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<br /> For construction or facility improvement contracts or subcontracts exceeding the Simplified Acquisition
<br /> Threshold, the Federal awarding agency or pass-through entity may accept the bonding policy and
<br /> requirements of the non-Federal entity provided that the Federal awarding agency or pass-through entity
<br /> has made a determination that the Federal interest is adequately protected. If such a determination has
<br /> not been made,the minimum requirements must be as follows:
<br /> (a)A bid guarantee from each bidder equivalent to five percent of the bid price.The"bid guarantee"must
<br /> consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument
<br /> accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such
<br /> contractual documents as may be required within the time specified.
<br /> (b) A performance bond on the part of the contractor for 100 percent of the contract price. A
<br /> "performance bond" is one executed in connection with a contract to secure fulfillment of all the
<br /> contractor's obligations under such contract.
<br /> (c)A payment bond on the part of the contractor for 100 percent of the contract price.A"payment
<br /> bond" is one executed in connection with a contract to assure payment as required by law of all persons
<br /> supplying labor and material in the execution of the work provided for in the contract.
<br /> §200.326 Contract provisions.
<br /> The non-Federal entity's contracts must contain the applicable provisions described in Appendix II to
<br /> Part 200—Contract Provisions for non-Federal Entity Contracts Under Federal Awards.
<br /> Appendix II to Part 200—Contract Provisions for Non-Federal Entity Contracts Under Federal Awards
<br /> In addition to other provisions required by the Federal agency or non-Federal entity, all contracts made
<br /> by the non-Federal entity under the Federal award must contain provisions covering the following, as
<br /> applicable.
<br /> (A) Contracts for more than the simplified acquisition threshold currently set at $150,000, which is the
<br /> inflation adjusted amount determined by the Civilian Agency Acquisition Council and the Defense
<br /> Acquisition Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address administrative,
<br /> contractual, or legal remedies in instances where contractors violate or breach contract terms, and
<br /> provide for such sanctions and penalties as appropriate.
<br /> (B)All contracts in excess of$10,000 must address termination for cause and for convenience by the non-
<br /> Federal entity including the manner by which it will be effected and the basis for settlement.
<br /> City of Sunny Isles Beach I ITB 18-03-03 Right-of-Ways and Facilities Landscape Maintenance Services 126
<br /> Lukes' Landscaping, Inc.
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