28.103-1
General
Performance and payment bonds are generally not required for non-construction contracts, and if required, must be furnished before work begins and cannot be added after award unless justified.
Overview
FAR 28.103-1 outlines the general rules regarding the use of performance and payment bonds for contracts other than construction. It establishes that, as a rule, agencies should not require these bonds for non-construction contracts, except in specific circumstances detailed in related sections (28.103-2 and 28.103-3). If bonds are required, contractors must provide them before receiving a notice to proceed. Additionally, bonds cannot be imposed after contract award unless the contract specifically required them or a contract modification justifies their necessity.
Key Rules
- Bond Requirement Limitation
- Performance and payment bonds are generally not required for non-construction contracts, except as allowed in related sections.
- Timing of Bond Submission
- Contractors must submit all required bonds before receiving a notice to proceed with contract work.
- Post-Award Bond Restrictions
- Bonds cannot be required after contract award unless originally specified or justified by a contract modification.
Responsibilities
- Contracting Officers: Ensure bonds are only required when appropriate, verify bonds are received before issuing a notice to proceed, and avoid imposing new bond requirements post-award unless justified.
- Contractors: Submit all required bonds before starting work and be aware of bond requirements specified in the contract.
- Agencies: Oversee compliance with bond requirements and ensure proper documentation.
Practical Implications
- This section prevents unnecessary bonding requirements for non-construction contracts, reducing administrative burden and costs. Contractors must be vigilant about bond requirements in solicitations and ensure timely submission. Failure to provide required bonds can delay contract performance. Contracting officers must avoid adding bond requirements after award unless justified by a modification, ensuring fairness and predictability.