Section 27-4736. BONDS AND OTHER FORMS OF SECURITY

 

4736.1For all construction contracts estimated to exceed one hundred thousand dollars ($100,000), the CCO shall require bid security in the form of a bond, cash or other acceptable form of bid security outlined in the solicitation document.  All bonding companies must be licensed to conduct business in the District of Columbia and must be included on the Department of Treasury’s Listing of Approved Sureties.

 

4736.2If a bidder that has furnished bid security in a form other than a bond is awarded a contract and fails to post a payment and performance bond for the full value of the contract, the bidder shall forfeit the full amount of the bid security provided. 

 

4736.3Bid security shall be in amount equal to not less than five percent (5%) of the estimated cost of the contract to be awarded pursuant to the procurement. 

 

4736.4For all construction contracts awarded in excess of one hundred thousand dollars ($100,000), the CCO shall require that the contractor provide both a payment bond and a performance bond each in an amount equal to one hundred percent (100%) of the contract price.  All such bonds shall be issued by bonding companies licensed to conduct business in the District of Columbia and included on the Department of Treasury’s Listing of Approved Sureties.  The CCO, in its reasonable discretion, may reduce the value of the payment bond and performance bond required, however, the value of each may not be reduced to less than fifty percent (50%) of the contract price.   

 

4736.5The Contracting Officer may, in his or her reasonable discretion, require additional forms of security as set forth in section 704 of the PPRA. 

 

authority

The Interim Director of the Department of General Services (Department), pursuant to section 1106(a)(2) of the Procurement Practices Reform Act of 2010, effective April 8, 2011(D.C. Law 18-371; D.C. Official Code § 2-361.06(a)(2))(2011 Repl.); sections 1025(a) and 1029 of the Department of General Services Establishment Act of 2011, effective September 14, 2011(D.C. Law 19-21; 58 DCR 6226); and Mayor’s Order 2011-168, dated October 5, 2011.

source

Notice of Emergency and Proposed Rulemaking published at 58 DC 8805 (October 14, 2011)[EXPIRED]; as amended by Notice of Final Rulemaking published at 59 DCR 985, 1017 (February 10, 2012).