[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR31.205-22]

[Page 600-601]
 
            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,

[[Page 601]]

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 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]