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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 8. HIGHER EDUCATION |
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SubTilte 8-B. UNIVERSITY OF THE DISTRICT OF COLUMBIA |
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Chapter 8-B30. UNIVERSITY PROCUREMENT RULES |
Section 8-B3048. BONDS, INSURANCE AND OTHER FINANCIAL PROTECTIONS
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3048.1The 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;
3048.2The CCO shall consider the following factors in non-construction contracts:
(a) Whether University 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 University (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 University.
3048.3A 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 University.
3048.4When a security is required by the University, the CCO may accept any of the following types of security:
(a) A bond provided by a surety in accordance with Section 3049;
(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 University which pledge the full faith and credit of the United States;
(d) Any other security determined by the CCO to be adequate.
3048.5The CCO shall determine a contractor’s responsibility even though security has been or can be obtained.