Overview
FAR 33.207 establishes the mandatory requirement for contractors to formally certify claims exceeding $100,000, ensuring the submission is made in good faith and based on accurate data.
Key Rules
- Threshold: Certification is strictly required for any claim exceeding $100,000; it does not apply to "issues in controversy" that have not yet reached formal claim status.
- Aggregate Value: The $100,000 threshold is determined by the aggregate amount of both increased and decreased costs (the absolute value of all changes).
- Mandatory Language: The certification must use specific verbatim language asserting that the claim is in good faith, data is accurate/complete, the amount reflects the government's liability, and the signer is authorized to bind the company.
- Authorized Signatory: Any individual with the legal authority to bind the contractor regarding the specific claim may execute the certification.
- Defective Certifications: A technical defect in a certification does not strip a court or Board of Contract Appeals (BCA) of jurisdiction, but the defect must be corrected before a final judgment or decision is rendered.
Practical Implications
- Contractors cannot avoid the certification requirement by offsetting cost increases with decreases to keep the net total under $100,000.
- While a defective certification is no longer a "jurisdictional " death sentence for a claim, it remains a procedural hurdle that can delay litigation and must be corrected before a case can be resolved.