FAR 52.228-16 Performance and Payment Bonds-Other Than Construction. (DEVIATION 2020-O0016) DEV (Apr 2020) (Current)

As prescribed in 28.103-4, the contracting officer shall insert a clause substantially the same as the clause at 52.228-16, Performance and Payment Bonds—Other than Construction, in solicitations and contracts that contain a requirement for both payment and performance bonds. The contracting officer shall determine the amount of each bond for insertion in the clause. The amount shall be adequate to protect the interest of the Government. The contracting officer shall also set a period of time (normally 10 days) for return of executed bonds. Alternate I shall be used when only performance bonds are required.

Use the following deviation clauses, in lieu of the corresponding FAR clauses: 52.228-16, Performance and Payment Bonds—Other than Construction (DEVIATION 2020-O0016), which removes requirements for seals on Standard Forms.


(a) Definitions. As used in this clause— Original contract price means the award price of the contract or, for requirements contracts, the price payable for the estimated 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) The Contractor shall furnish a performance bond (Standard Form 1418), except that a seal is not required) for the protection of the Government in an amount equal to _______ percent of the original contract price and a payment bond Standard Form 1416, except that s seal is not required) in an amount equal to ______ percent of the original contract price.

(c) The Contractor shall furnish all executed bonds, including any necessary reinsurance agreements, to the Contracting Officer, within __ days, but in any event, before starting work.

(d) The Government may require additional performance and payment bond protection if the contract price is increased. The Government may secure the additional protection by directing the Contractor to increase the penal amount of the existing bonds or to obtain additional bonds.

(e) The bonds shall be in the form of firm commitment, supported by corporate sureties whose names appear on the list contained in Treasury Department Circular 570, individual sureties, or by other acceptable security such as postal money order, certified check, cashier's check, irrevocable letter of credit, or, in accordance with Treasury Department regulations, certain bonds or notes of the United States. Treasury Circular 570 is published in the Federal Register, or may be obtained from the U.S. Department of the Treasury, Financial Management Service, Surety Bond Branch, 3700 East West Highway, Room 6F01, Hyattsville, MD 20782. Or via the internet at http://www.fms.treas.gov/c570/.

(End of clause)


Subcontractor ✖ Construction ✖ (Applies to contracts that contain a requirement for both payment and performance bonds.);
✔ >52.228-16 Basic

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