Rhode Island Code of Regulations
Title 220 - Department of Administration
Chapter 30 - Purchases
Subchapter 00 - N/A
Part 5 - Competitive Bid and Competitive Sealed Bid Review and Source Selection
Section 220-RICR-30-00-5.7 - Bidder Security

Universal Citation: 220 RI Code of Rules 30 00 5.7

Current through September 18, 2024

A. Bidder's security shall be a bond provided by a surety company authorized to do business in the State of Rhode Island, or the equivalent in cash, in a form satisfactory to the state.

1. The bidder may submit a certified check, bank check (cashier's check or treasurer's check), or money order as surety instead of a bond.

2. All such sureties must be dated within 30 days of the bid opening date and shall be valid for no less than 60 days from the bid opening dates.

3. All such sureties shall be made payable to the State of Rhode Island General Treasurer.

4. All sureties shall contain an identification of the bid number for which the surety is intended. (R.I. Gen. Laws § 37-2-40(1))

B. Bidder security shall be required for all competitive sealed bidding for construction contracts when the estimated price exceeds twenty-five thousand dollars ($25,000). Nothing herein prevents the requirement of such bonds on construction contracts under twenty-five thousand dollars ($25,000) when circumstances warrant.

1. The Purchasing Agent may require bidder security for any procurement that he judges to be substantial, or where in his opinion the potential of capricious or artificial bidding exists, or where there is a risk of withdrawal of offers prior to an award being made, or where the interests of the State otherwise require protection.

2. Bidder security may be required for contracts involving blanket orders, services or high value items when the value of the contract exceeds two thousand five hundred dollars ($2,500). (R.I. Gen. Laws § 37-2-40(1))

C. Bidder's security shall be in an amount equal to at least five percent (5%) of the amount bid. (R.I. Gen. Laws § 37-2-40(2))

D. When the invitation for bids requires that bid security be provided, noncompliance requires that the bid be rejected, provided, however, that the Chief Purchasing Officer may set forth by regulations exceptions to this requirement in the event of substantial compliance. If bid security is identified as mandatory in the invitation to bid pursuant to R.I. Gen. Laws § 37-2-18(a) through (h) "Competitive Sealed Bidding" and these regulations, the purchasing agent shall have no discretion to waive the bid security requirement. (R.I. Gen. Laws § 37-2-40(3))

E. After the bids are opened, they shall be irrevocable for the period specified in the invitation for bids, provided that if a bidder is permitted to withdraw his bid before award because of a mistake in the bid as allowed by law or regulation, no action shall be taken against the bidder or the bidder's surety. (R.I. Gen. Laws § 37-2-40(4))

F. After the bid opening the Purchasing Agent shall return the sureties of all but the three (3) apparent lowest bidders. When the evaluation of the bid has been completed, the Purchasing Agent shall return all but the lowest bidder's surety.

G. After the low bidder has been notified of the state's intent to proceed with a contract, the low bidder's bid surety shall be returned. When performance, labor and/or material bonds are required, the bid surety shall be returned upon receipt of the appropriate bond(s).

Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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