[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR31.205-22]



[Page 622-623]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 31_CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents

 

          Subpart 31.2_Contracts With Commercial Organizations

 

Sec. 31.205-22  Lobbying and political activity costs.



    (a) Costs associated with the following activities are unallowable:

    (1) Attempts to influence the outcomes of any Federal, State, or 

local election, referendum, initiative, or similar procedure, through in 

kind or cash contributions, endorsements, publicity, or similar 

activities;

    (2) Establishing, administering, contributing to, or paying the 

expenses of a political party, campaign, political action committee, or 

other organization established for the purpose of influencing the 

outcomes of elections;

    (3) Any attempt to influence (i) the introduction of Federal, state, 

or local legislation, or (ii) the enactment or modification of any 

pending Federal, state, or local legislation through communication with 

any member or employee of the Congress or state legislature (including 

efforts to influence state or local officials to engage in similar 

lobbying activity), or with any government official or employee in 

connection with a decision to sign or veto enrolled legislation;

    (4) Any attempt to influence (i) the introduction of Federal, state, 

or local legislation, or (ii) the enactment or modification of any 

pending Federal, state, or local legislation by preparing, distributing 

or using publicity or propaganda, or by urging members of the general 

public or any segment thereof to contribute to or participate in any 

mass demonstration, march, rally, fund raising drive, lobbying campaign 

or letter writing or telephone campaign;

    (5) Legislative liaison activities, including attendance at 

legislative sessions or committee hearings, gathering information 

regarding legislation, and analyzing the effect of legislation, when 

such activities are carried on in support of or in knowing preparation 

for an effort to engage in unallowable activities; or

    (6) Costs incurred in attempting to improperly influence (see 

3.401), either directly or indirectly, an employee or officer of the 

Executive branch of the Federal Government to give consideration to or 

act regarding a regulatory or contract matter.

    (b) The following activities are excepted from the coverage of (a) 

above:

    (1) Providing a technical and factual presentation of information on 

a topic directly related to the performance of a contract through 

hearing testimony, statements or letters to the Congress or a state 

legislature, or subdivision, member, or cognizant staff member thereof, 

in response to a documented request (including a Congressional Record 

notice requesting testimony or statements for the record at a regularly 

scheduled hearing) made by the recipient member, legislative body or 

subdivision, or a cognizant staff member thereof; provided such 

information is readily obtainable and can be readily put in deliverable 

form; and further provided that costs under this section



[[Page 623]]



for transportation, lodging or meals are unallowable unless incurred for 

the purpose of offering testimony at a regularly scheduled Congressional 

hearing pursuant to a written request for such presentation made by the 

Chairman or Ranking Minority Member of the Committee or Subcommittee 

conducting such hearing.

    (2) Any lobbying made unallowable by paragraph (a)(3) of this 

subsection to influence state or local legislation in order to directly 

reduce contract cost, or to avoid material impairment of the 

contractor's authority to perform the contract.

    (3) Any activity specifically authorized by statute to be undertaken 

with funds from the contract.

    (c) When a contractor seeks reimbursement for indirect costs, total 

lobbying costs shall be separately identified in the indirect cost rate 

proposal, and thereafter treated as other unallowable activity costs.

    (d) Contractors shall maintain adequate records to demonstrate that 

the certification of costs as being allowable or unallowable (see 

42.703-2) pursuant to this subsection complies with the requirements of 

this subsection.

    (e) Existing procedures should be utilized to resolve in advance any 

significant questions or disagreements concerning the interpretation or 

application of this subsection.



[49 FR 18278, Apr. 27, 1984, as amended at 51 FR 12301, Apr. 9, 1986; 52 

FR 19804, May 27, 1987; 60 FR 42660, Aug. 16, 1995; 61 FR 31657, June 

20, 1996; 61 FR 67425, Dec. 20, 1996; 62 FR 237, Jan. 2, 1997]