FAR 18.121—Bid guarantees.
Plain-English Summary
FAR 18.121 addresses a narrow but important exception to the normal bid guarantee requirement in emergency acquisitions. It gives the chief of the contracting office authority to waive the need for a bid guarantee when the acquisition is being conducted as an emergency and the contract will already require a performance bond, or both a performance bond and a payment bond. The section exists to reduce unnecessary administrative burden and speed award in urgent situations where the government needs immediate action, while still preserving financial protection through later-required bonding. In practice, this means contracting personnel should look first at whether the acquisition qualifies as an emergency and whether the bonding requirements under FAR 28.101-1(c) will provide adequate protection. It is a limited waiver authority, not a blanket exemption, and it should be used only when the conditions in the rule are met.
Key Rules
Emergency acquisitions only
The waiver authority applies only to emergency acquisitions. If the procurement is not an emergency, the bid guarantee requirement is not covered by this section and the normal rules remain in effect.
Chief of contracting office approval
Only the chief of the contracting office may waive the bid guarantee requirement under this section. The authority is not automatic and should be exercised by the proper official.
Bonding must still be required
The waiver is available only when the contract will require a performance bond, or a performance bond and payment bond. The government is relying on those bond protections instead of a bid guarantee.
Reference to FAR 28.101-1(c)
This section works together with FAR 28.101-1(c), which addresses when bid guarantees may be waived in connection with required performance and payment bonds. Contracting staff must read the provisions together.
Limited substitute for bid security
The rule does not eliminate all financial protection; it allows the bid guarantee to be waived because other bond requirements will protect the government after award. The waiver should be used only where that substitute protection is appropriate.
Responsibilities
Chief of the contracting office
Determine whether the acquisition is an emergency and whether the bonding requirements justify waiving the bid guarantee. Approve the waiver when the conditions are met.
Contracting officer
Identify when an emergency acquisition may qualify for the waiver, coordinate with the chief of the contracting office, and ensure the solicitation and award documents reflect the correct security requirements.
Contractor
Understand that a bid guarantee may be waived in qualifying emergency acquisitions, but still comply with any required performance bond or payment bond obligations after award.
Agency
Maintain procedures that allow rapid emergency procurement while preserving appropriate financial protection and ensuring the waiver authority is used consistently and properly.
Practical Implications
This rule can speed up emergency procurements by removing the need to obtain bid guarantees before bid opening or award.
Contracting staff should not assume the waiver applies just because the acquisition is urgent; it depends on both emergency status and required bonding.
A common pitfall is confusing a bid guarantee with performance and payment bonds; they serve different purposes and are not interchangeable in every case.
The waiver should be documented carefully so the file shows who approved it and why the conditions were met.
Contractors should still be prepared to furnish required performance or payment bonds even if the bid guarantee is waived.
Official Regulatory Text
The chief of the contracting office may waive the requirement to obtain a bid guarantee for emergency acquisitions when a performance bond or a performance bond and payment bond is required. (See 28.101-1 (c).)