B.08 RFP_Att#9 - Bank Letter of Guarantee (BLG) Template.docx

Attachment 9

BANK LETTER OF GUARANTEE SAMPLE

(BANK LETTERHEAD)

US Army Corps of Engineers, Europe District ATTN: Contracting Officer McCully Barracks, Bldg. 6206 Ober-Olmer-Strasse 55263 Ingelheim am Rhein, Germany

LETTER OF GUARANTY NUMBER:_______________ DATE:_________

The Contracting Officer for the below-referenced U.S. Government contract has determined pursuant to FAR 28.102-1 that obtaining performance and payment bonds is impractical. As a result, this Bank Letter of Guarantee (Letter) serves as a security for contract performance on the below-referenced contract.

I/We, the undersigned, acting as the duly authorized representative of the Bank, declare the following:

The Bank hereby guarantees and is jointly and severally liable as guarantor with the Contractor named below, or any lawful successors. The Bank guarantees to effect payment to the Contracting Office by check made payable to the Treasury of the United States, or via electronic funds transfer. Payment shall be made within seven (7) calendar days after receipt of a simple request from the Contracting Officer. The request may be sent by postal mail or email by the Contracting Officer designated in the contract described below, or by their successor. Payment shall be made immediately and in full. No protest, legal action, or prior consent of the Contractor is required for payment. No proof, action, or decision by any other authority is needed. The Bank guarantees payment up to the sum of ten percent (10%), which represents the deposit required of the Contractor. This deposit guarantees the Contractor’s obligation for satisfactory completion and timely performance of work under Contract No. W912GB26CA0XX. This is for construction under the award dated (AWARD DATE), at Bazum, Armenia. All work must be completed in strict compliance with the terms and conditions of the contract between the United States of America and the Contractor.

Legal interest will be added, calculated from the date of receipt of the Contracting Officer’s request until the date of payment. The letter or email request shall inform the Bank that the Contractor failed to comply with the terms and conditions of the contract or failed to fulfill its undertaking in whole or in part.

I/We agree and consent that said contract may be modified by change order or supplemental agreement, affecting the contract amount and/or time of performance without prior consent of the bank and without affecting the validity of this guaranty.

This Letter will continue in effect without change in amount or terms until the work has been finally accepted by the Government and will continue thereafter in an amount equal to FIVE (5%) percent of the original contract price and any modifications thereto, until all applicable guarantees, or extensions thereof under the contract, have expired. The undersigned, as well as any successors in interest, or co-signers or partners of the undersigned, or any other entity liable under the terms of this Letter, waives the right to deny any claim properly made by the Contracting Officer pursuant to the methodology identified above. Expiration of this Guarantee does not impact the validity of any demands previously made against it.

NAME & ADDRESS OF THE BANK

Signed By: ___________________________

TYPE NAME UNDERNEATH SIGNATURE)

Title:___________________________

Endorsement By:___________________________

(TYPE NAME UNDERNEATH SIGNATURE)

Title:__________________________

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