Fidelity bonds

The Commonwealth of Kentucky, through the Office of Employment and Training under the Education & Workforce Development division, is soliciting bids for fidelity bond coverage services via Request for Bid (RFB) 758 2000000292. The procurement seeks 213 fidelity bonds to support the Federal Bonding Demonstration Grant program, which provides coverage to employers hiring at-risk and hard-to-place job seekers unable to secure private bonding due to criminal histories or behavioral concerns. Each bond must provide a minimum of $5,000 in coverage with the ability to use multiple bonds per employee up to a maximum of $25,000 in total coverage per employee, and must reimburse employers for losses resulting from employee illegal acts including theft, forgery, and embezzlement, with coverage lasting at least six months. Bidders must possess an AM Best Rating of B+ or better, provide a certificate of authority, and comply with Kentucky insurance code Chapter 304. The initial contract period is one year from the date of award, with four optional one-year renewal periods available by mutual written agreement. Written questions were due November 8, 2019, at 4:30 PM EST, and sealed bids were due November 18, 2019, at 1:30 PM EST, submitted as one original plus three copies to the Commonwealth's Office of Procurement Services at 702 Capitol Avenue, Capitol Annex Room 095, Frankfort, Kentucky 40601. Award will be determined using best value methodology with price weighted at 1,000 points, with the lowest bidder receiving maximum points and other bidders scored proportionally.

Resident bidder preferences and qualified bidder preferences apply under applicable Kentucky statutes, with qualified bidder status available to nonprofit corporations furthering the purposes of KRS Chapter 163 and qualified nonprofit agencies serving individuals with severe disabilities as defined under KRS 45A.465(3). All bidders must submit the Kentucky Tax Registration Form 10A100, and out-of-state bidders must provide Secretary of State certification or identify applicable exceptions. Bidders must also complete and notarize an Annual Affidavit affirming compliance with Kentucky campaign finance laws, disclosure requirements, sales and use tax registration, state tax compliance, and non-boycott provisions under Executive Order No. 2018-905, along with certifications regarding the Qualified Bidder Affidavit and Resident Bidder Affidavit as applicable. No specific contract award value or budget range is disclosed in the solicitation materials. Price increases are not permitted during the first 12 months of the contract; subsequent increases require written justification based on industry-wide price changes and must be requested at least 30 days in advance, while price decreases must be reflected immediately upon availability. The contract may be cancelled with 30 days' written notice by the Commonwealth.