6.0_Bonding_Requirements_24_CFR_PART_85.36.pdf

This is an administrative requirements document outlining bonding compliance mandates issued under 24 CFR Part 85.36 for grants and cooperative agreements administered to state, local, and federally recognized Indian tribal governments. The document applies to the County of Volusia's CDBG-CV Seville Village Improvement Association Pavilion Construction project in Florida, a federally assisted initiative funded through the Community Development Block Grant program. The project involves construction of a new pavilion at the Seville Village Improvement Association site, with the awarded contractor required to obtain building permit approval prior to commencing construction activities.

Bonding requirements are mandatory for all construction or facility improvement contracts exceeding the simplified acquisition threshold, with proof of bonding required prior to issuance of the notice to proceed. The minimum bonding requirements include a bid guarantee from each bidder equivalent to five percent of the bid price in the form of a bid bond, certified check, or other negotiable instrument; a performance bond from the contractor for one hundred percent of the contract price to secure fulfillment of all contractual obligations; and a payment bond from the contractor for one hundred percent of the contract price to ensure payment of all labor and material suppliers. The project is subject to additional federal requirements including Davis-Bacon Act prevailing wage rates, the Copeland Act anti-kickback provisions with weekly certified payroll reporting, Section 3 compliance, and M/WBE considerations, with the prime contractor bearing responsibility for wage compliance enforcement and potential liability for wage restitution.