D.C. Mun. Regs. tit. 19, r. 19-4357

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

Rule 19-4357 - BONDS, INSURANCE AND OTHER FINANCIAL PROTECTIONS

4357.1

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;

4357.2

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

(a) Whether Library 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 Library (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 Library.

4357.3

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 Library.

4357.4

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

(a) A bond provided by a surety in accordance with Section 4358;

(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 Library which pledge the full faith and credit of the United States.

4357.5

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

D.C. Mun. Regs. tit. 19, r. 19-4357

Final Rulemaking published at 55 DCR 493 (January 18, 2008)