14 U.S.C. § 667 : US Code - Section 667: Vessel construction bonding requirements

Search 14 U.S.C. § 667 : US Code - Section 667: Vessel construction bonding requirements

The Secretary or the Commandant may require bid, payment,
performance, payment and performance, or completion bonds or other
financial instruments from contractors for construction,
alteration, repair, or maintenance of Coast Guard vessels if -
(1) the bond is required by law; or
(2) the Secretary or Commandant determines after investigation
that the amount of the bond in excess of 20 percent of the value
of the base contract quantity excluding options, would not
prevent a responsible bidder or offeror from competing for award
of the contract.