Surety Letters. Provide a letter from a surety or an insurance company indicating that Proposer or Lead Contractor is capable of obtaining for the Project a Performance Bond and a Payment Bond each in an amount of at least $100 million. This evidence shall take the form of a letter from a surety/insurance company indicating that such capacity exists for Proposer or Lead Contractor (as applicable). Letters indicating “unlimited” bonding capability are not acceptable. The surety/insurance company providing such letter must be rated in one of the two top categories by two nationally recognized rating agencies, or “A minus” or better and “Class VIII” or better by “A.M. Best Company,” and must indicate the relevant rating in the letter. The letter must specifically state that the surety/insurance company is an admitted surety or insurer (approved by the Arizona Department of Insurance), and has read this RFQ and evaluated Proposer’s backlog and work-in-progress in determining its bonding capacity. In instances where the response to Section 5.2 contains descriptions of proposed or anticipated changes in the financial condition of Proposer, or any other entity for which financial information is submitted as required hereby for the next reporting period, the surety/insurance company must certify that its analysis specifically incorporates a review of the factors surrounding such changes and identifying any special conditions that may be imposed before issuance of surety bonds for the Project. If a Proposer or Lead Contractor, as applicable, is a joint venture, partnership, limited liability company or other association, separate letters for one or more of the individual Equity Members of Proposer or joint venturer, partner or member of the Lead Contractor, as applicable, are acceptable, as is a single letter covering all Equity Members, joint venturers, partners or members; provided, however, that each separate letter provided must reference the specific portion of the $100 million amount that the surety is indicating it is willing to provide. Statements such as “the entity’s share of the work/bond amount” or the like are not acceptable. Notwithstanding the foregoing, details concerning the amount of required bonds and other performance security requirements shall be set forth in the RFP.
Surety Letters. Provide evidence from a surety or an insurance company indicating that the Proposer team is capable of obtaining a performance bond and a payment bond, each in an amount at least each to $1,122,000,000, which is the current estimated cost for construction of Phase 1 and Phase 2 of the Project. In the event the scope of the Project is expanded as described in Part A, Section 1, this amount may increase by up to $400,000,000. Alternatively, in place of providing evidence with respect to either or both of the performance bond and payment bond, the QS may include evidence from a bank indicating that the Proposer is capable of obtaining a standby letter of credit for each of such bonds being replaced in an equivalent amount. The evidence shall take the form of a letter or certificate from a surety/insurance company or bank, as applicable, indicating that such capacity exists for the Proposer or the Lead Contractor. Letters indicating “unlimited” bonding capability or letter of credit capacity are not acceptable. The surety/insurance company or bank providing such letter must be rated in one of the two top categories by two nationally recognized rating agencies or at least A- (A minus) or better or Class VIII or better by “AM Best & Company,” and must indicate the relevant rating in the letter. The letter must specifically state that the surety/insurance company or bank, as applicable, has read this RFQ and evaluated the Proposer’s backlog and work-in-progress in determining its bonding or letter of credit capacity. In instances where the response to Part B, Volume 3, Section B contains descriptions of proposed or anticipated changes in the financial condition of the Proposer or any other entity for which financial information is submitted as required hereby for the next reporting period, the letter must provide a certification that the surety’s/bank’s analysis specifically incorporates a review of the factors surrounding such changes and identifying any special conditions which may be imposed before issuance of surety bonds or a letter of credit for the Project. Further, each Proposer must specifically state in its response to this Part B, Volume 1, Section F whether or not the requirement set forth in the immediately preceding sentence applies. If a Proposer or Lead Contractor, as applicable, is a joint venture, partnership, limited liability company or other association, separate letters for one or more of the Equity Members of the Proposer or the individual ...
