

performance of a piece of equipment, system, or service. 

(b) Prohibition. 

(1) Section 889(a)(1)(A) of the John S. McCain National Defense Authorization Act for Fiscal Year 

2019 (Pub. L. 115-232) prohibits the head of an executive agency from procuring or obtaining, 

extending or renewing a contract to procure or obtain, any equipment, system, or service that 

uses covered telecommunications equipment or services as a substantial or essential 

component of any system, or as critical technology as part of any system. The LSS Provider is 

prohibited from providing to FDIC any equipment, system, or service that uses covered 

telecommunications equipment or services as a substantial or essential component of any 

system, or as critical technology as part of any system, unless an exception at paragraph (c) of 

this clause applies or the covered telecommunication equipment or services are covered by a 

waiver described in FDIC Procedures, Guidance, and Information (PGI) 1.214(b)(iv). 

(2) Section 889(a)(1)(B) of the John S. McCain National Defense Authorization Act for Fiscal Year 

2019 (Pub. L. 115-232) prohibits the head of an executive agency from entering into a contract, 

or extending or renewing a contract, with an entity that uses any equipment, system, or service 

that uses covered telecommunications equipment or services as a substantial or essential 

component of any system, or as critical technology as part of any system, unless an exception at 

paragraph (c) of this clause applies or the covered telecommunication equipment or services 
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are covered by a waiver described in FDIC PGI 1.214(b)(iv). This prohibition applies to the use of 

covered telecommunications equipment or services, regardless of whether that use is in 

performance of work under a FDIC contract.

(c) Exceptions. This clause does not prohibit contractors from providing—

(1) A service that connects to the facilities of a third-party, such as backhaul, roaming, or 

interconnection arrangements; or

(2) Telecommunications equipment that cannot route or redirect user data traffic or permit 

visibility into any user data or packets that such equipment transmits or otherwise handles.

(d) Reporting requirement: 

(1) In the event the LSS Provider identifies covered telecommunications equipment or services 

used as a substantial or essential component of any system, or as critical technology as part of 

any system, during contract performance, or the LSS Provider is notified of such by a 

subcontractor at any tier or by any other source, the LSS Provider must report the information 

in paragraph (d)(2) of this clause to the FDIC Oversight Attorney responsible for the underlying 

legal matter. For Basic Ordering Agreements (BOAs), Receivership BOAs (RBOAs) and Blanket 

Purchase Agreements (BPAs), the LSS Provider must also report to the Contracting Officer for 

the BOA/RBOA/BPA, and the Contracting Officer(s) for any affected order.

(2) The LSS Provider must report the following information pursuant to paragraph (d)(1) of this 

section: 

(i) Within one business day from the date of such identification or notification: The 

contract number; the order number(s), if applicable; supplier name; supplier 

unique entity identifier (if known); supplier Commercial and Government Entity 

(CAGE) code (if known); brand; model number (original equipment manufacturer 

number, manufacturer part number, or wholesaler number); item description; 

and any readily available information about mitigation actions undertaken or 

recommended. 

(ii) Within 10 business days of submitting the information in paragraph (d)(2)(i) of 

this clause: Any further available information about mitigation actions 

undertaken or recommended. In addition, the LSS Provider must describe the 

efforts it undertook to prevent use or submission of covered telecommunications 

equipment or services, and any additional efforts that will be incorporated to 

prevent future use or submission of covered telecommunications equipment or 

services. 

(e) Subcontracts. The LSS Provider must insert this subsection 3.5, including this paragraph (e), and 

excluding paragraph (b)(2), in all subcontracts and other contractual instruments, including 

subcontracts for the acquisition of commercial items.

3.6 Other Resources

(a) ESI is especially vulnerable due to its abundance, portability and the instant transferability of vast 

amounts of information. The ABA has therefore published resource materials and offers Continuing 
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Education courses on cyber and data security at their web site: www.americanbar.org. These resources 

supply quality guidance for LSS Providers in taking reasonable steps to meet your responsibilities in 

securing FDIC information when providing legal support. All LSS Provider employees should be aware of

ABA guidance and publications on cyber and data security.

(b) The Association of Corporate Counsel and a group of its members has published a Model Information 

Protection and Security Controls for Possessing Company Confidential Information (the 2017 Model 

Controls). While the Legal Division has not adopted or sanctioned the 2017 Model Controls, LSS 

Providers may find them helpful in updating Security Plans, practices and procedures. 

Chapter 4 – Agreements

4.1 Purpose of Contract

The contract is an agreement for legal support services between the LSS Provider and the FDIC that contains 

terms and conditions applicable to the provided services. 

4.2 Duration of Agreement for Services

The purpose of the LSS Agreement (“LSSA”) is to engage contractors for the provision of services in support of 

pending or on-going Legal matters, litigated or non-litigated. 

The agreement is in effect for a specified period from the effective date set forth in the agreement (the Oversight 

Attorney may negotiate a longer period with approval of the appropriate delegated authority), but subject 

however, to earlier termination by the FDIC with or without cause or advance notice. If no effective date is 

indicated, the agreement is effective as of the date signed by the FDIC. Most LSSAs are for a term of three years. 

Unless unusual circumstances dictate otherwise, new LSSAs are effective on the first day of the month of 

execution.

The rates (hourly or flat) charged by the LSS Provider and its billable individuals must be listed on a rate 

schedule or other attachment and include all overhead. 

A Statement of Work (SOW) describing the services to be performed, with quantities, delivery dates, and 

place(s) of delivery, is sometimes required. You will be notified if a SOW is required. The firm fixed price of any 

LSSA includes all taxes, insurance, transportation, and delivery charges, unless otherwise noted in the LSSA. 

Individuals not listed on the rate schedule must be added through use of a rate schedule amendment form prior 

to performing services. 

Absent compelling reasons, no increase in the rate schedule attached to the LSSA is permitted during its term, 

except as may be provided in the LSSA. 
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The LSSA may be extended or continued on its existing terms by mutual agreement of the parties.

If Legal Division approves a continuation of the LSSA, it will continue until the earliest of:

• All work on outstanding legal support services is complete;

• A new LSSA is executed; or

• FDIC exercises its right to terminate the LSSA. 

Continuation of the LSSA is not the same as LSSA renewal. Continuation does not permit the LSS Provider to 

receive any new legal support matters.

4.3 Contract Amendment

It is the LSS Provider's responsibility to inform the FDIC of all new or changed information concerning the firm

or business. Information that must be updated includes, but is not limited to:

• Structural changes in the firm or business;

• New addresses or contact information;

• New tax identification number; or

• Adding or removing billable individuals.

In addition, payment of invoices may be delayed if information is not up-to-date. You must immediately contact 

the Oversight Attorney if the LSS Provider is unsure of whether an amendment to the LSSA is required.

Structural Changes 

The LSS Provider may need to amend their LSSA when a structural change occurs in the firm or business. 

Structural changes may impact the LSS Provider's relationship with the FDIC in the area of conflicts of interest. 

In addition, structural changes may also impact the FDIC’s invoice payment process.

Examples of structural changes include:

• Firm or Business dissolution;

• Merger or other ownership changes;

• Change from a partnership to a professional corporation, LLC, or other alternate structure; 

• Name change; or

• Change of address or addition of a new branch office.

After reviewing information that the LSS Provider submits concerning any structural change, the Legal Services 

& Special Contracts Group (LSSCG) will determine what action is appropriate.

New Tax Identification Number (TIN)

A new tax identification number - PDF (TIN) that does not include a structural change requires, at a minimum, 

an amendment to the LSS Agreement. The LSS Provider should submit an amendment form. If LSSCG 
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determines that a new agreement is necessary, the FDIC may permit the LSS Provider to continue to handle 

existing assignments or may suspend the work until the LSS Provider executes a new LSSA. 

Note: Structural changes that result in a new federal TIN require the execution of a new LSSA. A new TIN 

also changes information used for payment of invoices by Electronic Funds Transfer ("EFT") and may require 

the execution of new EFT forms. See EFT Guidelines. 

The LSS Provider must inform the FDIC in writing when adding or removing billable individuals to a rate 

schedule. You must complete the amendment form when you add or remove any billable individual. No new 

billable individual may charge time under the LSSA until the FDIC executes the amendment. 

4.4 Byrd Amendment - Engagements Over $100,000 

If the amount of the approved budget(s) exceeds $100,000, the LSS Provider must comply with the Byrd 

Amendment. Your Oversight Attorney or the LSSCG can provide necessary forms.

4.5 Budget 

Once the Legal Division selects an LSS Provider, they must submit a formal budget indicating the approximate 

cost of the services, if applicable, to the Oversight Attorney.

The budget is a vital tool in cost control and oversight. Budget information controls costs and payment of 

invoices. Except in a case of extreme urgency, the FDIC Legal Division must approve the budget before the LSS 

Provider begins providing services.

All LSS Providers agree that budgets impose firm maximum amounts for fees and expenses. The FDIC will not 

pay for unauthorized cost or expense overruns. You must request advances in writing through the Oversight 

Attorney, and they must first be approved by FDIC delegated authority.

Note: The FDIC will not pay invoices until an approved budget is in place. The FDIC uses the cost estimates and 

other information provided in the budget to assess cost-effectiveness and measure progress. The Legal Division 

recognizes that changed circumstances may affect the budget. However, because the FDIC uses the budget in 

making business decisions, they must be as accurate as possible.

Budget Form

The budget form translates the case plan into financial expectations. The budget form must conform to the case 

plan for the services provided. 
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Completing the Budget Form

Following are the instructions for completing a budget form.

1. The LSS Provider completes all requested information on the budget form.

2. In particular, the LSS Provider indicates in the appropriate box whether the billing is at a flat or an 

hourly rate. Refer to the following table to determine information required for the type of billing 

entered.

Rate Information Required

Hourly Complete all phases of the budget in which fees and expenses are expected.

Flat Record the flat fee as a total without further itemization by phase.

Submit the estimated completion date and allowable related expenses for each phase

3. If appropriate, the LSS Provider calculates the total estimated number of hours for all services for each 

action.

4. The LSS Provider must sign and date the budget form.

4.6 Budget Submission 

The following steps outline the submission and approval process:

1. Once the budget and case plan are completed, they must be submitted to the Oversight Attorney for 

approval.

Note: If the budget is to exceed $100,000, the LSS Provider must comply with the Byrd Amendment by 

submitting the Byrd Amendment Certification or Disclosure form.

2. The Oversight Attorney will review the budget and case plan. If it is satisfactory, the Oversight Attorney 

will recommend approval by the FDIC delegated authority.

3. The Legal Division, usually the Oversight Attorney will notify the LSS Provider when the budget and case 

plan are approved.

4.7 Amended Budget 

If the approved budget is not sufficient to complete all services, you must submit an amended budget. You must 

anticipate when the approved budget is not likely to be sufficient, and timely submit an amended budget to the 

Oversight Attorney before you exceed the approved budget. 

Written approval from the Legal Division is required for any increase in the approved budget. The Legal Division 

allows exceptions to this policy only when extraordinary circumstances arise.
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Note: Failure to obtain written FDIC approval for an amended budget is a serious breach of duty to the FDIC and 

may result in non-payment or disallowance of fees or expenses exceeding authorized amounts. The LSS 

Provider must report to the Oversight Attorney immediately any anticipated budget changes.

An amended budget and/or case plan contains: 

• Amended case plan, or explanatory narrative; and

• Amended budget form.

Note: If the amended budget exceeds $100,000, the LSS Provider must comply with the Byrd Amendment. If the 

previous budget exceeded $100,000, it is not necessary to submit another Byrd Amendment Certification.

Completing and Submitting the Amended Budget

The Oversight Attorney will ensure that the LSS Provider properly completes the amended budget.

1. Prepare a separate narrative explaining the reasons for the amendment. 

2. If necessary, prepare an amended case plan that provides detail commensurate with the significance of 

the services. 

3. Fill out all requested information on the amended budget form, in the same manner as the original 

budget form. 

4. Mark the appropriate box if the LSS Provider has submitted a previous amended budget. 

5. Use the most recent approved figures in the column for “Current Budget.”

6. Sign and date the amended budget. 

7. Once completed, submit the amended budget to the Oversight Attorney for approval. 

8. The Oversight Attorney reviews the amended budget and rate schedule. If it is satisfactory, the 

Oversight Attorney will recommend approval by FDIC delegated authority. 

9. Upon approval, the Legal Division will notify the LSS Provider. 

Chapter 5 - Management of Services

5.1 General Management of Legal Support Services

The FDIC's goal is to utilize LSS Providers that possess the necessary knowledge, background, research 

capabilities, and other expertise in the field for which they will provide services. Consistent with this goal, the 

LSS Provider must manage time carefully. 

Consistent with the terms of the LSS Agreement (LSSA), the FDIC will not pay for costs associated with:

• Excessive conferencing (including, but not limited to, billing for administrative instructions, billing for 

repetitive or daily meetings among contractors, staff, etc.);

• Unnecessary review of documents or files;
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• Unnecessary polishing of documents (including, but not limited to, unnecessary reviews, updates, or 

amendments to documents or files);

• The "learning curve" for FDIC work; 

• Unfocused research or research not required by the Oversight Attorney; 

• Services, charges, or fees outside of the LSSA, absent written pre-approval from the Oversight 

Attorney. 

• Rates or other pricing higher than that featured in the LSSA, absent written pre-approval from the 

Oversight Attorney. 

LSS Providers are required to discuss staffing with the Oversight Attorney and assign only those employees

necessary to properly fulfill the engagement. The LSS Provider must refrain from rotating assignments away 

from employees knowledgeable about FDIC or using FDIC projects for the purpose of training other personnel. 

You must list departures of personnel from your organization as a subtraction in the Amendment form. 

Providing services in a cost-effective manner requires that the LSS Provider:

• Consult the Oversight Attorney on all strategic, tactical, or cost-related decisions;

• Provide to Oversight Attorney, upon request, a copy of all contracts for expenses and orders with a value 

over $100,000, with subcontractors, consultants, or other parties engaged by the LSS Provider to work 

on FDIC matters. All such subcontracts or orders must first be approved in writing by the Oversight 

Attorney; 

• Have a clear understanding of the role of the LSS Provider, the outside counsel and the Oversight 

Attorney;

• Define the goals and objectives to be achieved;

• Develop a formal case plan, if required by the Oversight Attorney, that will achieve the FDIC's goals and 

objectives, which requires approval of the Oversight Attorney and FDIC delegated authority; and

• Be advised of all significant developments in the legal matter. 

Certain decisions must only be made in consultation with the Oversight Attorney. Absent exigent 

circumstances, these include, without limitation:

• Secretarial overtime;

• Use of temporary employees or summer interns;

• Travel;

• Contacts with FDIC business staff;

• Research; and

• Staffing at conferences, court appearances, depositions, or meetings.

The Legal Division requires timely, cost-effective solutions. Failure to conform to the required cost-saving 

measures noted above may result in fee or expense disallowance.
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Reports

FDIC management procedures require that the LSS Provider keep the Oversight Attorney fully informed as to 

the status of provided services. When directed by the Oversight Attorney, submit a status report for each 

service called for in the LSSA.

Reports must:

• Be brief but meaningful;

• Emphasize developments since the last report;

• Discuss and compare case status to the budget and whether the service is proceeding in line with the 

case plan; and if not

• Explain in detail why actual costs differ from projected or budgeted amounts.

5.2 Case Plan

At the direction of the Oversight Attorney, LSS Providers must prepare a written case plan for each engagement, 

Task Order, or referral. The Oversight Attorney will closely monitor the case plan. The Oversight Attorney may 

develop a case plan for the services of each LSS Provider. The Oversight Attorney utilizes the case plan to 

summarize the strategy for the provided services.

Upon commencement of services, the LSS Provider must discuss the matter with the Oversight Attorney. The 

case plan and budget sets forth the major steps the LSS Provider will take to accomplish the service. The case 

plan also details the work to be performed, identifies the LSS Provider’s staff that will perform the work, and 

indicates the total hours each person (or class of people) identified will spend on the work. The case plan is a 

vital tool in cost control and oversight.

5.3 Case Plan Submission

The following steps outline the submission and approval process:

1. Upon completion, submit it to the Oversight Attorney for approval. This package consists of the case 

plan and, when necessary, the budget;

2. The Oversight Attorney will review the case plan and budget. If it is satisfactory, the Oversight Attorney 

will recommend approval by FDIC delegated authority; and

3. The Legal Division will notify the LSS Provider when the case plan is approved.

5.4 Amended Case Plan Submission

Upon completion, submit the amended case plan and budget to the Oversight Attorney for approval.

Submit the amended case plan and budget in the same manner as the original case plan, as instructed in the 

retention letter. This package consists of the amended case plan and budget form. See steps 2 and 3 under 5.3 

(Case Plan Submission) to complete the submission and approval process.

5.5 Criminal Referrals

The Legal Division has a responsibility to notify and, where appropriate, assist law enforcement officials,

including the FDIC Office of Inspector General, in investigating conduct that may constitute a violation of 
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criminal statutes. The LSS Provider must immediately report any information that indicates possible criminal 

behavior to the Oversight Attorney, subject to your duty to promptly report to the Office of the Inspector 

General (OIG) all instances of actual or suspected fraud, waste, abuse, misconduct or mismanagement 

perpetrated in connection with the programs and operations of the FDIC, and to disclose and provide to the OIG 

information, documents, or other evidence that may indicate that fraud, waste, abuse, mismanagement, or any 

other wrongdoing has occurred or may occur. The Oversight Attorney may either file a Suspicious Activity 

Report Form or instruct the LSS Provider to do so under the Legal Division’s guidance. 

The FDIC does not have authority or responsibility for instituting, conducting, or disposing of criminal 

proceedings. As a matter of policy, the settlement of civil litigation on behalf of the FDIC may not, expressly or 

by implication, extend to the disposition of any criminal charges or recommendations with respect to such 

charges, or to the disposition of any potential criminal or civil liability for fraud against the FDIC or the United 

States. Furthermore, in conducting civil litigation, including settlement negotiations, under no circumstances 

may the LSS Provider agree to withhold from the OIG or law enforcement authorities any information relating to 

a possible criminal violation or investigation. 

5.6 Cooperation with the FDIC Office of Inspector General 

It is the policy of the FDIC that there is full cooperation with the work of the FDIC Office of Inspector General 

(OIG) and prompt reporting to the OIG of fraud, waste, abuse, or criminal violations related to FDIC programs or 

operations. The duties of contractors and FDIC oversight personnel under FDIC Directive 12000.01 are:

(a) Report Wrongdoing

1) Promptly report to the OIG all instances of actual or suspected fraud, waste, abuse, misconduct 

or mismanagement perpetrated in connection with the programs and operations of the FDIC. 

2) Disclose and provide to the OIG information, documents, or other evidence that may indicate 

that fraud, waste, abuse, mismanagement, or any other wrongdoing has occurred or may occur. 

(b) Comply with Requests

1) Provide authorized representatives of the OIG complete, prompt, and unrestricted access to all 

files, documents, premises, and employees, including access to all FDIC and Receivership, 

contractor, and subcontractor personnel, facilities, equipment, hard copy and electronic 

records, information systems, and other sources of information available to any part of the FDIC 

when requested during the course of the OIG’s official duties.

2) Provide complete and accurate information, including a signed sworn statement, to duly 

authorized representatives of the OIG when required to do so during an inquiry related to 

official matters; do not conceal information or obstruct audits, evaluations, investigations, or 

other official OIG matters. The Fifth Amendment to the U.S. Constitution may be invoked with 

respect to self-incrimination when matters of a criminal nature are involved. Under such 

circumstances, the individual will not be required to respond.

3) Immediately discuss with the OIG requester any reason for not promptly complying with the OIG 

request. If there are legal concerns with the request, consult with the Legal Division to help 

resolve the matter expeditiously with the OIG. 
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(c) Maintain Confidentiality

1) Keep confidential the requests made in an OIG investigation for records, files, and information 

unless otherwise authorized by the OIG, except to the extent disclosure is necessary to seek 

representation by an attorney or a union representative or is otherwise necessary for the 

performance of official duties.

2) Refrain from commenting on or discussing ongoing OIG investigations with anyone (either 

within or outside the FDIC) other than the OIG staff who are conducting the investigation, unless 

authorized by the OIG or otherwise necessary for the performance of official duties.

3) Keep confidential any OIG records that have been provided to non-OIG components of the FDIC 

and refer requests for OIG records or information to the OIG General Counsel.

Note: Contact the Office of Inspector General via the OIG Hotline at (800) 964-3342 or via email at: 

oighotline@fdicoig.gov. 

Chapter 6 - Invoice Package

6.1 Invoice Package

This chapter covers the procedures for completing an Invoice Package and submitting it to the FDIC.

The LSS Provider must complete a separate Invoice Package for each assigned matter. The FDIC assigns each 

matter a different matter number. Therefore, each matter must have its own invoice.

The Invoice Package consists of the following:

• Expert Invoice for Fees and Expenses (EIF&E - PDF) Form or the Legal Support Services Provider Invoice 

for Fees and Expenses (IF&E - PDF) Form;

• Invoices generated from the firm/business’ accounts receivable system;

• Necessary receipts; and

• Travel vouchers and/or other supporting documentation.

As discussed in Chapter 3, there must be an FDIC-approved budget before the LSS Provider is paid. Once the 

budget is approved, the LSS Provider may begin to submit invoices. 

6.2 Invoice Package Submission

You must submit Invoice Packages monthly, unless the amount (fees and expenses) is less than $500. If the total 

amount is less than $500, submit the Invoice Package quarterly, unless doing so would cause you undue 

hardship. 
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When

Submit Invoice Packages for fees and expenses within 30 days of the last day of the billing period, except as 

noted above. Submit all monthly billings only by calendar months. 

The Legal Division recognizes that LSS Providers may experience delays in receiving supporting documentation 

for expenses. In such a case, submit the Invoice Packages within 60 days of the last date in the billing period.

At the conclusion or termination of the matter, submit the final Invoice Package within 90 days of the matter’s 

conclusion or termination (refer to Chapter 7 and Chapter 8). 

Note: Do not bill the FDIC more than once per month. Do not bill for overlapping service periods (e.g. May 1 

through May 31 and then May 15 through June 15). Failure to submit invoices in a timely manner as set forth 

above may significantly delay the FDIC's invoice processing and payment. ABSENT EXTRAORDINARY 

CIRCUMSTANCES, THE FDIC WILL NOT PAY INVOICES SUBMITTED OVER ONE YEAR FROM THE DATE OF

SERVICES. 

Where

LSS Providers should refer to the LSS Agreement (LSSA) or the referral letter for where to send the Invoice 

Package. The LSS Provider may also contact the Oversight Attorney for instructions.

6.3 Billable Fees and Expenses

Bill the FDIC reasonable charges for fees and expenses in accordance with the following guidelines.

Bill the FDIC reasonable fees at approved rates as stated on the approved rate schedule of the LSSA for:

• Legal support services on matters as approved; and

• Unless a different rate of reimbursement is set forth in the LSSA, travel time (when no substantive FDIC 

work is performed) must be billed at 50% of the approved hourly rate.

Note: The FDIC does not pay for Business Class or First Class travel or luxury hotel accommodations. The FDIC 

will pay for air travel at coach rates, and accommodations at the lower of the government or corporate discount 

rates. Travel-related expenses must be at the lower of the government or corporate discount rates. Travelrelated expenses must be incurred in a prudent manner and in accordance with the guidelines set forth in the 

FDIC Contractor Travel Regulations. All travel must be preapproved by the Legal Division. 

Contingent fee arrangements must be specifically approved in writing. Absent written Legal Division 

authorization, LSS Providers are only compensated for fees or expenses in accordance with the requirements of 

this Deskbook.
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Expenses

You may bill the FDIC reasonable charges for the following expenses. See below for requirements for submitting 

copies of receipts. These requirements do not alter the duty to maintain original receipts and other supporting 

documentation for all expenses for audit and review purposes.

• Itemized In-house copy charges (no more than $0.20 per page; no receipt necessary but indicate the 

total number of copies.)

• Itemized international long-distance telephone or multi-party conference call charges (receipts are 

necessary).

• Itemized overnight delivery (receipts necessary). Itemization must include name of the deliveree. 

• Itemized electronic research (receipts or invoices necessary). Itemization must include person’s name 

who is performing the research. In addition, first consult the FDIC Legal Research Bank before 

performing any legal research and note on the invoice that you have done so.

Note: Prior approval by the Oversight Attorney is required for electronic research.

• Itemized extraordinary postage (i.e., bulk or certified mail; receipts are necessary).

• Outside photocopying (receipts and/or invoices are necessary).

• Publication notices (receipts or invoices are necessary).

• Other case-specific (non-overhead) expenses (receipts or invoices are necessary). You must document 

the written approval in the case file.

• Allowable travel expenses (Refer to Section 6.7 for submission and receipt requirements). 

Note: State and local taxes on FDIC allowable expenses are reimbursed.

6.4 Non-Billable Fees and Expenses

You may not bill the FDIC for the following fees or expenses: 

Fees

• Services of billed individuals who have not been included on the FDIC-approved rate schedule; 

• Services not included on the FDIC-approved rate schedule;

• Excessive number of employees performing services in a matter;

• Invoice preparation, review, or for corrections to the invoice required by the FDIC oversight attorney or 

Legal Fees Specialist; 

• Secretarial or clerical overtime that has not been preapproved by the Oversight Attorney;

• Hourly fees for time spent photocopying, sending facsimiles, filing etc.;

• Local or long-distance travel in excess of the 50% rate;
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• Excessive intra-office conferences between employees for the purpose of providing instruction or 

status;

• Excessive time spent in “file review”;

• Block-billing of activities by merging different discrete activities within one period of time (refer to 

Section 6.6);

• Redundant billing for a single task, document, or activity;

• Travel expenses in violation of the FDIC Travel Guidelines; 

• Excessive time spent in “review and revision” of documents; or

• Billing for LSS Provider time for tasks that should be performed efficiently and effectively at less 

expense by a clerical worker or secretary;

Expenses

• Ordinary postage;

• Expenses charged based on oral contracts with subcontractors, contractors, or other vendors;

• Charges related to word processing;

• In-house photocopying charges at more than $0.20 per copy; 

• Clerical time for photocopying, sending facsimiles, filing etc.;

• Charges for expense items when a seller’s discount was applied and the discounted percentage or 

amount was not passed along to the FDIC; 

• Excessive or unnecessary overnight mail charges;

• Meals, except as provided for under the travel regulations;

• Daily commuting expenses;

• Sales tax (except for lodging) or surcharges imposed by utilities or phone services;

• Tax on services;

• Local travel expenses unrelated to approved travel;

• Any costs relating to filing fees in United States District Courts or Courts of Appeal, which the FDIC does 

not pay (pursuant to 12 U.S.C. 1819(b)(4); 

• A service that is customarily included in the normal overhead or administrative expense of running a 

business (e.g., rent, electricity, all telephone charges within the United States except for multi-party 

conference call charges, HVAC, storage, bill preparation); or

• Budget preparation.

6.5 Over-Budget Invoices 

If the full payment of the Invoice Package exceeds the total of the approved budget, the Legal Division will send 

notice. The Invoice Package cannot be paid until you submit and obtain approval of an amended budget (refer 

to Chapter 4).

Note: The FDIC will return over-budget Invoice Packages with notice that an approved amended budget is 

required before the Invoice Package can be resubmitted.
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6.6 Expert's and LSS Provider's Invoice Format

See below for Invoice format requirements.

Use the following format when totaling the hours and charges for all services: 

Fees

Date of 

Service

Name/Initials of 

Individual

Service/Activity 

Description

Approved 

Hourly Rate

Time 

Charged

Amount 

(Rate x 

Time)

8/11/2021 JFB Prepare for and provide 

testimony at trial.

$220.00 5 hrs $1100.00

Use the following format for recapitulation of the total services billed on the statement: 

Service By Title Hours Hourly Rate Total

John Hand 10 $350.00 $3,500.00

Jane Friendly 20 $210.00 $4,200.00

Brian Warren 9.5 $145.00 $1377.00

Block Billing and Vague Description of Services

Block billing is a timekeeping method by which a billing professional aggregates time spent working on smaller 

tasks into a larger single “block,” rather than itemizing the time expended on the smaller specific tasks. Block 

billing the FDIC is strictly prohibited. Its use impairs the FDIC’s ability to review bills for reasonableness. 

When time records are block billed, the FDIC cannot accurately determine the number of hours spent on any 

single task and is therefore hindered in determining whether the hours billed are reasonable. Block billing 

“lumps together” multiple tasks and make it impossible for the FDIC to determine whether the amount of time 

for any task was reasonable. 

Vagueness is related to, but distinct from block billing. Block billing limits the ability of the FDIC to determine 

how much time was spent on a task, whereas vagueness limits the FDIC’s ability to determine the nature of the 

work performed. Vagueness is the failure to adequately describe the work performed. An adequate description 

in a billing entry is one where the Oversight Attorney can easily and readily identify the precise billed activity. As 

a guiding principle, if the Oversight Attorney would have to refer to the file or check notes to identify the billed 

activity, then the billing entry is vague and subject to rejection by the FDIC. 

THE FDIC STANDARD: Time billed for each fee must be identified separately (that is, not block billed) and with 

specificity (that is, not vague). Do not combine different types of activities into one entry on the invoice. Block 

billing of fees is not acceptable, even if the same individual performed the activities. Regarding vagueness, 

billing entries are unacceptably vague when they do not identify the legal issue, document, purpose of 

call/email/meeting, etc. or service that they support. The FDIC will reject invoices with block billing or that are 
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unacceptably vague, delaying payment to the LSS Provider. Below are examples to assist you with avoiding 

issues of block billing or vagueness. 

Examples

Example 1: Block Billing that is also Unacceptably Vague

Phone call with FDIC’s outside counsel; 

follow up update email to FDIC 

Oversight Attorney; revise draft report

based on foregoing conversation. 

(1.0 hours) 

This entry is both unacceptable block billing and unacceptably 

vague. In this example, because of the use of block billing, the 

FDIC cannot evaluate the reasonableness of the time spent on the 

call or revising the draft report. The example to the left is also 

unacceptably vague - even if it was billed in an itemized format - 

because it does not describe the purpose or necessity of the work 

revising the report.

Example 2: Corrected/Acceptable Entries from Example 1

- 10/10/2022 phone call with FDIC’s

outside counsel prior to amending the 

damages report (to add additional 

negligent activities); prepare and send 

a follow-up email to FDIC outside 

counsel highlighting amendments to 

the damages report. (0.5 hours)

- Revise draft damages report based on 

communications with FDIC’s outside 

counsel. (0.5 hours) 

The examples to the left are acceptable invoice entries for the 

same tasks invoiced in the Block Billing Example 1, above.

Example 3: Block Billing that is also Unacceptably Vague

Trial Preparation. (7.5 h) This entry is another example that is, at a minimum, 

unacceptably vague. It is likely also block billing depending on 

the tasks accomplished. 

Example 4: Itemized Billing that is Nonetheless Unacceptably Vague

Letter to FDIC’s outside counsel. (0.5 h)

This example is itemized, non-block billing. However, the 

example does not identify the purpose of, or necessity for, the 

letter and provides no context as to its subject or the relevant 

legal issue.

Example 5: Corrected Entry from Example 4

Prepare letter to FDIC’s outside 

counsel highlighting the detailed 

changes to the damages report due to 

the changes in the law dictated by 

recent court decision (Smith v. Jones, 

232 P.3d 208). (0.5 h)

This is an acceptable corrected invoice entry for the letter 

prepared in Example 4, above. It is itemized and not vague. 

Note: This entry might still indicate overstaffing if it was for a 

routine transmittal. Overstaffing a task might involve assigning 

too many employees to a task or assigning high-level staff to

work more appropriate for junior staff. 
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Time Increments

All hourly billing must be in increments of only “tenths” of an hour (6 minutes). Nothing else is acceptable for 

hourly billings. 

Expenses 

Use the following format for expenses:

• Copy charges (unit cost multiplied by unit amount).

• Overnight delivery (date and amount, name of recipient).

• Electronic research (subject, date, and amount, name of person performing research.

• Extraordinary postage (i.e., bulk or certified mail) (date and amount). 

Claims for travel-related expenses must be made using the Travel Voucher (refer to Section 6.7) and be in 

accordance with the FDIC’s Contractor Travel Guidelines. 

Example of Itemized Expenses

Expense Amount

Photocopy (46@ .20 pp) $9.20

Overnight Delivery 02/19/2021 $35.00

Extraordinary Postage -

Certified

02/19/2021 $10.00

Acme Reporting $425.00

Panic Copying $230.00

Travel for J. Cox

Washington, DC to Boston, MA

02/05 - 02/06

Settlement Conference

$780.00

6.7 General Services Administration Travel Reimbursement Guidelines

The FDIC follows GSA Contractor Regulations for official travel reimbursement. A summary is set forth below. 

Eligibility for Reimbursement

To be entitled to travel reimbursement, the LSS Provider must be on a temporary assignment that is at least 50 

miles in distance from the LSS Provider’s office or residence. If a temporary assignment concludes during the 

workday and is located within 100 miles of the office or residence, the LSS Provider must either return or stay 

over at their own expense. 

Travel Authorization

All travel on behalf of the FDIC must be necessary and approved by the Oversight Attorney.

Air Travel

Air travel must be in coach class, unless the LSS Provider bears the cost of the difference between coach and 

business or first class. Plan travel as far in advance as possible to take advantage of discounted fares, especially 

if reasonable certainty exists that the event will take place. If a restricted fare is booked and a change is 
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required, you may claim a reasonable exchange fee. International air travel requires special approval by FDIC 

delegated authority. 

Rental Cars

Rent no car larger than a mid-size, unless there are three or more passengers or a larger vehicle is necessary to 

transport equipment, files, etc. Deviations from standard policy must be documented and preapproved by the 

Oversight Attorney. Original receipts must support claims for rental car gasoline. The FDIC will not reimburse 

for Personal Accident Insurance (PAI) or Personal Effects Coverage (PEC). You may bill the FDIC for the cost of 

Collision Damage Waiver (CDW) coverage only if you do not have insurance coverage for collision damage. 

Lodging

The LSS Provider should make use of government rates whenever possible. The FDIC will not reimburse hotel 

expenses considered excessive or unreasonable in the sole discretion of the Legal Division. 

Subsistence

On overnight travel status you will be reimbursed on a per diem basis. See below for the current FDIC prorated 

per diem percentages. Section 16.0 of the Contractor Travel Reimbursement Guidelines contains the current 

allowable per diem rates. Specific per diem rates for different localities are on the General Services 

Administration (GSA) web site. If the information contained on the GSA web site and FDIC Guidelines differs, the 

GSA web site controls. When you are on per diem, incidental expenses such as laundry and cleaning are covered 

by the per diem. 

Per Diem Allocation for Overnight Travel

Departing

If you leave your office/residence between:

Prorated Per Diem Rates

12 Midnight to 5:59 AM 100%

6:00 AM to 11.59 AM 75%

12 Noon to 5:59 PM 50%

6:00 PM to 11:59 PM 25%

Returning

If you leave your office/residence between:

Prorated Per Diem Rates

12 Midnight to 5:59 AM 25%

6:00 AM to 11.59 AM 50%

12 Noon to 5:59 PM 75%

6:00 PM to 11:59 PM 100%

If you depart from and/or directly to your residence, you may claim per diem from the time of departure from 

your residence until the time of return to your residence. If departure is from and/or return is to your office, you 

may claim per diem from the time of departure from your official station until the time of return to your official 

station. The traveler must provide start and return times with their supporting travel documentation to 

demonstrate the number of quarters of the per diem allowance they are entitled to receive.
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Miscellaneous Meal Expense 

If the LSS Provider is in non-overnight travel status and is away from their residence for at least 11 consecutive 

hours excluding mealtime, the LSS Provider is reimbursed on an actual expense-incurred basis with the meal 

costs limited to a $10 charge (receipt required) or $6.00 without a receipt.

Use of Privately-Owned Vehicle

You may claim reimbursement for use of a privately-owned vehicle while on FDIC-related business. The 

maximum reimbursement rate will be the per-mile rate stipulated by the IRS.

If you use a vehicle in lieu of air travel, the maximum reimbursement will be the lesser of the cost of air travel or 

mileage reimbursement and the additional per diem, if any.

Note: FDIC does not provide liability coverage for privately-owned vehicles.

Taxicabs or Rideshare Services

You may use taxicabs or rideshare services (e.g. Uber or Lyft) while on official travel for FDIC. To seek 

reimbursement, you must provide a receipt. You may also seek reimbursement for a tip up to 15%. 

Taxi or rideshare hire is appropriate when:

• Public transportation, airport limousine service, and/or hotel courtesy transportation is not available or 

when time or other factors make it impractical to use available public conveyances;

• Traveling between transportation terminals and a residence, hotel or office while on official travel 

status; or for

• Traveling from a residence to the office to depart on an assignment requiring at least one night’s 

lodging, and from the LSS Provider's office to the LSS Provider's residence upon returning from the trip.

FDIC does not reimburse for taxi or rideshare fares for trips used to obtain meals.

Non-Reimbursable Travel Expenses

Examples of non-reimbursable travel expenses include the following, unless specifically agreed upon in writing 

in the LSS Agreement:

• Alcoholic beverages, entertainment;

• Laundry, dry cleaning, and pressing (covered by per diem reimbursement);

• Travel insurance;

• Parking fines;

• Gratuities or tips paid to service staff inside the lodging facility (covered by per diem reimbursement); or

• Under no circumstance does the FDIC reimburse for the cost of travel for spouses, other family 

members, other people, pets or service animals. 

FDIC does not reimburse travelers for excess costs caused by:
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• Taking an indirect route as a matter of personal preference;

• Premature departure for personal reasons from a temporary location; or

• Extending a stay for personal reasons.

Travel Voucher Completion

After completion of travel, you must submit a properly completed travel voucher with the Invoice Package. 

Indicate the purpose of travel on the first line. You must show the dates and times of each departure from 

residence or office, arrival at the place of temporary assignment, and arrival at the office or residence on the 

travel voucher.

Except for per diem expenses, you must submit original receipts with the travel voucher for all travel 

expenditures. If a receipt is not normally provided for the expense (bus or subway token, etc.) the certification 

signed by the traveler on the travel voucher will justify the expense.

Receipts submitted with the travel voucher should be originals indicating the name of the payee, date 

paid, amount, and the service rendered. This includes the original Passenger Receipt Coupon of the 

airline ticket. If an electronic ticket is used, you must submit the boarding passes for each flight with the 

Travel Voucher. 

WARNING: The penalty for submitting a Travel Voucher that knowingly falsifies any item in the claim can be 

three times the amount of the claim plus a civil money penalty of up to $10,000 under the False Claims Act. 31 

U.S.C. 3729. Also, false statements may be criminally prosecuted under 18 U.S.C. § 1001. The penalty can be up 

to 5 years in incarceration. A corporation that violates 18 U.S.C. 1001 is subject to a fine up to $500,000. 18 U.S.C.

§ 3571.

6.8 Expert Invoice For Fees and Expenses (EIF&E) Form and LSS Provider 

Invoice For Fees and Expenses (IF&E) Form 

The following provides guidance when completing the Expert Invoice For Fees and Expenses (EIF&E - PDF) Form 

or the LSS Provider Invoice For Fees and Expenses (IF&E - PDF) Form.

• Each invoice must have an invoice number unique to the LSS Provider submitting the invoice.

Note: If the LSS Provider is submitting multiple Invoice Packages, be sure to include a separate EIF&E Form or 

IF&E Form for each Invoice Package.

The invoice number can be no longer than 20 characters. Omit any dashes, slashes, spaces, leading zeros, or 

other special characters.

• The business and financial institution involved with the matter must be the same as identified in the 

retention letter or as identified in the LSS Agreement.
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• The billing period must only be by calendar month. For example: FROM: 12/01/2021 THROUGH: 

12/31/2021. 

• The billing period should be quarterly when monthly fees and expenses are less than $500. For example: 

FROM: 01/01/2021 THROUGH: 03/31/2021. 

• If there are expenses incurred for anything other than the present billing period or the immediately 

preceding billing period, ensure that the expenses have not been previously reimbursed.

• Sign at the bottom to certify that the EIF&E Form or the IF&E Form is true and correct. An original 

signature is required on the EIF&E Form and the IF&E Form.

Note: If the Invoice grand total (plus all prior Invoice Package payments for that matter) exceeds the approved 

budget for the matter, an approved amended budget is required before FDIC can process the Invoice Package. 

6.9 FDIC Invoice Package Review 

Submit the Invoice Package in a timely manner and as directed in the retention letter or by the Oversight 

Attorney. Upon receipt, the FDIC Legal Fees Specialist reviews the package and either: 

a. Forwards it to the Oversight Attorney for review and/or approval;

b. Rejects it. If the Invoice Package is rejected, the Oversight Attorney or the Legal Fees Specialist will 

notify the LSS Provider of the deficiencies to be corrected. 

The Oversight Attorney performs a substantive review of the invoice. If they disallow any amounts, the FDIC 

will notify the LSS Provider at the time of payment; such information may appear on the EFT remittance 

form.

Note: FDIC invoice processing time is approximately thirty (30) days after receipt of a correct and proper Invoice 

Package. The FDIC generally does not make payments in less than thirty days. The FDIC makes all payments 

by electronic funds transfer (wire transfer) absent a written waiver (very rarely allowed). 

6.10 Reconsideration of Disallowances

The LSS Provider must submit all requests for reconsideration of disallowances within 90 days from receipt of 

the notice of disallowance. The request must include matter number, invoice number, and the amount 

disputed, along with justification for reconsideration (e.g., copies of missing documentation, narrative 

rationale).

Note: (1) The submission of erroneous bills or requests for reimbursement of inappropriate charges may result 

in civil or criminal sanctions. (2) Under no circumstances may the LSS Provider attempt a set-off or recoupment, 

obtain a charging or retaining lien, or withhold files in the event of a dispute over payment for services 

rendered.
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6.11 Audit and Records Retention

LSS Providers must permit the FDIC, the FDIC Office of Inspector General, the FDIC Legal Division’s Risk 

Management & Records Group and the Government Accountability Office, or their representatives or 

successors, to conduct audits or reviews of the FDIC billings, including previously paid Invoice Packages.

For purposes of subsequent audits, LSS Providers must retain the following:

• Copies of all Invoice Packages;

• Original underlying support documentation not submitted with the Invoice Package; and

• Original time sheets, and time and expense adjustment records. Example of adjustment records 

includes documentation explaining differences between time sheet hours and invoiced hours for 

billable individuals.

See Electronic Billing for record keeping and time keeping system requirements.

The FDIC reserves the right to obtain additional information upon audit or review of any itemized fee bill or 

support documentation. 

6.12 Frequently Asked Questions 

Below are answers to questions often raised when submitting Invoice Packages.

When should an LSS Provider submit an Invoice Package?

On a monthly basis, if the total equals $500.00 or more. If the total is less than $500.00, submit the Invoice 

Packages quarterly, unless this causes undue hardship or is superseded by a written agreement with the FDIC. 

You must submit all Invoice Packages on a calendar month basis. 

Is an LSS Provider allowed to bill for clerical or secretarial overtime?

No, unless such overtime is requested by the Legal Division or occasioned by an emergency situation created by 

the FDIC. In any case, the Oversight Attorney must supply written approval for clerical or secretarial overtime.

The FDIC allows billing for extraordinary postage (e.g. bulk or certified mail). May LSS Providers also bill 

for ordinary postage?

No.

What common mistakes should LSS Providers avoid when submitting an Invoice Package?

LSS Providers should:

• Make sure each invoice has a different invoice number for each Invoice Package submitted.

• Ensure the totals on the Invoice Package equal the totals on the EIF&E Form or the IF&E Form.

• Submit all necessary receipts.

• Make sure the “billing from” and “billing through” dates do not overlap. Use only calendar months for 

each Invoice Package. 
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• Be sure to separately itemize each time biller’s fees.

If an LSS Provider charges $0.30 per page for in-house photocopying, may they also bill the FDIC for this 

amount?

No, the allowable charge is currently $0.20 per page. 

What information is required in connection with fax or phone charges?

Domestic long-distance calls are not a reimbursable expense. You may only seek reimbursement for 

international calls or domestic long distance conference calls. 

What happens if there is something wrong with the Invoice Package?

An FDIC Legal Fees Specialist will notify the LSS Provider, usually via telephone or email. The FDIC may also 

provide notice on the EFT remittance form. 

May an LSS Provider submit invoices with block billing for routine matters? 

Block billing is a timekeeping method by which a billing professional aggregates time spent working on smaller 

tasks into a larger single “block,” rather than itemizing the time expended on the smaller specific tasks. Block 

billing of fees is not acceptable, even if the same individual performed the activities. The Legal Division’s Legal 

Fees Specialists and Oversight Attorneys will reject all block billed invoices, resulting in delays and additional 

work for the LSS Provider. See the examples above in § 6.6.

What would the FDIC consider to be unacceptable vagueness in billing?

Vagueness is the failure to adequately describe the work performed. Billing entries are unacceptably vague 

when they do not identify the legal issue, document, purpose of call/email/meeting, etc. or service that they 

purport to provide. As a guiding principle, if the Oversight Attorney would have to refer to the file or check notes 

to identify the billed activity, then the billing entry is vague and subject to rejection by the FDIC. See the 

examples above in § 6.6.

Chapter 7 – Closeout 

7.1 Final Invoice Package

At the conclusion of providing the legal support service, the LSS Provider must submit a final Invoice Package 

within 90 days. You must note on the invoice and the EIF&E form or the IF&E form that this is a final Invoice 

Package. Refer to Chapter 6 for procedures for submitting the Invoice Package. 

7.2 Forwarding Documents to FDIC

Before forwarding any paper or electronic records to the FDIC, consult with the Oversight Attorney. Upon 

completion of the delivery of services or termination, the LSS Provider must return any FDIC materials and 

forward all substantive work product not previously submitted. Failure to do so may delay or prevent payment 

of the final invoice and may cause the imposition of other sanctions to recover the FDIC materials, work papers, 

or work product.
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Chapter 8 - Post-Retention Responsibilities 

8.1 Post-Retention Responsibilities 

As former LSS Providers for the FDIC, you have responsibilities that continue after completion. 

Former FDIC LSS Providers have a duty to protect confidential information and may not use or allow the use of 

confidential information to further a private interest other than as stated in the LSS Agreement.

File Retention

Former LSS Providers have an obligation to preserve their files pertaining to the services they provided to the 

FDIC and those files concerning invoice support. You may not destroy any files or records without the written 

permission of the FDIC.

Contacts with the Public and Media

All restrictions concerning public and media contacts applicable while providing services to the FDIC continue 

after conclusion of the services. See Chapter 1. 

Identifying FDIC as a Former Client

The LSS Provider may list FDIC as a former client in published materials provided the LSS Provider adheres to

the guidance discussed in Chapter 1. 

Compliance with Subpoenas and Other Court Orders

LSS Providers served with a subpoena, court order, or other legal process documents relating to services 

provided to the FDIC, must immediately notify the FDIC’s General Counsel, and may not disclose FDIC’s records 

or provide testimony without authorization from the FDIC. See FDIC regulations at 12 C.F.R. §§ 309.7. 

The LSS Provider agrees to cooperate with the FDIC, if the Legal Division decides to appeal or challenge the 

subpoena or order. Under no circumstances will the FDIC represent LSS Providers in the matter or generally 

reimburse for any legal fees or other expenses that may incur in complying with this requirement. However, 

FDIC will consider requests for reimbursement on a case-by-case basis.

Appendices 

Appendix A provides a list of certain provisions of federal law with which all LSS Providers must comply.

Appendix B - Contacts

A list of key contacts at the FDIC.
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Appendix C - Electronic Billing & Timekeeping Records

Billing guidelines.