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Payment Bond Not Limited On Indefinite-quantity Contract Bonds-payment

Monday, January 03, 2005 03:48 pm

Payment Bond Not Limited On Indefinite-quantity Contract Bonds-payment

A federal appeals court has ruled that a Miller Act payment bond on an indefinite-quantity contract was not limited to the one-year base period or the minimum value of the contract.

The Department of Defense awarded an indefinitequantity construction contract to PMR Construction Services, Inc. for work at the White Sands Missile Range in New Mexico. The contract called for the government to purchase a minimum of $713,000 in materials and services during a one-year base period. The government was authorized to purchase more than that amount and had th [...]

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