Section 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.