Exhibit_M_-_Bonding_Requirements_24_CFR_PART_85.36_(4).pdf
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- Solicitation number
- 26-B-119KW
- Issued by
- Volusia County, Florida
About this file
This is a bonding requirements exhibit for federal grant-funded construction contracts, specifically implementing 24 CFR Part 85.36 requirements for Volusia County's Office of Recovery and Resiliency in Florida, which is managing HUD Community Development Block Grant for Disaster Recovery (CDBG-DR) funding. The exhibit establishes mandatory bonding compliance standards that must be verified prior to issuance of the notice to proceed for the Lantern Park Stormwater Pond Construction project, a Hurricane Ian recovery initiative. The bonding requirements apply to all construction and facility improvement contracts or subcontracts exceeding the simplified acquisition threshold and are binding unless the awarding agency has made a specific determination that its interests are adequately protected under alternative bonding policies.
The minimum bonding requirements mandate that each bidder provide a bid guarantee equivalent to five percent of the bid price in the form of a firm commitment such as a bid bond, certified check, or other negotiable instrument. Additionally, the contractor must furnish a performance bond for 100 percent of the contract price to ensure fulfillment of all contractual obligations and a payment bond for 100 percent of the contract price to assure payment to all labor and material suppliers. These bonding requirements are established under federal regulations governing grants and cooperative agreements to state, local, and federally recognized Indian tribal governments and represent mandatory compliance obligations for all participating contractors on this federally funded disaster recovery project.
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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.
EXHIBIT M
https://www.hud.gov/sites/documents/24CFR85-36PROC.PDF
File details come from the government source that posted it. Updated .