28.103-4
Contract clause
Contracting officers must include the appropriate bonding clause and set adequate bond amounts and deadlines to protect the Government in non-construction contracts requiring bonds.
Overview
FAR 28.103-4 requires contracting officers to include a specific clause—FAR 52.228-16, Performance and Payment Bonds-Other than Construction—in solicitations and contracts that require both payment and performance bonds for non-construction contracts. The contracting officer must determine and specify the bond amounts, ensuring they are sufficient to protect the Government’s interests. Additionally, the officer must set a deadline (typically 10 days) for contractors to return executed bonds. If only a performance bond is required, Alternate I of the clause should be used. This section ensures that proper bonding requirements are clearly communicated and enforced in applicable contracts.
Key Rules
- Clause Inclusion
- Insert FAR 52.228-16 in contracts requiring both payment and performance bonds (other than construction).
- Bond Amount Determination
- The contracting officer sets bond amounts adequate to protect the Government.
- Bond Return Deadline
- Specify a period (normally 10 days) for contractors to submit executed bonds.
- Use of Alternate I
- Use Alternate I of the clause when only a performance bond is required.
Responsibilities
- Contracting Officers: Must include the correct clause, determine bond amounts, and set deadlines for bond submission.
- Contractors: Must execute and return required bonds within the specified timeframe.
- Agencies: Ensure oversight and compliance with bonding requirements.
Practical Implications
- This section ensures the Government is financially protected in non-construction contracts requiring bonds.
- Contractors must be prepared to secure and submit bonds promptly.
- Failure to comply with bond requirements can delay contract award or result in noncompliance.