B.08 Solicitation SF1442 W912E026 Iraq CTS Medical Warehouse Attach H.pdf

ATTACHMENT H

BANK LETTER OF GUARANTEE – PAYMENT SURETY

BANK LETTER OF GUARANTEE

(1) Within twenty (20) calendar days after the date of the contract, the Contractor shall furnish the Contracting Officer a Bank Letter of Guarantee (BLG or Letter of Guarantee) for the payment of work, in the amount of thirty percent (30%) of the contract price conforming to the exact format as the sample BLG attached to this solicitation. The Letter of Guarantee shall be dated as of the contract date or no more than fifteen (15) calendar days thereafter. The Letter of Guarantee shall state that it will continue in effect for three hundred sixty five

(365) calendar days after the date the last work under the contract is accepted by the Government. The Letter of Guarantee shall also state that the bank agrees and consents that the contract may be modified by a change order or supplemental agreement without affecting the validity of the Letter of Guarantee. The provisions of paragraph

(g) of the Contract Clause, 52.232-5, titled “PAYMENTS UNDER FIXED PRICE CONSTRUCTION CONTRACTS (MAY 2014)” applies to letters of Guarantee.

NOTE: FAR Clause 52.232-5 does not provide for reimbursement to the contractor for premiums above and beyond the contract amount.

(2) Notice to Proceed will not be issued until the contractor has submitted a properly formatted and executed Bank Letter of Guarantee.

(3) The Payment surety must be issued on the Government provided Bid Surety Bank Letter of Guarantee form and must be issued by one financial institutions registered on the Treasury Circular 570 List.

(End of Requirement)

W912ER22R0026

SAMPLE PAYMENT SURETY BANK LETTER OF GUARANTEE:

BANK LETTER OF GUARANTEE

[Bank Letterhead] [Place] [Date]

To: : U.S. Army Corps of Engineers, Transatlantic Middle East District LTC Lester Gebski, 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 the amount equal to ten percent (10%) of the contract 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 payment of the work 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 contract may be modified by Change Order or Supplemental Agreement 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 thirty percent (30%) of the original contract price until the anticipated completion date or until the work has been finally accepted by the Government, whichever occurs first, and it will continue in effect thereafter, for three hundred sixty five (365) calendar days in an amount equal to thirty percent (30%) of the original contract price, 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.

W912ER22R0026

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.