Section 1400.3010  Security Requirements

a)         The Chief Procurement Officer may require that a vendor furnish bid, proposal, or performance security on any contract.

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 Chief Procurement Officer shall determine the amount, in dollars or percentage of contract price, that adequately protects the State's interests.

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 other similar reasons.

e)         The Treasurer's office may require a bid or proposal security or a performance security on any contract.

f)         A vendor may submit a single or continuous security each year that will be applicable on all contracts of the Treasurer's office.  When a security is obligated in an amount equal to the sum of accumulated security requirements, additional security must be submitted for any new contract awarded.

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.