9.108-3
Representation by the offeror
Offerors must certify they are not inverted domestic corporations or subsidiaries to be eligible for federal contract awards, and contracting officers may rely on this certification unless there is reason to doubt it.
Overview
FAR 9.108-3 requires offerors to formally represent that they are not inverted domestic corporations or subsidiaries of such entities to be eligible for federal contract awards. This representation is a prerequisite for contract eligibility, and failure to provide or truthfully make this representation renders the offeror ineligible, unless a waiver is granted under FAR 9.108-4. Contracting officers are generally permitted to rely on the offeror’s representation unless there is a specific reason to doubt its accuracy.
Key Rules
- Offeror Representation Requirement
- Offerors must certify that they are neither inverted domestic corporations nor subsidiaries of such corporations to be considered for contract award.
- Reliance on Representation
- Contracting officers may accept the offeror’s representation at face value unless there is reason to question its validity.
Responsibilities
- Contracting Officers: Must ensure the required representation is obtained and may rely on it unless there is cause for doubt.
- Contractors/Offerors: Must accurately represent their corporate status regarding inverted domestic corporations to be eligible for award.
- Agencies: Must enforce this prohibition and follow waiver procedures if applicable.
Practical Implications
- This section exists to prevent federal contracts from being awarded to companies that have inverted their corporate structure to avoid U.S. taxes.
- Offerors must be diligent and truthful in their representations, as misrepresentation can lead to ineligibility or contract termination.
- Contracting officers should be alert for any red flags or information that may call an offeror’s representation into question.