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What are the common payment protection alternatives for federal construction contracts below $150,000?

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Our firm is looking at an Invitation for Bid (IFB) from the Corps of Engineers for a federal construction project, NAICS 237310, Highway, Street, and Bridge Construction. The project is above $35,000 but below the $150,000 threshold where the Miller Act requires both performance and payment bonds. The contracting officer has not specified the payment protections. I know the Miller Act does not fully apply here. What are the common payment protection alternatives the contracting officer might require for a federal construction contract in this value range?

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asked Tom B. Construction estimator, public works · Phoenix, AZ · 650 rep

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For federal construction contracts above $35,000 but not exceeding the Miller Act's bond requirement threshold, the contracting officer selects two or more alternative payment protections from a list of options (FAR 28.102-1(b)(1)). Common alternatives include a payment bond, an irrevocable letter of credit, or a tripartite escrow agreement. The contracting officer will specify the required payment protection alternatives in the solicitation. Your firm should review the specific Invitation for Bid for the Corps of Engineers to understand the exact requirements for this project. State and local government construction contracts have their own thresholds and rules, which are defined in their respective procurement codes.

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answered Helen M. Former county procurement analyst · Raleigh, NC · 497 rep

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Sign up to answerCite the FAR clause or procurement code where you can.

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