Federal supply and service contracts rarely need a bond, but when a contracting officer requires one the contractor posts it on Standard Form 1418. The bond guarantees performance of the base or option term, and the penal sum is a percentage of the original contract price written into FAR clause 52.228-16.
| Title / common name | SF 1418 — Performance Bond for Other Than Construction Contracts (Standard Form 1418), the federal performance bond for supply and service contracts |
|---|---|
| Bond type | Contract — performance 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(n). It is the non-construction counterpart of the SF 25 performance bond, which is used for construction contracts under the Miller Act. |
| 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 contract number and contract date (and any option number and date) go on the face of the form. |
| Typical penal sum | A percentage of the original contract price, set by the contracting officer FAR 52.228-16 has the contractor furnish a performance bond (SF 1418) “in an amount equal to ___ percent of the original contract price”, with the percentage filled in for each contract. “Original contract price” excludes unexercised options. The Government may require more bond protection if the contract price increases. |
| When it is required | Only when the contract says so FAR 28.103-1 says agencies generally should not require performance and payment bonds on non-construction contracts. FAR 28.103-2 allows a performance bond above the simplified acquisition threshold when needed to protect the Government, for example when Government property or funds are provided to the contractor, a successor in interest needs financial assurance, substantial progress payments are made before delivery, or the contract is for dismantling, demolition or removal of improvements. |
| What it covers | Performance of all terms of the contract during the base term or an exercised option term, including extensions, any guaranty period, and authorized modifications Notice of modifications to the sureties is waived. A base-term guaranty covers the initial period of performance; an option-term guaranty covers that option. A surety’s failure to renew for an option term is not a default of any earlier bond. |
| 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. If no limit is shown, the limit is the full penal sum. FAR 52.228-16 also allows other acceptable security, such as an irrevocable letter of credit or certified check. |
| Companion form | SF 1416 — Payment Bond for Other Than Construction Contracts When the contract also requires payment protection, FAR 52.228-16 pairs SF 1418 with SF 1416. Alternate I of the clause requires the SF 1418 performance bond only. |
| Form number / edition | SF 1418 · Rev. 10/2023 · 4 pages (form, surety blocks, instructions) GSA lists the current revision date as 10/2023 (checked 2026-11-02); the form says “Previous Edition Is Not Usable”. The FAR 53.228(n) text still cites an older revision date, so use the GSA library copy. OMB Control Number 9000-0001. |
| Effective / cancellation | In force for the contract term the bond covers (base or option) until the principal has performed The form has no cancellation clause. Each option term can be bonded separately, and the bond is submitted to the contracting office that awarded the contract unless the contract says otherwise. |
| Source | GSA — SF 1418 Performance Bond for Other Than Construction Contracts (PDF) (official federal form · Rev. 10/2023 · 4 pages · linked, not hosted) Also: GSA Forms Library — SF1418 · FAR 52.228-16 · FAR 28.103-2 |
| Status | current |
| Last verified | 2026-11-02 |
From SF 1418: “The guaranty for a base term covers the initial period of performance of the contract and any extensions thereof excluding any options. The guaranty for an option term covers the period of performance for the option being exercised and any extensions thereof.”
And: “The failure of a surety to renew a bond for any option term shall not result in a default of any bond previously furnished covering any base or option term.”
Use SF 1418 for supply, service and other non-construction contracts. Federal construction contracts over the Miller Act threshold use the SF 25 performance bond and SF 25A payment bond instead, at 100% of the contract price, as our Miller Act and little Miller Act guide explains. SF 1418 is the only one of these that is written around base and option terms, which suits multi-year service contracts.
Check that each corporate surety is on Treasury Circular 570 and within its underwriting limit, and that the contract number, option number and penal sum match the solicitation. Our public owner guide to accepting and verifying bonds walks through those checks, and why obligees require bonds covers when performance security is worth asking for on a service contract. The contract surety guide explains how sureties underwrite performance bonds.
Open the Source link above for the official GSA PDF. We summarize field facts and quote short key clauses rather than reproducing the form. Use the current form from the GSA Forms Library; Global Guarantors does not host copies.