[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: 48CFR31.205-4]



[Page 606]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 31_CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents

 

          Subpart 31.2_Contracts With Commercial Organizations

 

Sec. 31.205-4  Bonding costs.



    (a) Bonding costs arise when the Government requires assurance 

against financial loss to itself or others by reason of the act or 

default of the contractor. They arise also in instances where the 

contractor requires similar assurance. Included are such bonds as bid, 

performance, payment, advance payment, infringement, and fidelity bonds.

    (b) Costs of bonding required pursuant to the terms of the contract 

are allowable.

    (c) Costs of bonding required by the contractor in the general 

conduct of its business are allowable to the extent that such bonding is 

in accordance with sound business practice and the rates and premiums 

are reasonable under the circumstances.