Bonding Assistance Program

 

To enhance and further the opportunity for Small and Disadvantaged Business Enterprises (SDBEs) to obtain bid, performance and payment bonds for transportation-related contracts emanating from the DOT, its grantees, recipients, their contractors and subcontractors.

Deleted 04/02/2020 (Archived.) 20.904 OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION Insurance. During the last 3 fiscal years, an average of 70 performance and payment bonds were issued annually, averaging a total of $15 million a year. Public Law 97-449, 49 U.S.C. 332. The recipient of a bond must be a certified DBE, minority-owned business enterprise or women-owned business enterprise. These certifications must be performed by an agency using DOT guidelines, 49 CFR Part 26. All firms certified by the Small Business Administration as 8(a) companies are eligible to participate in the DOT Bonding program. Certified Minority, women-owned and disadvantaged business enterprises. Application and supplemental information, including a certification letter from the recipient agency(s), using DOT guidelines 49 CFR Part 26. Information and consultation is available from the Office of Small and Disadvantaged Business Utilization (OSDBU), Telephone: (202) 366-1169. This program is excluded from coverage under E.O. 12372. Completed applications should be submitted to Pilot Bonding Program Agents for underwriting and bonds are issued by one of DOT's Participating Sureties. Applicants may obtain a copy of the application and a list for the Pilot Bonding Agents on the OSDBU internet site at: http://osdbuweb.dot.gov or by contacting OSDBU. All bonds are approved and issued directly to the DBE by the Sureties. Based upon bid or contract documents. Bonds are issued on-site by local agents as representatives of the Sureties. Not applicable. Bonds are issued on a project by project basis. Not applicable. The bonds are issued in support of transportation-related contracts. Transportation-related means a contract for the maintenance, rehabilitation, restructuring, improvement, or revitalization of any of the Nation's modes of transportation with any public or commercial provider of transportation or any Federal, State or local transportation agency. Monthly, internal OSDBU reports; Reports to the Secretary of Transportation on all bond approvals. DOT has the right to audit its accounts with the Participating Sureties. OSDBU and the surety agents maintain records of current applicant files, such as approvals. Bond approvals will be maintained by the participating sureties, with a copy provided to DOT. Not applicable. Guarantees run to termination of bond (usually 1 year after completion of contract). Not applicable. Office of Small and Disadvantaged Business Utilization, S-40, Office of the Secretary, Department of Transportation, 400 Seventh Street, SW., Washington, DC 20590. Contact: Bonding Manager. Telephone: (800) 532-1169 or (202) 366-2852. Website: http://osdbuweb.dot.gov. http://osdbuweb.dot.gov 69-0102-0-1-407. (Guaranteed Surety Bonds) FY 02 $15,000,000; FY 03 est $15,000,000; and FY 04 est $15,000,000. Average dollar amount of bonds issued is $330,000. Public Law 97-449, 49 U.S.C.332. Not applicable.