By Government Contracts Editorial Staff
The Department of Defense, General Services Administration, and National Aeronautics and Space Administration are proposing to amend the Federal Acquisition Regulation to address the kinds of assets that individual sureties must pledge as security for individual surety bonds. The proposed revisions modify existing coverage regarding the use of individual sureties in support of a government bonding requirement. FAR Subpart 28.2 requires agencies to obtain adequate security for bonds when bonds are used with a contract. A corporate or individual surety is an acceptable form of security for a bond. Corporate sureties are vetted by the Department of the Treasury to ensure they are sufficiently capitalized and are listed on the Department’s Listing of Approved Sureties (Treasury Department Circular 570). Individual sureties are not listed on Circular 570. Currently, contracting officers determine if an individual surety is acceptable. This rule proposes revisions to the types of acceptable assets an individual surety may pledge and requires the Bureau of the Fiscal Service to review those assets to ensure they meet established eligibility requirements. In addition to changing FAR Subpart 28.2, the rule would add a solicitation provision, Individual Surety—Pledge of Assets (Bid Guarantee) (FAR 52.228-XX), and amend the contract clause, Individual Surety—Pledges of Assets (FAR 52.228-11). A full listing of the regulations impacted by this rule appears in the table below. This rule will implement section 874 of the National Defense Authorization Act for Fiscal Year 2016 (PL 114-92), codified at 31 USC 9310, Individual Sureties. Comments on this proposed rule, identified by FAR Case 2017-003, are due by April 13, 2020. For the text, see ¶70,006.349.
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