52.203-2 Certificate of Independent Price Determination
Source: FAR 52.203-2 on acquisition.gov
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.
As prescribed in 3.103-1 , insert the following provision. If the solicitation is a Request for Quotations, the terms "Quotation" and "Quoter" may be substituted for "Offer" and "Offeror."
Certificate of Independent Price Determination (Apr 1985)
(a) The offeror certifies that-
(1) The prices in this offer have been arrived at independently, without, for the purpose of restricting competition, any consultation, communication, or agreement with any other offeror or competitor relating to-
(i) Those prices;
(ii) The intention to submit an offer; or
(iii) The methods or factors used to calculate the prices offered.
(2) The prices in this offer have not been and will not be knowingly disclosed by the offeror, directly or indirectly, to any other offeror or competitor before bid opening (in the case of a sealed bid solicitation) or contract award (in the case of a negotiated solicitation) unless otherwise required by law; and
(3) No attempt has been made or will be made by the offeror to induce any other concern to submit or not to submit an offer for the purpose of restricting competition.
(b) Each signature on the offer is considered to be a certification by the signatory that the signatory-
(1) Is the person in the offeror’s organization responsible for determining the prices being offered in this bid or proposal, and that the signatory has not participated and will not participate in any action contrary to paragraphs (a)(1) through (a)(3) of this provision; or
(2)
(i) Has been authorized, in writing, to act as agent for the following principals in certifying that those principals have not participated, and will not participate in any action contrary to paragraphs (a)(1) through (a)(3) of this provision ____________ [insert full name of person(s) in the offeror’s organization responsible for determining the prices offered in this bid or proposal, and the title of his or her position in the offeror’s organization];
(ii) As an authorized agent, does certify that the principals named in subdivision (b)(2)(i) of this provision have not participated, and will not participate, in any action contrary to paragraphs (a)(1) through (a)(3) of this provision; and
(iii) As an agent, has not personally participated, and will not participate, in any action contrary to paragraphs (a)(1) through (a)(3) of this provision.
(c) If the offeror deletes or modifies subparagraph (a)(2) above, the offeror must furnish with its offer a signed statement setting forth in detail the circumstances of the disclosure.
(End of provision)