My construction firm is bidding on a federal project. It is an Invitation for Bid (IFB) for a new public works facility, NAICS 236220. The bid is due next month. I know the Miller Act requires performance and payment bonds for federal construction, but I need to confirm the specific dollar thresholds and types of bonds required. We have our bid bond ready. I am checking the solicitation for bond requirements but want to hear from others who have won these federal construction bids. What are the requirements for performance and payment bonds under the Miller Act?
What are the requirements for performance and payment bonds under the Miller Act?
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The Miller Act requires performance and payment bonds for any federal construction contract that exceeds a certain dollar threshold. For construction contracts above that specific threshold, the Miller Act requires both a performance bond and a payment bond. For construction contracts that are greater than a different, lower dollar threshold but not greater than the specific dollar threshold for Miller Act bonds, the contracting officer selects two or more alternative payment protections. These alternatives can include a payment bond, an irrevocable letter of credit, or a tripartite escrow agreement. You should check the solicitation's Section K for the specific bond requirements for this particular Invitation for Bid, as the contract will outline the necessary bonds and their amounts. Federal acquisitions follow the FAR, specifically FAR 28.102-1, for these requirements.