Protecting American Taxpayers From Payment of Contingency Fees

This executive order prohibits federal agencies from entering into contingency fee agreements for legal or expert witness services, where payment depends on case outcomes. Agencies must report existing contingency fee agreements within 90 days and implement the policy under Attorney General guidance.

Federal Register Open PDF 72 FR 28441

Impact dates

Aug 14, 2007
Agency heads notify AG and OMB Director of existing contingency fee agreements

Key directives

Agency heads shall implement policy that legal/expert witness fees be reasonable, non-contingent, and established in advance
No agency shall enter into contingency fee agreements after May 16, 2007 unless AG determines required by law
Within 90 days, agency heads shall notify AG and OMB Director of existing contingency fee agreements

Who is ordered

Timeline

Immediate

EO takes effect May 16, 2007
No new contingency fee agreements permitted after signing date without AG legal determination

Near term (90d)

Agency heads must report existing contingency fee agreements to AG and OMB Director by August 14, 2007

Long term

Ongoing prohibition on contingency fee agreements
Agency implementation of compensation policies with criteria set in advance

Risks & tensions

AG discretion on 'required by law' exceptions creates potential loophole
Exclusion of GAO and intelligence community limits scope
Qualified tax collection contracts and certain debt collection contracts exempted by statute
Subject to appropriations availability may limit enforcement