28.106-3
Additional bond and security
When additional bond coverage is needed, agencies must use the correct standard forms based on whether the original or a new surety (or alternative security) is providing the coverage.
Overview
FAR 28.106-3 outlines the procedures for obtaining additional bond coverage during contract administration. When a contract requires increased bond protection, this section specifies which standard forms must be used depending on whether the original surety remains involved or a new surety/alternative security is provided. The regulation ensures that agencies and contractors follow consistent documentation practices when increasing bond amounts, which is critical for protecting the government's interests.
Key Rules
- Use of Standard Form 1415
- If the original surety (or sureties) is providing the additional bond coverage, agencies must use Standard Form 1415, Consent of Surety and Increase of Penalty.
- Use of Standard Forms 25, 25A, 1416, or 1418
- If a new surety or an alternative security (as described in FAR 28.204) is used, agencies must use the appropriate standard performance or payment bond forms (SF 25, SF 25A, SF 1416, or SF 1418), depending on the contract type.
Responsibilities
- Contracting Officers: Must ensure the correct standard forms are used when additional bond coverage is required and verify the type of surety or security involved.
- Contractors: Must provide the required additional bond coverage and coordinate with their surety or alternative security provider to complete the appropriate forms.
- Agencies: Responsible for administering the process and maintaining proper documentation.
Practical Implications
- This section exists to ensure that increases in bond coverage are properly documented and legally enforceable.
- It impacts daily contracting by requiring careful attention to the type of surety and the correct use of forms.
- Common pitfalls include using the wrong form or failing to obtain the necessary consent from the surety, which can delay contract performance or expose the government to risk.