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

FAR 28.102-2 Amount required.

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 sets the required dollar amounts for performance and payment bonds on federal contracts. For contracts over $150,000, bonds generally must equal 100% of the original contract price plus 100% of any price increase. For contracts over $35,000 but not over $150,000, payment protection must also equal 100% of the original contract price plus any increase.

Applies to: Contractors awarded contracts that require performance or payment bonds

What it requires

  • Provide performance and payment bonds equal to 100% of the original contract price, plus 100% of any price increase, unless the contracting officer determines a lesser amount is adequate
  • If the contract price increases, increase the penal sum of the existing bond, obtain an additional bond, or furnish additional alternative payment protection as directed by the Government

Key terms: Original contract price · Performance bonds · Payment bonds · Penal amount · Alternative payment protection

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

The text

(a) Definition. As used in this subsection—

Original contract price means the award price of the contract; or, for requirements contracts, the price payable for the estimated total quantity; or, for indefinite-quantity contracts, the price payable for the specified minimum quantity. Original contract price does not include the price of any options, except those options exercised at the time of contract award.

(b) Contracts exceeding $150,000—(1) Performance bonds. Unless the contracting officer determines that a lesser amount is adequate for the protection of the Government, the penal amount of performance bonds must equal—

(i) 100 percent of the original contract price; and

(ii) If the contract price increases, an additional amount equal to 100 percent of the increase.

(2) Payment bonds. (i) Unless the contracting officer makes a written determination supported by specific findings that a payment bond in this amount is impractical, the amount of the payment bond must equal—

(A) 100 percent of the original contract price; and

(B) If the contract price increases, an additional amount equal to 100 percent of the increase.

(ii) The amount of the payment bond must be no less than the amount of the performance bond.

(c) Contracts exceeding $35,000 but not exceeding $150,000. Unless the contracting officer determines that a lesser amount is adequate for the protection of the Government, the penal amount of the payment bond or the amount of alternative payment protection must equal—

(1) 100 percent of the original contract price; and

(2) If the contract price increases, an additional amount equal to 100 percent of the increase.

(d) Securing additional payment protection. If the contract price increases, the Government must secure any needed additional protection by directing the contractor to—

(1) Increase the penal sum of the existing bond;

(2) Obtain an additional bond; or

(3) Furnish additional alternative payment protection.

(e) Reducing amounts. The contracting officer may reduce the amount of security to support a bond, subject to the conditions of 28.203-3(c) or 28.204(b).

Sections it refers to

  • 28.203-3 Release of security interest.
  • 28.204 Alternatives in lieu of corporate or individual sureties.

Sections that refer to it

← 28.102-1 General. · 28.102-3 Contract clauses. →

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 28.102-2 Amount required · SpendQuery