1. #1
    Forum Member

    Join Date
    Nov 2006
    Posts
    14

    Default Performance Bond

    We just recieved are grant award for a new wildland vehicle. The question I have is the vendor/contractor that we have recieved a estimate from told us we wont need a performance bond if we dont put any funds up front. Is this correct? The only other thing is we would purchase the cab & chassis from a auto dealer & then let the vendor/contractor start the work on the wildland truck. Do we need a performance bond from the auto dealer? Any info would be very helpful. I dont want to get into triuble with AFG.

  2. #2
    FH Mag/.com Contributor

    Join Date
    Feb 2002
    Location
    Cypress, TX
    Posts
    7,288

    Default

    If you spend money you need the bond, that's correct. Otherwise you don't.

    If you're thinking of buying the cab & chassis from the auto dealer, check with DHS first. Probably won't be an issue and won't need a bond because the title of the vehicle will be in your name so if the builder screws up you go and take your truck back and get someone else to build it.

    Most builders buy the chassis and it's titled in their name until delivered so that's why bonds are needed when money is given to the builder as a chassis prepayment since the dept doesn't own anything then and would be SOL if they went under.

  3. #3
    Forum Member

    Join Date
    Mar 2008
    Location
    Long time no Sea
    Posts
    2,253

    Default

    Quote Originally Posted by ford88jarrett View Post
    We just recieved are grant award for a new wildland vehicle. The question I have is the vendor/contractor that we have recieved a estimate from told us we wont need a performance bond if we dont put any funds up front. Is this correct? The only other thing is we would purchase the cab & chassis from a auto dealer & then let the vendor/contractor start the work on the wildland truck. Do we need a performance bond from the auto dealer? Any info would be very helpful. I dont want to get into triuble with AFG.
    FordJ: do you mind emailing me and letting me know how much ($) DHS allowed on your vehicle acquisition?

  4. #4
    Forum Member

    Join Date
    Dec 2005
    Location
    Reed City, Michigan
    Posts
    127

    Default

    If you don't mind sharing that info with the rest...I'm sure there are others that wouldn't mind knowing...Thank you in advance...

  5. #5
    Forum Member

    Join Date
    Mar 2008
    Location
    Florida's Space Coast
    Posts
    204

    Default

    If you haven't already, you will get a document with guidance for vehicle acquistions that includes the following:

    When will we not require an advanced payment bond? There are a few instances where we will not require a bond: 1) EMS vehicles; 2) when a grantee is buying a vehicle that is ready for immediate delivery (used vehicles or demos, for example); and 3) for contracts that don’t require any pre-payments.

    Why wouldn’t we require a bond for a “zero-dollars-down” contract? Bonds are meant to do two things, 1) protect the investment (early/pre-payments) and 2) guarantee timely performance (delivery). Since our “risk” is zero on a “zero-dollars-down” contract, all we need is the guarantee of timely performance. So, in lieu of the bond, we would need the following clauses to be specifically added to any zero-payment purchase contracts:

    1) “Zero-dollars-down” means that neither the grantee nor the Federal government funds will be used to pay any money to the manufacturer until the vehicle is delivered (100% payment upon delivery). The manufacturer will carry 100% of the risk until delivery.

    2) The contract will have a specific delivery-date for the vehicle – preferably a delivery date that does not exceed the period of performance.

    3) Non-delivery by the contact’s guaranteed delivery date will require a penalty for non-performance that is no less than $100 per day until the manufacturer can deliver the vehicle to the grantee. Delivery is not acceptable unless the vehicle is “operational” and “functioning” as specified when delivery. Any penalty will be credited against the cost of the vehicle, so for example, a $200,000 contract price and a 30 day delay (@ $100/day = $3,000) would result in a new contract price of $197,000.

    4) We will request that a copy of the purchase contract be provided so we can validate these clauses.

  6. #6
    MembersZone Subscriber

    Join Date
    Mar 2006
    Posts
    130

    Default

    We just put a bond on a quick attack we are having done, we bought the chassis, and it was titled to us.
    The cost was about $750.
    Even if you are not prepaying what happen if the manufacture goes belly up, and 2 years from now you still are trying to get your truck built with the same money that you had to start with.

  7. #7
    MembersZone Subscriber

    Join Date
    Dec 2002
    Location
    Rural Iowa
    Posts
    3,106

    Default

    Quote Originally Posted by captaincvfd View Post
    We just put a bond on a quick attack we are having done, we bought the chassis, and it was titled to us.
    The cost was about $750.
    Even if you are not prepaying what happen if the manufacture goes belly up, and 2 years from now you still are trying to get your truck built with the same money that you had to start with.

    How long will it take to get the insurance company to cough up the several years ago value of the insurance policy/bond you purchased?

  8. #8
    Forum Member

    Join Date
    Nov 2006
    Posts
    14

    Default

    Thanks!! for the responses. I will probably just call are grant specialist and just get the ok from them. That way we can cover are own butt. The amount we recieved for the truck was reduced big time. The max amount that DHS told us they will allow on a wildland truck with a CAFS system was $125,000. The bid/estimate was over $150,000. Iam not upset that DHS but thats alot more money for us to raise to get the truck we speced out.

  9. #9
    Forum Member

    Join Date
    Dec 2007
    Location
    Ohio
    Posts
    3

    Default

    We recieved the grant for a grass/ brush truck in 2007 and did not have to do the performance bond thing. I spoke with FEMA about this and at that time they told me we did not have to. Might want to call them to make sure. Things change every year.

  10. #10
    MembersZone Subscriber
    ktb9780's Avatar
    Join Date
    Dec 2004
    Location
    Auburndale, FL
    Posts
    6,112

    Default

    Quote Originally Posted by ford88jarrett View Post
    Thanks!! for the responses. I will probably just call are grant specialist and just get the ok from them. That way we can cover are own butt. The amount we recieved for the truck was reduced big time. The max amount that DHS told us they will allow on a wildland truck with a CAFS system was $125,000. The bid/estimate was over $150,000. Iam not upset that DHS but thats alot more money for us to raise to get the truck we speced out.
    You need to tell your truck manufacturer to shapen their pencil some if they want your business!
    Kurt Bradley
    Fire/EMS/EMA Grant Consultant
    " Never Trade Skill for Luck"

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Performance Bond
    By k3twpfire in forum Federal FIRE ACT Grants & Funding
    Replies: 21
    Last Post: 11-26-2007, 08:19 PM
  2. Performance Bond???
    By CordovaFire in forum Apparatus Innovation
    Replies: 3
    Last Post: 09-20-2006, 08:30 PM
  3. Performance Bond
    By sfd7101 in forum Federal FIRE ACT Grants & Funding
    Replies: 5
    Last Post: 09-15-2006, 03:39 PM
  4. Bond, James Bond
    By MrIrons in forum The Off Duty Forums
    Replies: 10
    Last Post: 11-28-2005, 10:06 PM
  5. High Performance Car, Low Performance Driver
    By mcaldwell in forum The Off Duty Forums
    Replies: 5
    Last Post: 10-04-2005, 07:05 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Log in

Click here to log in or register