|(a) The requirements described in this subsection relate
to construction or facility improvements in DOE WAP, HOME, CDBG, NSP,
HHSP, EH Fund, TCAP-RF, and ESG Subrecipients, or other fund source
required by state or federal law or regulation to have bonding for
construction or facility improvements.
(1) For construction contracts exceeding $100,000,
the Subrecipient must request and receive Department approval of the
bonding policy and requirements of the Subrecipient to ensure that
the Department is adequately protected.
(2) For construction contracts in excess of $100,000,
and for which the Department has not made a determination that the
Department's interest is adequately protected, a "bid guarantee" from
each bidder equivalent to 5% of the bid price shall be requested.
The "bid guarantee" shall consist of a firm commitment such as a bid
bond, certified check, or other negotiable instrument accompanying
a bid as assurance that the bidder will, upon acceptance of his bid,
execute such contractual documents as may be required within the time
specified. A bid bond in the form of any of the documents described
in this paragraph may be accepted as a "bid guarantee."
(A) A performance bond on the part of the Subrecipient
for 100% of the contract price. A "performance bond" is one executed
in connection with a contract, to secure fulfillment of all obligations
under such contract.
(B) A payment bond on the part of the subcontractor/vendor
for 100% of the contract price. A "payment bond" is one executed in
connection with a contract to assure payment as required by statute
of all persons supplying labor and material in the execution of the
work provided for in the contract.
(C) Where bonds are required, in the situations described
herein, the bonds shall be obtained from companies holding certificates
of authority as acceptable sureties pursuant to 31 CFR Part 223, "Surety
Companies Doing Business with the United States."
(b) A unit of government must comply with the bond
requirements contained in Texas statutes, including but not limited
to Tex. Gov't Code ch. 2253 and Tex. Local Gov't Code §252.044, §262.032,
or §392.0525, as applicable.