Section R2-7-506. Bid Security

A.      The agency chief procurement officer shall include the bid security requirements of A.R.S. § 41-2573 in the solicitation.

B.       If an offeror fails to submit the bid security required by A.R.S.

§ 41-2573 with the offer, the agency chief procurement officer shall reject the offer.

C.      The offeror shall submit bid security in one of the following forms:

1.        An annual or one-time surety bond executed solely by a surety company authorized to transact surety business in this state, issued by the Director of the Department of Insurance under A.R.S. Title 20, Chapter 2, Article 1, and in a format prescribed by A.R.S. § 41-2573 and this Sec- tion; or

2.        A certified or cashier check.

D.      The state procurement administrator or, in the case of con- struction on state property, the Assistant Director of General Services, may issue a written determination to accept the bid security if the bid security fails to comply in a nonsubstantial manner when:

1.        Only one offer is received and there is not sufficient time to re-solicit;

2.        The amount of the bid security submitted, although less than the amount required by the solicitation, is equal to or greater than the difference between the apparent low offer and the next higher acceptable offer; or

3.        The bid security is inadequate as a result of correcting or modifying an offer in accordance with R2-7-B310, if the offeror increases the amount of the security to required limits within two days after notification.

E.       The state procurement administrator or, in the case of con- struction on state property, the Assistant Director of General Services, shall determine if the bid security may be released without penalty under § 41-2573(E).

Historical Note

Adopted as an emergency effective January 1, 1985, pur- suant to A.R.S. § 41-1003, valid for only 90 days (Supp. 84-6). Emergency expired. Permanent rule adopted effec- tive April 3, 1985 (Supp. 85-2). Amended effective April

2, 1993 (Supp. 93-2). Amended by final rulemaking at 12

A.A.R. 508, effective April 8, 2006 (Supp. 06-1).