§636i — Title 15 Commerce and Trade | U.S. Code

Summary

The Administrator can promise to cover a bond company’s loss if a contractor fails to meet a bid, payment, performance, or related bond on a disaster-related contract worth up to $5,000,000 at the time the bond is signed. The promise is tied to the contract’s total value when the bond is executed. If the head of another federal agency asks for help with rebuilding after a major disaster, the Administrator can do the same for contracts up to $10,000,000. This can only happen using money Congress has specifically approved in advance for this purpose.

Title 15, §636i

Commerce and Trade — Source: USLM XML via OLRC

(a)Except as provided in subsection (b), and notwithstanding any other provision of law, for any procurement related to a major disaster, the Administrator may, upon such terms and conditions as the Administrator may prescribe, guarantee and enter into commitments to guarantee any surety against loss resulting from a breach of the terms of a bid bond, payment bond, performance bond, or bonds ancillary thereto, by a principal on any total work order or contract amount at the time of bond execution that does not exceed $5,000,000.

(b)Upon request of the head of any Federal agency other than the Administration involved in reconstruction efforts in response to a major disaster, the Administrator may guarantee and enter into a commitment to guarantee any security against loss under subsection (a) on any total work order or contract amount at the time of bond execution that does not exceed $10,000,000.

(c)The Administrator may carry out this section only with amounts appropriated in advance specifically to carry out this section.

Notes & Related Subsidiaries

Editorial Notes

Codification Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246. Section was enacted as part of the Food, Conservation, and Energy Act of 2008, and also as part of the Small Business Disaster Response and Loan Improvements Act of 2008, and not as part of the Small Business Act which comprises this chapter.

Statutory Notes and Related Subsidiaries

Effective Date

Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of Title 7, Agriculture.

§636i Small business bonding threshold