Comments on Bonding Discretion Given to Contracting Authorities

On behalf of the National Association of Surety Bond Producers (NASBP), a national trade association located in Washington, DC serving a membership of firms throughout the United States, including firms resident or doing business in Oregon, with personnel of over 5,000 surety agents and brokers, who specialize in providing surety bonds to companies and individuals for construction and other commercial purposes, I am writing to express our deep concerns over a recently issued temporary administrative order, DAS 5-2009, applying to emergency procurements under the “Go Oregon!” stimulus package, that would grant discretion to procurement officers of authorized agencies to “excuse the requirement of furnishing a good and sufficient performance bond or payment bond.” NASBP strongly believes that, despite the declaration of emergency, the relaxing of surety bond requirements for Oregon construction projects is unwise and inapposite to the welfare and interests of Oregon taxpayers and the many businesses that rely on the protections of payment bonds. We urge you to reconsider your decision to authorize the relaxation of surety bond requirements, and believe that Oregon has too much at stake financially to suffer a major default on even one of its public works projects during these periods of tight and even deficit budgets.

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