§947 Vessel construction bonding requirements

Summary

The Secretary or the Commandant can require contractors to provide bonds or other money guarantees—like bid, payment, performance, or completion bonds—when building, changing, repairing, or maintaining Coast Guard vessels. They may do this if a law already requires a bond, or if, after checking, they decide that a bond amount higher than 20 percent of the main contract’s value (not counting optional work) would not stop a responsible bidder from competing.