Federal contracting rules recognize both corporate sureties and individual sureties, but they are not evaluated the same way. A corporate surety is typically reviewed under Treasury Circular 570 and the corporate surety requirements of FAR 28.202. An individual surety is reviewed under the individual surety requirements of FAR 28.203, including pledged eligible assets, SF 28, and Treasury collateral eligibility/valuation procedures.
| Corporate Surety (FAR 28.202) | Individual Surety (FAR 28.203) |
|---|---|
| Company listed on Treasury Circular 570 | Natural person acting as surety |
| Evaluated under FAR 28.202 | Evaluated under FAR 28.203 |
| Corporate underwriting and Treasury listing are central | Pledged eligible assets, SF 28, and collateral review are central |
| Bond issued by an authorized surety company | Bond executed by individual surety with required support documents |
| Contracting officer checks Circular 570 listing | Contracting officer evaluates SF 28, pledged assets, eligibility, value, and required collateral procedures |
An individual surety bond is supported by pledged eligible assets. The purpose of the asset pledge is to provide a defined collateral source supporting the penal sum of the bond. The contractor, individual surety, obligee, and contracting officer must review the specific solicitation, contract, bond form, collateral documentation, and applicable requirements.
For federal submissions, pledged assets must meet Treasury Bureau of the Fiscal Service eligibility requirements. The net adjusted value of pledged unencumbered assets must equal or exceed the penal amount of the bond. The individual surety must execute SF 28, Affidavit of Individual Surety, and provide the required security interest.
For federal individual surety bonds, not every valuable asset is automatically acceptable collateral. The asset must meet applicable Treasury eligibility requirements. Any reference to securities, stocks, treasury-listed securities, government obligations, or other assets must be reviewed against current federal collateral requirements and the specific contracting officer's instructions.
Individual surety package coordination
Bond application review
Contractor and project information collection
Asset and collateral documentation checklist
SF 28 support information
Bid, performance, and payment bond package preparation
Contracting officer quick-reference support
Approval, decline, or request-for-information notification