Section 19-4357. BONDS, INSURANCE AND OTHER FINANCIAL PROTECTIONS

 

4357.1The CCO has the discretion to require any types of security specified in this section for any solicitation or contract including the following:

 

(a)Bid bonds or proposal bonds;

 

(b)Performance or payment bonds for construction;

 

(c)Performance or payment bonds or other security for non-construction contracts;

 

4357.2The CCO shall consider the following factors in non-construction contracts:

 

(a)Whether Library property or funds are to be provided to the contractor for use in performing the contract or as partial compensation (such as retention of salvaged material);

 

(b)When a contractor sells assets to or merges with another business entity, whether the Library (after recognizing the other entity as the successor in interest) needs assurance that it is financially capable;

 

(c)Whether substantial progress payments are to be made before delivery of end items starts;

 

(d)Whether the contract is for dismantling, demolition, or removal of improvements; or

 

(e)Any other factors which might favor the use of security instruments to protect the best interests of the Library.

 

4357.3A payment security shall be required only when a performance security is required and the use of the payment security is in the best interests of the Library.

 

4357.4When a security is required by the Library, the CCO may accept any of the following types of security:

 

(a)A bond provided by a surety in accordance with Section 4358;

 

(b)A certified check or irrevocable letter of credit issued by an insured financial institution in the equivalent amount of the security; or

 

(c)United States government securities that are assigned to the Library which pledge the full faith and credit of the United States.

 

4357.5The CCO shall determine a contractor's responsibility even though security has been or can be obtained.

 

source

Final Rulemaking published at 55 DCR 493 (January 18, 2008).