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Legal Support Services Deskbook
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LSS Deskbook Homepage
Chapters

  1. Working for the FDIC Legal
      Division
  2. Conflicts of Interest
  3. Agreements
  4. Management of Services
  5. Invoice Package
  6. Closeout
  7. Post-Representation
      Responsibilities

Appendices

  1. Statutory Compliance
  2. Contacts
  3. Electronic Billing
  4. Legal Services -
    Delegations of Authority
  1. Litigation & Resolutions Branch
  2. Corporate Operations Branch
  3. Supervision Branch
  4. Consumer & Legislation Branch


 

Agreements

Links on this page reference Portable Document Format (PDF) or MS Word files. Adobe Acrobat, a reader available for free on the Internet, is required to display or print PDF files. For assistance with either format please visit Word help or PDF help.

3.1 Purpose of Contract
The contract is an agreement for legal support services between the expert or LSS provider and the FDIC that contain terms and conditions applicable to experts and legal support services. The four (4) types of contracts and their purposes are:

1. Agreement for Legal Support Services (General Usage – For Firm-Fixed Price, services, Long Format) - Word

The purpose of this agreement is to engage contractors for the provision of services in support of pending or on-going litigation/transactional matters.

2. Agreement for Expert Services (Goodwill Cases) - Word

The purpose of this agreement is to establish terms and conditions for the engagement of Experts to provide expert services in support of litigation in the Winstar related cases pending (or that may be brought) against the United States.

3. Agreement for Expert or Legal Support Services (Experts (Non-Goodwill) or Legal Support Services (Hourly Rates)) - Word

The purpose of this agreement is to engage contractors for the provision of services in support of pending or on-going legal matters.

4. Agreement for Legal Support Services (General Usage – For Firm-Fixed Price, Non-“Expert” Services, Short Format) - Word

3.2 Duration of Agreement for Services
The purpose of this agreement is to engage contractors for the provision of services in support of pending or on-going litigation/transactional matters.

The agreement shall remain in effect for a specified period of time from the effective date set forth in the agreement (the Oversight Attorney may negotiate a longer period with approval of the appropriate delegated authority), but subject however, to earlier termination by the FDIC with or without cause or advance notice. If no effective date is indicated, the agreement is effective as of the date signed by the FDIC.

3.3 Duration of Agreement for Services

The rates (hourly or flat) charged by the expert  and LSS provider and their billable individuals should be listed on a rate schedule and should include all overhead. Hourly or flat rates, for example, are listed on rate Schedule A and should be submitted by the expert as Schedule A to the Agreement for Expert Services.

The Agreement for Legal Services for a specified service or product defines the agreed firm fixed price under Section 1 (Sale and Purchase of Services). A Statement of Work (SOW)  describing the services to be performed with quantities, delivery dates, and place(s) of delivery should be submitted by the expert or LSS provider as Schedule A to the Agreement for Legal Services. The firm fixed price includes all taxes, insurance, transportation, and delivery charges.

The Oversight Attorney shall review the schedule and ensure that the expert or LSS provider meets the needs of the subject case. Individuals not listed on the rate schedule should be added to the rate schedule amendment form prior to performing services.

Absent compelling reasons no increase in the rate schedule attached to the agreement will be permitted during its term, other than as may be provided in the agreement.

The agreement may be extended on its existing terms by mutual agreement of the parties.

If the continuation agreement is approved, the agreement will continue until the earliest of:

• All work on outstanding legal support services is complete;

• A new agreement is executed; or

• FDIC exercises its right to terminate the agreement.

Continuation of the agreement is not the same as renewal of the agreement. Continuation does not permit the expert or LSS provider to receive any new legal support matters.

3.4 Contract Amendment
It is the expert or LSS provider's responsibility to inform the FDIC of all new or changed information concerning the firm/business. Information that needs to be updated includes, but is not limited to:

• Structural changes in the firm/business;

• New tax identification number; and

• Adding or removing billable individuals.

In addition, payment of invoices may be delayed if information is not up-to-date. The Oversight Attorney should be contacted immediately if the expert or LSS provider is unsure whether or not an amendment to the agreement is required.

Structural Changes
The expert or LSS provider may need to amend their agreement when a structural change occurs in the firm/business. Structural changes may impact the expert or LSS provider's relationship with the FDIC in the area of conflicts of interest. In addition, structural changes may also impact the FDIC’s invoice payment process.

Examples of structural changes include:

• Firm/Business dissolution;

• Merger or other ownership changes;

• Change from a partnership to a professional corporation;

• Name change; or

• Change of address or addition of a new branch office.

After reviewing information that the expert or LSS provider submits concerning any structural change, the FDIC office or section that oversees the agreement for services will determine what action is appropriate.

Note: If the expert or LSS provider's firm/business has multiple offices, identify the branch office(s) in which the structural change occurred by entering the city and state in which the office is located on the Amendment Form. 
 

New Tax Identification Number (TIN)
A new tax identification number - Word (TIN) that does not include a structural change requires, at a minimum, an amendment to the agreement. The expert or LSS provider should submit an amendment form - Word. If the FDIC determines that a new agreement is necessary, the FDIC may permit the expert or LSS provider to continue to handle existing assignments or may suspend the agreement until a new agreement is executed.

Note: Structural changes that result in a new federal TIN require the execution of a new agreement. A new TIN also changes information used for payment of invoices by Electronic Funds Transfer ("EFT") and may require the execution of new EFT forms. See EFT Guidelines.

The expert or LSS provider must inform the FDIC in writing when adding or removing billable individuals to a rate schedule. Complete the amendment form when any billable individual is added or removed.

3.5 Completion of Amendment Form
1. When completing an amendment form - Word:

a. Complete a separate form for each branch office of a multiple office firm/business. Enter the federal tax identification number, name of firm/business, and branch office location;

b. Make changes, as appropriate, to the name of firm/ business, address, telephone number, fax number, e-mail address, and contact person;

c. If the individual has a minority status, type:

• A for Asian American
• B for Black American
• H for Hispanic American
• N for Native American Indian;

d. Type M for male or F for female in the gender field;

e. Type the hourly or flat rate; and

f. Sign and date the completed amendment form.

Note: The expert or LSS provider may attach continuation sheets if necessary to document changes to the agreement.

2. If the expert or LSS provider submits a letter rather than the amendment form, the letter must include all of the information requested on the amendment form.

3. The expert or LSS provider should mail the original form or letter to the Oversight Attorney.

4. Except for experts or LSS providers retained by the Receivership Goodwill Section, the expert or LSS provider should mail a copy of the form or letter to the Legal Division:

Federal Deposit Insurance Corporation
Attn: Legal Services Group (LSG)
3501 Fairfax Drive  - Room VS-E-6066
Attn: Carl Polvinale
Arlington, VA 22226

5. Experts and LSS providers retained by the Receivership Goodwill Section should mail a copy of the form or letter to:

Federal Deposit Insurance Corporation
Receivership Goodwill Section
550 17th Street, NW, Room MB-3120
Attn:  Mike Condon
Washington, D.C. 20429-9900

6. The expert or LSS provider should send a copy of the form or letter to any other Legal Division office with which the expert or LSS provider does business.

7. The FDIC will notify the expert or LSS provider if the request to amend the agreement is approved. The expert or LSS provider will receive a copy of the fully-executed amendment form in the mail. The expert or LSS provider may not bill the FDIC for the services of billable individuals who have not been included on the FDIC-approved rate schedule or Schedule A.
 

Note: When the expert or LSS provider request an amendment to an agreement, the Legal Division may elect to:

  • Amend the existing agreement;

  • Require the expert or LSS provider to enter into a new agreement; or

  • Take other actions to protect the interests of the FDIC.

3.6 Byrd Amendment -- Engagements Over $100,000
If the amount of the approved budget(s) exceeds $100,000, the expert or LSS provider must comply with provisions of the Byrd Amendment and its requirements.

3.7 Budget and Schedule
Once the expert or LSS provider has been selected to provide services for the FDIC, the expert or LSS provider must submit a formal budget and rate schedule - Word indicating the approximate cost of the services, if applicable, to the Oversight Attorney.

The budget is a vital tool in cost control and oversight. Budget information controls costs and payment of invoices. Except in a case of extreme urgency, the FDIC Legal Division must approve the budget before beginning services.

Experts and LSS providers must contractually agree that budgets impose firm maximum amounts for fees and expenses. Unauthorized cost or expense overruns will not be reimbursed or otherwise paid. Advances must be obtained through the Oversight Attorney by approved delegated authority.

Note: Invoices cannot be paid unless an approved budget and rate schedule is in place.

The FDIC uses on an on-going basis the cost estimates and other information provided in the budget to assess cost-effectiveness and measure progress. The Legal Division recognizes that estimates may be affected by changed circumstances; but, because the estimates are used in making business decisions, they must be as accurate as possible.


Budget Form
The budget form translates the case plan into financial expectations. The budget form should conform to the case plan for services rendered.

Completing the Budget Form
Following are the instructions for completing a budget form.

1. The expert or LSS provider should complete all requested information on the budget form.

2. In particular, the expert or LSS provider should indicate in the appropriate box whether the billing is at a flat or an hourly rate. Refer to the following table to determine information required for the type of billing entered.

Rate Information Required
Hourly • Complete all phases of the budget in which fees and expenses are expected.
Flat • Record the flat fee as a total without further itemization by phase.

• Submit the estimated completion date and allowable related expenses for each phase

3. If appropriate, the expert or LSS provider should calculate the total estimated number of hours for all services for each action.

4. Expert or LSS provider must sign and date the budget form.

3.8 Budget and Schedule Submission
The following steps outline the submission and approval process:

1. Once the budget, schedule, and case plan are completed, it is submitted to the Oversight Attorney for approval.

Note: If the budget is in excess of $100,000, the expert or LSS provider must comply with the Byrd Amendment by submitting the Byrd Amendment Certification or Disclosure form with the budget, rate schedule, and case plan.


2. The Oversight Attorney will review the budget, rate schedule, and case plan. If it is satisfactory, the Oversight Attorney will recommend approval by the appropriate FDIC delegated authority.

3. The Legal Division will notify the expert or LSS provider when the budget, rate schedule, and case plan are approved.

3.9 Amended Budget
If the approved budget is not sufficient to complete all services, an amended budget and rate schedule is to be submitted. When it is anticipated that the approved budget is not likely to be sufficient, the expert or LSS provider should not wait until after the approved budget is exceeded.

Written approval from the Legal Division is required for any increase in the approved budget. Make sure the amendment has been approved before the budget is exceeded. The Legal Division allows exceptions to this policy only when extraordinary circumstances arise.
 

Note: Failure to obtain written FDIC approval for an amended budget will be deemed a serious breach of duty to the FDIC and may result in non-payment or disallowance of fees or expenses exceeding authorized amounts. The expert or LSS provider must report to the Oversight Attorney immediately any anticipated budget changes.

An amended budget, rate schedule, and case plan contains:

• Amended case plan, or explanatory narrative; and

• Amended budget form and/or an amended rate schedule.

Note: If the amended budget exceeds $100,000, the expert or LSS provider must comply with the Byrd Amendment. If the previous budget exceeded $100,000, it is not necessary to submit another Byrd Amendment Certification.


Completing the Amended Budget and Schedule
The Oversight Attorney should ensure that the expert or LSS provider completes the following instructions for completing an amended budget and rate schedule.

1. Prepare a separate narrative explaining the reasons for the amendment.

2. If necessary, prepare an amended case plan that provides detail commensurate with the significance of the services.

3. Fill out all requested information on the amended budget form, in a manner similar to the original budget form.

4. Mark the appropriate box if the expert or LSS provider has submitted a previous amended budget.

5. Use the most recent approved figures in the column for “Current Budget.”

6. Sign and date the amended budget.

3.10 Amended Budget and Schedule Submission
The following steps outline the submission and approval process:

1. Once completed, the amended budget and rate schedule should be submitted to the Oversight Attorney for approval. This package consists of the amended case plan and budget form.

2. The Oversight Attorney reviews the amended budget and rate schedule. If it is satisfactory, the Oversight Attorney will recommend approval by the appropriate FDIC delegated authority.

3. The Legal Division will notify the expert or LSS provider when the amended budget, rate schedule, and case plan are approved.

 

Last Updated 01/03/2006 legal@fdic.gov