Appendix M
Lobbyists and Contracting
Published September 8, 1997.
1.	The use of lobbyists by a prospective contractor is not prohibited.  However, contractors who do business with the government must not retain lobbyist whom they pay on a contingency basis.  This means that lobbyists must not be paid a fee or compensation related to the value of the contract.  If lobbyists are retained in connection with a proposed or actual contract with the Crown, they should be paid on a fee for services or retainer basis. 
2.	The restriction on the use of lobbyists applies only to contracts where lobbyists are or may be expected to be used.  Each contracting authority should determine this fact in advance and if lobbyists are traditionally used (or could possibly be used), a clause prohibiting payment on a contingency fee basis must be included in the contract documentation between the Crown and the supplier. 
3.	In circumstances where organisations contracting with lobbyists to assist them when seeking grants or contributions from federal government entities, fees paid to lobbyists should not be related to the value of any grant or contribution.  Departments and agencies are to ensure that organisation, seeking various forms of government assistance, should not pay lobbyists on a contingency fee basis.   
4.	All contracting authorities must include in all applicable contracts a lobbyist certification clause to prohibit suppliers from engaging lobbyists on a contingency fee basis to help them obtain contracts.  Contracting authorities should seek the advice of their Justice Department representative on the specific wording of an appropriate clause.  The following are sample clauses for goods and services contracts: 
(i)	The Contractor certifies that it has not directly or indirectly paid or agreed to pay and covenants that it will not directly or indirectly pay a contingency fee for the solicitation, negotiation or obtaining of this Contract to any person other than an employee acting in the normal course of the employee’s duties. 
(ii)	All accounts and records pertaining to payments of fees or other compensation for the solicitation, obtaining or negotiating of the Contract shall be subject to the Accounts and Audit provisions of the Contract.
(iii)	If the Contractor certifies falsely under this section or is in default of the obligations contained therein, the Minister may either terminate this Contract for default provisions of the Contract or recover from the Contractor by way of reduction to the Contract Price or otherwise the full amount of the contingency fee. 
(iv)	In this section:
“contingency fee” means any payment or other compensation that is contingent upon or is calculated upon the basis of a degree of success in soliciting or obtaining a Government Contract or negotiating the whole or any part of its terms.
“employee” means a person with whom the Contractor has an employer/employee relationship;
“person” includes an individual or group of individuals, a corporation, a partnership, an organization an association and, without restricting the generality of the foregoing, includes any individual who is required to file a return with the registrar pursuant to section 5 of the Lobbyist Registration Act R.S. 1985 c. 44 (4th Supplement) as the same may be amended from time to time.