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Volume 13, Issue 1 featured an article written by Darcy Knoll entitled "Purchasing Power: An inside look at defence procurement." In that article Mr. Knoll alleged that CFN, as a lobbyist for Lockheed Martin, stood to make a percentage of the estimated $4.6 billion contract if Lockheed Martin's C-130J won the contract. The partners at CFN have advised us that this is not the case and they have brought to our attention Subparagraphs 1 and 2 under 1026A30 (1994-06-06) Certification-Contingency Fees in the Standard Acquisition Clauses and Conditions Manual. That is the bible as far as Public Works is concerned. Those clauses are as follows:

1.) The Contractor certified that it has not directly or indirectly paid or agree 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.

2.) All accounts and records pertaining to payments of fees or other compensation for the solicitation, obtaining or negotiation of the Contract shall be subject to Accounts and Audit provisions of the Contract.

This means simply that contingency fees are not permitted for federal government procurement and CFN has informed us that they follow these rules scrupulously--always have, always will. Esprit de Corps takes pride in the accuracy of its reporting and we apologize for implying that CFN would benefit from any contingency fee arrangement.
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Publication:Esprit de Corps
Article Type:Correction notice
Geographic Code:1USA
Date:Feb 1, 2006
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