# AFARS PART 5128

- Subpart 5128.1 -- Bonds

- 5128.106 -- Administration.

- 5128.106-90 -- Review of bonds and consents of surety.

- Subpart 5128.2 – Sureties and Other Security for Bonds

- 5128.202 -- Acceptability of corporate sureties.
- 5128.203 -- Acceptability of individual sureties.

- 5128.203-7 -- Exclusion of individual sureties.

- 5128.204 -- Alternatives in lieu of corporate or individual sureties.

- 5128.204-1 -- United States bonds or notes.

- Subpart 5128.3 -- Insurance

- 5128.301 -- Policy.
- 5128.307 -- Insurance under cost-reimbursement contracts.

- 5128.307-1 -- Group insurance plans.

- 5128.311 -- Solicitation provision and contract clause on liability insurance under cost-reimbursement contracts.

- 5128.311-1 -- Contract clause.

AFARS -- Part 5128
Bonds and Insurance

Subpart 5128.1 -- Bonds

5128.106 -- Administration.

5128.106-90 -- Review of bonds and consents of surety.

All bonds and consents of surety must be reviewed by the legal counsel.

Subpart 5128.2 – Sureties and Other Security for Bonds

5128.202 -- Acceptability of corporate sureties.

(c) The Department of the Treasury’s web site http://www.fms.treas.gov/c570/ provides the Treasury Circular 570 and updates. Distribution of the information to contracting activities and offices of the staff judge advocates that cannot access the web site shall be in accordance with Head of Contracting Activity (HCA) instructions. New bonds obtained as required by the Federal Acquisition Regulation (FAR) shall be promptly forwarded for review in accordance with 5128.106-90. [AFARS Revision #21, dated May 22, 2007]

5128.203 -- Acceptability of individual sureties.

(e) Refer evidence to the local Procurement Fraud Advisor. See Army Regulation (AR) 27-40. [AFARS Revision #21, dated May 22, 2007]

5128.203-7 -- Exclusion of individual sureties.

(d) Send the determination and findings (D&F) justifying acceptance to the HCA. If the HCA concurs, the request and concurrence must be then sent through the addressee in 5101.290(b)(8) to the debarring official for a determination. [AFARS Revision #21, dated May 22, 2007]

5128.204 -- Alternatives in lieu of corporate or individual sureties.

5128.204-1 -- United States bonds or notes.

When a contractor furnishes security in lieu of corporate or individual sureties on bonds, the contracting officer must send a certified copy of the receipt for the deposited security and a certified copy of any required power of attorney and agreement to legal counsel along with the bond.

Subpart 5128.3 -- Insurance

5128.301 -- Policy.

(b) Contracting officers responsible for contract administration on contracts retained by the Army are designated as the point of contact for each arrangement.

5128.307 -- Insurance under cost-reimbursement contracts.

5128.307-1 -- Group insurance plans.

(a) Prior approval requirement.

Group insurance plans under cost-reimbursement contracts administered by the Army must be submitted for approval to the contracting officer.

5128.311 -- Solicitation provision and contract clause on liability insurance under cost-reimbursement contracts.

5128.311-1 -- Contract clause.

When required by paragraph (g) of the clause at FAR 52.228-7, Insurance -- Liability to Third Persons, the contracting officer must notify the Chief, Torts Branch, Army Litigation Center, Office of The Judge Advocate General, Headquarters, Department of The Army, Attn: JALS-LTT, 901 North Stuart Street, Suite 400, Arlington, VA 22203-1837, by phone at (703) 696-1620 or DSN 426-1620. When the pertinent papers are received from the contractor, they shall be forwarded to the Chief, Torts Branch, at the address given, with a request to inform the Director, Torts Branch, Civil Division, Department of Justice. [AFARS Revision #21, dated May 22, 2007]