D.C. Mun. Regs. tit. 8, r. 8-B3048

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

Rule 8-B3048 - BONDS, INSURANCE AND OTHER FINANCIAL PROTECTIONS

3048.1

The CCO has the discretion to require any types of security specified in this section for any solicitation or contract including the following:

(a) Bid bonds or proposal bonds;

(b) Performance or payment bonds for construction;

(c) Performance or payment bonds or other security for non-construction contracts;

3048.2

The CCO shall consider the following factors in non-construction contracts:

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

(b) When a contractor sells assets to or merges with another business entity, whether the University (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 items 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 instruments to protect the best interests of the University.

3048.3

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 University.

3048.4

When a security is required by the University, the CCO may accept any of the following types of security:

(a) A bond provided by a surety in accordance with Section 3049;

(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 University which pledge the full faith and credit of the United States;

(d) Any other security determined by the CCO to be adequate.

3048.5

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

D.C. Mun. Regs. tit. 8, r. 8-B3048

Final Rulemaking published at 57 DCR 2630 (Mar. 2010)

Authority: D.C. Official Code § 38-1202.01 (2001 ed.)