Analysis of Bonding Requirements on Service Contracts.
Final rept. May 76-Dec 77,
ARMY PROCUREMENT RESEARCH OFFICE FORT LEE VA
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Although bonding requirements do preclude some small business firms from submitting bids on housekeeping service contracts, the Government is still able to get adequate price competition from small business firms on such procurements. There is a valid need to include bonds on housekeeping service contracts such as K. P., garbage, and hospital custodialjanitorial, when continuity of performance is critical to mission capability or to the health, welfare, and morale of the troops. Although bonds do not insure performance, they do increase the probability of continued performance since 1 sureties may elect to a assume performance using the existing work force b provide financial and managerial aid to contractors experiencing performance problems 2 suppliers and laborers employees are more willing to extend credit to a bonded contractor experiencing financial problems.
- Administration and Management
- Logistics, Military Facilities and Supplies