D.C. Mun. Regs. tit. 27, r. 27-2700

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 27-2700 - GENERAL PROVISIONS

2700.1

In addition to the requirements for bonds and other security under the provisions of Title V of the D.C. Procurement Practices Act of 1985 (the "Act"), D.C. Law 6-85, D.C. Code § 1-1185 (1981), the Director or any contracting officer may require any of the following types of security for any solicitation or contract subject to the provisions of the Act and this title, other that a small purchase under chapter 18, regardless of the estimated amount of the contract:

(a) Bid bonds;

(b) Other bid or proposal security;

(c) Construction performance and payment bonds; and

(d) Performance or payment bonds or other security on non-construction contracts.

2700.2

The contracting officer shall determine whether security of any type would be in the best interests of the District in all contracts other than small purchases. In non-construction contracts, the contracting officer shall consider the following factors:

(a) Whether District property or funds are to be provided to the contractor for use in performing the contract or as partial compensation (such as in retention of salvaged material);

(b) When a contractor sells assets to or merges with another business entity, whether the District (after recognizing the other entity as the successor in interest) needs assurance that it is financially capable;

(c) Whether substantial progress payments are to be made before delivery of end item starts;

(d) Whether the contract is for dismantling, demolition, or removal of improvements; or

(e) Any other factors which might favor the use of security to protect the best interests of the District.

2700.3

A payment security shall be required only when a performance security is required and the use of the payment security is in the best interests of the District, unless the contracting officer determines in writing that either type of security would, by itself, protect the best interests of the District.

2700.4

When a security is required by the contracting officer under the Act or this chapter, the contracting officer may accept any of the following types of security:

(a) A bond provided by a surety in accordance with § 2708;

(b) A certified check or irrevocable letter of credit issued by an insured financial institution in the equivalent amount of the security: or

(c) United States government securities that are assigned to the District which pledge the full faith and credit of the United States.

2700.5

The contracting officer shall determine a contractor's responsibility even though security has been or can be obtained.

2700.6

A solicitation shall not bar bidders or offerors from using any of the types of surety or security permitted by this chapter, unless otherwise prohibited by law or regulation.

2700.7

When required by federal law or regulation or as a condition of federal assistance, the contracting officer shall require security, and the solicitation shall state the requirement.

D.C. Mun. Regs. tit. 27, r. 27-2700

Final Rulemaking published at 35 DCR 1596 (February 26, 1988)

AUTHORITY: Unless otherwise noted, the authority for this chapter is the District of Columbia Procurement Practices Act of 1985, D.C. Law 6-85, as amended, D.C. Code § 1-1181.1 et seq. (1981).