Reporting suspected antitrust violations
Agencies must promptly report any suspected antitrust violations in bids or proposals to the Department of Justice, ensuring fair competition in federal contracting.
Overview
FAR 3.303 outlines the requirements for reporting suspected antitrust violations in government contracting. Agencies must report any bids or proposals that suggest a violation of antitrust laws to the Attorney General, in addition to other required reports. The regulation identifies specific behaviors and patterns—such as price fixing, bid rotation, and market division—that may indicate collusion or other anticompetitive practices. While these behaviors are not always illegal, they are considered suspicious and should be reported if there is reason to believe collusion has occurred. The section also provides procedures for reporting, including the information that must be included in the report and the appropriate recipient. For contracts performed outside the U.S., suspected collusion may be referred to foreign authorities. Contracting officers and agencies are responsible for identifying and reporting these issues to ensure fair competition in federal procurement.
Key Rules
- Mandatory Reporting
- Agencies must report suspected antitrust violations to the Attorney General, including specific details and a point of contact.
- Identifying Suspicious Practices
- Patterns such as identical bidding, price agreements, bid rotation, and market division are red flags for potential antitrust violations.
- Reporting Procedures
- Reports must include a description of the suspected practice and agency contact information, and be sent to the Antitrust Division at the Department of Justice.
- Foreign Contracts
- Suspected collusion in foreign contracts may be referred to the relevant foreign government authorities.
Responsibilities
- Contracting Officers: Monitor for suspicious bidding practices, prepare and submit reports as required, and refer foreign cases appropriately.
- Contractors: Avoid any collusive or anticompetitive behavior; be aware that such actions are subject to reporting and investigation.
- Agencies: Ensure compliance with reporting requirements and maintain oversight of procurement processes.
Practical Implications
- This regulation exists to protect the integrity of the federal procurement process and promote fair competition.
- Contractors must be vigilant about compliance, as even the appearance of collusion can trigger investigations.
- Failure to report or address antitrust concerns can result in legal consequences and undermine public trust in government contracting.