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Federal Transit Administration Clauses <br />3. BONDING REQUIREMENTS <br />Bonds are required for all construction or facility improvement contracts and subcontractsexceeding <br />the simplified acquisition threshold. <br />a. Bid Guarantee — Bid Bond <br />This clause flows down and extends to all third -party contractors and their contracts. It must be <br />included in every tier contract. <br />Bidders shall furnish a bid guarantee in the form of a bid bond, or certified treasurer's or <br />cashier'scheck issued by a responsible bank or trust company, made payable to the City of <br />Everett. The amount of such guarantee shall be equal to five percent (5%) of the total bid price. <br />In submitting this bid, it is understood and agreed by bidder that the City of Everett reserves the <br />right to reject any and all bids, or part of any bid, and it is agreed that the Bid may not be <br />withdrawn for a period of [90] days subsequent to the opening of bids, without the written <br />consent of the City of Everett. <br />It is also understood and agreed that if the undersigned bidder should withdraw any part or all <br />of his bid within [90] days after the bid opening without the written consent of the City of <br />Everett, or refuse or be unable to enter into this Contract as provided above, or refuse or be <br />unable to furnish adequate and acceptable Performance and Payment Bonds, or refuse or be <br />unable to furnish adequate and acceptable insurance, as provided above, it shall forfeit its bid <br />guarantee to the extent City of Everett's damages occasioned by such withdrawal, or refusal, or <br />inability to enter into an agreement, or provide adequate security thereof. <br />It is further understood and agreed that to the extent the defaulting bidder's bid guarantee shall <br />prove inadequate to fully recompensate the City of Everett for the damages occasioned by <br />default, then the undersigned bidder agrees to indemnify the City of Everett and pay over to the <br />City of Everett the difference between the bid guarantee and City of Everett's total damages so <br />as to make the City of Everett whole. <br />The undersigned understands that any material alteration of any of the above or any of the <br />material contained herein, other than that requested will render the bid unresponsive. <br />b. Performance Guarantee — Performance Bond <br />A performance guarantee in the amount of one hundred percent (100%) of the Contract value is <br />required by the Recipient to ensure faithful performance of the Contract. Either a Performance <br />Bond or an Irrevocable Stand -By Letter of Credit shall be provided by the Contractor and shall <br />remain in full force for the term of the Agreement. The successful Bidder shall certify that it will <br />provide the requisite Performance Guarantee to the City of Everett within ten (10) business days <br />from Contract execution. The City of Everett requires all performance bonds to be provided by a <br />fully qualified surety company acceptable to the City of Everett and listed as a company <br />currently authorized under 31 C.F.R. part 22 as possessing a Certificate of Authority as described <br />hereunder. The City of Everett may require additional performance bond protection when the <br />contract price is increased. The increase in protection shall generally equal one hundred percent <br />(100%) of the increase in contract price. The City of Everett may secure additional protection by <br />directing the Contractor to increase the amount of the existing bond or to obtain an additional <br />4 <br />