Does a subcontractor need both the Payment Bond and Performance Bond on file, and why?

I’m not sure what, what on file means. If you’re a general contractor and you have required your subcontractor to obtain payment and performance bonds, then you would want a copy of those because if the subcontractor defaulted, you would need to follow the instructions in the bond in order to preserve your rights as to the surety. So if on file, you mean in your own file as a general contractor, I would say the answer is yes.