Under what circumstance must a contractor provide a certification of a claim?

A contractor must provide a certification of a claim when the total amount claimed exceeds $100,000. This requirement is outlined in the Federal Acquisition Regulation (FAR) and serves several important purposes. Certification helps ensure the integrity of the claims process by necessitating that the contractor verify the accuracy and legitimacy of the claim. This process includes attesting that the claim is made in good faith, that the supporting data is accurate and complete, and that the amount requested is properly calculated.

In cases where the claim is under $100,000, a formal certification is not required, which allows for a more streamlined process for smaller claims. However, once the claim surpasses this threshold, the regulations stipulate that certification is mandatory to maintain diligence and accountability in government contracting, thus protecting both the contractor and the government.

Understanding the importance of this threshold is crucial for contractors, as failing to provide a necessary certification for claims that meet or exceed this amount can lead to delays, rejections, or even legal consequences.