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FAR and DFARS › DFARS Part 252: Solicitation Provisions and Contract Clauses › Subpart 252.2

DFARS 252.217-7008 Bonds.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This clause explains how bonds work for job orders under a Master Agreement. It lets an offeror substitute an annual bid bond or annual performance and payment bond when a bid bond is required, and it says not to price in bond premiums when no bid bond is required. Even without a bond requirement, the Contracting Officer may require a performance and payment bond, with the offer price increased at award up to the corporate surety bond premium.

Applies to: Offerors and contractors on solicitations and job orders under a Master Agreement

What it requires

  • If the solicitation does not require a bid bond, do not include any contingency in the price to cover the premium of such a bond.
  • If a surety on a bond fails to submit requested reports on its financial condition or otherwise becomes unacceptable to the Government, furnish whatever additional security the Contracting Officer determines necessary.

Key terms: bid bond · annual bid bond · annual performance and payment bond · performance and payment bond · surety

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As prescribed in 217.7104(a), use the following clause:

Bonds (DEC 1991)

(a) If the solicitation requires an offeror to submit a bid bond, the Offeror may furnish, instead, an annual bid bond (or evidence thereof) or an annual performance and payment bond (or evidence thereof).

(b) If the solicitation does not require a bid bond, the Offeror shall not include in the price any contingency to cover the premium of such a bond.

(c) Even if the solicitation does not require bonds, the Contracting Officer may nevertheless require a performance and payment bond, in form, amount, and with a surety acceptable to the Contracting Officer. Where performance and payment bond is required, the offer price shall be increased upon the award of the job order in an amount not to exceed the premium of a corporate surety bond.

(d) If any surety upon any bond furnished in connection with a job order under this agreement fails to submit requested reports as to its financial condition or otherwise becomes unacceptable to the Government, the Contracting Officer may require the Contractor to furnish whatever additional security the Contracting Officer determines necessary to protect the interests of the Government and of persons supplying labor or materials in the performance of the work contemplated under the Master Agreement.

(End of clause)

Sections it refers to

Sections that refer to it

← 252.217-7007 Payments. · 252.217-7009 Default. →

Rule changes for DFARS Part 252

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 252.217-7008 Bonds · SpendQuery