4357. BONDS, INSURANCE AND OTHER FINANCIAL PROTECTIONS

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