Attachment 5 - Bid Surety Form.pdf

"Source Selection Information - See FAR 2.101 and 3.104"

ATTACHMENT 5

BID SURETY

A. BANK LETTER OF GUARANTEE

(1) By the deadline set for submitting a proposal, the Contractor shall furnish the Contracting Officer a bid guarantee in the form of a Bank Letter of Guarantee (BLG or Letter of Guarantee), in the amount of twenty percent (20%) of the bid price or not to exceed $3 Million U.S. Dollars, whichever, is less conforming to the exact format as the sample BLG attached to this solicitation. The Letter of Guarantee shall be dated no later than the date on which proposals are due. The Letter of Guarantee shall state that it will continue in effect until the successful contractor is chosen or for a minimum of 120 days after the date offers are due and all contractual documents and bonds are executed. The Letter of Guarantee shall also state that the bank agrees and consents that the bid or proposal amount may be modified as a result of discussions (negotiations), if any, between the Contractor and the U.S. Government without affecting the validity of the Letter of Guarantee.

(2) Failure to furnish a bid guarantee in the proper form and amount, by the time set for submitting a proposal, will be cause for rejection of the proposal.

(3) The Contracting Officer will return bid guarantees to unsuccessful contractors as soon as practicable after the deadline for proposal submissions and to the successful contractor upon execution of contractual documents and bonds, as required by the proposal as accepted.

(4) If the successful bidder upon acceptance of its bid by the Government within the period specified for acceptance, fails to execute all contractual documents or furnish executed surety(ies) within 10 days after receipt of the forms by the bidder, the Contracting Officer may terminate the contract for default.

(5) In the event the contract is terminated for default, the bidder is liable for any cost of acquiring the work that exceeds the amount of its bid, and the bid guarantee is available to offset the difference.

(6) The Bid surety must be issued on the Government provided Bid Surety Bank Letter of Guarantee form and be issued by a Saudi Arabian Monetary Authority/Saudi Central Bank approved financial institution.

(End of Requirement)

B. SAMPLE BID SURETY BANK LETTER OF GUARANTEE:

BANK LETTER OF GUARANTEE

[Bank

Letterhead]

[Place]

[Date]

To: U.S. Army Corps of Engineers, Transatlantic Middle East District

Attn:

Contracting Officer P.O. Box 2250 Winchester, Virginia 22601-1450

Letter of Guarantee No.

The undersigned, acting as the duly authorized representative of the bank, declares that the bank hereby guarantees to effect payment to the Contracting Officer by check made payable to the Treasurer of the United States, within five (5) days after receipt of a written request from the Contracting Officer, immediately and entirely without any need for the Contracting Officer to protest or to take any legal action or obtain the prior consent of the Contractor or for any other proof, action or decisions by any other authority, up to the sum of (Amount Equal to twenty percent (20%) or $3 Million U.S. Dollars, whichever is less of the proposal price in U.S. Dollars) which represents the deposit required of the Contractor to guarantee fulfillment of his obligations for the satisfactory, complete, and timely execution of contractual documents and sureties as required in accordance with his proposal submitted under Contract (Contract No.) for (Description of Work) at (Location of Work) in strict compliance with the terms, conditions and specifications of said contract, entered into between the Government and (Name of Contractor) of (Address of Contractor) on (Contract Date), plus interest of 10.25% per annum on the amount called due, calculated from the sixth day following receipt of the Contracting Officer’s written request until the date of payment.

The undersigned agrees and consents that said bid or proposal may be changed as a result of discussions (negotiations) between the Contractor and the U.S. Government, if any, without affecting the validity of this Guarantee provided, however, that the amount of this Guarantee shall remain unchanged.

The Letter of Guarantee will remain in effect at an amount equal to twenty percent (20%) or $3 Million U.S. Dollars, whichever is less of the original proposal price until the successful contractor is chosen and all contractual documents and bonds are fully executed, after which time the guarantee shall become null and void whether returned to the undersigned or not.

The obligation of the bank guarantor to make payment under this Letter of Guarantee upon the Contracting Officer’s demand is unconditional and not subject to any defense, based on alleged invalidity of this guarantee, invalidity of the contract between the United States and the party on whose behalf this guarantee was issued, lack or failure of consideration, or any other circumstances or representations not contained within this Letter of Guarantee.

This Bank Letter of Guarantee shall be governed by and interpreted in accordance with the laws of the State of New York, without regard to its conflict of laws principles. The exclusive forum for resolution of any and all disputes arising from or related to this Bank Letter of Guarantee shall be the United States District Court for the District of Columbia.

Signed By: [NAME TYPED BELOW

SIGNATURE]

Title:

By:

Title:

NOTE: Certificate of Authority is attached evidencing authority of the signers to bind the Bank in this document.

B. SAMPLE BID SURETY BANK LETTER OF GUARANTEE: