CFR > Title 7 - Agriculture > SUBTITLE B—Regulations of the Department of Agriculture > CHAPTER XXX—OFFICE OF THE CHIEF FINANCIAL OFFICER, DEPARTMENT OF AGRICULTURE (parts 3010 to 3052) > PART 3015—UNIFORM FEDERAL ASSISTANCE REGULATIONS > SUBPART C—Bonding and Insurance (§3015.15 to §3015.18) > 3015.16—Construction and facility improvement.

3015.16—Construction and facility improvement.

(a) Scope. This section covers requirements for bid guarantees, performance bonds, and payment bonds when the recipients will contract or subcontract for construction or facility improvement (including alterations and renovations of real property) under a grant or subgrant.
(b) Bids and contracts or subcontracts of $100,000 or less. Unless otherwise required by law, the recipients shall follow its own requirements and practices relating to bid guarantees, performance bonds, and payment bonds.
(c) Bids and contracts or subcontracts exceeding $100,000. Unless otherwise required by law, the recipient may follow its own regular policy and requirements if the USDA awarding agency has decided that the Federal government's interest will be adequately protected. If this decision has not been made, the minimum requirements shall be as follows:
(1) A bid guarantee from each bidder equivalent to 5 percent of the bid price;
(2) A performance bond on the part of the contractor for 100 percent of the contract price; and
(3) A payment bond on the part of the contractor for 100 percent of the contract price.