FAR 28.201—Requirements for security.
Plain-English Summary
FAR 28.201 explains the basic security requirements for bonds used in federal contracts for supplies, services, and construction. It tells agencies that they must obtain adequate security when bonds are required or used, and it identifies the acceptable forms of security: corporate or individual sureties, or other security authorized under FAR 28.204 in lieu of sureties. It also limits how solicitations may be written by prohibiting language that would unnecessarily block offerors from using any surety or security method allowed by this subpart, unless another law or regulation specifically forbids it. In practice, this section is about preserving competition while ensuring the Government has reliable financial protection if a contractor fails to perform or meet bond obligations. It matters to contracting officers because solicitation language and bond acceptability must be handled carefully, and it matters to contractors because it protects their ability to use approved bonding alternatives rather than being forced into a single surety format.
Key Rules
Agencies must obtain adequate security
When a contract for supplies, services, or construction requires or uses bonds, the agency must ensure the security is adequate. This is a mandatory protection measure intended to safeguard the Government’s interests if the contractor defaults or otherwise fails to meet bond-related obligations.
Acceptable security includes sureties
The regulation recognizes corporate sureties and individual sureties as acceptable forms of bond security. These are the traditional surety arrangements used to back performance and payment obligations.
Alternative security is allowed
Agencies may also accept any security authorized under FAR 28.204 in lieu of sureties. This means the Government must consider other approved forms of security when the subpart permits them, rather than insisting only on a surety bond.
Solicitations cannot restrict permitted security
Solicitation terms may not bar offerors from using any surety or other security method allowed by this subpart. The only exception is when another law or regulation prohibits a particular form of security.
Legal or regulatory prohibitions still control
If a statute or regulation forbids a certain surety or security method, the solicitation may reflect that restriction. FAR 28.201 does not override higher-level legal requirements.
Responsibilities
Agency
Obtain adequate security for required or used bonds in contracts for supplies, services, and construction. Ensure solicitation and contract requirements do not improperly exclude approved forms of surety or other security.
Contracting Officer
Draft solicitations and evaluate bond security in a way that allows all permitted forms under this subpart. Confirm that any restriction on security is supported by law or regulation and that the security provided is adequate.
Offeror/Contractor
Provide bond security using an acceptable surety or other authorized security method. Review solicitation terms to ensure they do not unlawfully restrict permitted bonding options and raise issues if they do.
Surety/Individual Surety
Provide the bond security in a form recognized as acceptable under the FAR and applicable law. Support the contractor’s bonding obligation with valid, enforceable security.
Practical Implications
Contracting officers should avoid boilerplate solicitation language that narrows bonding options beyond what the FAR allows.
Contractors benefit from the rule because it preserves access to approved alternatives, which can matter when traditional surety bonds are difficult or costly to obtain.
A common pitfall is treating one acceptable form of security as the only acceptable form; that can create an improper solicitation restriction.
Another risk is failing to verify that the chosen security is actually authorized under FAR 28.204 or by applicable law.
This section is a compliance checkpoint: if the solicitation or bond requirement is too restrictive, it can create protest risk, delay award, or require amendment of the solicitation.
Official Regulatory Text
(a) Agencies shall obtain adequate security for bonds (including coinsurance and reinsurance agreements) required or used with a contract for supplies or services (including construction). Acceptable forms of security include- (1) Corporate or individual sureties; or (2) Any of the types of security authorized in lieu of sureties by 28.204 . (b) Solicitations shall not preclude offerors from using the types of surety or other security permitted by this subpart, unless prohibited by law or regulation.