This Tip Sheet addresses the topic of Bonding Commitment Letters – who needs to submit them, what are they used for, and what qualifies as an acceptable Bonding Commitment Letter.
Which applicants are required to submit Bonding Commitment Letters?
Both full Prime and Small Prime applicants are required to submit bonding letters on a yearly basis with their applications.
Applicants who are only seeking certification as a Filed Sub-Bidder are not required to submit bonding letters with their applications.
What are the bonding commitment letters used for?
Bonding Commitment Letters are used to establish the maximum dollar amount the surety will support for a single project, as well as the total dollar amount the surety will support for the outstanding aggregate work (total dollar amount of uncompleted projects a contractor is allowed to take on at one time).
DCAMM has established formulas used to calculate an applicant’s Single Project Limit and Aggregate Work Limit. These calculated limits are capped by the limits set forth in the applicant’s Bonding Commitment Letter.
The Single Project Limit and the Aggregate Work Limit are set forth on the Certificate of Eligibility. Applicants wishing to increase capped bidding limits may do so by securing a new Bonding Commitment Letter with higher limits and submitting it along with an Amendment request through the DCAMM Contractor Management System portal.
What constitutes an acceptable bonding letter?
Per DCAMM Guidelines (Section II B. 9)the bonding commitment letter should be addressed to DCAMM and must include minimum single and aggregate project limits in excess of $150,000 and the name of the surety. The surety must be on the most recent list of approved sureties issued by the United States Department of the Treasury. The letter must come from either the applicant’s bonding agent or the surety company. DCAMM will not accept letters from third party intermediaries.
Bonding commitment letters should specifically refer to the applicant company. If the bonding letter instead refers to a parent company or affiliate, the letter must also clearly state that it also covers all subsidiaries or affiliates for it to be acceptable at DCAMM’s discretion.
Bonding Commitment Letters cannot be more than three months old at the time the application is submitted. If a letter is more than three months old at the time the application is submitted, applicants will be asked to provide an updated letter prior to approval.
| Date published: | August 4, 2026 |
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