[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR28.101-2]



[Page 549-550]

 

            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. 28.101-2  Solicitation provision or contract clause.



    (a) The contracting officer shall insert a provision or clause 

substantially the same as the provision at 52.228-1, Bid Guarantee, in 

solicitations or contracts that require a bid guarantee or similar 

guarantee. For example, the contracting officer may modify this 

provision--

    (1) To set a period of time that is other than 10 days for the 

return of executed bonds;

    (2) For use in connection with construction solicitations when the 

agency has specified that only separate bid bonds are acceptable in 

accordance with 28.101-1(b);

    (3) For use in solicitations for negotiated contracts; or



[[Page 550]]



    (4) For use in service contracts containing options for extended 

performance.

    (b) The contracting officer shall determine the amount of the bid 

guarantee for insertion in the provision at 52.228-1 (see 28.102-2(a)). 

The amount shall be adequate to protect the Government from loss should 

the successful bidder fail to execute further contractual documents and 

bonds as required. The bid guarantee amount shall be at least 20 percent 

of the bid price but shall not exceed $3 million. When the penal sum is 

expressed as a percentage, a maximum dollar limitation may be stated.



[61 FR 39213, July 26, 1996, as amended at 65 FR 46070, July 26, 2000]