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

FAR 28.104 Annual performance 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 section explains that annual performance bonds are used only for non-construction contracts and must cover the total value of all contracts they apply to. If the total penal amounts of contracts reach or exceed the bond's penal sum, an additional bond is needed for more contracts.

Applies to: non-construction contracts

What it requires

  • Provide a gross penal sum applicable to the total amount of all covered contracts
  • Obtain an additional bond when penal sums obligated by contracts are approximately equal to or exceed the annual performance bond's penal sum

Key terms: annual performance bonds · non-construction contracts · gross penal sum · covered contracts · penal sums

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

The text

(a) Annual performance bonds only apply to non-construction contracts. They shall provide a gross penal sum applicable to the total amount of all covered contracts.

(b) When the penal sums obligated by contracts are approximately equal to or exceed the penal sum of the annual performance bond, an additional bond will be required to cover additional contracts.

Sections that refer to it

← 28.103-4 Contract clause. · 28.105 Other types of bonds. →

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 28.104 Annual performance bonds · SpendQuery