3.103
Independent pricing
FAR 3.103 requires contractors to certify that their pricing is developed independently to prevent collusion and ensure fair competition in government contracting.
Overview
FAR 3.103 addresses the requirement for independent pricing in government contracting to prevent collusion and ensure fair competition. It mandates that each offeror must submit a price proposal that is developed independently, without consultation, communication, or agreement with any other offeror or competitor. The section outlines the use of a solicitation provision requiring certification of independent pricing, the process for evaluating such certifications, and the circumstances under which further certifications may be required. This regulation is designed to safeguard the integrity of the procurement process and to detect and deter anti-competitive practices such as price fixing or bid rigging.
Key Rules
- Solicitation Provision
- Solicitations must include a provision requiring offerors to certify that their pricing was developed independently.
- Evaluating the Certification
- Contracting officers must review the certification of independent pricing for accuracy and completeness, and investigate any indications of collusion or improper conduct.
- Need for Further Certifications
- If there is reason to suspect collusion or if the initial certification is insufficient, contracting officers may require additional certifications or explanations from offerors.
Responsibilities
- Contracting Officers: Ensure inclusion of the independent pricing certification provision, evaluate certifications, and pursue further inquiry if necessary.
- Contractors: Certify that their pricing is independent and truthful, and provide additional information if requested.
- Agencies: Oversee compliance and investigate potential anti-competitive behavior.
Practical Implications
- This section exists to protect the government from inflated prices due to collusion.
- Contractors must be diligent in preparing and certifying their proposals independently.
- Failure to comply can result in disqualification, investigation, or legal consequences.