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Page 30 of 51 <br />(5) A proposed contract amendment changes the scope of a contract or increases the <br />contract amount by more than the Simplified Acquisition Threshold. <br />(c) The non -Federal entity is exempt from the pre -procurement review in paragraph (b) of <br />this section if the Federal awarding agency or pass -through entity determines that its <br />procurement systems comply with the standards of this part. <br />(1) The non -Federal entity may request that its procurement system be reviewed by the <br />Federal awarding agency or pass -through entity to determine whether its system <br />meets these standards in order for its system to be certified. Generally, these reviews <br />must occur where there is continuous high -dollar funding, and third -party contracts <br />are awarded on a regular basis; <br />(2) The non -Federal entity may self -certify its procurement system. Such self - <br />certification must not limit the Federal awarding agency's right to survey the system. <br />Under a self -certification procedure, the Federal awarding agency may rely on written <br />assurances from the non -Federal entity that it is complying with these standards. The <br />non -Federal entity must cite specific policies, procedures, regulations, or standards as <br />being in compliance with these requirements and have its system available for review. <br />§200.326 Bonding requirements. <br />For construction or facility improvement contracts or subcontracts exceeding the Simplified <br />Acquisition Threshold, the Federal awarding agency or pass -through entity may accept the <br />bonding policy and requirements of the non -Federal entity provided that the Federal awarding <br />agency or pass -through entity has made a determination that the Federal interest is adequately <br />protected. If such a determination has not been made, the minimum requirements must be as <br />follows: <br />(a) A bid guarantee from each bidder equivalent to five percent of the bid price. The "bid <br />guarantee" must consist of a firm commitment such as a bid bond, certified check, or <br />other negotiable instrument accompanying a bid as assurance that the bidder will, upon <br />acceptance of the bid, execute such contractual documents as may be required within the <br />time specified. <br />(b) A performance bond on the part of the contractor for 100 percent of the contract price. A <br />"performance bond" is one executed in connection with a contract to secure fulfillment of <br />all the contractor's requirements under such contract. <br />(c) A payment bond on the part of the contractor for 100 percent of the contract price. A <br />"payment bond" is one executed in connection with a contract to assure payment as <br />required by law of all persons supplying labor and material in the execution of the work <br />provided for in the contract. <br />R22AP00055 Agreement Template <br />City of Santa Ana (0112021) <br />