Supplying Principles and Practices > Solicitation Provisions > Provision 1-1 Supplier Clearance Requirements (March 2006) > Provision 2-1 Warranty Information (March 2006) > Provision 7-1 Performance Bond Requirements (March 2006)

Provision 7-1 Performance Bond Requirements (March 2006)

a. Any offeror selected for award of a contract as a result of this solicitation will be required to submit a performance bond in a penal amount equal to 100 percent of the contract price, within the time specified by the contracting officer.

b. The bond must be executed on the Postal Service forms attached to this solicitation, and sureties must be acceptable to the Postal Service. Corporate sureties must appear on the list in Treasury Circular 570, and the amount of the bond may not exceed the underwriting limit stated for the surety on that list.

c. Contract award will not be made until both an executed performance and payment bonds (see Provision 7-2) are received by the contracting officer.

Provision 7-2 Payment Bond Requirements (March 2006)

a. Any offeror selected for award of a contract as a result of this solicitation will be required to submit a payment bond in the penal amount set forth in the Schedule, within the time required by the contracting officer.

b. The bond must be executed on the Postal Service forms attached to this solicitation, and sureties must be acceptable to the Postal Service. Corporate sureties must appear on the list in Treasury Circular 570, and the amount of the bond may not exceed the underwriting limit stated for the surety on that list.

c. Contract award will not be made until both an executed payment and performance bonds (see Provision 7-1) are received by the contracting officer.

Provision 7-3 Fidelity Bond Requirements (March 2006)

Any offeror awarded a contract as a result of this solicitation will be required to submit a fidelity bond in the penal amount set forth in the Schedule, in a form acceptable to and within the time specified by the contracting officer. Corporate sureties must appear on the list in Treasury Circular 570, and the amount of the bond may not exceed the underwriting limit stated for the surety on that list. Failure to submit an acceptable bond may be cause for termination of the contract for default.

Provision 7-4 Deposit of Assets Requirements (March 2006)

a. Except for payment bonds required for construction contracts, any offeror required to submit a surety bond as a result of this solicitation may instead deposit assets in a form acceptable to the Postal Service in an amount set forth in the Schedule.

b. When assets are deposited, the offeror must execute the Postal Service bond form made a part of this solicitation. Failure to deposit assets acceptable to the Postal Service may be cause for termination of the contract for default.

Provision 7-5 Alternative Payment Protections (March 2006)

a. (The supplier shall submit one of the following payment protections:)
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b. The penal sum of the payment protection shall be in the amount of $_______________.

c. The submission of the payment protection is required by _________________________ .

d. The payment protection shall provide protection for the full contract performance period plus 1-year period.

e. Except for escrow agreements and payment bonds, which provide their own protection procedures, the contracting officer is authorized to access funds under the payment protection when it has been alleged in writing by a supplier of labor or material that a nonpayment has occurred, and to withhold such funds pending resolution by administrative judicial proceedings or mutual agreement of the parties.

f. When a tripartite escrow agreement is used, the supplier shall utilize only suppliers of labor and material who signed the escrow agreement.