(a)

1. (1) All bids received shall be accompanied by a bid security for all bids exceeding fifty thousand dollars ($50,000).
2. (2) Acknowledgement of the bid security shall be made verbally.
3. (3) The official reading of the bids shall indicate the bid security amount and the form of security as either a cashier's check or a bid bond.

4. (4) The official shall review and verify the bid security including without limitation:

   1. (A) An approved surety listed on the current United States Department of the Treasury’s Listings of Approved Sureties;
   2. (B) An applicable agent licensure; and
   3. (C) A power of attorney.
5. (5) Arkansas Code §§ 19-4-1405, 22-9-203, and Arkansas Code § 22-9-401 et seq., govern bid securities for capital improvements.

(b)

1. (1) Failure to execute a contract, including all required documentation (see 22 CAR § 112-202), within the time specified in the bid documents following the issuance of the intent to award shall be just cause for the cancellation of the award and forfeiture of the bid security.
2. (2) Any forfeiture shall become the property of the department, not as a penalty but in liquidated damages sustained.
3. (3) Award may then be made to the next lowest responsible bidder or the work may be rebid and constructed under contract or otherwise as the state determines.
4. (4) The responsible low bidder who fails to execute the contract will not be considered for an award of contract on any subsequent bid of that project.