Attachment 3 - Bonds.pdf

Request for Proposal (RFP) Attachment 4:

Performance Bond

3202600180 – BET Multiple Locations

1. The Successful Respondent must procure and maintain a performance bond in the amount which is equal to one (1) month’s average sales for the service sites at the time of proposal due date. The purpose of the performance bond is to ensure that all performance responsibilities, monetary or otherwise, of the

Successful Respondent and its agents that are expressed in the Contract will be satisfactorily fulfilled. This includes the Successful Respondent’s defaulting on the Contract. The original bond must be delivered to the TWC-BET

Vending Specialist prior to the installation of any machines or the commencement of any services. Subcontractors are not responsible for providing bonds to TWC.

2. The following instruments may be submitted to TWC in lieu of a performance bond:

i. Surety or blanket bond from a company chartered or authorized to do business in Texas;

ii. Irrevocable letter of credit issued by a financial institution subject to the laws of Texas.

3. Performance bond submitted must be effective on the beginning date of the

Contract and must not expire until six (6) months after the expiration date of the

Contract (e.g., if the initial contract term is 6/1/2017-5/31/2019, the bond/surety term must be 6/1/2017-11/30/2019). This applies to any renewal periods exercised by TWC and ensures that all monthly sales, commissions, and

RFP No. 3202600180 Page 2 of 2 Attachment 5: Performance Bond v. Dec 2025

4. Performance bonds completed (signed) by an out-of-Texas surety require a countersignature and a 7-digit license number by a Texas resident agent of a company chartered or authorized to do business in Texas or a copy of a reciprocal agreement between states.

5. A separate performance bond must be provided for each contract awarded and must reference the Contract number for which the bond is provided.

6. All references to the performance bond by the Successful Respondent must reference the effective dates of the Contract and the RFP number or Contract number in lieu of or in addition to the bonding company's number.

7. Performance bonds must be made payable to TWC. TWC may delay the installation of vending equipment if a bond or an approved alternative surety is not received.

8. Any default or breach of the Contract may result in exercise of the performance bond by TWC.