[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: 48CFR28.103-2]



[Page 553]

 

            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]