Perf_Bond_Sample.docx

SAMPLE OF PERFORMANCE GUARANTEE ISSUED BY A BANK

This sample meets the material requirements of clause NFAS 5252.228-9306, “Performance Guarantee.” The Government will accept as valid a Performance Guarantee conforming to these requirements.

BANK LETTERHEAD

To: United States of America U.S. Department of Navy Naval Facilities Engineering Command, Europe Africa Southwest Asia Viale Porto, Box 51 Aeroporto Capodichino 80144, Napoli, Italia

Attention: Contracting Officer Date Bank Letter of Performance Guarantee No.

This is a letter of performance guarantee. I/We, the undersigned, acting as the duly authorized representative(s) of the Bank, declare that the Bank hereby guarantees and is jointly and severally liable as guarantor with the Contractor named below to effect payment to the Contracting Office that issued the contract stated below, by check made payable to the “United States of America by the U.S. Department of the Navy, Naval Facilities Engineering Command Europe Africa Southwest Asia,” within five (5) calendar days after receipt of a simple written request by registered mail, return receipt, in amount up to sum of (Amount equal to eight (8%) percent of the contract amount in the currency stated in the contract), which represents the deposit required of the Contractor to guarantee fulfillment of his obligations for the satisfactory completion and timely performance of the work under Contract No. (insert contract number) for (insert description of services and location), in strict compliance with the terms, conditions and specifications of said contract entered into between the United States of America by the U.S. Department of Navy, Naval Facilities Engineering Command Europe Africa Southwest Asia and the Contractor (insert name of Contractor) on (insert contract date), plus legal interest to be calculated from the date of receipt of the registered letter of request by the Contracting Officer to the date of actual payment, without any need for the Contracting Officer to take any legal action or obtain the prior consent of the Contractor, or for any other proof, action or decision by any other authority. The request by the Contracting Officer shall simply inform the Bank that the Contractor failed to comply with the terms and conditions of the contract, or did not fulfill his 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 amount or the period of performance of the contract without prior consent of the Bank and without affecting the validity of this guarantee; provided, however, that the amount of this guarantee shall remain unchanged.

This letter of performance guarantee will continue in effect without change in amount or terms until one year after the work has been finally accepted by the Government through its Contracting Officer’s legal representative.

(BANK NAME & ADDRESS) (CONTRACTOR NAME & ADDRESS)

Signed by: Signed by: __________

(Typed name) (Typed name)

(Title) (Title)

(This Performance Guarantee shall be accompanied by a notarized document authenticating the bank agent’s authority to sign the letter of performance guarantee for the bank company.)