Security Requirements

Section 1120 Section 1120.2047  Security Requirements a)         The CPO may require that a vendor furnish bid, proposal or performance security on IOC contracts. Whenever security is required, except as provided in this Section, the procurement document will clearly indicate the type and amount of security. b)         Security, unless otherwise specified, may be in the form of cashier's check, certified check, money order, irrevocable letter of credit or bond.  Any bond must be issued by a surety company authorized to do business in the State of Illinois. c)         Unless the amount is set by law, the CPO will determine the amount, in dollars or percentage of contract price, that will adequately protect the State's interests. d)         A vendor may be required to furnish up to 100% performance security at any time during contract performance and at its cost, if it appears that delivery or production schedules cannot be met, quality is poor, or responsibility is questioned, and for similar reasons. e)         Permissive/Mandatory Security 1)         Bid or proposal security is permissive on any contract but is not appropriate on emergency or sole source procurements. 2)         Performance security is permissive on any contract and is recommended on contracts calling for advance payment. 3)         Performance security is required on all public works contracts. f)         A vendor may submit a single or continuous security each year that will be applicable on all IOC contracts.  When the security has been obligated in an amount equal to the sum of accumulated security requirements, additional security must be submitted. g)         Bid or proposal security will be returned to unsuccessful vendors as soon after award as possible.  The bid or proposal security of the successful vendor will be returned after contracts have been signed and performance security, if any, submitted.  Performance security will be returned upon full performance.