Fidelity Bonds

The Commonwealth of Kentucky's Finance and Administration Cabinet issued Request for Bid (RFB) 758 2000000357 on behalf of the Education and Workforce Development Cabinet to procure fidelity bonds for the Kentucky Federal Bonding Demonstration Grant program on December 13, 2019. This solicitation sought 213 notary fidelity bonds designed to provide dishonesty coverage for employers hiring at-risk, hard-to-place job seekers who are unable to secure private bonding through traditional means. The Federal Bonding Program, authorized under Section 169 of the Workforce Innovation and Opportunity Act and administered by the Department of Labor's Office of Employment and Training, provides $5,000 coverage per employee for six-month periods, with exceptions allowing increased coverage up to $25,000 through multiple bonds. Eligible workers include ex-offenders, individuals recovering from substance use disorders, public assistance recipients, individuals with poor credit records, economically disadvantaged youth and adults, and dishonorably discharged military members, among others. Bidders were required to submit sealed bid responses in hard copy format to the Office of Procurement Services at 702 Capitol Avenue, Capitol Annex Room 095, Frankfort, Kentucky 40601, with written questions due by December 19, 2019, at 4:30 PM ET and bids closing on December 30, 2019, at 1:30 PM ET. Award would be made on a best value basis with pricing valued at 1,000 points as the primary evaluation criterion, and all bidders were required to meet pass/fail minimum requirements including an AM Best Rating of B+ or better and compliance with Kentucky insurance code Chapter 304 and all applicable federal, state, and local regulations.

Kentucky resident bidders and qualified bidders, including Kentucky Correctional Industries and agencies serving individuals with severe disabilities, were eligible for reciprocal and statutory preferences under this procurement. Bidders claiming qualified bidder status under KRS 45A.465(3) were required to demonstrate that their organization served individuals with severe disabilities, employed such individuals for at least seventy-five percent of direct labor hours in manufacturing or providing listed products or services, and maintained registration in good standing with the Secretary of State. All bidders were required to submit completed Kentucky Tax Registration Form 10A100, execute required affidavits including the Annual Affidavit, Resident Bidder Affidavit, and Qualified Bidder Affidavit, and provide certificates of authority for foreign entities where applicable. The initial contract term was established for one year from the date of award with an optional renewal provision allowing for four additional one-year periods subject to written approval by all parties and potential renegotiation of terms. Price increases were prohibited during the first twelve months of the contract and thereafter required written justification based on industry-wide price changes, with all prices quoted as F.O.B. Destination Freight Prepaid and Allowed and remaining valid for a minimum of sixty days after the bid due date. No specific award value or budget range was disclosed in the solicitation documentation.