This guide explains DFARS Part 228, Bonds and Insurance, through contract-type distinctions and a fictional aircraft-overhaul example.

Check risk allocation before buying coverage. Defense-contract status alone does not identify the bonds, insurance, or reporting duties your team must meet.

Watch the DFARS Part 228 lesson

DFARS Part 228: Separate construction bonds from insurance

First, identify the contract type, construction scope, and applicable subcontract protections. Part 228 addresses construction bonds as well as insurance. A cost-type prime contract and its fixed-price construction subcontracts can raise different protection requirements. First, check thresholds in the governing version and any applicable authorized deviation before requesting a bond.

Read aircraft risk terms before pricing

Ground and Flight Risk is a specific allocation of covered aircraft risk, with definitions, exclusions, and a contractor share of loss. Government assumption of risk is conditional. Do not assume all damage or every aircraft component is covered. Next, review the actual clause and coverage facts with contracts, operations, and finance before pricing premiums or allocating potential losses.

Keep reporting and subcontract duties visible

The mishap clause addresses prompt reporting of pertinent facts to the administrative contracting officer, cooperation with Government investigations, and subcontract provisions requiring cooperation and assistance. An insurance certificate does not replace those operational duties.

A hypothetical example

An aircraft-overhaul company assumes a new award requires both a performance bond and a commercial aircraft policy. Contracts identifies the work and actual terms. The team separates construction-bond questions from aircraft risk allocation, checks whether the Government assumes specified risks, and confirms reporting and subcontract responsibilities. The example illustrates preparation; it does not determine coverage for a real contract.

DFARS Part 228 preparation checklist

1. Identify contract type and construction scope.
2. List applicable bond and insurance terms.
3. Verify governing thresholds and deviations.
4. Review covered aircraft, exclusions, and loss allocation.
5. Check proposed premiums for allowability.
6. Assign mishap and claims reporting owners.
7. Review subcontract requirements.
8. Resolve unclear terms with the contracting officer and qualified reviewers.

Official sources and applicability

DFARS Part 228; 252.228-7001, Ground and Flight Risk; and Part 252.228 clauses. Then, verify current changes, authorized deviations, and the dated solicitation or contract.

Build your readiness baseline

Explore GovAssessment for a structured business-readiness baseline. It does not certify compliance or guarantee an award.

General education, not legal advice. Browse the DFARS series.