FAR 52.228-11 - 52.228-11 Individual Surety—Pledge of Assets.
Current Status
DEVIATION ACTIVE
WARNING: This clause is affected by 1 active class deviation. Use the deviation text, NOT the standard clause text from the eCFR.
| Last Checked | 2026-03-11 19:39 UTC |
| Authoritative Source | https://www.ecfr.gov/current/title-48/section-52.228-11 |
Active Class Deviations
2020-O0016 - Class Deviation 2020-O0016 â Original Documents, Signatures, Seals, and Notarization
Effective: None
Effect: SUBSTITUTE
Substitute clause 52.228-11
Compare clause text (side-by-side)
Standard Clause Text (eCFR)
As prescribed in 28.203-4(b), insert the following clause: Individual SuretyâPledge of Assets (FEB 2021) (a) The Contractor shall obtain from each person acting as an individual surety on a performance bond or a payment bondâ (1) A pledge of assets that meets the eligibility, valuation, and security requirements described in the Federal Acquisition Regulation (FAR) 28.203-1; and (2) Standard Form 28, Affidavit of Individual Surety. (b) The Contracting Officer may release a portion of the security interest on the individual surety's assets based upon substantial performance of the Contractor's obligations under its performance bond. The security interest in support of a performance bond shall be maintainedâ (1) Contracts for the construction, alteration, or repair of any public building or public work of the Federal Government exceeding $150,000 (40 U.S.C. 3131). Until completion of any warranty period, or for 1 year following final payment, whichever is later. (2) Contracts subject to alternative payment protection (see FAR 28.102-1(b)(1)). For the full contract performance period plus 1 year. (3) Other contracts not subject to the requirements of paragraph (b)(1) of this clause. Until completion of any warranty period, or for 90 days following final payment, whichever is later. (c) A surety's assets pledged in support of a payment bond may be released to a subcontractor or supplier upon Government receipt of a Federal district court judgment, or a sworn statement by the subcontractor or supplier that the claim is correct along with a notarized authorization of the release by the surety stating that it approves of such release. The security interest on the individual surety's assets in support of a payment bond shall be maintainedâ (1) Contracts for the construction, alteration, or repair of any public building or public work of the Federal Government exceeding $150,000 which require performance and payment bonds (40 U.S.C. 3131). For 1 year following final payment, or until resolution of all pending claims filed against the payment bond during the 1-year period following final payment, whichever is later. (2) Contracts subject to alternative payment protection (see FAR 28.102-1(b)(1)). For the full contract performance period plus 1 year. (3) Other contracts not subject to the requirements of paragraph (c)(1) of this clause. For 90 days following final payment. (d) The Contracting Officer may allow the Contractor to substitute an individual surety, for a performance or payment bond, after contract award. The Contractor shall comply with the requirements of paragraph (a) of this clause within the timeframe established by the Contracting Officer. (End of clause) [86 FR 3686, Jan. 14, 2021]
As Modified by Deviation
52.228-11, Pledges of Assets (DEVIATION 2020-O0016), which removes the requirement for the Standard Form 28 to be sworn and notarized. Class Deviation 2020-O0016 Original Documents, Signatures, Seals, and Notarization ○ 52.228-15, Performance and Payment Bonds—Construction (DEVIATION 2020- O0016), which removes the requirements for seals on Standard Forms. ○ 52.228-16, Performance and Payment Bonds—Other than Construction (DEVIATION 2020-O0016), which removes requirements for seals on Standard Forms. When processing assignment of claims per FAR subpart 32.8— A copy of the assignment instrument is acceptable, in lieu of a true copy of the assignment instrument as required by FAR 32.802(e); and Electronic signatures by responsible parties and electronic filing of assignment instruments and notices of assignments as outlined in attachments 1 and 2 are acceptable, in lieu of the requirements at FAR 32.805 and DFARS 232.805. When executing novation agreements and change-of-name agreements per FAR part 42— Copies of the documents listed at FAR 42.1204(f) are acceptable in lieu of authenticated or certified copies; and Novation Agreements as described at FAR 42.1204(i) and Change-of-Name Agreements as described at FAR 42.1205(b) do not require corporate seals. This class deviation remains in effect until rescinded. My point of contact is Larry McLaury, who is available by telephone at 703-697-6710 or by email at Larry.j.mclaury2.civ@mail.mil. Kim Herrington Acting Principal Director, Defense Pricing and Contracting Attachments:
As stated 2 Attachment 1 Class Deviation 2020-O0016 Original Documents, Signatures, Seals, and Notarization Changes to the text are indicated by a change bar in the right-hand margin. FEDERAL ACQUISITION REGULATION PART 28—BONDS AND INSURANCE * * * * * 28.002 Policy. (DEVIATION 2020-O0016) For purposes of this part, electronic signatures and electronic, mechanically-applied, or printed dates may be used and shall be considered original signatures and dates, without regard to the order in which they were affixed. SUBPART 28.1—BONDS AND OTHER FINANCIAL PROTECTIONS * * * * * 28.106 Administration. 28.106-1 Bonds and bond-related forms. (DEVIATION 2020-O0016) The following Standard Forms (SF’s) and Optional Forms (OF’s), shall be used, except in foreign countries, when a bid bond, performance or payment bond, or an individual surety is required. The bond forms shall be used as indicated in the instruction portion of each form, except that a seal is not required. For SF 28 also see 28.203(b). * * * * * 28.106-8 Payment to subcontractors or suppliers. (DEVIATION 2020-O0016) The contracting officer will only authorize payment to subcontractors or suppliers from an ILC (or any other cash equivalent security) upon a judicial determination of the rights of the parties, a signed statement by the contractor that the payment is due and owed, or a signed agreement between the parties as to amount due and owed. * * * * * SUBPART 28.2 – SURETIES AND OTHER SECURITY FOR BONDS * * * * * Page 1 of 13 Attachment 1 Class Deviation 2020-O0016 Original Documents, Signatures, Seals, and Notarization Changes to the text are indicated by a change bar in the right-hand margin. 28.203 Acceptability of individual sureties. (DEVIATION 2020- O0016) * * * * * (b) An individual surety must execute the bond, and the unencumbered value of the assets (exclusive of all outstanding pledges for other bond obligations) pledged by the individual surety, must equal or exceed the penal amount of each bond. The individual surety shall provide a security interest in accordance with 28.203-1 and execute the Standard Form 28, except that the words “being duly sworn, depose and say” on the Standard Form 28 are replaced with the word “affirm” and such Standard Form 28 is not required to be sworn and notarized. One individual surety is adequate support for a bond, provided the unencumbered value of the assets pledged by that individual surety equal or exceed the amount of the bond. An offeror may submit up to three individual sureties for each bond, in which case the pledged assets, when combined, must equal or exceed the penal amount of the bond. Each individual must accept both joint and several liability to the extent of the penal amount of the bond. * * * * * 28.203-5 Release of lien. (DEVIATION 2020-O0016) (a) After consultation with legal counsel, the contracting officer shall release the security interest on the individual surety’s assets using the Optional Form 90, Release of Lien on Real Property, or Optional Form 91, Release of Personal Property from Escrow, or a similar release as soon as possible consistent with the conditions in subparagraphs (a)(1) and (2) of this subsection. A surety’s assets pledged in support of a payment bond may be released to a subcontractor or supplier upon Government receipt of a Federal district court judgment, or a sworn statement by the subcontractor or supplier that the claim is correct alo...
Full Current Text
Show full clause text
52.228-11 Individual SuretyâPledge of Assets. As prescribed in 28.203-4(b), insert the following clause: Individual SuretyâPledge of Assets (FEB 2021) (a) The Contractor shall obtain from each person acting as an individual surety on a performance bond or a payment bondâ (1) A pledge of assets that meets the eligibility, valuation, and security requirements described in the Federal Acquisition Regulation (FAR) 28.203-1; and (2) Standard Form 28, Affidavit of Individual Surety. (b) The Contracting Officer may release a portion of the security interest on the individual surety's assets based upon substantial performance of the Contractor's obligations under its performance bond. The security interest in support of a performance bond shall be maintainedâ (1) Contracts for the construction, alteration, or repair of any public building or public work of the Federal Government exceeding $150,000 (40 U.S.C. 3131). Until completion of any warranty period, or for 1 year following final payment, whichever is later. (2) Contracts subject to alternative payment protection (see FAR 28.102-1(b)(1)). For the full contract performance period plus 1 year. (3) Other contracts not subject to the requirements of paragraph (b)(1) of this clause. Until completion of any warranty period, or for 90 days following final payment, whichever is later. (c) A surety's assets pledged in support of a payment bond may be released to a subcontractor or supplier upon Government receipt of a Federal district court judgment, or a sworn statement by the subcontractor or supplier that the claim is correct along with a notarized authorization of the release by the surety stating that it approves of such release. The security interest on the individual surety's assets in support of a payment bond shall be maintainedâ (1) Contracts for the construction, alteration, or repair of any public building or public work of the Federal Government exceeding $150,000 which require performance and payment bonds (40 U.S.C. 3131). For 1 year following final payment, or until resolution of all pending claims filed against the payment bond during the 1-year period following final payment, whichever is later. (2) Contracts subject to alternative payment protection (see FAR 28.102-1(b)(1)). For the full contract performance period plus 1 year. (3) Other contracts not subject to the requirements of paragraph (c)(1) of this clause. For 90 days following final payment. (d) The Contracting Officer may allow the Contractor to substitute an individual surety, for a performance or payment bond, after contract award. The Contractor shall comply with the requirements of paragraph (a) of this clause within the timeframe established by the Contracting Officer. (End of clause) [86 FR 3686, Jan. 14, 2021]