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B-208212 1 (1982-07-19)

handle is hein.gao/gaobadolb0001 and id is 1 raw text is: .. UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 01FFI OF C 'NERAL COUNSEL ...B-208212 July 19; 1982 Building Development Counsel Inter- national, Inc. 1629 K Street, N.W., Suite 400 Washington, D.C. 20006 Attention: Mr. Mark Price, President Gentlemen: You have requested our views on whether or not your company, the Building Development Counsel International, Inc. (BDCI), qualifies as a bonafide selling agency which is excepted from the Federal prohibition against payment of contingent fees to firms which aid contrators in obtaining Government contracts. This prohibition is found in 10 U.S.C. § 2306(b) (1976) and 41 U.S.C. § 254(a) (1976), and has been implemented in the Federal Procure- ment Regulations FPR, § 1-1.500 et seq. (1981), governing use by civilian executive agencies of the covenant against contingent fees (covenant), and the Defense Acquisition Regulations (DAR) § 1-503.3 (1976 ed.), which provides similar rules for the Department of Defense. You indicate that BDCI provides management consultant services to archi- tectural-engineering (A-E) firms/clients for which BDCI is paid a nominal monthly retainer, plus a management fee contingent on award of a contract to the client. The prohibition against the use of a contingent fee arrangement does not apply to bona fide * * * selling. agencies maintained by the Contractor for the purpose of securing business. The applicable regulations contain criteria for determining whether or not a firm satisfies this definition. This determination depends on the facts and circum- stances of each case. We have held that questions con- cerning possible violations of the prohibition are a matter for the consideration of the procuring agency administering a particular contract. See Four-Phase Systems, Incorporated, B-189585, April 19, 1978, 78-1 CPD 304; Cessna Aircraft Company, Beach Aircraft Corpo- ration, B-1.80913, August 12, 1974, 74-2 CPD 91 (copies enclosed). Under these circumstances, we cannot pro- vide a definitive response to your inquiry.

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