Surety Bond Registration

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Treasury, Department of Federal
Surety bonds are required for various projects to ensure project completion. 

The Financial Management Service (FMS), a bureau of the US Treasury Department, is responsible for administering the surety bond program for the federal government under 31 U.S.C. 9304-9308. Companies who wish to do the following must apply to the FMS:
  1. direct write federal bonds or
  2. reinsure federal bonds or
  3. be recognized as an Admitted Reinsurer for the companies in Categories 1 and 2.
Unlike traditional insurance, which has two parties (insurer and insured), surety bonding has three parties:
  1. the obligee or project owner,
  2. the principal or contractor, and
  3. the surety who assures the obligee or project owner that the principal can fulfill the project to the agreed specifications or else pay a sum to ensure project completion.
Surety bonds have different purposes:
  • bid bonds ensure that the contractor will enter into the specified contract if awarded the bid;
  • performance bonds ensure that the contractor will complete the project according to specifications;
  • maintenance bonds ensure that the principal/contractor will perform maintenance for the duration of the project.
Other types of bonds also exist.

Companies' applications are reviewed thoroughly to ensure that only financially sound companies receive Treasury recognition. It is the responsibility of FMS to continually review and monitor the financial status of companies to be approved in all three categories listed above.

Companies in category 3 cannot directly write a federal bond or reinsure an excess risk for a direct writer. 



For more information, contact:

Financial Management Service
3700 East West Highway
Room 6F01
Hyattsville, MD 20782
Phone: (202) 874-6850
Fax: (202) 874-9978
[email protected]
Website: https://www.fiscal.treasury.gov/

Surety & Fidelity Association of America
1140 19th St NW
Suite 500
Washington, DC 20036
Phone: (202) 463-0600
Fax: (202) 463-0606
[email protected]
Website: http://www.surety.org/

U.S. Small Business Administration
New York District Office
26 Federal Plaza, Suite 3100
New York, NY 10278
Phone: (800) 827-5722
Fax: (212) 264-4693
[email protected]

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