BEAD Program Surety Bond Information Kit

This first-of-its-kind kit includes bond forms to address the National Telecommunications and Information Administration (NTIA) announcement to accept surety bonds as an additional form of security in lieu of letters of credit (LOCs) for the  Broadband Equity, Access, and Deployment (BEAD) Program. The National Association of Surety Bond Producers (NASBP) and the Surety & Fidelity Association of America (SFAA) formed a surety working group to develop performance bond forms and model language to facilitate the use of surety bonds to meet BEAD Program security requirements. The surety working group developed two performance bond forms, model language for state broadband offices to insert into award agreements, and a sample letter template to confirm for state broadband offices the bond amount for which an internet service provider (ISP) or its construction contractor initially qualifies. Of the two bond forms, one addresses situations when the ISP can qualify for bonding and furnishes the bond directly to the state broadband office. The second bond form addresses situations where the contractor to the ISP building out the broadband system is better suited to qualify for bonding.