Concessionaire Bond - Hillsborough Airport Aviation Authority in Florida

Brief Summary

Your Tampa International Airport concession contract sets the bond amount, not a fee schedule. In the published contract reviewed here, the Hillsborough County Aviation Authority wanted security within 10 days of the Effective Date and a renewal 60 days before it expired. A surety bond meets that requirement without freezing cash in a letter of credit.

Concessionaires at Tampa International Airport post security for performance in favor of the Hillsborough County Aviation Authority. The published HCAA concession contract reviewed for this page accepts a surety bond or an irrevocable letter of credit, sized at three months of the fees owed to the Authority, and furnished within 10 days of the contract's Effective Date. The amount and terms come from your own Lease and Concession Contract, so confirm them with the Authority before the bond is issued.

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How to Apply for a Concessionaire Bond:

• Find the security or performance guarantee article in your HCAA Lease and Concession Contract.
• Calculate the required amount using the formula in that article.
• Confirm with the Authority whether a surety bond is acceptable and whether it has a required form.
• Provide business financial statements and owner credit information to the surety.
• Deliver the executed bond to the Authority by the contract deadline.
• Calendar the renewal so the replacement reaches the Authority before the deadline in your contract.

Detailed Information About the Florida Concessionaire Bond:

Your contract sets the amount

There is no single figure for this bond. The Hillsborough County Aviation Authority writes the security requirement into each Lease and Concession Contract. In the HCAA Automated Mail Service contract published on the Authority's site, Article XIV requires a surety bond or irrevocable letter of credit drawn in favor of the Authority, equal to three months of the Percentage Fee payable under that contract. Other contracts may calculate the amount differently, so read the security article in yours.

Deadlines people miss

That contract required the security within 10 days of the Effective Date and treated failure to maintain it as an event of default. A renewal or replacement had to reach the Authority at least 60 days before the existing security expired. If the Authority drew on it for unpaid amounts, the concessionaire had five days after notice to restore it to the full amount.

Who issues it

The issuer must be acceptable to the Authority and authorized to do business in Florida. The Authority holds the security through the full contract term and releases it only after all amounts owed are paid and the audit is accepted or completed.

What the bond guarantees

The bond guarantees the concessionaire's payment and performance obligations under its contract with the Authority. The Concessions Handbook states that its terms are subject to the concessionaire's Lease and Concession Contract and that the contract controls if the two conflict.

Eligibility and Requirements for a Florida Concessionaire Bond:

• Hillsborough County Aviation Authority named as obligee.
• Bond amount set by the concessionaire's own contract.
• A surety acceptable to the Authority and authorized to do business in Florida.
• Continuous coverage for the full contract term.
• Concessionaire name on the bond matching the contract exactly.

Florida Concessionaire Bond FAQs:

Official and Additional Resources for the Florida Concessionaire Bond: