52.203-2
Certificate of Independent Price Determination
Offerors must certify that their pricing is determined independently and without collusion, ensuring fair competition in federal contracting.
Overview
FAR 52.203-2, Certificate of Independent Price Determination, requires offerors to certify that their pricing in a government contract offer has been determined independently and without collusion or improper communication with competitors. This provision is designed to prevent anti-competitive practices and ensure fair competition in federal contracting. It applies to most solicitations unless specifically exempted, and the certification must be included with each offer or quotation submitted to the government.
Key Rules
- Independent Pricing Certification
- Offerors must certify that their prices were determined independently, without consultation or agreement with competitors regarding pricing, intent to submit an offer, or pricing methods.
- Non-Disclosure of Pricing
- Offerors must not disclose their prices to competitors before bid opening or contract award, unless required by law.
- No Inducement to Restrict Competition
- Offerors must not attempt to induce other firms to submit or refrain from submitting offers to restrict competition.
- Signature as Certification
- Each signature on the offer certifies that the signer is responsible for pricing and has not engaged in prohibited conduct, or is authorized to certify on behalf of responsible individuals.
- Disclosure of Modifications
- If the offeror deletes or modifies the non-disclosure certification, a detailed signed statement explaining the circumstances must be submitted.
Responsibilities
- Contracting Officers: Must include this provision in solicitations and ensure compliance.
- Contractors: Must truthfully certify independent price determination and comply with all related requirements.
- Agencies: Oversee enforcement and investigate potential violations.
Practical Implications
- This provision is critical for maintaining integrity and competition in federal procurement. Non-compliance can result in offer rejection, investigation, or legal penalties. Contractors must ensure internal controls to prevent unauthorized disclosures or collusion, and all personnel involved in pricing must understand these obligations.