FAR 3.103-1—Solicitation provision.
Plain-English Summary
FAR 3.103-1 tells contracting officers when they must include the solicitation provision at 52.203-2, Certificate of Independent Price Determination. The section applies when the government is contemplating a firm-fixed-price contract or a fixed-price contract with economic price adjustment, because those pricing methods make independent competition especially important. Its purpose is to reduce bid rigging, collusive pricing, and other anti-competitive conduct by requiring offerors to certify that their prices were developed independently. In practice, this means the provision is a standard anti-collusion safeguard in many sealed-bid and negotiated fixed-price solicitations, but it is not universal. The rule also identifies specific exceptions: simplified acquisition procedures under FAR part 13, a reserved paragraph, requests for technical proposals under two-step sealed bidding, and utility service solicitations where rates are set by law or regulation. For contracting officers, the section is a checklist item that affects solicitation preparation; for contractors, it is a warning that submitting a price proposal may carry a formal certification obligation with legal consequences if the pricing was not independently determined.
Key Rules
Insert the certificate provision
The contracting officer must include FAR 52.203-2, Certificate of Independent Price Determination, in solicitations when a firm-fixed-price contract or a fixed-price contract with economic price adjustment is contemplated. This is the default rule unless one of the listed exceptions applies.
Applies to fixed-price pricing
The trigger is the contemplated use of firm-fixed-price or fixed-price with economic price adjustment. The section is aimed at pricing situations where independent competition is expected to produce fair and reasonable prices.
Simplified acquisitions are excluded
The provision is not required when the acquisition is conducted under simplified acquisition procedures in FAR part 13. Those procedures are treated as a separate, streamlined buying method.
Two-step technical proposals excluded
The provision is not inserted in a request for technical proposals under two-step sealed bidding procedures. In that setting, the first step is focused on technical acceptability rather than price competition.
Utility rates set by law are excluded
The provision is not required for solicitations for utility services when the rates are established by law or regulation. Because pricing is controlled externally, the independent price certification is unnecessary.
Reserved paragraph has no effect
Paragraph (b) is reserved and does not create any additional rule or exception. It should be ignored for operational purposes.
Responsibilities
Contracting Officer
Determine whether the contemplated contract type is firm-fixed-price or fixed-price with economic price adjustment, and insert FAR 52.203-2 into the solicitation unless one of the listed exceptions applies. The contracting officer must also recognize when the reserved paragraph has no operative effect.
Offeror/Contractor
Review the solicitation to determine whether the Certificate of Independent Price Determination is included and, if so, comply with the certification requirement when submitting a price proposal. The offeror must ensure pricing was developed independently and not through collusion or improper coordination.
Agency
Support contracting personnel with acquisition planning and solicitation templates that correctly include or omit the provision based on the acquisition method and contract type. The agency should help maintain consistent compliance with anti-collusion requirements.
Practical Implications
This section is a solicitation-preparation checkpoint: if the wrong provision is included or omitted, the solicitation may be noncompliant and could require amendment or corrective action.
Contractors should treat the certificate seriously because it is tied to anti-collusion and independent pricing expectations; inaccurate certification can create significant legal and contractual risk.
The exceptions matter in day-to-day buying: simplified acquisitions, two-step technical proposal requests, and regulated utility procurements do not use the provision, so contracting officers should not insert it by habit.
Because the rule turns on the contemplated contract type, acquisition planners should confirm pricing strategy early; changing from fixed-price to another structure may change whether the provision belongs in the solicitation.
A common pitfall is assuming every solicitation needs the certificate. The rule is narrower than that, and the contracting officer must check both the contract type and the specific exception categories before issuing the solicitation.
Official Regulatory Text
The contracting officer shall insert the provision at 52.203-2 , Certificate of Independent Price Determination, in solicitations when a firm-fixed-price contract or fixed-price contract with economic price adjustment is contemplated, unless- (a) The acquisition is to be made under the simplified acquisition procedures in part 13 ; (b) [Reserved] (c) The solicitation is a request for technical proposals under two-step sealed bidding procedures; or (d) The solicitation is for utility services for which rates are set by law or regulation.