FAR 28.203-5—Exclusion of individual sureties.
Plain-English Summary
FAR 28.203-5 explains when and how the Government may exclude an individual from acting as a surety on bonds submitted by offerors for executive branch procurements, and what that exclusion means in practice. It covers the authority to impose the exclusion, the specific causes that can justify exclusion, the requirement to record the exclusion in the System for Award Management (SAM), the contracting officer’s duty to reject bonds from excluded sureties unless there is a written override by the agency head or designee, and the additional consequence that the excluded individual is also barred from acting as a contractor under FAR subpart 9.4. The section exists to protect the Government from unreliable, dishonest, or financially irresponsible sureties whose bond support could put contract performance or payment protections at risk. In practice, it gives agencies a formal tool to remove problematic individual sureties from the procurement process and ensures contracting officers can rely on SAM exclusion records when evaluating bond acceptability. For contractors and sureties, it means that misstatements, undisclosed liabilities, or failure to honor bond obligations can have broad and lasting consequences beyond a single procurement.
Key Rules
Exclusion authority exists
The acquiring agency’s head or designee may exclude an individual from acting as a surety on bonds submitted for executive branch procurements, using the procedures in FAR subpart 9.4. The purpose of the exclusion is to protect the Government, not to punish the individual.
Specific grounds for exclusion
An individual may be excluded for failure to fulfill bond obligations, failure to disclose all bond obligations, misrepresentation of assets or liabilities, false or misleading statements or signatures on bond-related documents, or any other serious and compelling cause affecting surety responsibility.
SAM exclusion record required
Once excluded, the individual surety must be entered as an exclusion in the System for Award Management (SAM). This makes the exclusion visible for procurement screening and helps contracting officers identify prohibited sureties.
Contracting officers must reject active exclusions
Contracting officers may not accept bonds from individual sureties listed in an active SAM exclusion record unless the agency head or designee provides a written statement of compelling reasons justifying acceptance.
Exclusion has broader effect
An exclusion under this section also prevents the individual from acting as a contractor under FAR subpart 9.4, not just as a surety. The exclusion therefore affects the person’s overall responsibility status in federal procurement.
Responsibilities
Acquiring Agency Head or Designee
Determine whether an individual surety should be excluded, ensure the exclusion is imposed only for protective and supportable reasons, authorize any exception to acceptance of an excluded surety’s bond, and provide a written statement of compelling reasons if acceptance is justified despite an active exclusion.
Contracting Officer
Check SAM for active exclusion records, refuse bonds from excluded individual sureties unless there is a written agency-level justification, and ensure bond acceptability decisions comply with the exclusion record and applicable responsibility rules.
Agency Personnel Managing Exclusions
Process the exclusion under the procedures in FAR subpart 9.4 and ensure the excluded surety is entered into SAM so the exclusion is available for procurement use.
Individual Surety
Provide truthful, complete, and accurate bond-related information; disclose all bond obligations; maintain the ability to fulfill bond commitments; and avoid false statements, misleading representations, or other conduct that could lead to exclusion.
Offeror/Contractor Using an Individual Surety
Submit bonds only with sureties that are eligible and not actively excluded, and ensure the surety’s documentation is complete and accurate because the offeror may be affected if the bond is rejected.
Practical Implications
This section is a screening and risk-control tool: if a surety is excluded in SAM, the bond is generally not acceptable, so contractors should verify surety status before submission.
The grounds for exclusion are broad enough to cover both financial unreliability and dishonesty, so incomplete disclosure of liabilities or inflated asset claims can trigger serious consequences.
A contracting officer cannot simply “work around” an exclusion; acceptance of an excluded surety’s bond requires a written, compelling justification from the agency head or designee.
Because the exclusion also affects contractor status under FAR subpart 9.4, the impact can extend beyond bonding and into overall responsibility determinations.
Common pitfalls include failing to update SAM, overlooking an active exclusion record, assuming a surety can be accepted based on past performance, or relying on informal approvals instead of the required written exception.
Official Regulatory Text
(a) An individual may be excluded from acting as a surety on bonds submitted by offerors on procurement by the executive branch of the Federal Government, by the acquiring agency's head or designee utilizing the procedures in subpart 9.4 . The exclusion shall be for the purpose of protecting the Government. (b) An individual may be excluded for any of the following causes: (1) Failure to fulfill the obligations under any bond. (2) Failure to disclose all bond obligations. (3) Misrepresentation of the value of available assets or outstanding liabilities. (4) Any false or misleading statement, signature or representation on a bond or affidavit of individual suretyship. (5) Any other cause affecting responsibility as a surety of such serious and compelling nature as may be determined to warrant exclusion. (c) An individual surety excluded pursuant to this section shall be entered as an exclusion in the System for Award Management (see 9.404 ). (d) Contracting officers shall not accept the bonds of individual sureties whose names appear in an active exclusion record in the System for Award Management (see 9.404 ) unless the acquiring agency's head or a designee states in writing the compelling reasons justifying acceptance. (e) An exclusion of an individual surety under this section will also preclude such party from acting as a contractor in accordance with subpart 9.4 .