Exhibit_N_-_Bonding_Requirements_24_CFR_PART_85.36.pdf
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- Solicitation number
- 26-B-07IF
- Issued by
- Volusia County, Florida
About this file
This document details the 24 CFR Part 85.36 Administrative Requirements for Grants and Cooperative Agreements to State, Local, and Federally Recognized Indian Tribal Governments, specifically focusing on mandatory bonding requirements for construction or facility improvement contracts. The regulation applies to contracts or subcontracts exceeding the simplified acquisition threshold, requiring specific bonding provisions to protect the awarding agency's interests.
The bonding requirements include three key components: (1) a bid guarantee equivalent to five percent of the bid price, which ensures the bidder will execute required contractual documents upon bid acceptance; (2) a performance bond for 100 percent of the contract price to secure fulfillment of the contractor's obligations; and (3) a payment bond for 100 percent of the contract price to assure payment of all persons supplying labor and materials for the contract. The awarding agency may accept the grantee's existing bonding policy if it determines that its interests are adequately protected, otherwise these minimum requirements must be met. Proof of bonding will be verified before issuing a notice to proceed.
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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.
https://www.hud.gov/sites/documents/24CFR85-36PROC.PDF
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