27 Miss. Code. R. 100-6-205 - PROHIBITION AGAINST CONTINGENT FEES

(a) Contingent Fees. It shall be a breach of ethical standards for a person to be retained, or to retain a person, to solicit or secure a state contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, unless such an arrangement is fully disclosed in writing.

(b) Representation of Contractor. Every person, before being awarded a state contract, shall represent, in writing, that such person has not retained anyone in violation of subsection (a) of this section. Failure to do so constitutes a breach of ethical standards.

(c) Contract Clause. The representation prescribed in subsection (b) of this section shall be conspicuously set forth in every contract and solicitation therefor.

6-205.01 Influence Peddling

The prohibition in Section 6-205 (Prohibition Against Contingent Fees) covers influence peddling and particularly that which might occur when a former state official is hired on a contingent basis by a business seeking state contracts.

6-205.02 Relationship of Commercial Selling Business to Prospective Contractor

The relationship between a bona fide established commercial selling business and the prospective contractor should be characterized by the following:

(a) the fees charged by the business are commensurate with the nature and extent of the business's services actually rendered to the prospective contractor;

(b) the business has adequate knowledge of the service of the prospective contractor which it represents to judge whether the item may be able to meet the State's requirements; and,

(c) the relationship between the business and the prospective contractor is or is contemplated to be continuing.

6-205.03 Improper Influence

A business employee or a commercial selling business should be conclusively presumed not to be bona fide if the Ethics Commission determines that improper influence has been or is being used to secure a state contract.

6-205.04 Solicitation Clause

Every solicitation for a service shall conspicuously set forth the following provision to be completed and submitted with every prospective contractor's bid, proposal, or statement of qualifications for those contracts which require PSCRB approval:

PROSPECTIVE CONTRACTOR'S REPRESENTATION REGARDING CONTINGENT FEES (Required)

The prospective contractor represents as a part of such contractor's bid, proposal, or statement of qualifications that such contract has/has not (use applicable word or words) retained any person or agency on a percentage, commission, or other contingent arrangement to secure this contract.

6-205.05 Information on Contingent Fees

Any prospective contractor who has completed the clause set forth in Section 6-205.04 (Solicitation Clause) in the affirmative and is the apparently successful bidder, offeror, or respondent shall submit the following information:

(a) the full name and business address of the business or person retained, and the type of business organization;

(b) the relationship of the business or person to the prospective contractor;

(c) the terms of the retention agreement or a copy of such agreement;

(d) if such person is a business employee:

(1) the duration of employment;

(2) whether that employee is on the contractor's payroll for purposes of social security and federal income tax withholding; and,

(3) whether that employee represents other businesses and, if so, the names and addresses of such businesses;

(e) whether the business or person represents the prospective contractor on:

(1) both government and commercial business;

(2) only government business; or,

(3) only the present contract;

(f) The extent of the duties of the business or person; and,

(g) The length of time the business or person has been engaged in a particular type of work and has performed this type of work for the contractor.

6-205.06 Contract Clause

The following clause shall be conspicuously set forth in every contract and solicitation therefor requiring PSCRB approval:

REPRESENTATION REGARDING CONTINGENT FEES (Required)

The contractor represents that it has not retained a person to solicit or secure a state contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, except as disclosed in the contractor's bid, proposal, or statement of qualifications .

Notes

27 Miss. Code. R. 100-6-205

Adopted 1/15/2015 Amended 1/15/2015 Amended 4/14/2016 Amended 7/1/2016