How does the Miller Act apply to construction contracts between $35,000 and $150,000?

Question

My company is bidding on a federal construction project for a new playground, a general construction NAICS code. I am putting together the bid bond now. The [Miller Act](https://govcon.forum/glossary/miller-act/) requires performance and payment bonds for federal construction contracts. I know the threshold for the Miller Act is above a certain amount. The project I am bidding on is above that threshold but below the $150,000 threshold. I've been told the Miller Act applies, but I'm confused about the specific bonding requirements for this range. What specific payment protections does the contracting officer select for federal construction contracts between $35,000 and $150,000?

Marcus T. · Answer

The contracting officer selects two or more alternative payment protections for federal construction contracts above the lower threshold but not over the higher threshold, such as a payment bond, an irrevocable letter of credit, or a tripartite escrow agreement. The Miller Act requires performance and payment bonds for any construction contract exceeding the higher threshold. For construction contracts above the lower threshold but not over the higher threshold, the contracting officer has options beyond requiring a full performance and payment bond. This is stated in FAR 28.102-1(b)(1). You should check the specific solicitation documents for the playground project to see which alternative payment protections the contracting officer has chosen for this particular contract.

How does the Miller Act apply to construction contracts between $35,000 and $150,000?

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How does the Miller Act apply to construction contracts between $35,000 and $150,000?

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