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Bond Forms

By Anonymous on Thursday, November 29, 2001 - 05:36 pm:

FAR 28.204(a) states the following:

"(a) Any person required to furnish a bond to the Government may furnish any of the types of security listed in 28.204-1 through 28.204-3 instead of a corporate or individual surety for the bond. When any of those types of security are deposited, a statement shall be incorporated in the bond form pledging the security in lieu of execution of the bond form by corporate or individual sureties. The contractor shall execute the bond forms as the principal."

Doesn't that mean that a contractor must complete and execute a bond form (as stated above) when using one of the alternative forms of security listed in 28.204-1 through 28.204-3?

By Anonymous on Friday, November 30, 2001 - 10:22 am:

The word "deposited" in the FAR reference, above, seems to indicate that bond forms are required only for those types of security that are deposited. If a bidder submits a cashier's check, for example, would that form of security be submitted as an attachment to a bond form?

By New2this on Wednesday, December 05, 2001 - 12:03 pm:

Annonymous: Do you mean if a bidder turns in with his bid a certified check for 20% of bid and does not have a SF 24 attached and filed out that you would declare him non-responsive if he was low bidder?

I meant to ask would you declare him non-responsive?

By Anonymous on Thursday, December 06, 2001 - 11:00 am:

Yes, should that bidder be declared non-responsive.

By New2this on Friday, December 07, 2001 - 11:20 am:

Why would the bidder be declared non-responsive if he turned in with his bid a certified check in the amount of 20% of his bid, made the check payable to your agency, and annotated on the check that it was for a bid guaranty for solicitation such and such?

By Anonymous on Monday, December 17, 2001 - 01:44 pm:

What would be the terms for use of the certified check? I believe the SF24 must be included with such security because it spells out the obligations and conditions for use of the security provided.

By New2this on Friday, January 11, 2002 - 10:26 am:

Does anyone else have an opinion on this subject?  Do you all think that the SF 24 must be turned in with say a certified check that is to be used as the bid guarantee?

By joel hoffman on Friday, January 11, 2002 - 10:44 am:

N2T, do you have a staff attorney? Protests related to bid bonds and alternatives to bonds are frequent. GAO seems to back up the Government when bid bonds are rejected every time an "i" isn't dotted or every "t" isn't crossed. To me, this is a legal question.

As an aside, the bonding agents I talk to treat bid bonds almost informally. They generally don't charge for the bid bonds and consider them an acknowledgement that they will bond the Contractor, if awarded the contract. I personally knew of people who routinely used to signed for others in the agent's office as "attorneys-in-fact".

Now, I also know that there have been a lot of problems with private sureties and pledges in lieu of bonds. I'd be personally inclined to treat them with caution and follow the letter of the requirement. You should check with your lawyer and heed his/her advice. I suppose you wouldn't be asking, if you had one? happy sails ! joel