Two companies are commonly owned/controlled. They plan to bid together for one product category in a competitive bidding area (CBA) and obtained a bid surety bond for that CBA. They also plan to bid individually in two different product categories within the same CBA. Do they have to obtain a separate bond for each of their individual bids?
One bid surety bond is required, per bidding entity, for each CBA where a bid(s) is submitted. A bidding entity is the entity whose legal business name is identified in the “Form A: Business Organization Information” section of the bid. Please see the table below for clarification on this scenario.
|Bids in CBA|| |
|Bidding Entity||Baltimore-Columbia-Towson, MD CBA||Who Needs Bid Surety Bond?|
|ABC DME||ABC |
|X||ABC DME is the bidding entity and must obtain a bid surety bond for this CBA where ABC DMC is the principal/obligor.|
|ABC DME||ABC |
|X||ABC DME is the bidding entity, but already obtained a bid surety bond for this CBA for Bid #1. A separate bond does not need to be obtained for this CBA for Bid #2.|
|X||123 Medical is the bidding entity and must obtain a separate bid surety bond for the CBA, where 123 Medical is listed on the bond as the principal/obligor. The bid surety bond for Bid #1 was obtained by ABC DME (the bidding entity) and does not extend to 123 Medical for Bid #3.|
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