Non Collusion Affidavit Template for the United States
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What is a Non Collusion Affidavit?
The Non-Collusion Affidavit emerged from the need to ensure fair competition in public procurement processes and prevent bid rigging. This document is typically required in U.S. federal, state, and local government contracting procedures, particularly for high-value contracts or public works projects. It serves as both a deterrent to anti-competitive behavior and as evidence in potential legal proceedings. The affidavit requires detailed information about the bid process, pricing decisions, and any communications with competitors, making it a crucial tool in maintaining procurement integrity.
Frequently Asked Questions
Is a Non Collusion Affidavit legally binding in the United States?
Yes, a Non Collusion Affidavit is a legally binding sworn statement under United States federal and state laws. It carries the same legal weight as testimony given under oath in court, and making false statements can result in perjury charges, criminal penalties, and civil liability. Violations can also lead to contract disqualification and permanent debarment from government contracting opportunities.
Can my bid be rejected if the Non Collusion Affidavit is missing or incomplete?
Yes, government agencies typically reject bids outright if the Non Collusion Affidavit is missing, improperly executed, or incomplete. This is considered a material deficiency that cannot be waived, as the affidavit is mandatory under federal procurement regulations. Even minor errors like missing notarization or incorrect contractor information can lead to bid disqualification.
Which federal laws require Non Collusion Affidavits for government contracts?
Non Collusion Affidavits are primarily required under the Sherman Antitrust Act and Clayton Act, enforced through the Federal Acquisition Regulation (FAR) and various state procurement codes. The Competition in Contracting Act also mandates these affidavits to ensure full and open competition. Requirements vary by contract value, with stricter compliance for contracts exceeding federal simplified acquisition thresholds.
How does a Non Collusion Affidavit differ from a Bid Bond?
A Non Collusion Affidavit is a sworn statement certifying no bid rigging or price fixing occurred, while a Bid Bond is a financial guarantee that the contractor will honor their bid if selected. The affidavit addresses antitrust compliance and fair competition, whereas the bond ensures financial security for the contracting agency. Both are often required simultaneously but serve completely different legal purposes.
How long does it typically take to prepare a Non Collusion Affidavit?
A properly prepared Non Collusion Affidavit typically takes 1-3 business days to complete, including time for legal review, notarization, and proper execution by authorized company officials. Rush preparation is possible within 24 hours, but adequate time should be allocated to ensure accuracy and compliance. The process may take longer for complex joint ventures or multi-contractor arrangements.
Can subcontractors cause Non Collusion Affidavit violations for prime contractors?
Yes, subcontractor collusion can create liability for prime contractors under federal antitrust laws, even if the prime contractor was unaware of the violation. Prime contractors have a duty to ensure their subcontractors comply with antitrust requirements and may face contract termination, penalties, and debarment. Proper due diligence and contractual protections with subcontractors are essential risk management strategies.
Does signing a false Non Collusion Affidavit constitute a federal crime?
Yes, knowingly signing a false Non Collusion Affidavit constitutes perjury under federal law, punishable by fines and up to five years imprisonment. It may also violate the False Claims Act, carrying additional civil penalties and treble damages. Even negligent misrepresentations can result in contract termination, debarment from future government contracts, and significant financial liability.
About the Non Collusion Affidavit
A Non Collusion Affidavit is a sworn legal document that you must submit when bidding on government contracts in the United States. This affidavit serves as your formal declaration under penalty of perjury that you have not engaged in any collusive practices, bid rigging, or other anti-competitive behaviors during the procurement process. Understanding when and how to properly complete this document is essential for maintaining compliance with federal antitrust laws and securing government contracts.
When do you need this document?
You will need to submit a Non Collusion Affidavit whenever you participate in competitive bidding for government contracts at the federal, state, or local level. This requirement is most common for construction projects, professional services contracts, and procurement of goods or services above certain dollar thresholds. Federal agencies typically require this affidavit for contracts exceeding $150,000, while state and local governments may have lower thresholds. You must also provide this document when responding to requests for proposals (RFPs), invitations for bids (IFBs), or other competitive solicitations where multiple vendors are expected to participate.
Key legal considerations
The most critical aspect of completing a Non Collusion Affidavit is understanding that false statements can result in serious criminal and civil penalties under federal antitrust laws. Your affidavit must contain specific declarations that you have not communicated with competitors about pricing, terms, or other bid details. You must also certify that your bid was prepared independently without consultation with other bidders. The document requires you to disclose any business relationships or financial interests with other potential bidders that could create conflicts of interest. Additionally, you must affirm that you have not attempted to induce other parties to submit non-competitive bids or to refrain from bidding altogether. These statements are made under oath, and providing false information can lead to perjury charges, contract cancellation, debarment from future government contracts, and significant financial penalties.
Legal requirements in the United States
Under United States law, Non Collusion Affidavits are governed by multiple federal statutes including the Sherman Antitrust Act, Clayton Act, and Federal Trade Commission Act. The Federal Acquisition Regulation (FAR 52.203-2) specifically addresses contractor certifications regarding non-collusive bidding practices for federal procurement. State and local governments typically have their own procurement regulations that mirror federal requirements but may include additional state-specific provisions. The affidavit must be notarized by a licensed notary public, and some jurisdictions require the document to be submitted within specific timeframes relative to bid submission deadlines. Failure to submit a properly executed Non Collusion Affidavit can result in automatic disqualification from the bidding process, regardless of the competitiveness of your proposal.
GOVERNING LAW
Applicable law
This Non Collusion Affidavit is drafted to comply with United States law. Key legislation includes:
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