[Code of Federal Regulations]

[Title 7, Volume 15]

[Revised as of January 1, 2006]

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

[CITE: 7CFR3015.16]



[Page 108]

 

                          TITLE 7--AGRICULTURE

 

                         CHAPTER XXX--OFFICE OF

                      THE CHIEF FINANCIAL OFFICER,

                        DEPARTMENT OF AGRICULTURE

 

PART 3015_UNIFORM FEDERAL ASSISTANCE REGULATIONS--Table of Contents

 

                     Subpart C_Bonding and Insurance

 

Sec. 3015.16  Construction and facility improvement.



    (a) Scope. This section covers requirements for bid guarantees, 

performance bonds, and payment bonds when the recipients will contract 

or subcontract for construction or facility improvement (including 

alterations and renovations of real property) under a grant or subgrant.

    (b) Bids and contracts or subcontracts of $100,000 or less. Unless 

otherwise required by law, the recipients shall follow its own 

requirements and practices relating to bid guarantees, performance 

bonds, and payment bonds.

    (c) Bids and contracts or subcontracts exceeding $100,000. Unless 

otherwise required by law, the recipient may follow its own regular 

policy and requirements if the USDA awarding agency has decided that the 

Federal government's interest will be adequately protected. If this 

decision has not been made, the minimum requirements shall be as 

follows:

    (1) A bid guarantee from each bidder equivalent to 5 percent of the 

bid price;

    (2) A performance bond on the part of the contractor for 100 percent 

of the contract price; and

    (3) A payment bond on the part of the contractor for 100 percent of 

the contract price.