52.228-17
Individual Surety—Pledge of Assets (Bid Guarantee)
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.