Responsibilities regarding insurance and bonding for solicitations
IB 1 - Introduction
This chapter outlines the responsibilities of Procurement Services, County Attorney’s Office, Risk Management Division (RM), and Requesting Departments (RD) regarding insurance and bonding for solicitations. County Departments, with the responsibility for negotiation or handling non-procurement contracts, must coordinate with RM to ensure appropriate insurance requirements.
IB 2 - Insurance requirement
RM determines the insurance needs, types, and limits for relevant County purchases, as well as the adequacy of insurance agents and companies for County projects. For relevant procurements the RD must coordinate with RM to provide signed insurance documents. Procurement Services will obtain required insurance documentation from offerors and forward it to RM. After RM confirms compliance, Procurement Services will proceed with the solicitation process. If non-compliant the issue will be jointly resolved with the RD, RM, and Procurement Services.
IB 3 - Bonds and deposits
IB 3.1 - Performance bond
Performance bonds are required on all construction projects exceeding $200,000. However, the County may waive the performance bond requirement for projects $500,000 or less when the project is awarded pursuant to the County’s Small Business Enterprise Program1. Additionally, the Director of Procurement may require a performance bond when it is deemed to be in the best interest of the County. Performance bonds are required if payment bonds are required.
IB 3.2 - Payment bond
Payment bonds are required on all construction projects exceeding $200,000. However, the County may waive the payment bond requirement for projects $500,000 or less when the projected is awarded pursuant to the County’s Small Business Enterprise Program1. The Director of Procurement may require an offeror to furnish a payment bond on contracts for purchase of commodities or services when it is deemed to be in the best interest of the County.
IB 3.3 - Offer bond or guarantee of good faith deposit
The Director of Procurement may require offerors to submit an offer bond or guaranty of good faith deposit in the amount specified. Offer bonds and other securities will be effective and retained for the time the offer is effective.
IB 3.4 - Processing of bonds and deposits for bid/proposal opportunities
Offerors are responsible for securing required bonds or deposits, with associated costs included in the contract price. Surety companies must be licensed in Florida, acceptable to the County, and bonds must fall within the surety’s bonding limits. Bonds must be signed by an agent registered Department of Insurance and authorized by a current Power of Attorney to bind the Surety. Bonds are reviewed for acceptability by the County Attorney’s Office and filed with the Clerk in the Board's official records. Failure to provide an acceptable bond within 10 days of notification may result in the Board rescinding the award, terminating the contract, and retaining any good faith deposit, bid bond, or guaranty submitted.
Offerors may provide a certified check, cashier’s check, treasurer’s check, or bank draft from a licensed financial institution as a guaranty of good faith deposit. Personal checks, business checks, and cash are not accepted. Checks are deposited with the County’s Financial Services Department and bonds will be retained by Procurement Services. Upon contract award, fulfillment of all post-award requirements, and offeror’s request, Procurement Services will coordinate with the County’s Financial Services Department to refund deposits and/or return bonds to bidders/proposers.
IB 3.5 - Processing of bonds post award
Prior to performance of the contract the contractor must provide two (2) original copies of performance and payment bonds to Procurement Services. The Bonds will be delivered to the Clerk’s Office to be signed and recorded. After recording, one (1) original copy is returned to the contractor, the other original copy is retained by the Clerk’s Office.
IB Notes
Pursuant to 2004 Fla. Laws Chapter 414