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  • Question

    May the Contracting Officer reduce to zero, or not include 52.228-13, Alternative Payment Protections in the FFP construction award to the 8(a) contractor?


    Answer

    As per FAR 28.102-3 (b),  if the contract is not above the $150K threshold, then no you do not have to include the payment bonds.  But between $30K and $150K a payment gaurentee is required be it through bonds, sureity, colateral.  Unless you can establish a lower percentage in accordance with 28.102-2(c).  You need to protect the interest of the governement. If you can Justify it, you can reduce it.  I don't think I would be able to justify having 0%. 

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