[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: 48CFR28.103-2]

[Page 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.  28.103-2  Performance bonds.

    (a) Performance bonds may be required for contracts exceeding the 
simplified acquisition threshold when necessary to protect the 
Government's interest. The following situations may warrant a 
performance bond:
    (1) Government property or funds are to be provided to the 
contractor for use in performing the contract or as partial compensation 
(as in retention of salvaged material).
    (2) A contractor sells assets to or merges with another concern, and 
the Government, after recognizing the latter concern as the successor in 
interest, desires assurance that it is financially capable.
    (3) Substantial progress payments are made before delivery of end 
items starts.
    (4) Contracts are for dismantling, demolition, or removal of 
improvements.
    (b) The Government may require additional performance bond 
protection when a contract price is increased.
    (c) The contracting officer must determine the contractor's 
responsibility (see subpart 9.1) even though a bond has been or can be 
obtained.

[48 FR 42286, Sept. 19, 1983, as amended at 60 FR 34759, July 3, 1995; 
61 FR 39213, July 26, 1996]