Hello and thank you for joining us for Episode 16 of Fun with the FAR Season 11!
Our next session will cover FAR Parts 28 (Bonds and Insurance) and 29 (Taxes)! As we prepare for our 17th episode of Season 11, here are a few Episode 17 FAR Facts for us to think about:
- A bid guarantee is a form of security that the Government uses to assure that a contractor will not withdraw a bid within a specified period of acceptance. FAR 28.001.
- A performance bond secures performance and fulfillment of the contractor’s obligations under the contract. FAR 28.001.
- Generally, agencies shall not require performance and payment bonds for other than construction contracts. FAR 28.103-1.
- Performance bonds may be required for contracts exceeding the simplified acquisition threshold when necessary to protect the Government’s For instance, (1) Government property or funds are to be provided to the contractor for use in performing the contract or as partial compensation, (2) a contractor sells assets to or merges with another concern, and the Government desires assurance that it is financially capable, (3) substantial progress payments are made before delivery of end items starts, or (4) contracts are for dismantling, demolition, or removal of improvements. FAR 28.103- 2.
- Executive agencies shall take maximum advantage of available Federal excise tax exemptions. FAR 29.201(c).