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48 CFR · Federal Acquisition Regulation and Defense supplement

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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.

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25 sections with “penal sum”

  • FAR 28.102-2 Amount required.
    …cer 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 additiona…
  • FAR 28.104 Annual performance bonds.
    …al 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 excee…
  • FAR 2.101 Definitions.
    …rety is one person, as distinguished from a business entity, who is liable for the entire penal amount of the bond. (2) A corporate surety is licensed under various insurance laws and, under its charter, has legal power to act as surety fo…
  • FAR 28.001 Definitions.
    …bond given in connection with a contract continues to apply to the contract as modified. Penal sum or penal amount means the amount of money specified in a bond (or a percentage of the bid price in a bid bond) as the maximum payment for wh…
  • FAR 28.101-2 Solicitation provision or contract clause.
    …t shall be at least 20 percent of the bid price but shall not exceed $3 million. When the penal sum is expressed as a percentage, a maximum dollar limitation may be stated.
  • FAR 28.105-2 Patent infringement bonds.
    …f the contractor is unknown or doubtful. (b) The contracting officer shall determine the penal sum.
  • FAR 28.204-1 United States bonds or notes.
    …ositing certain United States bonds or notes in an amount equal at their par value to the penal sum of the bond (the Act of February 24, 1919 (31 U.S.C. 9303) and Treasury Department Circular No. 154 (31 CFR part 225)). In addition, a duly …
  • FAR 28.204-2 Certified or cashiers checks, bank drafts, money orders, or currency.
    …hier's check, bank draft, Post Office money order, or currency, in an amount equal to the penal sum of the bond, instead of furnishing surety or sureties on the bonds. Those furnishing checks, drafts, or money orders shall draw them to the …
  • FAR 28.204-3 Irrevocable letter of credit.
    …furnish a bond secured by an irrevocable letter of credit (ILC) in an amount equal to the penal sum required to be secured (see 28.204). A separate ILC is required for each bond. (b) The ILC shall be irrevocable, require presentation of no…
  • FAR 52.203-12 Limitation on Payments to Influence Certain Federal Transactions.
    …ontracting Officer within 30 days an updated disclosure using OMB Standard Form LLL. (e) Penalties. (1) Any person who makes an expenditure prohibited under paragraph (b) of this clause or who fails to file or amend the disclosure to be fi…
  • FAR 52.228-2 Additional Bond Security.
    …condition as required by the Government; (c) The contract price is increased so that the penal sum of any bond becomes inadequate in the opinion of the Contracting Officer; or (d) An irrevocable letter of credit (ILC) used as security wil…
  • DFARS 228.102-70 Defense Environmental Restoration Program construction contracts.
    …ss the balance of unexpended funds. Under no circumstances shall the liability exceed the penal sum of the bond; (c) The surety shall not be liable for indemnification or compensation of the obligee for loss or liability arising from perso…
  • FAR 3.502-2 Subcontractor kickbacks.
    … contract price charged by a prime contractor to the United States. (b) Imposes criminal penalties on any person who knowingly and willfully engages in the prohibited conduct addressed in paragraph (a) of this section. (c) Provides for th…
  • FAR 52.222-27 Affirmative Action Compliance Requirements for Construction.
    …Executive Order 11246, as amended. (l) The Contractor shall carry out such sanctions and penalties for violation of this clause and of the Equal Opportunity clause, including suspension, termination, and cancellation of existing subcontrac…
  • FAR 7.503 Policy.
    …private attorney collection services), but not including— (i) Collection of fees, fines, penalties, costs, or other charges from visitors to or patrons of mess halls, post or base exchange concessions, national parks, and similar entities …
  • FAR 32.604 Demand for payment.
    …ified in the demand for payment. (3) The basis for and amount of any accrued interest or penalty. (4)(i) For debts resulting from specific contract terms (e.g., debts resulting from incentive clause provisions, Quarterly Limitation on Pay…
  • FAR 51.202 Authorization.
    …imbursement contracts; (4) Ensured that contractors shall establish and enforce suitable penalties for their employees who use or authorize the use of Government vehicles for other than performance of Government contracts (see 41 CFR 101-3…
  • FAR 52.216-7 Allowable Cost and Payment.
    …erforming this contract. (2) Contract financing payments are not subject to the interest penalty provisions of the Prompt Payment Act. Interim payments made prior to the final payment under the contract are contract financing payments, exc…
  • FAR 52.219-9 Small Business Subcontracting Plan.
    …web.sba.gov/pro-net/search/dsp_dsbs.cfm. (5) Provide notice to subcontractors concerning penalties and remedies for misrepresentations of business status as small, veteran-owned small business, HUBZone small, small disadvantaged, or women-…
  • FAR 52.222-41 Service Contract Labor Standards.
    …rson or firm ineligible for award of a Government contract under 41 U.S.C. 6706. (3) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C. 1001. (q) Variations, Tolerances, and Exemptions Involving Emp…
  • FAR 52.232-7 Payments under Time-and-Materials and Labor-Hour Contracts.
    … contract financing payments. Contract financing payments are not subject to the interest penalty provisions of the Prompt Payment Act. (2) The designated payment office will make interim payments for contract financing on the _____ [Contr…
  • FAR 52.232-16 Progress Payments.
    …. Progress payments are considered contract financing and are not subject to the interest penalty provisions of the Prompt Payment Act. (m) Progress payments under indefinite—delivery contracts. The Contractor shall account for and submit …
  • FAR 52.232-32 Performance-Based Payments.
    … payment under the Prompt Payment clause of this contract and not subject to the interest penalty provisions of the Prompt Payment Act. The designated payment office will pay approved requests on the _____ [Contracting Officer insert day as…
  • DFARS 252.223-7006 Prohibition on Storage, Treatment, and Disposal of Toxic or Hazardous Materials.
    …or shall indemnify, defend, and hold the Government harmless for all costs, liability, or penalties resulting from the Contractor's treatment or disposal of toxic or hazardous materials not owned by DoD on a military installation. (d) The …
  • DFARS 252.251-7001 Use of Interagency Fleet Management System (IFMS) vehicles and related services.
    …s as far in advance as possible. (c) The Contractor shall establish and enforce suitable penalties for employees who use or authorize the use of Government vehicles for other than performance of Government contracts. (d) The Contractor sh…

FAR (chapter 1)

DFARS (chapter 2, Defense)

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Rule changes in progress: FAR, DFARS. Terms: glossary.