28.105
Other types of bonds
The head of the contracting activity can authorize alternative bonds, such as advance payment or patent infringement bonds, to address specific risks in certain acquisitions.
Overview
FAR 28.105 allows the head of the contracting activity to approve the use of bond types beyond the standard performance and payment bonds when acquiring specific supplies or services. This section specifically mentions advance payment bonds and patent infringement bonds as examples of alternative financial protections that may be required to mitigate unique risks associated with certain contracts. The provision gives agencies flexibility to tailor bonding requirements to the needs of particular acquisitions, ensuring adequate financial safeguards are in place.
Key Rules
- Approval Authority
- Only the head of the contracting activity can approve the use of other types of bonds for specific acquisitions.
- Types of Bonds
- Advance payment bonds and patent infringement bonds are specifically identified as permissible alternatives, but other types may also be considered as appropriate.
Responsibilities
- Contracting Officers: Must seek approval from the head of the contracting activity before requiring non-standard bonds.
- Contractors: Must comply with any additional bond requirements specified in the solicitation or contract.
- Agencies: Must ensure that any alternative bonds used are appropriate for the risks involved and are properly approved.
Practical Implications
- This section exists to provide flexibility in managing financial risks unique to certain contracts.
- It impacts daily contracting by allowing tailored bonding requirements, which may require additional administrative steps and approvals.
- Common pitfalls include failing to obtain proper approval or misunderstanding when alternative bonds are appropriate.