Protecting American Taxpayers From Payment of Contingency Fees

Executive Order 13433 of May 16, 2007

Protecting American Taxpayers From Payment of
Contingency Fees

By the authority vested in me as President by the
Constitution and the laws of the United States of
America, including section 301 of title 3, United
States Code, it is hereby ordered as follows:

Section 1. Policy. To help ensure the integrity and
effective supervision of the legal and expert witness
services provided to or on behalf of the United States,
it is the policy of the United States that
organizations or individuals that provide such services
to or on behalf of the United States shall be
compensated in amounts that are reasonable, not
contingent upon the outcome of litigation or other
proceedings, and established according to criteria set
in advance of performance of the services, except when
otherwise required by law.

Sec. 2. Duties of Agency Heads. (a) Heads of agencies
shall implement within their respective agencies the
policy set forth in section 1, consistent with such
instructions as the Attorney General may prescribe.

(b) After the date of this order, no agency shall enter
into a contingency fee agreement for legal or expert
witness services addressed by section 1 of this order,
unless the Attorney General has determined that the
agency's entry into the agreement is required by law.

(c) Within 90 days after the date of this order, the
head of each agency shall notify the Attorney General
and the Director of the Office of Management and Budget
of any contingency fee agreements for services
addressed by section 1 of this order that are in effect
as of the date of this order.

Sec. 3. Definitions. For purposes of this order:

(a) The term “agency” means an executive agency as
defined in section 105 of title 5, United States Code,
and the United States Postal Service and the Postal
Regulatory Commission, but shall exclude the Government
Accountability Office and elements of the intelligence
community (as defined in section 3(4) of the National
Security Act of 1947 as amended (50 U.S.C. 401a(4)).

(b) The term “contingency fee agreement” means a
contract or other agreement to provide services under
which the amount or the payment of the fee for the
services is contingent in whole or in part on the
outcome of the matter for which the services were
obtained. The term does not include:

(i) qualified tax collection contracts defined in section 6306 of title 26,
United States Code, and

(ii) contracts described in sections 3711 and 3718 of title 31, United
States Code.

Sec. 4. General Provisions. (a) This order shall be
implemented consistent with applicable law and subject
to the availability of appropriations.

(b) Nothing in this order shall be construed to impair
or otherwise affect:

(i) authority granted by law to an agency or the head thereof; or

(ii) functions of the Director of the Office of Management and Budget
relating to budget, administrative, or legislative proposals.

(c) This order is not intended to, and does not, create
any right, benefit, or privilege, substantive or
procedural, enforceable at law or in equity by any
party against the United States, its departments,
agencies, instrumentalities, or entities, its officers
or employees, or any other person.

    (Presidential Sig.)

THE WHITE HOUSE,

    May 16, 2007.