D.C. Mun. Regs. r. 27-2703
The contracting officer shall require a contractor to furnish performance and payment bonds or other security on any construction contract when the District's independent estimate of the cost of the contract exceeds one hundred thousand dollars ($100,000), in accordance with the provisions of this section.
The contracting officer may require a contractor to furnish a payment or performance bond or other security for any construction or non-construction contract, regardless of amount, when the contracting officer determines that the security is necessary or advisable to protect the interests of the District. The security shall be furnished in accordance with the provisions of this section.
The amount of the performance security on any construction contract shall be one hundred percent (100%) of the portion of the original contract price that does not include the costs of operation, maintenance, and finance; provided, the contracting officer may reduce the amount of the performance security to fifty percent (50%) of the original contract price that does not include the costs of operation, maintenance, and finance, if the contracting officer determines that the lesser amount or percentage would be adequate for the protection of the District. The contracting officer shall state the amount or percentage in the solicitation.
The contracting officer shall require additional performance security on any construction contract when a contract price is increased. The increase in performance security shall equal one hundred percent (100%) of the increase in the contract price, unless the contracting officer determines that a lesser amount or percentage is adequate for the protection of the District.
The contracting officer may require additional performance security by directing a contractor to increase the original sum of the existing security or to obtain an additional security.
The payment security on any construction contract shall be in an amount equal to one hundred percent (100%) of the portion of the original contract price that does not include the costs of operation, maintenance, and finance; provided, the contracting officer may reduce the amount of the payment security to fifty percent (50%) of the portion of the contract price that does not include the costs of operation, maintenance, and finance, if the contracting officer determines that the lesser amount or percentage would be adequate for the protection of the District. The contracting officer shall state the amount or percentage in the solicitation.
When a construction contract price is increased, the District may require additional payment security in an amount adequate to protect suppliers of labor and material. However, in no event shall the amount of payment security fall below fifty percent (50%) of the portion of the increased contract price that does not include the costs of operation, maintenance, and finance.
When performance or payment security is required, the solicitation shall contain the following:
In construction contracts, the contractor shall furnish all performance and payment bonds (or other securities) by the deadline for submitting bonds (or other securities) as stated in the solicitation. The bonds (or other securities) must be submitted before a notice to proceed is issued.
No performance security or payment security shall be required after the contract has been executed if it was not specifically required in the contract, except when determined necessary by the contracting officer for a contract modification.
If the contracting officer uses a letter contract to allow the contractor to proceed with work before execution of the definitive contract, no payments shall be made under the letter contract until the required payment and performance securities have been received.
In construction contracts, the contracting officer may substitute for a bond required under this chapter, a letter of credit in an amount equal to at least ten percent (10%) of the portion of the contract price that does not include the cost of operation, maintenance, and finance, in cases in which the contractor:
D.C. Mun. Regs. r. 27-2703