Evaluating the certification
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.