Contract clause
Contracting officers must include specific bond-related clauses in solicitations and contracts to ensure compliance with federal bonding requirements, except for commercial product or service acquisitions.
Overview
FAR 28.106-4 outlines the mandatory inclusion of specific contract clauses related to bonds in government solicitations and contracts. It directs contracting officers to insert the clause at 52.228-2, Additional Bond Security, whenever bonds are required. Additionally, for contracts where a payment bond will be furnished (except those for commercial products or services), the clause at 52.228-12, Prospective Subcontractor Requests for Bonds, must be included. These requirements ensure that both prime contractors and subcontractors are aware of and comply with bond security obligations, supporting the government's interests in contract performance and payment protections.
Key Rules
- Clause 52.228-2, Additional Bond Security
- Must be included in all solicitations and contracts where bonds are required.
- Clause 52.228-12, Prospective Subcontractor Requests for Bonds
- Must be included in contracts requiring a payment bond, except for those acquiring commercial products or services.
Responsibilities
- Contracting Officers: Ensure the correct clauses are inserted into solicitations and contracts as required.
- Contractors: Must comply with the bond security requirements and flow down obligations to subcontractors as applicable.
- Agencies: Oversee compliance with bond clause requirements and ensure proper contract administration.
Practical Implications
- This section ensures that all parties are aware of and comply with bond requirements, reducing risk to the government.
- Failure to include the required clauses can result in noncompliance and potential contract disputes.
- Contractors should review solicitations and contracts to confirm the presence of these clauses and understand their obligations.