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DFARS 228



Part 228—Bonds and Insurance

TABLE OF CONTENTS

(Revised June 20, 2003)

SUBPART 228.1--BONDS

228.102 Performance and payment bonds for construction contracts.

228.102-1 General.

228.102-70 Defense Environmental Restoration Program construction contracts.

228.105 Other types of bonds.

228.106 Administration.

228.106-7 Withholding contract payments.

228.170 Solicitation provision.

SUBPART 228.3--INSURANCE

228.304 Risk-pooling arrangements.

228.305 Overseas workers' compensation and war-hazard insurance.

228.307 Insurance under cost-reimbursement contracts.

228.307-1 Group insurance plans.

228.311 Solicitation provision and contract clause on liability insurance under
cost-reimbursement contracts.

228.311-1 Contract clause.

228.370 Additional clauses.

SUBPART 228.1--BONDS

(Revised October 1, 2015)

228.102 Performance and payment bonds for construction contracts.

228.102-1 General.

The requirement for performance and payment bonds is waived for cost-reimbursement contracts. However, for cost-type contracts with fixed-price construction subcontracts over $35,000, require the prime contractor to obtain from each of its construction subcontractors performance and payment protections in favor of the prime contractor as follows:

228.102-70 Defense Environmental Restoration Program construction contracts.

For Defense Environmental Restoration Program construction contracts entered into pursuant to 10 U.S.C. 2701—

228.105 Other types of bonds.

Fidelity and forgery bonds generally are not required but are authorized for use when—

228.106 Administration.

228.106-7 Withholding contract payments.

228.170 Solicitation provision.

When a requirement for a performance bond or other security is included in a solicitation for dismantling, demolition, or removal of improvements (see FAR 37.300), use the provision at 252.228-7004, Bonds or Other Security. Set a period of time (normally ten days) for return of executed bonds.

SUBPART 228.3--INSURANCE

(Revised June 8, 2010)

228.304 Risk-pooling arrangements.

DoD has established the National Defense Projects Rating Plan, also known as the Special Casualty Insurance Rating Plan, as a risk-pooling arrangement to minimize the cost to the Government of purchasing the liability insurance listed in FAR 28.307-2. Use the plan in accordance with the procedures at PGI 228.304 when it provides the necessary coverage more advantageously than commercially available coverage.

228.305 Overseas workers' compensation and war-hazard insurance.

228.307 Insurance under cost-reimbursement contracts.

228.307-1 Group insurance plans.

The Defense Department Group Term Insurance Plan is available for contractor use under cost-reimbursement type contracts when approved as provided in department or agency regulations. A contractor is eligible if—

228.311 Solicitation provision and contract clause on liability insurance under cost-reimbursement contracts.

228.311-1 Contract clause.

Use the clause at FAR 52.228-7, Insurance--Liability to Third Persons, in solicitations and contracts, other than those for construction and those for architect-engineer services, when a cost-reimbursement contract is contemplated, unless the head of the contracting activity waives the requirement for use of the clause.

228.370 Additional clauses.

(iv) For commercial derivative aircraft that are to be maintained to Federal Aviation Administration (FAA) airworthiness when the work will be performed at a licensed FAA repair station.

than conventional types of winged aircraft, i.e., helicopters, vertical take-off or landing

aircraft, lighter-than-air airships, unmanned aerial vehicles, or other nonconventional

aircraft. The modified definition should describe a stage of manufacture comparable to the standard definition.

premises which are owned or leased by the contractor or subcontractor, or premises where the contractor or subcontractor is a permittee or licensee or has a right to use, including Government airfields.

assumption of risk for transportation by conveyance on streets or highways when transportation is—

contractor employees are subject to capture and detention and may not be covered by

the War Hazards Compensation Act (42 U.S.C. 1701 et seq.).

Aircraft, Missiles, and Space Launch Vehicles, may be used in solicitations and

contracts which involve the manufacture, modification, overhaul, or repair of these items.

in solicitations and contracts for services or construction to be performed in Spain, unless the Contractor is a Spanish concern.

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