Laserfiche WebLink
IBSGP Appendix | 2023 Page E-9 <br />Bonds <br />Financial markets are not always predictable, and commercial suppliers are not always reliable; but there <br />are options to provide resource contingencies to support an IBSGP award. <br />•Prepayment Bond: Prepayment Bonds provide a measure of economic security for an <br />organization that is going to advance funds to a vendor(s). The prepayment bond generally may <br />be obtained through the vendor or bank. The prepayment bond protects funds in the event a <br />vendor fails to perform (e.g., not finishing/delivering contracted service/equipment, or going out <br />of business). Prepayment bonds are chargeable to an award. <br />o Encouraged Prepayment Bond: Recipients are strongly recommended, but not <br />required, to obtain a prepayment bond for awarded acquisition activities that exceed the <br />Simplified Acquisition Threshold (SAT) (currently $250,000, but the applicable dollar <br />threshold will be the SAT amount in place at the time of procurement) when recipients <br />are contractually required to advance a down payment and when such advances contain <br />no federal funds (only local funds). <br />o Required Prepayment Bond: Per 2 C.F.R. § 200.304(b), recipients are required to <br />obtain a prepayment bond for awarded acquisition activities that exceed the SAT; a <br />prepayment bond is required when recipients are contractually required to advance a <br />down payment and when such advances contain only federal funds or a combination of <br />federal and local funds. <br />•Fidelity Bond: Reasonable costs of fidelity bonds (or like insurance as provided for by applicable <br />state or tribal laws) covering the maximum amount of IBSGP funds the officer, official, or <br />employee handles at any given time for all personnel who disburse or approve disbursement of <br />IBSGP funds may be allowable if required by the terms and conditions of the award or if <br />generally required by the tribe in its generally operations. If a fidelity bond is required by a <br />recipient in its general operations, those costs must be charged as indirect costs. See 2 C.F.R. § <br />200.427. <br />Encouraged Use of Certain Products Produced in the United States <br />Pursuant to Executive Order 13858 “Strengthening Buy-American Preferences for Infrastructure <br />Projects,” FEMA encourages non-federal entities under this grant program to use, to the greatest extent <br />practicable and consistent with the law, iron and aluminum as well as steel, cement, and other <br />manufactured products produced in the United States, in projects funded by an award under this grant <br />program affecting surface transportation, including roadways, bridges, railroads, and transit; aviation; <br />ports, including navigational channels; water resources projects; energy production, generation, and <br />storage, including from fossil-fuels, renewable, nuclear, and hydroelectric sources; electricity <br />transmission; gas, oil, and propane storage and transmission; electric, oil, natural gas, and propane <br />distribution systems; broadband internet; pipelines; stormwater and sewer infrastructure; drinking water <br />infrastructure; and cybersecurity. Notwithstanding this encouragement, non-federal entities must take care <br />that all procurements and contract actions are consistent with law, this Manual and applicable appendices, <br />the grant program’s NOFO, and the federal procurement standards at 2 C.F.R. §§ 200.317-200.326.