3.103-2 Evaluating the certification
Source: FAR 3.103-2 on acquisition.gov
Strict compliance with the Certificate of Independent Price Determination is essential—alterations or improper disclosures can lead to bid rejection and legal consequences.
Overview
FAR 3.103-2 provides detailed guidance on evaluating the Certificate of Independent Price Determination, a required certification in most government solicitations to prevent collusive bidding. It clarifies what does and does not constitute improper price disclosure, the use of blanket authorizations for price certification, and the handling of joint offers. The section also outlines mandatory procedures for contracting officers when an offeror alters or deletes parts of the certificate, including when to reject offers and when to escalate suspected collusion or false certification to the Attorney General. The regulation ensures the integrity of the procurement process by establishing clear compliance and reporting requirements for both contractors and contracting officers.
Key Rules
- Disclosure Exceptions
- Publishing price lists, informing customers of new prices, selling at the same prices to commercial customers, or participating in a reverse auction do not count as improper disclosure under the certificate.
- Blanket Authorization
- Blanket authorization for price certification is allowed if the contract is within its scope and the authorizer is responsible for pricing.
- Joint Offers
- Each party in a joint offer certifies only for its own actions.
- Rejection of Altered Certificates
- Offers with deleted or modified certificate paragraphs must be rejected or reviewed, with specific procedures for disclosures.
- Reporting Suspected Collusion
- Suspected false certificates or collusion must be reported to the Attorney General.
Responsibilities
- Contracting Officers: Must review certificates, reject non-compliant offers, document determinations, and report suspected collusion or false certification.
- Contractors: Must ensure accurate, unaltered certification, provide required statements if disclosing prices, and understand joint offer responsibilities.
- Agencies: Must oversee compliance and facilitate reporting to legal authorities as needed.
Practical Implications
- This section protects the government from collusive or anti-competitive pricing practices.
- Contractors must be diligent in completing the certificate and transparent about any price disclosures.
- Failure to comply can result in bid rejection and potential legal action, making careful adherence essential.
(a) Evaluation guidelines.
(1) None of the following, in and of itself, constitutes "disclosure" as it is used in paragraph (a)(2) of the Certificate of Independent Price Determination (hereafter, the certificate):
(i) The fact that a firm has published price lists, rates, or tariffs covering items being acquired by the Government.
(ii) The fact that a firm has informed prospective customers of proposed or pending publication of new or revised price lists for items being acquired by the Government.
(iii) The fact that a firm has sold the same items to commercial customers at the same prices being offered to the Government.
(iv) Participating in a reverse auction (see subpart 17.8).
(2) For the purpose of paragraph (b)(2) of the certificate, an individual may use a blanket authorization to act as an agent for the person(s) responsible for determining the offered prices if-
(i) The proposed contract to which the certificate applies is clearly within the scope of the authorization; and
(ii) The person giving the authorization is the person within the offeror’s organization who is responsible for determining the prices being offered at the time the certification is made in the particular offer.
(3) If an offer is submitted jointly by two or more concerns, the certification provided by the representative of each concern applies only to the activities of that concern.
(b) Rejection of offers suspected of being collusive.
(1) If the offeror deleted or modified paragraph (a)(1) or (3) or paragraph (b) of the certificate, the contracting officer shall reject the offeror’s bid or proposal.
(2) If the offeror deleted or modified paragraph (a)(2) of the certificate, the offeror must have furnished with its offer a signed statement of the circumstances of the disclosure of prices contained in the bid or proposal. The chief of the contracting office shall review the altered certificate and the statement and shall determine, in writing, whether the disclosure was made for the purpose or had the effect of restricting competition. If the determination is positive, the bid or proposal shall be rejected; if it is negative, the bid or proposal shall be considered for award.
(3) Whenever an offer is rejected under paragraph (b)(1) or (2)of this section, or the certificate is suspected of being false, the contracting officer shall report the situation to the Attorney General in accordance with 3.303.
(4) The determination made under paragraph (2) of this section shall not prevent or inhibit the prosecution of any criminal or civil actions involving the occurrences or transactions to which the certificate relates.