The report questions the need for states to require performance bonds on information technology (IT) projects and believes performance bonds are a deterrent to small IT businesses. Among the report’s major assertions are: the paper could be a “best practices” document; bonds are “time consuming,” and slow down the procurement process; and bonds increase the cost of contract prices. NASBP’s Commercial Surety Committee is in the process of responding and will counter with such points as: how can this Paper be a best practices document when the surety industry was not consulted; the surety bonding process is good for state and consumer protection while emphasizing the importance of prequalification; and bonds are inexpensive relative to the risks assumed by the surety. According to its website, NASCIO represents state chief information officers and information technology executives and managers from state governments across the United States. For more information about NASCIO, visit www.nascio.org.
