28.100
Scope of subpart
FAR 28.100 sets the foundation for when and how bonds, alternative payment protections, and bid guarantees are required in federal contracts.
Overview
- FAR 28.100 establishes the scope for Subpart 28.1, outlining the requirements and procedures related to bonds, alternative payment protections, and bid guarantees in government contracting. This section serves as the entry point for understanding when and how these financial protections are required in federal contracts.
Key Rules
- Use of Bonds
- Details when bonds are required to secure contract performance and payment obligations.
- Alternative Payment Protections
- Provides for alternatives to traditional bonds, particularly for certain types of contracts or contractors.
- Bid Guarantees
- Prescribes requirements for bid guarantees to ensure serious bidding and contract fulfillment.
Responsibilities
- Contracting Officers: Must determine and enforce the appropriate use of bonds, alternative payment protections, and bid guarantees as specified in subsequent sections.
- Contractors: Must comply with requirements for submitting bonds or alternative protections and bid guarantees when solicited.
- Agencies: Oversee compliance and ensure financial protections are in place to safeguard government interests.
Practical Implications
- This section exists to clarify the financial protections required in federal contracting, reducing risk to the government.
- It impacts daily contracting by setting the expectation that certain financial instruments may be mandatory.
- Common pitfalls include misunderstanding when bonds or bid guarantees are required, or failing to provide acceptable forms of protection.