(a) Bid security shall be required for all competitive sealed bidding and competitive sealed proposals for construction contracts when the price is estimated by the contracting officer to exceed $100,000. Bid security shall be a bond provided by a surety company authorized to do business in the District or the equivalent in cash, or otherwise supplied in a form satisfactory to the District. This section shall not prevent the requirement of such bonds on such contracts under $100,000 or bid or proposal bonds on any other contracts when the circumstances warrant.
(b) Bid security shall be in an amount equal to at least 5% of the amount of the bid.
(c) If the Invitation for Bids or Request for Proposals requires that a bid bond be provided, a bidder that does not comply shall be rejected unless, pursuant to rule, it is determined that the bid or offer fails to comply in a nonsubstantial manner with the security requirements.
(d) After bids are opened, they shall be irrevocable for the period specified in the Invitation for Bids. If a bidder is permitted to withdraw its bid or proposal before award, or is excluded from the competition before award, no action shall be had against the bidder or the bid security.
(Apr. 8, 2011, D.C. Law 18-371, § 701, 58 DCR 1185.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For history of Law 18-371, see notes under § 2-351.01.
(a)(1) When a construction contract is awarded in excess of $100,000, the following bonds or security shall be delivered to the District and shall become binding on the parties upon the execution of the contract:
(A) A performance bond satisfactory to the District, executed by a surety company authorized to do business in the District or otherwise secured in a manner satisfactory to the District, in an amount equal to 100% of the portion of the contract price that does not include the cost of operation, maintenance, and finance; and
(B) A payment bond satisfactory to the District, executed by a surety company authorized to do business in the District or otherwise secured in a manner satisfactory to the District, for the protection of all persons supplying labor and material to the contractor or its subcontractors for the performance of the construction work provided for in the contract.
(2) The payment bond required by paragraph (1)(B) of this subsection shall be in an amount equal to 100% of the portion of the contract price that does not include the cost of operation, maintenance, and finance.
(b) Pursuant to rules promulgated under this chapter, the CPO may reduce the amount of performance and payment bonds to 50% of the amounts established in subsection (a) of this section.
(c) This section shall not limit the authority of the District to require a performance bond or other security in addition to such bonds or in circumstances other than specified in subsection (a) of this section.
(d)(1) A person who has furnished labor or material to the contractor or its subcontractors for the work provided in the construction contract, in respect of which a payment bond is furnished under this section, and who has not been paid in full before the expiration of a period of 90 days after the day on which the last of the labor was done or performed by such person or material was furnished or supplied by such person for which claim is made, shall have a right of action on the payment bond for the amount unpaid at the time of institution of the action and to prosecute the action for the amount due to the person.
(2) Any person having a direct contractual relationship with a subcontractor of the contractor, but no contractual relationship express or implied with the contractor furnishing the payment bond, shall have a right of action upon the payment bond upon giving written notice to the contractor within 90 days after the date on which the person did or performed the last of the labor or furnished or supplied the last of the material upon which the claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed. The notice shall be personally served or served by other form of receipted transmittal that confirms actual delivery to the contractor at any place the contractor maintains an office or conducts its business or at the contractor's residence.
(e) An action instituted upon a payment bond shall be brought in a court of competent jurisdiction within the District, but an action suit shall not be commenced after the expiration of one year after the day on which the last of the labor was performed or material was supplied by the person bringing the action. The obligee named in the bond need not be joined as a party in the action.
(f) An action instituted under this section shall not be commenced after one year from the date that the final labor was performed or the material was supplied.
(Apr. 8, 2011, D.C. Law 18-371, § 702, 58 DCR 1185.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For history of Law 18-371, see notes under § 2-351.01.
(a) The CPO shall prescribe the form of the bonds required by this chapter.
(b) Any person may request and obtain from the District a certified copy of a bond upon payment of the cost of reproduction of the bond and postage, if any. A certified copy of a bond shall be prima facie evidence of the contents, execution, and delivery of the original.
(Apr. 8, 2011, D.C. Law 18-371, § 703, 58 DCR 1185.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For history of Law 18-371, see notes under § 2-351.01.
Pursuant to rules promulgated under this chapter, the CPO may require a solicitation to include one or more of the following forms of security to assure the timely, faithful, and uninterrupted provision of operations and maintenance services, procured separately or as one element of design-build-operate-maintain or design-build-finance-operate-maintain services:
(1) Operations period surety bonds that secure the performance of the contractor's operations and maintenance obligations under the project delivery methods set forth in § 2-356.01;
(2) Letters of credit in an amount appropriate to cover the cost to the District of preventing infrastructure service interruptions for a period up to 12 months under the project delivery methods set forth in § 2-356.01; or
(3) Appropriate written guarantees from the contractor (or depending upon the circumstances, from parent corporations) to secure the recovery of procurement costs to the District in the event of a default in performance by the contractor.
(Apr. 8, 2011, D.C. Law 18-371, § 704, 58 DCR 1185.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For history of Law 18-371, see notes under § 2-351.01.
Pursuant to rules promulgated under this chapter, the CPO may require a bond for any solicitation if the CPO determines that it would be in the best interests of the District.
(Apr. 8, 2011, D.C. Law 18-371, § 705, 58 DCR 1185.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For history of Law 18-371, see notes under § 2-351.01.
(a) Every contract modification, change order, or contract price adjustment under a contract with the District shall be subject to prior written certification by the fiscal officer of the entity responsible for funding the project or the contract, or other official responsible for monitoring and reporting upon the status of the costs of the total project budget or contract budget, as to the effect of the contract modification, change order, or adjustment in contract price on the total project budget or the total contract budget.
(b) If the certification of the fiscal officer or other responsible official discloses a resulting increase in the total project budget or the total contract budget, the contracting officer shall not execute or make the contract modification, change order, or adjustment in contract price unless:
(1) Sufficient funds are available therefor; or
(2) The scope of the project or contract is adjusted so as to permit the degree of completion that is feasible within the total project budget or total contract budget as it existed prior to the contract modification, change order, or adjustment in contract price under consideration.
(Apr. 8, 2011, D.C. Law 18-371, § 706, 58 DCR 1185.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For history of Law 18-371, see notes under § 2-351.01.
