# AFARS PART 5128

- 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 5128.2 – Sureties and Other Security for Bonds

5128.202 Acceptability of corporate sureties.

(c) If corporate surety information from the U.S. Department of the Treasury website is not available, distribute in accordance with head of the contracting activity (HCA) instructions.

5128.203 Acceptability of individual sureties.

(g) Refer evidence to the local contracting office’s procurement fraud advisor. See Army Regulation 27-40 Litigation.

5128.203-7 Exclusion of individual sureties.

(d) Send the determination and findings justifying acceptance to the HCA. If the HCA concurs, send the request and concurrence through the addressee in 5101.290(b)(5) to the suspension and debarment official for a determination.

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) When more than one agency is involved and the Army retains contract administration functions, the contracting officer responsible for contract administration is the point of contact. Contracting officers shall review and approve the contractor’s insurance program and coordinate with other interested agencies before acting on significant insurance matters.

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 in paragraph (g) of the clause at FAR 52.228-7, Insurance – Liability to Third Persons, the contracting officer must send a notification to the following address with a request to inform the Director, Torts Branch, Civil Division, Attorney General:

Attn: JALS-LTT Army Litigation Division

U.S. Army Legal Services Agency (USALSA)

9275 Gunston Road

Fort Belvoir, VA 22060.