Overview
FAR 3.301 establishes the government’s stance against anticompetitive practices and mandates that contracting personnel identify and report suspected antitrust violations to protect the integrity of the procurement process.
Key Rules
- Definition of Harm: Anticompetitive practices are identified as actions that eliminate competition or restrain trade, typically resulting in excessive pricing and necessitating legal or administrative action.
- Examples of Violations: Prohibited practices include collusive bidding, follow-the-leader pricing, rotated low bids, collusive price estimating systems, and business sharing.
- Mandatory Reporting: Agency personnel are required to report evidence of suspected antitrust violations to:
- The Attorney General (for criminal/civil investigation).
- The agency’s debarment and suspension official (for administrative action under FAR subpart 9.4).
- Surveillance Responsibility: Contracting personnel are designated as the primary source of investigative leads and must remain vigilant for behavioral indicators of unlawful collusion.
Practical Implications
- First Line of Defense: Contracting Officers must look beyond individual bids to identify long-term patterns, such as different firms taking turns as the low bidder across multiple solicitations.
- Strict Accountability: Suspected collusion does not just risk a lost contract; it triggers a formal referral process that can lead to permanent debarment from federal contracting and federal criminal prosecution.