§947 Vessel Construction Bonding Requirements

Summary

The Secretary or the Commandant can require contractors who build, alter, repair, or maintain Coast Guard vessels to provide bonds or other financial guarantees (for example, bid, payment, performance, combined payment and performance, or completion bonds). They can do this when a law already requires a bond, or when, after checking, they decide that asking for a bond larger than 20 percent of the base contract’s value (not counting optional work) would not stop a responsible bidder from trying to win the contract.