Code of Federal Regulations Title 48. Federal Acquisition Regulations System 48.28.101-2 Solicitation provision or contract clause

(a) The contracting officer shall insert a provision or clause substantially the same as the provision at 52.228–1, Bid Guarantee, in solicitations or contracts that require a bid guarantee or similar guarantee. For example, the contracting officer may modify this provision—

(b) The contracting officer shall determine the amount of the bid guarantee for insertion in the provision at 52.228–1 (see 28.102–2(a)). The amount shall be adequate to protect the Government from loss should the successful bidder fail to execute further contractual documents and bonds as required. The bid guarantee amount shall be at least 20 percent of the bid price but shall not exceed $3 million. When the penal sum is expressed as a percentage, a maximum dollar limitation may be stated.