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section18.121

Bid guarantees

Overview

This section specifies the authority and conditions under which the requirement for a bid guarantee may be waived during emergency acquisitions.

Key Rules

  • Waiver Authority: The power to waive the bid guarantee resides specifically with the chief of the contracting office.
  • Scope: This waiver is limited to "emergency acquisitions" as defined under FAR Part 18.
  • Prerequisites: A waiver can only be granted if a performance bond (or both a performance and payment bond) is still required for the contract.
  • Regulatory Cross-Reference: This provision aligns with the general bonding requirements found in FAR 28.101-1(c).

Practical Implications

  • This rule accelerates the procurement timeline during emergencies by reducing the administrative and financial burden on bidders at the proposal stage.
  • While the upfront bid guarantee is removed to ensure speed, the government maintains financial protection by ensuring performance and payment bonds are secured for the actual execution of the work.

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