[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR3.303]



[Page 51]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 3_IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST--Table of Contents

 

          Subpart 3.3_Reports of Suspected Antitrust Violations

 

Sec. 3.303  Reporting suspected antitrust violations.



    (a) Agencies are required by 41 U.S.C. 253b(i) and 10 U.S.C. 

2305(b)(9) to report to the Attorney General any bids or proposals that 

evidence a violation of the antitrust laws. These reports are in 

addition to those required by subpart 9.4.

    (b) The antitrust laws are intended to ensure that markets operate 

competitively. Any agreement or mutual understanding among competing 

firms that restrains the natural operation of market forces is suspect. 

Paragraph (c) below identifies behavior patterns that are often 

associated with antitrust violations. Activities meeting the 

descriptions in paragraph (c) are not necessarily improper, but they are 

sufficiently questionable to warrant notifying the appropriate 

authorities, in accordance with agency procedures.

    (c) Practices or events that may evidence violations of the 

antitrust laws include--

    (1) The existence of an industry price list or price agreement to 

which contractors refer in formulating their offers;

    (2) A sudden change from competitive bidding to identical bidding;

    (3) Simultaneous price increases or follow-the-leader pricing;

    (4) Rotation of bids or proposals, so that each competitor takes a 

turn in sequence as low bidder, or so that certain competitors bid low 

only on some sizes of contracts and high on other sizes;

    (5) Division of the market, so that certain competitors bid low only 

for contracts let by certain agencies, or for contracts in certain 

geographical areas, or on certain products, and bid high on all other 

jobs;

    (6) Establishment by competitors of a collusive price estimating 

system;

    (7) The filing of a joint bid by two or more competitors when at 

least one of the competitors has sufficient technical capability and 

productive capacity for contract performance;

    (8) Any incidents suggesting direct collusion among competitors, 

such as the appearance of identical calculation or spelling errors in 

two or more competitive offers or the submission by one firm of offers 

for other firms; and

    (9) Assertions by the employees, former employees, or competitors of 

offerors, that an agreement to restrain trade exists.

    (d) Identical bids shall be reported under this section if the 

agency has some reason to believe that the bids resulted from collusion.

    (e) For offers from foreign contractors for contracts to be 

performed outside the United States and its outlying areas, contracting 

officers may refer suspected collusive offers to the authorities of the 

foreign government concerned for appropriate action.

    (f) Agency reports shall be addressed to the Attorney General, U.S. 

Department of Justice, Washington, DC 20530, Attention: Assistant 

Attorney General, Antitrust Division, and shall include--

    (1) A brief statement describing the suspected practice and the 

reason for the suspicion; and

    (2) The name, address, and telephone number of an individual in the 

agency who can be contacted for further information.

    (g) Questions concerning this reporting requirement may be 

communicated by telephone directly to the Office of the Assistant 

Attorney General, Antitrust Division.



[48 FR 42108, Sept. 19, 1983, as amended at 49 FR 12974, Mar. 30, 1984; 

50 FR 1727, Jan. 11, 1985; 50 FR 52429, Dec. 23, 1985; 55 FR 25526, June 

21, 1990; 65 FR 36030, June 6, 2000; 68 FR 28080, May 22, 2003]