[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR28.102-2]

[Page 533-534]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 28_BONDS AND INSURANCE--Table of Contents
 
           Subpart 28.1_Bonds and Other Financial Protections
 
Sec.  28.102-2  Amount required.

    (a) Definition. As used in this subsection--
    Original contract price means the award price of the contract; or, 
for requirements contracts, the price payable for the estimated total 
quantity; or, for indefinite-quantity contracts, the price payable for 
the specified minimum quantity. Original contract price does not include 
the price of any options, except those options exercised at the time of 
contract award.
    (b) Contracts exceeding $100,000 (Miller Act).
    (1) Performance bonds. Unless the contracting officer determines 
that a lesser amount is adequate for the protection of the Government, 
the penal amount of performance bonds must equal--
    (i) 100 percent of the original contract price; and
    (ii) If the contract price increases, an additional amount equal to 
100 percent of the increase.
    (2) Payment bonds. (i) Unless the contracting officer makes a 
written determination supported by specific findings that a payment bond 
in this amount is impractical, the amount of the payment bond must 
equal--
    (A) 100 percent of the original contract price; and
    (B) If the contract price increases, an additional amount equal to 
100 percent of the increase.
    (ii) The amount of the payment bond must be no less than the amount 
of the performance bond.
    (c) Contracts exceeding $25,000 but not exceeding $100,000. Unless 
the contracting officer determines that a lesser amount is adequate for 
the protection of the Government, the penal amount of the payment bond 
or the amount of alternative payment protection must equal--
    (1) 100 percent of the original contract price; and
    (2) If the contract price increases, an additional amount equal to 
100 percent of the increase.
    (d) Securing additional payment protection. If the contract price 
increases, the Government must secure any needed additional protection 
by directing the contractor to--
    (1) Increase the penal sum of the existing bond;
    (2) Obtain an additional bond; or

[[Page 534]]

    (3) Furnish additional alternative payment protection.
    (e) Reducing amounts. The contracting officer may reduce the amount 
of security to support a bond, subject to the conditions of 28.203-5(c) 
or 28.204(b).

[65 FR 46070, July 26, 2000]