The Small Business Administration (SBA) issued a proposed rule to implement provisions in the National Defense Authorization
Act for fiscal year 2013 that would raise the maximum contract amount for which the SBA can guarantee a bond from $2 million to $6.5 million, or to $10 million if a federal contracting officer certifies the guarantee is necessary for the small business to obtain bonding. The rule also would allow the SBA’s Quick Bond Application and Agreement to be used on contracts with up to $1,000 in liquidated damages per day, an increase from the current $250 per day, and on contracts with at least a two-year warranty/maintenance period (with SBA approval). It also would require prime contractors that receive a guaranteed bond to “retain full responsibility for the oversight and management of the contract, including any work performed by a subcontractor, and may not subcontract the full scope of the statement of work.”