Security Requirements

Section 526 Section 4.2047  Security Requirements a)         Vendors shall furnish bid, proposal or performance security as specified in the solicitation or contract.  The cost of providing security will be borne by the vendor unless otherwise stated in the solicitation. 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 and having a rating acceptable to the university. c)         Unless the amount is set by law, the university will determine the amount, in dollars or percentage of contract price, that will adequately protect the university's interests.  That amount will vary depending on the type of procurement and the risks and potential losses associated with delay or failure to complete the project, and for other such reasons. 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, responsibility is questioned and for similar reasons. e)         The vendor's source of supply may also be required to furnish security. If the vendor does not have a stock of the supplies in question in the amount required or the facilities to produce the item in that amount, the university may, in addition, require the vendor to have the source of supply furnish security acceptable to the university, conditioned on the source supplying the vendor as required in the solicitation. f)         Bid or Proposal Security 1)         The bid or proposal security will be used to ensure the bidder or offeror meets all obligations imposed under the solicitation.  This includes, but is not limited to, the obligation to keep the price, bid or proposal firm for as long a period as specified in the solicitation, to enter into a contract, and to file a performance security.  The university may retain the bid or proposal security as damages if the bidder or offeror fails to meet its obligations. 2)         The bid or proposal security will be returned to the vendor as soon as is practicable after the bid or proposal opening..  Bid or proposal security will be returned to the unsuccessful vendors upon execution of the contract.