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FAR and DFARS › FAR Part 28: Bonds and Insurance › Subpart 28.1

FAR 28.101-1 Policy on use.

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 section tells contracting officers when they may or must require a bid guarantee. A bid guarantee generally cannot be required unless a performance bond or performance and payment bond is also required, and when such a bond is required, a bid guarantee generally must also be required. A waiver is possible in certain situations.

Applies to: Contracting officers and contractors on acquisitions involving bid guarantees and performance or payment bonds

What it requires

  • Do not require a bid guarantee unless a performance bond or a performance and payment bond is also required
  • Require bid guarantees whenever a performance bond or a performance and payment bond is required, except when a waiver applies

Key terms: bid guarantee · performance bond · performance and payment bond · construction contracts · waiver

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

The text

(a) A contracting officer shall not require a bid guarantee unless a performance bond or a performance and payment bond is also required (see 28.102 and 28.103). Except as provided in paragraph (c) of this subsection, bid guarantees shall be required whenever a performance bond or a performance and payment bond is required.

(b) All types of bid guarantees are acceptable for supply or service contracts (see annual bid bonds and annual performance bonds coverage in 28.001). Only separate bid guarantees are acceptable in connection with construction contracts. Agencies may specify that only separate bid bonds are acceptable in connection with construction contracts.

(c) The chief of the contracting office may waive the requirement to obtain a bid guarantee when a performance bond or a performance and payment bond is required if it is determined that a bid guarantee is not in the best interest of the Government for a specific acquisition (e.g., overseas construction, emergency acquisitions, sole-source contracts). Class waivers may be authorized by the agency head or designee.

Sections it refers to

  • 28.102 Performance and payment bonds and alternative payment protections for construction contracts.
  • 28.103 Performance and payment bonds for other than construction contracts.
  • 28.001 Definitions.

Sections that refer to it

  • 18.121 Bid guarantees.
  • 28.101-2 Solicitation provision or contract clause.

← 28.101 Bid guarantees. · 28.101-2 Solicitation provision or contract clause. →

Rule changes for FAR Part 28

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

FAR 28.101-1 Policy on use · SpendQuery