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DSCR

DSCR H12F: BOND AND OTHER SECURITY

H12F   52.228-9G02   BOND AND OTHER SECURITY   DSCR (JAN 1996)
AND
H28F30


    (a)  This clause prescribes the requirement for obtaining 
financial protection against damage.

    (b)  "Bond" means a written requirement executed by an 
offeror or Contractor (the principal), and a second party (surety 
or sureties), to assure fulfillment of the principal's obligations 
to a third party (the obligee or Government), identified in the 
bond.  If the principal's obligations are not met, the bond assures 
payment, to the extent stipulated, of any loss sustained by the 
obligee.

    (c)  Within ten (10) days after receipt of the ________________, 
the Contractor shall furnish a performance bond or other security 
in the penal sum of the dollar amount at least equaling 100 percent 
of the price of the ______________________.

    (d)  Performance Bond.

         (1)  "Performance Bonds" (Standard Form 25) may be used to 
secure performance and fulfillment of the Contractor's obligations 
under this contract.  The penal amount of performance bonds shall be 
100 percent of the price of the _____________________________.

         (2)  The bond of any surety company holding a certificate of 
authority from the Secretary of the Treasury as an acceptable surety 
on Federal Bond will be accepted.

         (3)  Bonds are to be submitted to the Contracting Officer at 
the procuring activity.

    (e)  Individual Surety.

         (1)  While performance bonds are preferred, individual 
sureties will be accepted to secure performance and fulfillment of the 
Contractor's obligations under this contract if each surety deposits 
with the Government bonds or notes of the United States, certified 
check, or such other security as the Contracting Officer may deem 
necessary for the required amount of the guarantee.  The penal amount 
of the surety shall be 100 per cent of the price of the __________.  
Such collateral so deposited shall remain in the possession and control 
of the Treasurer of the United States until completion of the 
contract.

         (2)  Certified checks shall be drawn to the order of the 
United States Treasury.  Certified checks, bonds or notes of the United 
States shall be submitted to the Contracting Officer at the procuring 
activity.

    (f)  Should the Contractor fail to submit a performance bond or 
individual surety (bond or note of the United States or certified check) 
as required by the contract within ten (10) days after the receipt of 
a _____________________, the Contracting Officer may terminate the 
contract for default.

    (g)  In the event the contract is terminated for default, the 
Contractor shall be liable for any excess cost associated with 
reprocurement.