The Department of Defense, General Services Administration, and NASA issued a final rule altering the Federal Acquisition Regulation. This change aligns with the National Defense Authorization Act for Fiscal Year 2016, requiring individual sureties to pledge specific U.S. Government-backed assets as security for bonds, enhancing the protection against default. Public comments showed strong support for the rule, citing its benefits in fraud prevention and protection of subcontractors and suppliers in federal construction projects. The rule also aims to streamline the procurement process without significantly impacting small businesses' access to bonding.
Simple Explanation
In simple words, the new rule says that people who promise to pay money if a contractor doesn't do their job right now have to use special, safer things that the government likes to prove they can keep their promise. This change is meant to stop tricksters and make sure everyone, like builders and their helpers, are protected, though it might make it a little harder for some small businesses to find these promising people.