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Non-Collusion Agreement

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NON-COLLUSION AGREEMENT

This Non-Collusion Agreement (the "Agreement") is made effective as of between Client Name: (hereinafter "Client") and Contractor Name: (hereinafter "Contractor"). The Client and Contractor are sometimes referred to herein individually as a "Party" and collectively as the "Parties."

RECITALS

WHEREAS, the Client intends to solicit bids, proposals or offers for certain goods or services described as Project Name: and/or identified by Bid or Solicitation Number: ; and

WHEREAS, the Client requires assurance that bids, proposals and contracts are procured and performed free from collusion, kickbacks, price-fixing, market allocation and other anti-competitive conduct; and

WHEREAS, the Contractor desires to submit a bid, proposal or enter into a contract with the Client and acknowledges that execution of this Agreement is a material condition to such submission and award.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. DEFINITIONS

For purposes of this Agreement, the following terms shall have the meanings set forth below:

a. "Collusion" means any agreement, arrangement, understanding, conspiracy or concerted practice between or among competitors, potential competitors, suppliers or contractors, intended to limit competition, fix prices, rig bids, allocate markets, suppress or eliminate competition, or otherwise interfere with the free and open conduct of procurement.

b. "Bid" or "Proposal" means any written or electronic offer submitted by the Contractor in response to the Client's solicitation.

2. REPRESENTATIONS AND WARRANTIES

The Contractor represents and warrants that, as of the Effective Date and at all times during the procurement and performance of any resultant contract:

a. The Contractor has not and will not, directly or indirectly, enter into any agreement, arrangement or understanding with any competitor, potential competitor, or other bidder with respect to pricing, allocation of opportunities, or any other matter relating to the Bid or Proposal, except as expressly disclosed in writing to the Client prior to submission.

b. The Contractor has not and will not engage in any coercive practice, kickback, bribery, or other corrupt practice in connection with the Bid, Proposal, award or performance of any contract awarded by the Client.

3. NON-COLLUSION COVENANT

The Contractor covenants that its Bid, Proposal, and any subsequent contract performance shall be the result of independent determination by the Contractor, without collusion, consultation, communication or agreement with any other person or entity for the purpose of restricting competition. The Contractor agrees to immediately notify the Client in writing if it becomes aware of any conduct or communications that may constitute a breach of this covenant.

4. COMPLIANCE WITH LAWS

The Contractor shall comply with all applicable federal, state and local laws, regulations and ordinances pertaining to competition, antitrust, anticorruption and procurement. The Contractor shall obtain and maintain all licenses, permits and approvals required to perform its obligations under any contract awarded.

5. REMEDIES

If the Client determines, in its sole discretion, that the Contractor has breached this Agreement, the Client shall have the right to, in addition to any other remedies available at law or equity:

a. Reject the Bid or Proposal or rescind any award or contract entered into with the Contractor; b. Recover all costs incurred by the Client as a result of the Contractor's breach, including reasonable attorneys' fees; c. Forfeit any bid bond, performance bond or other security provided in connection with the procurement; and d. Disqualify the Contractor from current and future procurements for a period determined by the Client, up to permanent disqualification for serious or repeated violations.

6. INDEMNIFICATION

The Contractor shall indemnify, defend and hold harmless the Client and its officers, directors, employees and agents from and against any and all claims, losses, liabilities, damages, costs and expenses (including reasonable attorneys' fees) arising from or related to any actual or alleged breach of this Agreement, including but not limited to claims alleging collusion, price-fixing, bid-rigging or other anti-competitive conduct.

7. NOTICES

Notices shall be given in writing and shall be deemed received when delivered personally, when sent by confirmed overnight courier, or three business days after being deposited in the mail, postage prepaid and addressed to the Party at its notice address set forth above or to such other address as either Party may designate by notice in accordance with this Section.

8. ENTITY TYPE AND AUTHORITY

Corporation LLC Partnership Individual Other:

The signatory for Contractor represents and warrants that he or she is duly authorized to execute and deliver this Agreement on behalf of the Contractor and to bind the Contractor to the terms hereof.

9. AMENDMENTS; WAIVER; COUNTERPARTS

No amendment, modification or waiver of any provision of this Agreement shall be effective unless made in writing and signed by authorized representatives of both Parties. No failure or delay by either Party in exercising any right shall operate as a waiver thereof. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

10. GOVERNING LAW; SEVERABILITY; ENTIRE AGREEMENT

This Agreement shall be governed by and construed in accordance with the laws of the state or jurisdiction where the Client is located, without regard to its choice-of-law rules. If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect. This Agreement constitutes the entire agreement between the Parties with respect to its subject matter and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether written or oral.

11. CERTIFICATION

The undersigned, being duly authorized to execute this Agreement on behalf of the Contractor, certifies that the information provided herein is true and correct, that the Contractor has not engaged in any collusive or fraudulent conduct in connection with the subject procurement, and understands that false statements or material omissions may result in civil or criminal liability and in the remedies set forth in Section 5 above.

Client Printed Name:

By (Client Signature):

Client Title:

Date:

Contractor Printed Name:

By (Contractor Signature):

Contractor Title:

Date:

Enter text✕

What a Non-Collusion Agreement Is

A Non-Collusion Agreement is a written declaration used in procurement and bidding processes in which a bidder affirms that its proposal was prepared without agreement, understanding, or concert with competitors to fix prices, allocate markets, or otherwise restrain competition. These agreements are commonly required by public agencies and private owners to preserve competitive integrity, deter bid-rigging, and provide a contractual basis for remedies if collusion is discovered. The document typically identifies the parties, describes the procurement, includes an anti-collusion certification, and requires an authorized signature and date.

Why a Non-Collusion Agreement Matters

Non-Collusion Agreements protect the integrity of competitive procurements by documenting a bidder's independent pricing and behavior, reducing legal risk for the contracting party, and creating contractual grounds for sanctions or contract termination if collusion is proven.

Why a Non-Collusion Agreement Matters

Who Typically Uses This Agreement

Typical users include procurement officers, contractors, subcontractors, and legal counsel involved in competitive bidding and vendor selection processes.

  • Public agencies and municipalities running competitive procurements and grants programs.
  • Prime contractors certifying independent bids and requiring subcontractor statements per procurement rules.
  • Legal and compliance teams documenting anti-competitive controls and audit trails.

Use this agreement when bids, proposals, or contractor selections could be subject to collusion concerns or when procurement rules mandate certification.

Who Signs and Why

Authorized Signatory

An individual with corporate authority to bind the bidding entity. Confirm corporate title and board authorization where applicable; ensure the name matches government ID or corporate filings to avoid challenges to signature validity during procurement review.

Procurement Officer

The contracting authority responsible for collecting and verifying non-collusion certifications. Duties include confirming form completion, checking for inconsistent pricing patterns, retaining executed copies per record retention policy, and coordinating with legal counsel if collusion indicators emerge.

Essential Parts of a Professional Non-Collusion Agreement

A clear structure improves enforceability: the agreement should state the certification, define scope, list bidder representations, specify duration, set remedies, and identify signing authorities.

Declaration

An explicit statement that the bid was prepared independently, without prohibited communications or agreements with competitors, often signed under penalty of perjury or similar certification.

Scope

Identification of the solicitation number, project name, or goods/services covered so the certification cannot be misapplied to unrelated procurements.

Representations

Facts the bidder affirms (ownership, conflicts of interest, subcontractor compliance) to support validation and reduce later disputes.

Duration

Effective date and the period during which the certification remains binding, commonly through award and a defined post-award period to cover challenges.

Remedies

Contractual consequences for collusion such as bid rejection, contract termination, financial penalties, restitution, and cooperation with enforcement.

Signatures

Designated signature block for authorized parties, including printed names, titles, dates, and optional notary or witness spaces if required.

Step-by-Step: Complete and Return the Agreement

Follow these sequential steps to complete and execute a Non-Collusion Agreement accurately for a procurement submission.

  • 01
    Prepare Document: Confirm solicitation number and procurement details.
  • 02
    Complete Fields: Enter legal entity name, address, and bid reference.
  • 03
    Review and Sign: Authorized signer signs; include date and title.
  • 04
    Retain Copy: Store executed copy with procurement records.

Recommended Online Settings for Collection

Recommended online settings for completing and collecting Non-Collusion Agreements securely and audibly.

Field Configuration
Template Locking Enable to prevent edits after signature
Conditional Fields Show witness/notary fields only if required
Signature Order Set signer role and signing sequence
Authentication Require email plus SMS code for signers

How Electronic Execution and Submission Typically Works

Typical routing and submission flow for electronically executed Non-Collusion Agreements used in procurement workflows, from sender setup through signer completion and archival.

  • Upload Document: Uploader imports template and tags required fields.
  • Assign Signers: Add bidder signer and procurement verifier roles.
  • Authenticate: Choose email, SMS, or organization SSO verification.
  • Archive Record: Store signed PDF with audit trail and metadata.

Platform and File Requirements for eSubmission

Use platforms that support secure e-signatures, comprehensive audit trails, PDF export, and integrations with procurement systems to maintain chain of custody and ease verification.

  • Integrations: Salesforce, NetSuite, Google Workspace
  • File Formats: PDF, DOCX, HTML supported
  • Authentication: Email, SMS, SSO, KBA options

Timing Considerations and Deadlines

Key timing considerations for completing, submitting, and preserving Non-Collusion Agreements in a procurement lifecycle.

Bid Submission Deadline:

Agreement must be executed and included with bid at submission deadline.

Certification at Submission:

Some agencies require the certification at time of bid; verify solicitation instructions.

Protest or Challenge Window:

Post-award protests usually filed within agency-specific deadlines.

Investigation Period:

Agencies may investigate collusion allegations before awarding contract.

Record Retention Start:

Retention period typically begins on contract award or execution date.

Key Milestones from Draft to Retention

Milestones from drafting to long-term retention form a sequence that contracting parties should track and document.

01

Drafting and Review

Prepare agreement during bid response development.

02

Execution and Signing

Authorized representative signs prior to bid submission.

03

Submission and Verification

Procuring entity confirms receipt and completeness.

04

Retention and Audit

Store executed documents per retention schedule for audit.

Common Mistakes to Avoid

  • Failure to identify the correct solicitation number can detach the certification from the intended procurement and lead to disqualification or administrative delay.
  • Using an unsigned or undated signature block often renders the certification invalid for the procurement record and may be grounds for rejection.
  • Submitting inconsistent company names or trade names versus legal entity names creates identity verification problems and potential tax or compliance complications.
  • Omitting subcontractor certifications where required can expose the prime contractor to liability and possible contract rescission.

Potential Consequences of an Incorrect or False Statement

Bid Disqualification: Immediate rejection of bid
Contract Termination: Cancellation if collusion proven
Fines and Damages: Civil penalties possible
Criminal Liability: Potential felony charges
Debarment: Temporary or permanent suspension
Civil Lawsuits: Damages and restitution claims

Practical Examples of Use

Real-world use cases show how Non-Collusion Agreements reduce procurement risk and streamline enforcement when irregularities arise.

Construction Bid

A regional contractor submitted a sealed bid containing a signed non-collusion statement as required by the solicitation.

  • Review flagged unusual pricing promptly and investigate immediately.
  • Because the certification was clear and preserved with timestamped electronic signatures, the agency could quickly determine responsibility, reject collusive bids, and pursue contract remedies without extensive forensic reconstruction, reducing procurement delay and legal exposure.

Government RFP

A state agency required non-collusion affidavits for all proposers on an IT procurement to deter bid rigging.

  • Agency required notarization for select high-value bids.
  • The recordkeeping policy ensured executed statements were retained for audits; when complaints arose, the agency provided complete audit trails, enabling administrative sanctions and referral to enforcement authorities.

Security and Compliance Basics

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Audit Trail: Timestamped events, IP, signer identity
HIPAA Compliant: Requires BAA for PHI-containing agreements
21 CFR Support: Compliant workflows available for FDA records
Access Controls: Role-based access and SSO
BAA Required: Sign BAA when handling PHI

Practical Tips to Ensure Accuracy and Compliance

Practical recommendations help ensure Non-Collusion Agreements are completed accurately, defensible under scrutiny, and aligned with procurement rules and enforcement requirements.

Adopt a standard, legally vetted template
Have legal counsel review a master template to reflect applicable statutes and procurement policies; a vetted template reduces errors and ensures consistent language across competitions, simplifying audits and dispute responses.
Require verification of authorized signatory status
Confirm corporate authorization via board resolution or power of attorney when necessary; document the authority to bind the entity to prevent later challenges to signature validity.
Record audit trails and preserve signature metadata
Capture timestamps, IP addresses, authentication method, and document version history. Retain this metadata with the executed copy to support investigations or legal enforcement.
Coordinate subcontractor certifications across workflows
Require subcontractors to submit matching non-collusion statements and integrate verification steps into procurement portals to avoid gaps that could expose the prime contractor.

eSignature Pricing and Feature Snapshot for Procurement Workflows

Comparison of common eSignature plan factors that matter when collecting and storing executed Non-Collusion Agreements for procurement records.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Frequently Asked Questions About Non-Collusion Agreements

Answers to common questions about execution, evidentiary value, and practical handling of Non-Collusion Agreements in U.S. procurements.


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