OFFICE OF THE STATE TREASURER STATE OF WASHINGTON - Washington State ...
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OFFICE OF THE STATE TREASURER
STATE OF WASHINGTON
REQUEST FOR PROPOSALS
FOR
MUNICIPAL ADVISORY SERVICES
RELATING TO DEBT MANAGEMENT
SEPTEMBER 8, 2021
LETTER OF INTENT DUE BY: 5:00 p.m. Pacific Time, September 20, 2021
PROPOSALS DUE BY: 5:00 p.m. Pacific Time, October 22, 2021
CONTACT: Jen Merchant, RFP Coordinator
Office of the State Treasurer
(360) 902-8944
SUBMISSIONS: By email only to Contracts@tre.wa.govIDENTIFICATION OF VENDOR’S PROPRIETARY INFORMATION Offerors are advised that the Office of the State Treasurer is a Washington State Public Agency and is thus subject to public records requests. There are permissible exemptions from public disclosure pursuant to chapter 42.56 Revised Code of Washington (RCW) but they are limited, narrow in scope and strictly construed. Offerors wishing to claim portions of their response as confidential and exempt from public disclosure are advised to carefully read sections 5.5.1 and 5.6 of this RFP for more detail.
DMT 2021-02 – Municipal Advisory Services September 8, 2021
TABLE OF CONTENTS
GENERAL .................................................................................................................................... 4
INTRODUCTION ................................................................................................................................. 4
BACKGROUND ................................................................................................................................... 4
STATEMENT OF WORK .............................................................................................................. 5
SERVICES TO BE PROVIDED ............................................................................................................... 5
CONTRACTUAL MANAGEMENT......................................................................................................... 8
MANDATORY MINIMUM QUALIFICATIONS .............................................................................. 8
MANDATORY MINIMUM QUALIFICATIONS ...................................................................................... 8
INSURANCE........................................................................................................................................ 9
GENERAL INFORMATION ......................................................................................................... 9
DEFINITIONS ...................................................................................................................................... 9
COMPENSATION AND PAYMENT .................................................................................................... 10
EXPECTED TIME PERIOD OF THE CONTRACT ................................................................................... 10
INSTRUCTIONS FOR COMPLETING AND SUBMITTING PROPOSALS .......................................... 11
OST CONTACT .................................................................................................................................. 11
INTENT TO RESPOND AND QUESTIONS ........................................................................................... 11
SCHEDULE OF PROCUREMENT ACTIVITIES ...................................................................................... 12
PROCUREMENT MODIFICATION ..................................................................................................... 12
PROCUREMENT INSTRUCTIONS ...................................................................................................... 12
PROPRIETARY INFORMATION ......................................................................................................... 18
RECORDS RETENTION ...................................................................................................................... 19
PREPARATION AND TRAVEL COSTS ................................................................................................. 19
RESPONSE EVALUATION .................................................................................................................. 19
ADDENDA TO THE RFP .................................................................................................................... 20
SUBMISSION LIMIT .......................................................................................................................... 21
OST RIGHTS............................................................................................................................ 21
INFORMATION CLARIFICATION/REJECTIONS .................................................................................. 21
CONTRACT AWARD ......................................................................................................................... 21
WAIVERS.......................................................................................................................................... 21
MISCELLANEOUS TERMS AND CONDITIONS .......................................................................... 22
SUCCESSFUL OFFEROR NOTIFICATION ............................................................................................ 22
RIGHT TO PROTEST, DETERMINATION OF TIMELINESS, AND PROTEST PROCEDURES ................... 22
DEBRIEFING OF UNSUCCESSFUL OFFERORS.................................................................................... 22
STAY OF CONTRACT EXECUTION DURING PROTESTS ...................................................................... 22
MINORITY & WOMEN-OWNED BUSINESS PARTICIPATION............................................................. 22
GENERAL CONTRACT TERMS AND CONDITIONS ............................................................................. 23
INDEMNIFICATION .......................................................................................................................... 23
3DMT 2021-02 – Municipal Advisory Services September 8, 2021
GENERAL
INTRODUCTION
The state of Washington (State) acting through the Office of the State Treasurer (OST),
seeks Proposals from qualified firms to serve as municipal advisor(s) to the State in
connection with the management of the State’s debt and other financial obligations.
Advisory services may include transaction-specific, ongoing, and special project advisory
services.
BACKGROUND
Pursuant to the Debt Issuance Policy of the Washington State Finance Committee, OST is
conducting this procurement to select firm(s) offering municipal advisory services.
OST is responsible for providing for the issuance of State debt and other financial
obligations at the lowest possible cost and risk and determining the available debt
capacity of the state of Washington. All State debt is authorized by the Washington State
Legislature (Legislature) and approved by the State Finance Committee under the
authority granted by the Legislature.
In recent years, the State has issued four forms of general obligation debt: (1) various
purpose general obligation bonds (VPGO bonds) backed by the full faith, credit and taxing
power of the State, (2) motor vehicle fuel tax general obligation bonds (MVFT GO) first
payable from the proceeds of State excise taxes on motor vehicle fuels, (3) motor vehicle
fuel tax and vehicle related fee general obligation bonds (MVFT/VRF GO) first payable
from the proceeds of State excise taxes on motor vehicle fuels and vehicle related fees,
and (4) Motor Vehicle Fuel Tax General Obligation Bonds (Triple Pledge Bonds – SR 520
Revenue (Triple Pledge Bonds) which are first payable from SR 520 toll revenues. In
addition, the State has issued GARVEE Bonds payable from pledged federal aid, and a
TIFIA bond payable from SR 520 toll revenues.
The State has also issued lease revenue bonds in the form of Certificates of Participation
(COPs) to finance the acquisition of equipment and real estate (the Lease Purchase
Program), and 63-20 Lease Revenue Bonds to finance the construction of buildings. Local
government financings which meet certain criteria are often pooled with the Lease
Purchase Program, through a program referred to as the Local Option Capital Asset
Lending (LOCAL) Program.
The State’s current GO ratings are “AA+/Aaa/AA+” from Fitch/Moody’s/S&P. All currently
have a stable outlook. The GARVEE Bonds are rated “A2/AA” with a stable outlook by
Moody’s and S&P. The COPs and 63-20 Bonds are currently rated “Aa1” with a stable
outlook by Moody’s.
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The State expects to issue bonds two or more times per year, and COPs at least three
times per year. Issuance size will be determined in accordance with State agency capital
project plans and construction schedules. Bonds and COPs are generally sold on a
competitive basis, although negotiated sales may be considered.
STATEMENT OF WORK
SERVICES TO BE PROVIDED
Firms may be asked to provide some or all of the services described in this section (Section
II: Statement of Work). Specific responsibilities for each firm selected will be identified
when and as needed by OST staff. Roles may include services as Lead Municipal Advisor
or Co-Municipal Advisor on a transaction, providing ongoing, non-transactional support
for various programs, performing as-needed analyses, and providing other municipal
advisory services, as requested.
Firms are not required to be able to perform all services listed in this RFP. Instead, each
firm will be evaluated on the quality of the services it does provide in addition to other
RFP criteria specified in Section V. At the discretion of the Deputy State Treasurer for Debt
Management, services may be assigned or reassigned among firms based on the needs of
the State.
2.1.1. GENERAL SERVICES
A. Provide advice and analysis on a wide range of debt management issues including
debt structuring, capacity analysis, issuance, asset/liability management, the use of
variable rate debt and other financial products, revenue-backed debt structures,
various forms of public-private partnerships, and other debt management-related
topics.
B. Provide advice and analysis on financial market conditions, market trends, financial
products, couponing, call date and other structuring considerations, and investor
preferences.
C. Provide advice on the presentation of financial information to underwriters, rating
agencies, credit analysts, prospective investors, and other municipal market
participants.
D. Assist in the preparation and evaluation of RFPs for other financial services such as
underwriting, paying agent and escrow agent, verification agent, printing, credit
enhancement, and liquidity facilities. Arrange for State and Local Government
Securities or Treasury Securities purchases, as requested.
5DMT 2021-02 – Municipal Advisory Services September 8, 2021
E. Provide training to OST staff on a variety of financial topics, including training on bond
sizing and structuring software, such as DBC Finance, and assist OST in providing
financial training for other state agencies and local governments.
F. Provide advice on statutory and regulatory matters such as changes proposed and/or
implemented by Congress, the U.S. Treasury, the IRS, and other regulatory agencies.
G. Provide other services or analyses, as requested.
2.1.2. BOND PROGRAM SERVICES
A. Provide advice on all aspects of structuring bond financings, including the use of serial
and term bonds, redemption provisions, couponing, maturity schedules, bid
parameters, type of sale, and other financing terms.
B. Assist in the preparation of the preliminary and final official statements and other
offering documents.
C. Assist the State with the verification and evaluation of competitive bids. Provide
assistance with the closing. Prepare post-sale analysis, including spread analysis and
comparisons with similar transactions.
D. Regularly monitor the State’s debt portfolio for refunding opportunities.
E. Review proposed State Finance Committee resolutions and attend State Finance
Committee meetings, as requested.
F. Provide guidance on post-issuance compliance.
G. Assist in the development of financial models for transportation projects. Update and
revise the models as required. Perform scenario analysis to assess risk and to evaluate
alternative financing strategies.
H. Assist the State with applications, if any, for loans, guarantees, or credit under a
Federal program, such as the Transportation Infrastructure Finance and Innovation
Act (TIFIA) program.
I. Provide other services or analyses, as requested.
2.1.3. LEASE PURCHASE PROGRAM/FINANCING CONTRACTS SERVICES
A. Provide advice on all aspects of structuring lease financings, including specific
covenants, financing structures, bid parameters, type of sale, and other financing
terms.
B. Assist in the evaluation of local governments seeking to participate in the LOCAL
6DMT 2021-02 – Municipal Advisory Services September 8, 2021
Program.
C. Participate in the review and revision of underlying financial and legal documents for
lease/purchase or other financing contracts.
D. Assist in the preparation of the preliminary and final official statements and other
offering documents.
E. Estimate payment schedules and borrowing costs for proposed transactions and
individual leases.
F. Review proposed State Finance Committee resolutions and attend State Finance
Committee meetings, as requested.
G. Assist the State with the verification and evaluation of competitive bids. Provide
assistance with the closing.
H. Prepare post-sale analysis, including spread analysis and comparisons with similar
transactions. When available, communicate information regarding the distribution of
financing contracts to investors.
I. Provide guidance on post-issuance compliance.
J. Regularly monitor outstanding financing contracts for refunding opportunities.
K. Assist in the review and analysis of state and federal legislation pertaining to the
State’s financing programs.
L. Assist with lease prepayments and defeasances, as requested.
M. Provide other services or analyses, as requested.
2.1.4. OTHER SERVICES
On an as-needed basis, OST may select Firms to provide assistance with a wide variety of
projects and analyses. Such assignments may include, but are not limited to the following:
A. Transportation Projects and Financings, including work with toll backed debt as well
as TIFIA and GARVEE issuances.
B. 63-20 Financings and other P3 projects.
C. Analyses and structuring of revenue bond financings.
D. Analyses and development of revolving fund programs.
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E. Tax increment financing analyses.
CONTRACTUAL MANAGEMENT
The Deputy State Treasurer for Debt Management will be designated as the OST Contract
Manager. The Contract Manager will be responsible for:
A. Clarifying with the Contractor(s) the expectations of the State and how the State
envisions the relationship working on a day-to-day basis.
B. Providing overall direction and planning.
C. Monitoring Contractor progress against contractual commitments and approving
payment.
D. Designating specific OST staff as day-to-day liaison with Contractor(s).
E. Receiving and acceptance of reports from Contractor(s).
MANDATORY MINIMUM QUALIFICATIONS
MANDATORY MINIMUM QUALIFICATIONS
As of the RFP proposal due date, firms must meet the minimum requirements outlined
below in order to be considered for Contract award, and must continue to meet the
requirements during the entire contract period:
A. The Offeror must, at the time of the Proposal, or prior to that time if required by law,
have all required licenses and registrations necessary to perform the Work as required
in the RFP, including registration as Municipal Advisor with the Securities and
Exchange Commission (SEC) and the Municipal Securities Rulemaking Board (MSRB).
B. The Offeror must have at least five (5) years’ of experience in providing municipal
advisory services.
C. The Offeror must have provided municipal advisory services to at least one municipal
entity within the state of Washington on a successfully completed transaction during
the past five (5) years.
D. As a condition of, and at any time during the term of their appointment, firms are
precluded from underwriting any securities issued by the State or purchasing any
securities issued by the State from the date on which such securities are priced until
the transaction has closed, or as further restricted by regulatory agencies, including
the MSRB and the SEC.
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INSURANCE
The State reserves the right to request proof of the following types of insurance and
minimum coverage requirements, before executing a Contract with an Offeror.
A. Commercial general liability insurance - $2 million aggregate/$1 million per
occurrence
B. Professional liability/Errors and omissions insurance - $2 million aggregate/$1 million
per occurrence
C. Business Automobile insurance - $1 million per accident
D. Workers Compensation - $1 million liability limit
GENERAL INFORMATION
DEFINITIONS
A. “Agreement” or “Contract” means the Agreement for Municipal Advisory Services to
be entered into by and between the State and the Successful Offeror(s) in
substantially the same form as Exhibit B to this RFP.
B. “Apparently Successful Offerors” or “Successful Offerors” means the Offeror(s)
selected by OST as entities qualified to perform the anticipated services.
C. “Business Day” means Monday through Friday, 8:00 AM to 5:00 PM, Pacific Time,
except for holidays observed by the State.
D. “Calendar Day(s)” means day reckoned from midnight to midnight.
E. “Contractor” means a Municipal Advisory Services firm awarded a Contract through
this RFP.
F. “Offeror” or “Vendor” means any respondent or entity intending to submit or
submitting a Response to obtain a Contract.
G. “OST” means the State Treasurer or the Office of the State Treasurer.
H. “Proprietary Information” means information owned by the Offeror to which the
Offeror claims a protectable interest under law. Proprietary Information includes, but
is not limited to, information protected by copyright, patent, trademark, or trade
secret laws.
I. “RCW” means the Revised Code of Washington.
9DMT 2021-02 – Municipal Advisory Services September 8, 2021
J. “Response” or “Proposal” means all information submitted in reply to this RFP,
including any additional information requested by or provided to OST.
K. “RFP” means this Request for Proposals, any addendum or erratum thereto, or
Offeror’s written questions and the respective answers, and any related
correspondence that is: (1) addressed to all Offerors, and (2) signed by the State
Treasurer, their designee, or the RFP Coordinator.
L. “State” means the state of Washington.
Additional Contract definitions are provided in the Sample Agreement for Municipal
Advisory Services, provided as Exhibit B.
COMPENSATION AND PAYMENT
The State anticipates that advisory work will be compensated differently based on the
specific engagement and the nature of the services provided. The compensation for
providing services under this RFP will be based on the fee provided in the proposal of the
Offeror and based on the rates identified in the resulting Contract. The services detailed
in “Section II: Statement of Work” of this RFP will be the basis for the proposed fee. Front
loading of fees is not permitted. The fee schedule proposed by the Offeror shall be
maintained for the full term of the Contract. All expenses related to providing services
shall be provided in the fees. However, certain travel costs for meetings requested by OST
separate and additional to the base services to be provided under the Contract may be
allowed but only if requested by the Contractor and authorized by OST in advance.
In the event OST requests additional services that are substantially outside of the Scope
of Work described above, OST may negotiate additional fees for such additional services
at its discretion.
EXPECTED TIME PERIOD OF THE CONTRACT
The State intends to select and enter into a contract with one or more Contractors to
provide municipal advisory services. The period of any contract for services resulting from
this RFP is scheduled to begin on or about January 14, 2022, and to run through January
14, 2026. The contract will include a 3-year extension, or such other period as determined
by OST and mutually agreed to by the Contractor. The total contract period, with
extensions, shall not exceed seven (7) years, through January 14, 2029.
10DMT 2021-02 – Municipal Advisory Services September 8, 2021
INSTRUCTIONS FOR COMPLETING AND SUBMITTING
PROPOSALS
OST CONTACT
The RFP Coordinator is the sole point of contact for OST throughout the RFP process. All
communications regarding this procurement must be directed to the RFP Coordinator. All
communications with OST are to be directed in writing to Contracts@tre.wa.gov.
Contacts not previously authorized by the RFP Coordinator with other OST staff regarding
this procurement after issuance of this RFP may disqualify the Offeror.
OFFICE OF THE STATE TREASURER
ATTN: JEN MERCHANT, RFP Coordinator
416 Sid Snyder Ave SW, Room 230
PO Box 40200
Olympia, WA 98501-0200
Telephone: (360) 902-8944
E-Mail: Contracts@tre.wa.gov
INTENT TO RESPOND AND QUESTIONS
All firms planning to submit a response to this RFP are advised to submit a Letter of
Intent to Respond in the format of an email to Contracts@tre.wa.gov by 5:00 p.m.
Pacific Time, September 20, 2021. Non-submittal of a Letter of Intent to Respond does
not preclude the Vendor from submitting a Proposal or consideration of the Proposal.
Any questions related to this RFP are to be submitted to Contracts@tre.wa.gov by 5:00
p.m. Pacific Time, September 20, 2021. The RFP Coordinator will respond to all
questions via email, and will also post responses on OST’s website at
https://tre.wa.gov/about-us/doing-business/ for retrieval and review by September
29, 2021. It is the responsibility of the Offeror to ensure that their response incorporates
the answers to any questions, and any subsequent information provided after the
release of this RFP.
11DMT 2021-02 – Municipal Advisory Services September 8, 2021
SCHEDULE OF PROCUREMENT ACTIVITIES
The following schedule of activities must be adhered to by all Offerors:
Timetable – Municipal Advisory Services RFP
Event Date
RFP Released September 8, 2021
Offerors Letters of Intent and Written Questions 5:00 PT September 20, 2021
Due
Answers to Offerors Questions Posted on OST 5:00 PT September 29, 2021
website
Offeror’s Proposals Due to OST 5:00 PT October 22, 2021
Telephone / Video Interviews with Semi-Finalists October 27-29, 2021
(if necessary)
Notify Apparently Successful Offeror November 12, 2021
Finalize Contract On or About December 31, 2021
PROCUREMENT MODIFICATION
OST reserves the right to amend the RFP, revise the RFP Schedule or issue addenda to the
RFP at any time. OST also reserves the right to cancel or reissue the RFP in whole or in
part, for any reason, at the sole discretion of OST at any time prior to the execution of an
agreement. If the RFP is revised, OST will provide an addendum to all Offerors that submit
a Letter of Intent to Respond by the deadline. In the event it becomes necessary to revise
any part of the RFP, notification will be posted on OST’s website at
https://tre.wa.gov/about-us/doing-business/. Offerors are advised to check the site
regularly prior to the due dates.
PROCUREMENT INSTRUCTIONS
5.5.1. Submitting Responses
Please send an electronic copy of your response to Contracts@tre.wa.gov. The
completed electronic version of the RFP response must be submitted by 5:00 Pacific
Time, October 22, 2021. Earlier responses are welcome. Any Response submitted after
the deadline will not be considered. Responses must be in the form of a PDF file
submitted to the email address shown above, with the with the subject line “State of
WA – MA RFP Response – [name of your firm]”.
If your Response contains information you consider confidential and proprietary, please
mark it such and include a second electronic version with your Response labeled “Copy
12DMT 2021-02 – Municipal Advisory Services September 8, 2021
for Reproduction” with the confidential portions redacted or omitted. Delete only
sections of “confidential” information, not the entire page unless the entire page can be
defended as confidential. This electronic version will be used as the basis of a response to
any Public Records Requests made for a copy of your Response. Where sections of
confidential information have been deleted in this electronic version, insert this
parenthetical text: “(CONFIDENTIAL INFORMATION REMOVED)” in at least 24 point type
and bold. Please secure this electronic version of the “Copy for Reproduction” in a manner
that will still allow OST to copy the protected electronic file onto its servers, but will not
allow editing of the information, nor allow access to redacted materials or information.
In addition to the “copy for reproduction,” please identify those portions that are claimed
as confidential in a response transmittal letter pursuant to Section 5.6. Those Responses
not marked “Confidential” are subject to full disclosure under the state Public Records
laws, as will be any Responses marked “Confidential” in their entirety.
OST reserves the right to retain all Responses and accompanying documentation
submitted and to use any ideas contained in Responses regardless of whether an Offeror
is selected. Responses retained shall become the property of OST and will not be
returned. Submission of a Response constitutes acceptance of all conditions contained in
this RFP, unless clearly and specifically noted in the Response submitted and confirmed
and expressly accepted in the subsequent agreement between the firm and OST.
5.5.2. Information and Format Requirements
By submitting a Proposal in response to this RFP, the Offeror acknowledges that it has
read and fully understands this RFP, and that the Offeror has asked questions and
received satisfactory answers from OST regarding any provisions of this RFP with regard
to which the Offeror desired clarification. After submission, Offerors will not be allowed
to amend the information submitted unless specifically asked to by OST staff.
All of the elements set forth in this section must be included in a Proposal, and addressed
thoroughly and completely by the Offeror before OST will accept a Response to this RFP.
Please be succinct in your response, which must be limited to no more than fifteen (15)
pages (excluding a single cover page, a cover letter, table of contents, and up to fifteen
(15) pages as appendices), 8½ x 11-inch page size and single spaced, with font sizes no
smaller than size 11, and margins at least at 0.75 inches. In total, the length of the
submittal is limited to no more than 33 pages, excluding proposed changes to Exhibit B,
if any. When applicable, please restate the question number and the subject before the
response to each question.
13DMT 2021-02 – Municipal Advisory Services September 8, 2021
Proposals shall include the following information by section:
1. COVER LETTER – Provide a cover letter, signed and dated by an individual legally
authorized to bind the Offeror. Indicate that the signer is authorized to commit the
Offeror to the terms presented and include the title or position the signatory holds.
The letter must also include:
A statement that all terms and prices included in the Proposal are guaranteed for
180 days from the Proposal due date.
A statement confirming the Offeror meets the requirements described in Section
III – Mandatory Minimum Qualifications.
Name, mailing address, telephone number, and email address of the primary
contact(s).
2. TABLE OF CONTENTS - Include a table of contents showing the Proposal content and
sequence. All pages should be numbered, and each section must reference the
corresponding part listed in this section.
3. GENERAL INFORMATION - Provide written answers to the following questions,
reproducing the questions with each answer:
A. Firm Background
1) Provide a brief description of your firm, including background, location,
experience, as well as other relevant factors. Describe any recent significant
developments in your organization and discuss any anticipated near-term
changes.
2) Provide the following business information about your firm:
a) Name, title, location and telephone number(s) of principal officer(s).
b) Legal status of organization (e.g. sole proprietorship, partnership,
corporation, etc.).
c) Federal employer identification number.
d) Washington State Department or Revenue Registration Number (UBI
number), if applicable.
e) Minority and/or women business enterprise (MWBE) certification
number, if the firm is a Washington State certified MWBE.
3) Since January 1, 2015, has your firm, or any officer or principal, been involved
in any business litigation, regulatory or other legal proceedings or
government investigation involving allegations of fraud, negligence, criminal
activity, or breach of fiduciary duty? If so, provide a description, explanation,
and indicate the current status.
14DMT 2021-02 – Municipal Advisory Services September 8, 2021
4) Please disclose the names of any persons or firms, including but not limited
to, attorneys, lobbyists, and public relations firms that you engaged to
promote your selection by the State or OST.
5) Please disclose the names of any persons or firms from whom you received
or may receive, directly or indirectly, any remuneration arising out of or
relating in any way to your relationship with the State or OST, including but
not limited to remuneration for promoting such persons or firms for selection
by the State.
6) Please disclose the existence and nature of any agreements by and between
your firm and any other professionals that relate to a particular State
financing or to the State’s financing programs in general.
B. Assigned Staff
1) Please provide a table showing positions, functions, regulatory licenses held,
and office location of all personnel that would potentially be involved in
providing the services requested. In an appendix, please include a brief
resume/biography for each team member that may provide services to the
State.
2) Explain how the professionals dedicated to providing the requested services
to the State will function, including primary contact(s), back-up, quality
control, research, and support services.
C. Municipal Advisory Experience
1) Describe your firm’s qualifications and relevant experience in providing
municipal advisory services to state or municipal issuers with a debt portfolio
of at least $1 billion during the past three (3) years. In an appendix, attach a
table summarizing the services provided to these issuers over this period,
noting the date, par amount, and type of financing as applicable. Please also
provide three case studies describing engagements that your firm has
successfully completed that are similar in scope to this engagement with the
State.
2) Describe your firm’s qualifications and relevant experience in providing
municipal advisory services to state or municipal issuers on COP/lease
revenue financings during the past three (3) years. In an appendix, attach a
table summarizing the services provided to these issuers over this period,
noting the date, par amount, and type of financing as applicable.
3) Describe your firm’s qualifications and relevant experience in providing
municipal advisory services to municipalities within the state of Washington
15DMT 2021-02 – Municipal Advisory Services September 8, 2021
during the past three (3) years. In an appendix, attach a table summarizing
the services provided to these issuers over this period, noting the date, par
amount, and type of financing as applicable.
D. Specific Questions
1) Please provide any recommended changes to OST’s financing programs or
procedures that you believe would reduce the cost of funds, reduce risk,
increase investor demand or be otherwise beneficial for the State’s
obligations.
2) The State has a long history of requiring 5% coupons for most callable
maturities. Describe your thoughts on the pros and cons of this strategy,
along with your recommended approach. Describe the key considerations
that factor into your recommendation.
3) The State has structured the majority of its new money financings with 10-
year par calls. Discuss the pros and cons of this approach, along with any
alternative considerations that you would recommend.
4) Please describe the criteria you would recommend that the State consider
when analyzing a local government’s credit quality as a condition to their
participation in a LOCAL Program COP financing.
5) Describe your firm’s experience working with TIFIA financings. Please
provide any relevant considerations that might apply to using a TIFIA
financing for a portion of the costs of the State’s 405/167 project. (RCW
47.10.896).
6) Describe your firm’s experience working with GARVEE financings. Please
provide any relevant considerations that might apply to using GARVEE bonds
to finance a portion of the costs of the State’s 405/167 project.
7) Describe your firm’s experience working with revolving fund bond programs,
such as clean water or drinking water revolving fund programs.
8) Effective July 25, 2021, ESHB 1189 significantly expands the use of tax
increment financing for cities, towns, counties, and port districts in
Washington State. Describe your firm’s experience in analyzing and
structuring tax increment financings.
E. References
1) Provide contact names, telephone numbers and email addresses for three (3)
state or municipal issuer references and briefly describe the municipal
advisory services that your firm has provided.
16DMT 2021-02 – Municipal Advisory Services September 8, 2021
F. Fee Proposal
1) Please provide your proposed fees for the engagement types listed below. No
proposed rates should be based upon the par amount of the issuance.
a) Bond program: hourly rate for ongoing, non-transactional support and
special project municipal advisory services.
b) Bond program: per issuance fee for fixed rate VP GO, MVFT GO, MVFT &
VRF GO, or combinations thereof, and other similar issuances.
c) COP program: hourly rate for ongoing, non-transactional support and
special project municipal advisory services, including projects such as
local government credit analysis; and economic and legal defeasances.
d) COP program: per issuance fee for fixed rate COP issuances.
e) Other fixed rate financings: per issuance fee for TIFIA, GARVEE, 63-20
and other revenue bond issuances.
f) Additional per issuance fees for variable rate bond, COP or other
financings.
Pre-approved travel and expenses may be reimbursed at cost, subject to the
Office of Financial Management’s Travel Guidelines.
The evaluation process is designed to award this procurement not necessarily
to the firm with the least cost, but rather to the firm whose Proposal best
meets the requirements of this RFP in OST’s sole judgment.
G. Conflict of Interest
1) It is the expectation of OST that the award of a contract for Municipal
Advisory Services and the conduct of business under that contract will comply
with the State’s conflict of interest laws. In an appendix, provide a letter
signed by an officer of your company in the form of Exhibit A certifying that
no condition exists with respect to the Offeror or any of its employees which
violates the Ethics in Public Service Act, Chapter 42.52 RCW, any other
appropriate federal statute or regulation governing municipal advisors, or any
similar statute in relation to the submittal of its Proposal.
H. Contractual Requirements
1) Exhibit B – Agreement for Municipal Advisory Services contains contracting
terms OST requires in the Contract that are not negotiable. Provide a
statement indicating the Offeror has read Exhibit B and accepts all provisions.
The Offeror may propose revisions to Agreement for clarification and
procedural purposes only. Refer to Section 7.6 of this RFP for further
information on the general contract terms and conditions.
17DMT 2021-02 – Municipal Advisory Services September 8, 2021
I. List of Exceptions
1) Provide an explanation for any exceptions to, or deviations from, the
requirements of the RFP. If there are no exceptions, include a statement to
that effect.
PROPRIETARY INFORMATION
All material submitted in Response to this RFP shall become the property of OST. Such
material is subject to public disclosure requests pursuant to Washington’s Public Records
Act, found in 42.56 RCW, OST policies as well as rules in chapter 474-01 Washington
Administrative Code (WAC) and cases decided by Washington courts.
All submissions will be treated as confidential and exempt from public disclosure until the
Successful Offeror(s) resulting from this RFP, if any, is announced by OST. Thereafter,
submissions are subject to public disclosure, unless material has been properly
designated as confidential and satisfies one of the exemptions from public disclosure
under Washington laws.
The materials submitted by the Apparently Successful Offeror may be attached to the
resulting Agreement and incorporated therein by that attachment. In general, unless
particular material has been properly designated as confidential and exempt from public
disclosure under Washington laws, such materials will be deemed public records and
subject to public disclosure requests.
In the event that an Offeror desires to claim portions of their response as exempt from
disclosure under the provisions of Washington’s laws, as noted above, it is incumbent
upon that Offeror to clearly identify those portions which are claimed as confidential in a
response transmittal letter and to provide a “Copy for Reproduction” as noted in Section
5.5.1. The transmittal letter must identify the page and particular exemption(s) from
disclosure upon which it is making its claim. The generally available exemptions from
public disclosure are available in RCW 42.56.210-.510. Designating the entire response as
confidential or proprietary information is not acceptable and will not be honored, and it
may subject the Offeror’s response to being rejected for not being responsive.
OST will consider all requests for exemption from disclosure; however, the agency will
make a decision predicated upon RCW 42.56.210-.510 and the current OST Public Records
Policy. In so doing, OST will exercise good faith in responding to requests for public
disclosure of public records, will not discriminate between persons requesting records,
and will protect legitimate confidentiality interests.
If any of the specifically requested information is marked as “confidential” in the response
but in the opinion of OST does not conform to any one of the enumerated exemptions
from disclosure in RCW 42.56.210-.510, such information will not be made available until
at least five (5) business days after the affected Offeror has been notified that the
18DMT 2021-02 – Municipal Advisory Services September 8, 2021
information has been requested, to permit the Offeror an opportunity to contest the
public disclosure request.
Should a successful Offeror obtain a court order from a Washington State court of
competent jurisdiction prohibiting disclosure of parts of its Response prior to the
execution of the Contract incorporating the same, OST will comply with the court order.
The burden is upon a successful Offeror to evaluate and anticipate its need to maintain
confidentiality and to proceed accordingly.
If the affected Offeror has undertaken proceedings within the timeframe to obtain a court
order restraining OST from disclosure of the “confidential” information within those five
(5) days, OST will not disclose such information until resolution of the court proceeding.
Upon failure to make application for judicial relief within the allowed period, the
information will be disclosed.
It should be noted, however, that time is of the essence in this solicitation process.
Although OST will work in good faith to accommodate legal proceedings concerning
confidential information, a delay in execution of the Contract to accommodate a petition
to the courts might not be possible or might not be granted.
RECORDS RETENTION
After the date of the announcement of the Apparently Successful Offeror(s), OST will
retain all products of information received under this procurement in accordance with
state record retention laws.
PREPARATION AND TRAVEL COSTS
Expenses for the development and submission of required information are the sole
responsibility of the Offeror(s). OST will not be liable for any costs associated with
preparation and submission of information submitted in response to this RFP.
The Offeror assumes responsibility for their personnel's travel and associated costs as
they relate to this RFP. These costs must be considered in the cost of the fees that will be
proposed.
RESPONSE EVALUATION
5.9.1. Evaluation Process
The review of the Offeror will be based upon the completeness of the response,
reputation, cost of services, quality of previous performance, if any, and any subsequently
requested materials. Responses will be reviewed by evaluators who are representatives
of OST.
19DMT 2021-02 – Municipal Advisory Services September 8, 2021
OST reserves the right, at its sole discretion, to reject, without penalty, any and all
responses received. The final selection, if any, will be the Responses, which in the opinion
of OST, best meet the requirements set forth in the RFP and are in the best interest of
OST and the state of Washington.
5.9.2. Evaluation Criteria
Proposals will be evaluated by representatives of OST, and OST will make the final
decision to award the Contract. Proposals will be evaluated based on, but not limited to,
the following criteria:
Criteria
Offeror’s qualifications and experience in providing required services,
including experience in providing municipal advisory services to major
municipal issuers
Offeror’s qualifications and experience with diverse financial
structuring requirements of major municipal issuers
Qualifications and relevant experience of personnel assigned
Past performance and references
Fees and expenses
Compliance with RFP requirements
OST will review each RFP for compliance with Section III. Mandatory Minimum
Qualifications, and noncompliant Responses will be rejected from further consideration.
Through the selection process, OST reserves the right, at its sole discretion to: (i) not to
select any proposal; (ii) to select any portions of a particular proposal for further
consideration; (iii) to accept a proposal other than the lowest cost proposal submitted; or
(iv) to reject, without penalty, any and all proposals received if such action is considered
by OST in its sole discretion to be in the best interests of OST and the state of Washington.
5.9.3. Oral Interviews
OST may choose to conduct oral interviews for final selection of Offeror(s). Interviews
may be conducted by telephone, or virtually at OST’s discretion. If requested, the oral
presentations will be evaluated to develop a consensus decision of the Apparently
Successful Offerors.
ADDENDA TO THE RFP
In the event that it becomes necessary to revise any part of this RFP, an addendum or
erratum in numerical sequence will be provided to all Offerors who have indicated an
20DMT 2021-02 – Municipal Advisory Services September 8, 2021
intention to submit a response and will be posted on OST’s website at
https://tre.wa.gov/about-us/doing-business/. Offerors will be given at least five (5)
business days from notification to provide requested information.
SUBMISSION LIMIT
After submission, Offerors will not be allowed to amend the information submitted unless
specifically asked to by OST staff.
OST RIGHTS
INFORMATION CLARIFICATION/REJECTIONS
Determination of clarity and completeness in the Responses to any of the provisions in
this RFP will be made solely by OST. OST reserves the right to require clarification,
additional information, and materials in any form relative to any or all of the provisions
or conditions of this RFP.
OST reserves the right to reject any or all Responses at any time prior to the execution of
a contract acceptable to OST, without any penalty to OST.
CONTRACT AWARD
OST intends to award a contract to the Apparently Successful Offeror(s) with the best
combination of attributes based on the evaluation criteria listed in the “Evaluation
Criteria” Section 5.9.2 of this RFP.
OST reserves the right to make an award without further discussion of the Response
submitted. Therefore, the Response should be submitted initially on the most favorable
terms which the Offeror can propose. There will be no best and final offer procedure. OST
does reserve the right to contact an Offeror for clarification of its Response.
The Offeror should be prepared to accept this RFP for incorporation in whole or in part
into a Contract resulting from this RFP. Contract negotiations may incorporate some or
the Offeror’s entire Response. It is understood that the Response will become a part of
the official procurement file on this matter without obligation to OST.
WAIVERS
OST reserves the right to waive specific terms and conditions contained in this RFP.
It shall be understood by Offerors that the information provided is predicated upon
acceptance of all terms and conditions contained in this RFP unless the Offeror has
21DMT 2021-02 – Municipal Advisory Services September 8, 2021
obtained such a waiver, in writing, from OST prior to submission of any requested
information. Any waiver, if granted, will be granted to all Offerors.
MISCELLANEOUS TERMS AND CONDITIONS
SUCCESSFUL OFFEROR NOTIFICATION
On or about the date specified in Section 5.3, “Schedule of Procurement Activities,” of
this RFP, a notification indicating whether the Offeror was selected as the “Apparently
Successful Offeror” will be emailed to each Offeror who submitted a Response, in
accordance with the procedures specified in this RFP.
RIGHT TO PROTEST, DETERMINATION OF TIMELINESS, AND PROTEST PROCEDURES
Offerors protesting this procurement solicitation or award must follow the procedures
set forth in chapter 200-320 of the Washington Administrative Code (WAC). Protests that
do not follow those procedures will not be considered. This protest procedure constitutes
the sole administrative remedy available to Offerors under this procurement. Protests will
be resolved in accordance with the above referenced WAC.
DEBRIEFING OF UNSUCCESSFUL OFFERORS
Unsuccessful Offerors will be afforded a debriefing conference upon request. The request
for a debriefing conference must be received by the RFP Coordinator within three (3)
business days after emailing by OST of a notification to the unsuccessful Offerors.
Discussion will be limited to a critique of the requesting Offeror's Response. Comparisons
between Responses or evaluations of the other Offeror's Responses will not be allowed.
Debriefing conferences will be conducted by telephone conference and will be scheduled
for a maximum of one hour. The debriefing conference must be held within thirty (30)
days after emailing by OST of notification to the unsuccessful Offerors.
STAY OF CONTRACT EXECUTION DURING PROTESTS
In the event of a timely protest, OST may proceed further with the procurement but will
not execute the Contract unless the protest is decided or the State Treasurer or a designee
makes a written determination that the award of the Contract without delay is necessary
to protect substantial interests of OST and the state of Washington.
MINORITY & WOMEN-OWNED BUSINESS PARTICIPATION
In accordance with the legislative findings and policies set forth in chapter 39.19 RCW,
the state of Washington encourages participation in all of its contracts by firms certified
22DMT 2021-02 – Municipal Advisory Services September 8, 2021
by the Office of Minority and Women’s Business Enterprises (OMWBE). However, no
preference will be included in the evaluation of proposals, no minimum level of OMWBE
participation will be required as a condition for receiving an award and proposals will not
be rejected or considered non-responsive on that basis. Any affirmative action
requirements set forth in federal regulations or statutes included or referenced in the
contract documents will apply.
GENERAL CONTRACT TERMS AND CONDITIONS
A contract may result between OST and the successful Offeror(s) from this procurement
process. Exhibit B of this RFP contains the special and general terms and conditions that
shall be agreed to.
The submission of a Response constitutes acceptance by the Offeror of the special and
general terms and conditions.
OST's intent is to have the sample contract in Exhibit B accepted as presented without
material changes. It is strongly recommended that your firm's legal counsel review the
attached contract. If your firm is unwilling or unable to accept the terms of the contract
set forth, you must identify your concerns in a cover letter that is to accompany your
Certifications and Assurances set forth in Exhibit B, and must include a red-line markup of
Exhibit B outlining proposed changes. However, OST reserves the right at its sole
discretion to approve or disapprove changes to the contract.
INDEMNIFICATION
The successful Offeror(s) from this procurement process will be subject to an
indemnification requirement, as further described in sample contract contained in Exhibit
B of this RFP.
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