52.228-17 Individual Surety—Pledge of Assets (Bid Guarantee)
Source: FAR 52.228-17 on acquisition.gov
Offerors using individual sureties for bid guarantees must ensure pledged assets meet FAR 28.203-1 requirements and submit all required documentation, including Standard Form 28, within the specified timeframe.
Overview
FAR 52.228-17 outlines the requirements for offerors who use an individual surety to provide a bid guarantee. This provision ensures that any assets pledged by an individual surety meet strict eligibility, valuation, and security standards as defined in FAR 28.203-1. Offerors must also submit Standard Form 28 (Affidavit of Individual Surety) and provide all required documentation within the timeframe specified in FAR 52.228-1 or as directed by the Contracting Officer. The regulation also allows the Contracting Officer to release the security interest in the pledged assets if the bid does not result in a contract award.
Key Rules
- Pledge of Assets Requirements
- Individual sureties must pledge assets that comply with FAR 28.203-1 eligibility, valuation, and security requirements.
- Submission of Standard Form 28
- Offerors must submit a completed Standard Form 28, Affidavit of Individual Surety, for each individual surety.
- Timely Submission
- All required information must be included with the offer within the timeframe specified in FAR 52.228-1 or as otherwise directed.
- Release of Security Interest
- The Contracting Officer may release the security interest on the pledged assets if the bid does not lead to a contract award.
Responsibilities
- Contracting Officers: Verify compliance with asset and documentation requirements; release security interest when appropriate.
- Contractors/Offerors: Ensure individual sureties meet FAR 28.203-1 requirements, submit Standard Form 28, and provide all documentation on time.
- Agencies: Oversee adherence to bid guarantee requirements and maintain proper records.
Practical Implications
- This provision protects the government by ensuring pledged assets are legitimate and properly documented.
- Contractors must carefully vet individual sureties and ensure all paperwork is accurate and timely.
- Failure to comply can result in bid rejection or loss of bid guarantee.
As prescribed in 28.203-4 (a), insert the following provision:
Individual Surety—Pledge of Assets (Feb 2021)
(a)Offerors shall obtain from each person acting as an individual surety on a bid guarantee—
(1)A pledge of assets that meets the eligibility, valuation, and security requirements described in the Federal Acquisition Regulation (FAR) 28.203-1; and
(2)Standard Form 28, Affidavit of Individual Surety.
(b)The Offeror shall include with its offer the information required at paragraph (a) of this provision within the timeframe specified in the provision at FAR 52.228-1, Bid Guarantee, or as otherwise established by the Contracting Officer.
(c)The Contracting Officer may release the security interest on the individual surety's assets in support of a bid guarantee based upon evidence that the offer supported by the individual surety will not result in contract award.
(End of provision)