Ill. Admin. Code tit. 44, § 2000.2047 - Security Requirements
a) A
Procurement Officer may require that a vendor furnish bid, proposal, or
performance security on State contracts. Whenever security is required, except
as provided herein, the procurement document will clearly indicate the type and
amount of security.
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.
c) Unless the amount is
set by law, the Procurement Officer will determine the amount, in dollars or
percentage of contract price, that will adequately protect the State'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) Permissive/Mandatory
Security
1) Bid or proposal security is
permissive on any contract but is not appropriate on emergency or sole source
procurements.
2) Performance
security is permissive on any contract and is recommended on contracts calling
for advance payment.
3) Performance
security is required on all public works contracts.
f) A vendor may submit a single or continuous
security each year that will be applicable on all SOS contracts. When such
security has been obligated in an amount equal to the sum of accumulated
security requirements, additional security must be submitted.
g) Bid or proposal security will be returned
to unsuccessful vendors as soon after award as possible. The bid or proposal
security of the successful vendor will be returned after contracts have been
signed and performance security, if any, submitted. Performance security will
be returned upon full performance.
Notes
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