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Contingency Fee

This regulation reflects long standing public policy that improper influence should not be used to secure government contracts. The regulation is applicable to all solicitations and contracts except when under sealed bid and $100,000 or less; personal services to be paid on a time basis; and other exceptions not generally applicable to colleges and universities. It does not apply to regular employees or firms which are maintained by the contractor to secure business. Flow-down of this regulation in subawards is required.

Contingent fee representation and certification must be made at the time of proposal submission. The representation and certification made indicates whether or not any person or company has been retained to solicit or obtain the contract; whether or not any person or company has been employed or retained to solicit or obtain the contract under a commission, percentage, brokerage or other fee contingent upon receiving the contract.

The wisest course would be not to retain persons or firms to market a proposal to the government. Regular employees are not covered under this compliance regulation.

(Adapted from NCURA, Regulation and Compliance. Reprinted with permission from NCURA.) Reference FAR.52.203-04

Date last reviewed October 2007