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32 CFR 173.2, Competitive Information Certification, was inserted into the Code of Federal Regulations in 1988, during an ongoing investigation of procurement practices known as Operation "Ill Wind." The clause enabled DoD to continue acquiring supplies and services from certain contractors pending the outcome of the investigation. The clause requires a certification of independent pricing and information non-disclosure prior to award from all contractors subject to the investigation, as listed in the appendix to 32 CFR 173. 

32 CFR 173.3, Profit Reduction Clause, was also inserted into the Code of Federal Regulations in 1988, during Operation "Ill Wind." If it is determined, after award of a contract subject to the certification at 32 CFR 137.2, that the certification is materially false or inaccurate, this part permits the Government to recoup any profit associated with the performance of the contract.  

This part was intended for use until resolution of the investigation. The investigation was subsequently concluded and sanctions were imposed. Congress has subsequently enacted legislation to provide procurement integrity requirements, and that legislation has been implemented in the Federal Acquisition Regulation.

This part is outdated and unnecessary.  It will be repealed.  Cost savings have not been identified.