Performance Bond

[arieln]

Hi, our business is Information Technology Services.
The state has this requirement and I just wanted to know a ballpark on how it would cost, the total cost of the contract is for example 10 million. Just wondering if its worth bidding.

Performance Bond – The bidder shall furnish to the agency at no cost to the State, a Performance Bond in the amount of fifty percent (50%) of the contract price. The Bond shall be on a form from an admitted surety insurer and must guarantee contractor's compliance with the terms of the contract.