28.103-4 Contract clause
Source: FAR 28.103-4 on acquisition.gov
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.
The contracting officer shall insert a clause substantially the same as the clause at 52.228-16, Performance and Payment Bonds-Other than Construction, in solicitations and contracts that contain a requirement for both payment and performance bonds. The contracting officer shall determine the amount of each bond for insertion in the clause. The amount shall be adequate to protect the interest of the Government. The contracting officer shall also set a period of time (normally 10 days) for return of executed bonds. AlternateI shall be used when only performance bonds are required.