1. (a) Bid bonds or bid security in the amount of at least five percent of the bid price.

   1. (1) must be submitted with all invitations to bid for construction projects estimated to cost over $100,000; and
   2. (2) if needed for the protection of the grantee or authority as determined by the procurement officer, may be required in invitations to bid for contracts for supplies, services, or professional services.

2. (b) Payment and performance bonds, or other acceptable security approved by the chief procurement officer,

   1. (1) shall be required for all construction contracts over $100,000; and
   2. (2) if needed for the protection of the grantee or authority as determined by the procurement officer, may be required for other contracts.

3. (c) Any bid, payment, or performance bonding requirements must

   1. (1) be set out in the solicitation; and
   2. (2) identify the acceptability of alternative forms of security that may be substituted for the required bond, subject to approval of the chief procurement officer.
4. (d) If the invitation to bid requires security, the procurement officer shall reject a bid that does not comply with the bid security requirement unless the officer determines that the bid fails to comply in a nonsubstantial manner with the security requirements.

(Eff. 7/10/2015, Register 215)

Authority: AS 44.83.080