5.0_Bonding_Requirements_24_CFR_PART_85.36.pdf
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- Solicitation number
- 26-B-07IF
- Issued by
- Volusia County, Florida
About this file
This is a bonding requirements document issued under 24 CFR Part 85.36, establishing administrative requirements for grants and cooperative agreements to state, local, and federally recognized Indian tribal governments, applicable to the Volusia County, Florida CDBG-CV Seville Village Improvement Association Historic Gym HVAC Installation project (Contract No. C2056). The project involves the installation of a new HVAC system in a historic gymnasium located at 1591 US Highway 17, Seville, Florida, specifically requiring ten 3-ton ductless mini-split heat pump units with a total cooling load of 357,724.75 BTU/hr and heating load of 208,861 BTU/hr. Bids are due by November 13, 2025, at 3:00 pm through the County's eProcurement Portal, with a pre-bid meeting scheduled for October 21, 2025, at 10:00 am. The awarded contractor must achieve substantial completion within 150 days and final completion within 180 days from notice to proceed.
The estimated construction cost is $150,000, with funding provided through the federally funded Community Development Block Grant - Cares Act (CDBG-CV). Bonding requirements mandate that each bidder provide a bid guarantee equivalent to five percent of the bid price, a performance bond for 100 percent of the contract price, and a payment bond for 100 percent of the contract price. The project is subject to federal labor standards including Davis-Bacon Act prevailing wage rates and Copeland Act anti-kickback provisions. Section 3 compliance requires that 25 percent of total labor hours be performed by Section 3 workers and 5 percent by Targeted Section 3 workers. The awarded contractor is responsible for obtaining all necessary permits, conducting required inspections, submitting weekly certified payroll reports, and ensuring compliance with Minority and Women-Owned Business Enterprise (M/WBE) reporting requirements.
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Text version
24 CFR PART 85.36 Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments
Compliance with the following bonding requirements is mandatory.
Proof of bonding will be verified prior to issuance of the notice to proceed.
(h) Bonding requirements.
For construction or facility improvement contracts or subcontracts exceeding the simplified acquisition threshold, the awarding agency may accept the bonding policy and requirements of the grantee or sub grantee provided the awarding agency has made a determination that the awarding agency's interest is adequately protected. If such a determination has not been made, the minimum requirements shall be as follows:
(1) A bid guarantee from each bidder equivalent to five percent of the bid price. The bid guarantee shall consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of his bid, execute such contractual documents as may be required within the time specified.
(2) A performance bond on the part of the contractor for 100 percent of the contract price. A performance bond is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract.
(3) A payment bond on the part of the contractor for 100 percent of the contract price. A payment bond is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract.
https://www.hud.gov/sites/documents/24CFR85-36PROC.PDF
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