---
kind: "section"
citation: "48 C.F.R. § 28.103-2"
title: "48"
number: "28.103-2"
heading: "Performance bonds."
url: "https://uscodex.org/cfr/48/28.103-2"
---

# §28.103-2. Performance bonds.

- (a) Performance bonds may be required for contracts exceeding the simplified acquisition threshold when necessary to protect the Government's interest. The following situations may warrant a performance bond:
  - (1) Government property or funds are to be provided to the contractor for use in performing the contract or as partial compensation (as in retention of salvaged material).
  - (2) A contractor sells assets to or merges with another concern, and the Government, after recognizing the latter concern as the successor in interest, desires assurance that it is financially capable.
  - (3) **Substantial progress payments are made before delivery of end items starts.**
  - (4) **Contracts are for dismantling, demolition, or removal of improvements.**
- (b) The Government may require additional performance bond protection when a contract price is increased.
- (c) The contracting officer must determine the contractor's responsibility (see [subpart 9.1](/cfr/48/subpart9.1.md)) even though a bond has been or can be obtained.

## Notes

### Amendments

[48 FR 42286, Sept. 19, 1983, as amended at 60 FR 34759, July 3, 1995; 61 FR 39213, July 26, 1996]

### Authority

Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 48 FR 42286, Sept. 19, 1983, unless otherwise noted.

### Amendments

[48 FR 42286, Sept. 19, 1983, as amended at 60 FR 34759, July 3, 1995; 61 FR 39213, July 26, 1996]