When a federal supply or service contract requires a performance bond, the contracting officer can also require a payment bond on Standard Form 1416. It protects the people who furnish labor and material to the contractor and its subcontractors, and its penal sum is a percentage of the original contract price set in FAR clause 52.228-16.
| Title / common name | SF 1416 — Payment Bond for Other Than Construction Contracts (Standard Form 1416), the federal payment bond for supply and service contracts |
|---|---|
| Bond type | Contract — payment bond (non-construction federal contracts) |
| Industry / license category | Federal supply and service contracting / contract surety |
| Jurisdiction | United States (federal) · General Services Administration (GSA) forms library / Federal Acquisition Regulation (FAR) Prescribed by FAR (48 CFR) 53.228(m) and authorized for payment bonds required under FAR 28.103-3. It is the non-construction counterpart of the SF 25A payment bond used on Miller Act construction contracts. |
| Obligee | United States of America (“the Government”) The bond reads: “We, the Principal and Surety(ies), are firmly bound to the United States of America (hereinafter called the Government) in the above penal sum.” The protected claimants are persons with a contract relationship with the principal or a subcontractor of the principal who furnish labor, material or both. |
| Typical penal sum | A percentage of the original contract price, set by the contracting officer FAR 52.228-16(b) has the contractor furnish a payment bond (SF 1416) “in an amount equal to ______ percent of the original contract price”, with the percentage filled in for each contract. “Original contract price” excludes options not exercised at award. Under FAR 28.103-3(b) the Government may require more bond protection if the contract price increases. |
| When it is required | Only alongside a performance bond, and only when it is in the Government’s interest FAR 28.103-3(a): “A payment bond is required only when a performance bond is required, and if the use of payment bond is in the Government’s interest.” The performance bond on these contracts is SF 1418. |
| What it covers | Prompt payment of everyone who furnishes labor, material or both under the contract, including duly authorized modifications The obligation is void if the principal “promptly makes payment to all persons (claimants) having a contract relationship with the Principal or a subcontractor of the Principal”. Notice of modifications to the sureties is waived. |
| Claims on the bond | 90 days to a direct right of action; second-tier claimants must give 90-day written notice; suit within one year in U.S. District Court Claimants not paid in full 90 days after their last labor or material have a direct right of action against the principal and sureties. A claimant without a direct contract with the principal must give the principal written notice, stating the amount claimed with substantial accuracy, within 90 days of its last work or materials, by registered or certified mail or as legal process is served. Suit must be brought within one year of the last work or materials, in the United States District Court for the district where the contract was performed. |
| Sureties | Corporate sureties on the Treasury list (Circular 570) within their listed limits, or individual sureties with SF 28 Co-sureties are bound jointly and severally only to allow a joint action; otherwise each is liable up to the limit shown opposite its name, and if no limit is shown, up to the full penal sum. FAR 52.228-16(e) also allows other acceptable security, such as an irrevocable letter of credit or certified check. |
| Companion form | SF 1418 — Performance Bond for Other Than Construction Contracts FAR 52.228-16(b) pairs the two bonds, each sized as a percentage of the original contract price. Alternate I of the clause requires the performance bond only. |
| Form number / edition | SF 1416 · Rev. 10/2023 · 3 pages (form, surety blocks, instructions) GSA lists the current revision date as 10/2023 (checked 2026-11-04); the form says “Previous Edition Is Not Usable”. The FAR 53.228(m) text still cites the older Rev. 10/98, so use the GSA library copy. OMB Control Number 9000-0001. |
| Effective / cancellation | In force until the principal has paid the labor and material claimants under the contract The form has no cancellation clause. It stays “in full force” while claimants remain unpaid, subject to the notice and suit limits above. |
| Source | GSA — SF 1416 Payment Bond for Other Than Construction Contracts (PDF) (official federal form · Rev. 10/2023 · 3 pages · linked, not hosted) Also: GSA Forms Library — SF1416 · FAR 52.228-16 · FAR 28.103-3 |
| Status | current |
| Last verified | 2026-11-04 |
From SF 1416: “In these cases, persons not paid in full before the expiration of ninety (90) days after the date of which the last labor was performed or material furnishing, have a direct right of action against the Principal and Surety(ies) on this bond for the sum or sums justly due.”
Use SF 1416 for supply, service and other non-construction contracts that call for payment protection. Federal construction contracts use the SF 25A payment bond with the SF 25 performance bond under the Miller Act. The claim mechanics on SF 1416 (90-day notice for second-tier claimants, one-year suit window, federal district court) follow the Miller Act model, which our Miller Act and little Miller Act guide explains.
Second-tier suppliers should calendar the 90-day notice from their last delivery and send it by registered or certified mail. Our subcontractor payment bond claim guide covers what a notice should contain. Where several sureties share a large bond, each is liable only up to its stated limit; co-surety and penal sums on megaprojects explains how those limits are split, and the contract surety guide covers how sureties underwrite payment bonds.
Open the Source link above for the official GSA PDF. We summarize field facts and quote one short key clause rather than reproducing the form. Use the current form from the GSA Forms Library; Global Guarantors does not host copies.