Do SDVOSBs need bonding for federal contracts?
Construction contracts over $150,000 require both a performance bond and a payment bond under the Miller Act. Service contracts generally do not require bonding unless the contracting officer specifically requires it. SBA's Surety Bond Guarantee Program helps small businesses — including SDVOSBs — obtain bonding by guaranteeing a portion of the bond premium to surety companies. SDVOSBs with limited bonding capacity should explore the SBA program before pursuing bonded construction work.
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