The document discusses a complimentary webinar series on the Defense Federal Acquisition Regulation Supplement (DFARS) for 2021. It will be held every Wednesday at 12pm EST and cover topics related to defense contracting. Speakers will include attorneys, consultants and subject matter experts. The document provides information on registering for webinars and accessing recordings. It also summarizes Part 228 of DFARS which covers requirements for bonds and insurance on defense contracts.
Government Contracting - DFARS Part 228 - Bonds And Insurance - Win Federal Contracts
1. DFARS - 2021
Defense
Federal Acquisition Regulation
Supplement
Complimentary Webinar Series
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
2. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
About The Series
- Complimentary Webinar Series
- Every Wednesday at 12pm EST
- Recorded and posted on our website and YouTube
Channel
- Speakers are attorneys, consultants, subject matter
experts in defense contracting
3. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
Full training calendar: virginiaptac.org & useful links
Register for free counseling: https://virginiaptac.org/services/counseling/
Your “one stop” shop for Government Contracting assistance
Reach us at ptac@gmu.edu or 703-277-7750
This procurement technical assistance center is funded in part through a cooperative agreement with the Defense Logistics Agency.
4. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
5. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
6. Judy
Bradt, CEO
The Art Of Human Connection
In The Federal Arena
The right data.
For the right
conversations.
With the right people.
At the right time.
Judy.Bradt@GrowFedBiz.com
• Activate your custom sales plan.
• Meet your Federal Humans sooner.
• Grow your Federal Business.
• JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
7. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
Title Date Registration Link Partner
Marketing and Messaging
For for Gov Cons 101 With
Live Q&A
July 01, 2021
4:00pm – 6:00pm
https://catalystcenter.ecent
erdirect.com/events/97144
3
GSA Schedule: What’s In It
For You? (Virtual)
July 08, 2021
12:30pm - 2:0pm
https://attendee.gotowebin
ar.com/rt/19046459221525
46572
8. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
About Us
- Professional services for federal contractors
- Market Analysis
- Proposal Writing / Pricing
- Contract Compliance & Administration
9. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
Advertise In Our Newsletter:
Reach 23,000+ Subscribers! Includes
Government & Government Contractors
Hello@JenniferSchaus.com
11. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
About Our Speaker
Joshua A. Etemadi
District Bonding
josh@districtbonding.com
Phone # 703-639-4007
12. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
About Our Speaker
Susan Eccles
Adams and Reese LLP
Susan.Eccles@arlaw.com
(225) 378-3246
13. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #228
Bonds And Insurance
Wednesday, 30 June 2021
14. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #228
Bonds
228.102 Performance and payment bonds for construction contracts.
228.102-1 General.
The requirement for performance and payment bonds is waived for cost-
reimbursement contracts. However, for cost-type contracts with fixed-price
construction subcontracts over $40,000, require the prime contractor to obtain
from each of its construction subcontractors performance and payment
protections in favor of the prime contractor as follows:
15. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #228
Bonds – cont’d
As follows…..
(1) For fixed-price construction subcontracts over $40,000, but not
exceeding $150,000, payment protection sufficient to pay labor and material
costs, using any of the alternatives listed at FAR 28.102-1(b)(1).
(2) For fixed-price construction subcontracts over $150,000—
(i) A payment bond sufficient to pay labor and material costs; and
(ii) A performance bond in an equal amount if available at no additional
cost.
16. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #228
Bonds – cont’d
228.102-70 Defense Environmental Restoration Program Construction
Contracts.
For Defense Environmental Restoration Program construction contracts
entered into pursuant to 10 U.S.C. 2701—
(a) Any rights of action under the performance bond shall only accrue to, and
be for the exclusive use of, the obligee named in the bond;
(b) In the event of default, the surety’s liability on the performance bond is
limited to the cost of completion of the contract work, less the balance of
unexpended funds. Under no circumstances shall the liability exceed the penal
sum of the bond;
17. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #228
Bonds – cont’d
228.102-70 Defense Environmental Restoration Program Construction
Contracts.
(c) The surety shall not be liable for indemnification or compensation of the
obligee for loss or liability arising from personal injury or property damage,
even if the injury or damage was caused by a breach of the bonded
contract; and
(d) Once it has taken action to meet its obligations under the bond, the
surety is entitled to any indemnification and identical standard of liability to
which the contractor was entitled under the contract or applicable laws and
regulations.
18. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #228
Bonds – cont’d
228.105 Other Types Of Bonds.
Fidelity and forgery bonds generally are not required but are
authorized for use when—
(1) Necessary for the protection of the Government or the
contractor; or
(2) The investigative and claims services of a surety company are
desired
19. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #228
Bonds
Bid Bonds –
Needed when you’re bidding a project. You must be approved for the full contract value, even if
the bid penalty is only 20%. Similar to “earnest money deposit” when buying a home!
Performance Bonds –
Guarantees you will complete the work according to contract documents, scope, completion
time and warranty period. Usually at 100% of contract value.
Payment Bonds –
Guarantees you will pay subcontractors, suppliers and vendors. Includes second-tier subs as
well. Usually at 100% of contract value.
20. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #228
Bonds –
Keys To Getting Started
Get Started Today Find a Construction Oriented CPA Check Your Company and Personal Credit
21. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #228
Bonds –
The Three C’s
Character Capacity Capital
Questionnaire, Resumes, Business Plan References, Prior Projects Completed Financial Statements, WIP,
Bank Statements
22. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #228
Bonds
How Much Does It Cost?
Bid Bond –
No Cost
Performance Bond –
0.5% to 3% of the Contract Price
Payment Bond –
Included with the Performance Bond (or vice versa)
23. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #228
Surety Terms
• Principal:
The party bound on the bond – the Contractor
• Obligee:
The party for whose benefit the bond was issued – the Owner/Government
• Surety:
Company which issues the bid, payment or performance bond
• General Agreement of Indemnity:
Indemnity Agreement signed by owners of the business which provides indemnify rights to the surety
in the event of a default.
24. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #228
Surety Terms – cont’d
• Default:
Event which triggers a claim on the bond
• Penal Sum:
Monetary size or limit to the bond
• Miller Act:
• Requires contactors on federal projects to post bonds guaranteeing the
performance of their contractual duties and payment to material suppliers
and subcontractors
25. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #228
Insurance v. Surety Bonds
Insurance
• 2 Party Contract
• No Underlying Contract
• Distributes Losses Over a Class of Insureds
• No Right to Reimbursement of Loss from Insured
Surety
• 3 Party Contract
• Bond Guarantees Underlying Construction
Contractual Obligations
• Extension of Credit
• Indemnification by Principal and Indemnitors
26. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #228
27. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #228
28. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #228
102.70 Defense Environmental Restoration Program Construction Contracts
• Rights under the performance bond accrue solely to obligee named in the
bond – the Government
• In the event of a default, the surety’s liability on the performance bond is
limited to the cost of completion of the contract work, less the contract
balance. Liability shall not exceed penal sum on the bond
• Surety is not responsible for personal injury or property damage
• Surety steps into the shoes of the contractor and the surety is entitled to same
rights and defenses of the contractor
• Program is used to correct environmental damage such as unexploded
ordinance, cleanup of contamination, and demolition/removal of unsafe
buildings
29. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #228
Subpart 3 - Insurance Provisions
1 - Risk Pooling Arrangements:
National Defense Projects Rating Plan which is a risk pooling arrangement
which minimizes cost to the Government for contractors purchasing insurance
on government projects
2 - Defense Department Group Term Insurance Plan:
Available for contractor use under cost reimbursable contracts if the number
of covered employees exceeds 500 and the contractor has all cost
reimbursement contracts or at least 90% of the payroll for contractor
operations to be covered by the plan is under cost-reimbursement contracts
30. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #228
Subpart 3 - Insurance Provisions – cont’d
3 - Reimbursement for War Hazard Losses
4 - Ground and Flight Risk:
Acquisition and development of aircraft
5 - Capture and Detention
6 - Mishap Reporting
31. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
THANK YOU To Our Speakers
Joshua Etemadi
District Bonding, LLC
josh@districtbonding.com
Phone #703-639-4007
Susan Eccles
Adams and Reese LLP
Susan.Eccles@arlaw.com
Phone #225-378-3246
32. Thank You For Attending!
DFARS - 2021
Defense Federal Acquisition Regulation Supplement
Complimentary Webinar Series
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com