True or False: The Miller Act imposes requirements for performance bonds on contractors working on federal projects.

The statement is true because the Miller Act is a federal law that specifically requires contractors to obtain performance bonds for public construction projects exceeding a certain monetary threshold. This act was established to protect the federal government and ensure that contractors fulfill their contractual obligations on government projects.

Performance bonds serve as a guarantee that the contractor will complete the project according to the specifications outlined in the contract. If the contractor fails to perform, the bond provides a source of financial compensation to the federal government or other involved parties. By requiring these bonds, the Miller Act aims to prevent issues such as project delays and financial losses for the government, ultimately ensuring that federal projects are completed successfully and efficiently.

Hence, considering this essential role that the Miller Act plays in promoting accountability among contractors on federal projects, the correct answer is indeed true.