28.101-2 Solicitation provision or contract clause
Source: FAR 28.101-2 on acquisition.gov
Contracting officers must include and tailor the bid guarantee provision in solicitations requiring guarantees, ensuring the amount is at least 20% of the bid price but not more than $3 million.
Overview
FAR 28.101-2 outlines the requirements for including the solicitation provision or contract clause related to bid guarantees in government contracts. Contracting officers must use a provision substantially similar to FAR 52.228-1, Bid Guarantee, in solicitations or contracts that require a bid or similar guarantee. The provision can be modified for specific circumstances, such as changing the bond return period, construction solicitations requiring separate bid bonds, negotiated contracts, or service contracts with extended performance options. The contracting officer is also responsible for determining the appropriate amount of the bid guarantee, which must be sufficient to protect the Government but cannot exceed 20% of the bid price or $3 million, whichever is less. If the penal sum is a percentage, a maximum dollar cap may be included.
(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
(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.