Section 27-2708. SURETIES

 

2708.1Agencies shall obtain adequate security for bonds (including coinsurance and reinsurance agreements), required or used with a contractor for goods or services, including construction.

 

2708.2A bond security may be obtained from a corporate or individual surety, provided that an individual surety shall not be used for any construction contract in excess of one hundred thousand dollars ($100,000).

 

2708.3Each corporate surety shall be a company authorized to do business in the District of Columbia.

 

2708.4The contracting officer shall determine the acceptability of all individuals proposed as sureties.

 

2708.5At least two (2) individual sureties shall be required to execute a security. The net worth of each individual surety shall equal or exceed the amount of the security.

 

2708.6When determining the acceptability of an individual surety, the contracting officer shall consider the number and amounts of other bonds upon which a proposed individual surety is bound, and the status of the contracts for which those securities were furnished.

 

2708.7Each individual surety shall execute an affidavit of financial responsibility on a form prescribed by the Director.

 

2708.8In accordance with §2 of the Act of June 11, 1878, D.C. Code §1-301 (1981), no person, corporation, partnership, or other entity shall act as a surety under this chapter at any time during the period when that person, corporation, partnership, or other entity is a party to a contract with the District of Columbia.

 

source

Final Rulemaking published at 35 DCR 1602 (February 26, 1988).