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Key Information Summary Sheet

Key Information Summary Sheet






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    Key Information Summary Sheet Key Information Summary Sheet Document Transcript

    • Key Information Summary Sheet Consulting Services for DHCD-CDA Local Government Infrastructure Finance Program Request for Proposals No. 10-25-001 RFP Issue Date: July 30, 2009 Procurement Officer: Eleanor Kennedy Kennedy@mdhousing.org 410-514-7112 (FAX) 410-987-4676 Submit Proposals to: Dept. of Housing and Community Development Attention: Eleanor Kennedy 100 Community Place, Room 2.619 Crownsville, MD 21032-2023 Proposals Due: August 27, 2009, 2:00 pm local time Anticipated Contract Start: October 1, 2009 Minority Business Enterprises and Small Businesses are encouraged to respond to this solicitation Notice: Any prospective Offeror who received this document from a source other than the Issuing Office should immediately advise the Issuing Office of its name and mailing address, so that amendments to the RFP and other communications can be sent to them.
    • Consulting Services for DHCD-CDA Local Government Infrastructure Finance Program TABLE OF CONTENTS Key Information Summary Sheet Cover Section 1. General Information Page 3 2. Scope of Services Page 5 3. Minimum Qualifications Page 8 4. Proposal Format Page 9 5. Evaluation Procedure and Contract Award Page 11 Attachments A. Contract Terms B. Staffing Plan/ Key Personnel Assignment Chart C. Price Proposal Form 2
    • Consulting Services for DHCD-CDA Local Government Infrastructure Finance Program SECTION 1 - GENERAL INFORMATION 1.1 Purpose The Maryland Department of Housing and Community Development (DHCD), a principal department of the State of Maryland (State), is seeking a qualified Contractor to provide consulting services for its Local Government Infrastructure Finance Program (LGIF). Specific services to be provided are outlined in Section 2. 1.2 Procurement Method This Contract will be awarded in accordance with the small procurement regulations under COMAR 21.05.07. Interested Contractors are encouraged to review these regulations. 1.3 Questions Questions will be accepted from prospective Offerors and should be submitted in a timely manner to the Procurement Officer only. E-mail submission of questions is preferable, but questions will also be accepted by phone, mail or facsimile to the Procurement Officer. The Procurement Officer will decide whether an answer can be given before the closing date, based on the availability of time to research and communicate an answer. Answers to all substantive questions that have not previously been answered, and are not clearly specific only to the requestor, will be distributed to all vendors who are known to have received a copy of this RFP. 1.4 Procurement Officer and Issuing Office The sole point of contact at the State for purposes of this RFP is the Procurement Officer at the Issuing Office listed on the Key Information Summary Sheet. 1.5 Contract Manager After contract award and throughout the course of the project, the Contract Manager listed below (or designee) will monitor the performance of the Contractor. Charles F. G. Day Jr. Maryland DHCD - Community Development Administration Local Government Infrastructure Finance Program Manager 100 Community Place Rm. 4.435 Crownsville, Maryland 21032 Phone # (410) 514-7466 Email: dayc@mdhousing.org 3
    • Consulting Services for DHCD-CDA Local Government Infrastructure Finance Program 1.6 Duration of Offer Offers submitted in response to this RFP are irrevocable for 60 days following the closing date for proposals. The Procurement Officer may extend this period, with the Offeror’s written consent. 1.7 Revisions to the RFP If it becomes necessary to revise this RFP, amendments will be provided to all prospective Offerors that were sent this RFP or otherwise are known by the Procurement Officer to have obtained this RFP. Failure to acknowledge receipt does not relieve the Offeror from complying with all terms of any such amendment. 1.8 Cancellation / Rejection The State reserves the right to cancel this RFP at any time prior to contract award pursuant to COMAR The State also reserves the right to accept or reject, in whole or in part, any and all offers received in response to this RFP, and to waive or permit cure of minor irregularities in any manner necessary to serve the best interests of the State of Maryland. 1.9 Contract Type The Contract awarded as a result of this RFP shall be a firm fixed price contract as provided in COMAR 1.10 Compensation and Method of Payment The Contract will provide that the Contractor be paid monthly as appropriate for consulting services. Payment shall be based upon the actual number of hours expended by the Contractor in performance of the services requested by DHCD in the preceding month, multiplied by the fixed hourly rates of compensation on the Contractor’s Attachment C, Price Proposal Form. DHCD shall not reimburse the Contractor for any travel costs associated with work under this Contract. 1.11 Parties to the Contract The contract entered into as a result of the response to this RFP shall be by and between the successful Offeror as Contractor and DHCD, and shall include the terms and conditions of Attachment A of this RFP and generally the provisions of this RFP. Any exceptions must be clearly identified in the Executive Summary section of the Technical Proposal. Attachment A is included for information only and is not to be submitted with the Offeror’s proposal. 4
    • Consulting Services for DHCD-CDA Local Government Infrastructure Finance Program 1.12 Minority Business Enterprises (MBEs) Minority Business Enterprises (MBEs) are encouraged to respond to this solicitation. MBE vendors are encouraged to obtain MBE certification from the Maryland Department of Transportation, Office of Minority Business Enterprise. Direct all certification-related questions to: Office of Minority Business Enterprise Maryland Department of Transportation P.O. Box 8755 BWI Airport, Maryland 21240-0755 (410) 859-7328 http://www.mdot.state.md.us/MBE_Program/ 1.13 Small Businesses Although this is not a Small Business Reserve procurement, small businesses are encouraged to respond to this solicitation and to register with the Maryland Department of General Services for the Maryland Small Business Reserve Program through a self-certification process at https://www.smallbusinessreserve.maryland.gov/registration/. SECTION 2 – SCOPE OF SERVICES 2.1 Background The Contractor shall serve as a consultant to DHCD’s LGIF (the Program). LGIF operates under statutory authority of Sections 4-101 through Section 4-255 of the Housing and Community Development Article of the Annotated Code of Maryland. The objective of the Program is to provide an accessible and efficient mechanism for Maryland’s local governments to secure financing or refinancing for the acquisition, construction, and rehabilitation of a broad range of infrastructure capital projects, including streets, bridges, buildings, utility systems, and other structures and facilities used for providing public services. LGIF is particularly suitable for local governments that do not issue bonds routinely, or for those for which administering a public bond offering on their own is either inconvenient and/or expensive. DHCD, through its Community Development Administration (CDA), issues tax- exempt bonds as a way of raising capital that is lent to qualified local governments to fund eligible projects. Any financing or refinancing under the Program may be backed by the full faith and credit of the local government or the pledge of specifically identified revenues. CDA has experienced staff: (i) well-versed in bond issuance and Capital Market operations; and (ii) accustom to preparing and evaluating complex financial models. CDA has at its disposal the expertise and resources (including bond counsel and a financial advisor) to manage all aspects of bond issuance, and assist local governments navigate successfully through the complexities of tax-exempt bond financing. DHCD staff work closely with incorporated municipalities in need of affordable capital into a “Pooled financing”. By aggregating and pooling the local government demand, CDA captures efficiencies and 5
    • Consulting Services for DHCD-CDA Local Government Infrastructure Finance Program economies of scale. The savings realized by CDA is passed on to the local government participants by way of issuance costs (which are shared among several local governments), and low tax-exempt interest rates which are fixed at the time bonds are sold. Since 1988, CDA has facilitated 25 bond series totaling approximately $243 million, enabling 53 municipalities, 4 counties, and 2 instrumentalities of counties to finance 281 distinct projects. As of June 1, 2009, LGIF’s loan portfolio equaled approximately $121 million. 2.2 Scope of Services A. Consulting Services. The Contractor shall provide the following services as directed by DHCD: 1. Local Government Applications. a. Review and comment on LGIF Applications as provided by DHCD, including identifying additional information required to evaluate the applicant’s creditworthiness and ability to service existing and proposed debt. b. Develop and provide to DHCD financial templates for inputting and analyzing data received in applications in order to quantify and underwrite the local government credit(s). c. Recommend minimum requirements for applicant(s) to advance in process. d. Document and submit conclusions to DHCD. 2. State Aid Intercept. Each local government receiving an Infrastructure Loan financed with the proceeds of CDA’s bonds is required to enter into a Pledge Agreement with CDA pledging certain monies (shared revenues) the local government is entitled to receive, if any, from the State. If CDA does not receive scheduled payments on an Infrastructure Loan, CDA may give notice of the amount remaining unpaid to the Comptroller or the Treasurer of the State. The Comptroller or the Treasurer, upon receipt of such notice, has agreed to pay or cause to be paid to CDA or a trustee that CDA designates such unpaid amount from any available shared revenues (i.e. State collected local taxes, the local government’s share of State taxes, highway user funds, aid to local police), from the State. a. Review the State Aid Intercept process (Memorandum of Understanding) between DHCD and the Comptroller and Treasurer of the State. b. Determine the amount of monies the local government is entitled to receive, if any, from the State, and as applicable, the timing of such payments. c. Evaluate any other outstanding or pending indebtedness an applicant has or may enter into that requires a similar shared revenue pledge. 6
    • Consulting Services for DHCD-CDA Local Government Infrastructure Finance Program d. Provide comments to DHCD regarding standards for debt service coverage on the local government’s existing and proposed indebtedness. 3. CDA Bond Issue Structure. a. Review and comment on senior/subordinate bond structure, which is described in Section A. 3.c. below. b. Review and comment on criteria used by rating agencies to analyze pooled structures and how these criteria might impact CDA’s senior/subordinate bond structure. c. CDA’s senior /subordinate bond structure (Table 1): Table 1: Senior Lien Bonds/ Subordinate Lien Bonds Senior Lien Bonds Subordinate Lien Bonds • 70% of bonds sold • 30% of bonds sold • Secured by a First Lien on all local • Balance of local revenues which remain revenues pledged. after Senior Lien Bond Obligations are met. • 1.30 x coverage • 1.00 x coverage • Any revenues available in the bond • Any revenues available in the bond indenture. indenture. • State-aid Intercept • State-aid Intercept • Capital Reserve Fund • Contingent Liability from the State of Maryland (not to exceed $2 million) 4. Bond Documents. Review and comment on draft Bond documents, which may include, but are not limited to: (i) Bond Indenture; (ii) Series Resolution; (iii) Pledge Agreement; and (iv) Repayment Agreement. 5. Rating Agency Package. After analyzing and underwriting each local government application to determine creditworthiness, a package must be prepared for submission to one or more rating agencies. a. Recommend and comment on form and content for the rating agency package. b. Recommend rating agencies that should receive package. 6. Portfolio Monitoring and Continuing Disclosure. After closing on CDA’s bonds and the participating local government loan obligations, ongoing portfolio and regulatory disclosure requirements will need to be addressed for the term of the debt obligations. a. Recommend and comment on participant annual reporting requirements. b. Comment on continuing disclosure requirements. 7
    • Consulting Services for DHCD-CDA Local Government Infrastructure Finance Program c. Assist DHCD in the development of a default tolerance / stress test analysis involving the cash-flows that comprise the bond indenture portfolio. 7. Additional Services. Provide advice and training as requested by DHCD. B. Staffing Plan. 1. The Contractor shall maintain a staffing plan that describes the engagement team and identifies the specific individual(s) who will be assigned to the Contract to perform work under each of the tasks referred to in Section A above. The staffing plan shall include a description of the division of responsibility envisioned, if applicable. 2. Replacement of any personnel shall be with personnel of substantially equal ability, qualifications and experience, and with the prior written consent of DHCD. DHCD will reserve the right to terminate the contract if key personnel are changed without such consent. C. Assignment of Tasks and Completion of Work. 1. For each service described under Section 2.2A, DHCD will provide instructions to the Contractor for the particular task, including DHCD’s expectation of the amount of time needed to complete the work. 2. Commencement of work by the Contractor shall begin at the direction of DHCD. 3. All work performed by the Contractor under this Contract shall become the exclusive property of DHCD. SECTION 3 – MINIMUM QUALIFICATIONS The Offeror must meet the qualifications described below to be considered for contract award: A. Underwriting Local Government Credits. Have a minimum five (5) years work experience analyzing local government credits in order to determine ability to issue and service debt obligations. Work experience may be obtained in one or more of the following professional environments: 1. State Revolving Fund and/or Municipal Loan Pool Program(s). Have work experience advising a state administered program; or 2. Commercial Bank or Investment Bank Work. Experience in one or more of these environments with an emphasis in working with state agencies and local governments or experience underwriting local government credits in order to determine ability to issue and service debt obligations; or 3. Monoline Insurer or Rating Agency Work. Experience in one or more of these environments with an emphasis in working with state agencies and local governments or experience analyzing State Revolving Fund and/or Municipal 8
    • Consulting Services for DHCD-CDA Local Government Infrastructure Finance Program Loan Pools Programs, local government credits, and assigning credit ratings on their debt obligations; or 4. Financial Advisory Experience. Experience in financial advisory services with an emphasis on working with state agencies and local governments. SECTION 4 – PROPOSAL FORMAT 4.1 Overview The Offeror’s Technical Proposal should be prepared in a straightforward and concise manner, detailing the Offeror’s capabilities to satisfy the requirements of this RFP and should conform to the Outline listed in Section 4.2.B below. 4.2 Technical Proposal A. General: Offerors shall submit, under separate cover, a clearly marked unbound original and three (3) copies of the Technical Proposal in a separate sealed envelope titled “Consulting Services for DHCD Local Government Infrastructure Finance Program- Technical Proposal.” Offerors should include a transmittal letter on the Offeror’s stationery, signed by an individual who is authorized to bind the company to all statements in the proposal and the services and requirements as stated in the RFP. B. Outline: Table of Contents 1. Tab 1 – Minimum Qualifications The Offeror shall demonstrate that it meets the qualifications outlined in Section 3 by documenting the prior experience and qualifications of key personnel designated by the Offeror and assigned to the Contract. Include a detailed description of selected engagements with an explanation of how this experience demonstrates the ability to provide the services outlined for the activities in Section 2.2. Clearly state the number and identity of clients currently or previously served. 2. Tab 2 – Executive Summary The Offeror shall condense and highlight the contents of the Technical Proposal in a separate section titled “Executive Summary”. The summary shall provide a broad overview of the Offeror’s understanding of the contents of the RFP and how the Offeror’s proposal meets the scope of services outlined in Section 2. If any addendum or amendments have been issued to this RFP, the Offeror shall acknowledge same in this section. Also, any exceptions to this RFP or the terms and conditions outlined in Attachment A or any other attachment must be clearly identified in this section. Exceptions may result in the proposal 9
    • Consulting Services for DHCD-CDA Local Government Infrastructure Finance Program being rejected or not reasonably susceptible of being selected for award. 3. Tab 3 – Response to Scope The Offeror shall address each area in Section 2.2 of the RFP and describe how the Offeror proposes to meet the requirements for services. 4. Tab 4 – Summary of Experience The Offeror shall describe his/her experience as a professional consultant, particularly any experience working with government agencies, State administered pooled loan programs, and local governments in order to facilitate bond issuance. 5. Tab 5 –References The Offeror shall provide the names, addresses, and telephone numbers of at least three (3) current clients that may be contacted as references. Provide the name of the organization, mailing address, point of contact name, telephone number and email, and a description of the services rendered. DHCD reserves the right to call any known former or current client. 5. Tab 6 – Staffing Plan/ Key Personnel The Offeror shall provide a staffing plan by completing Attachment B. A. Use the form of Attachment B, Staffing Plan/ Key Personnel, to identify the specific individuals who will be assigned to the Contract. Include a resume for each individual named that describes experience and lists the name, address, and telephone number of at least one recent client who may be contacted as a reference. B. Specify the division of responsibility envisioned among these individuals and their availability to perform contract services during the term of the Contract. For each individual identified, indicate on Attachment E the percentage of time that person will be available for performance on this contract. C. Identify other personnel who would be available to perform the services described in Section 2.2, if members of the specific team were unavailable. 4.3 Price Proposal Submit an unbound, clearly marked original and three (3) bound copies of the Price Proposal in a separate sealed enveloped titled “Financial Proposal – Consulting Services for DHCD Local Government Infrastructure Finance Program.” The Price Proposal must be in the format specified in Attachment C and be signed by an official authorized to bind the Offeror. 10
    • Consulting Services for DHCD-CDA Local Government Infrastructure Finance Program SECTION 5 – EVALUATION PROCEDURE AND CONTRACT AWARD 5.1 Evaluation Committee The Procurement Officer shall establish an Evaluation Committee, which may include individuals from within or outside of State government. The Procurement Officer reserves the right to reject in whole or in part any and all proposals received as a result of this RFP, to waive minor irregularities in proposals, and to enter into discussions with all responsible Offerors in any manner deemed necessary to serve the best interest of DHCD and the State. Offerors whose proposals are not accepted will be notified in writing. 5.2 Discussions/ Oral Presentations All Offerors who appear to be responsible and whose proposals are initially classified as being reasonably susceptible of being selected for award may be required to make oral presentations of their proposals and participate in discussions with the Evaluation Committee. Offerors will be notified as to a date for oral presentations/discussions. Offerors must confirm in writing any substantive oral clarification of their proposal made in the course of discussions and all written clarifications will become part of the Offeror’s Technical Proposal. Price Proposals from only those responsible Offerors whose proposals are finally deemed reasonably susceptible of being selected for award will be opened following the discussion and presentation process. If, following the opening of the price proposals, the Procurement Officer determines that further discussion is in the best interest of DHCD and the State, the Procurement Officer will notify all of the Offerors of the date on which such discussions will be conducted. Upon completion of all discussions and upon receipt of any “best and final offers” submitted as a result of such discussions, the Evaluation Committee shall recommend to the Procurement Officer the award of the Contract to the responsible Offeror whose combined technical and price proposal is determined to be the most advantageous to DHCD and the State. 5.3 Technical Proposal Evaluation Criteria The Evaluation Committee will conduct their evaluation of the Technical Proposals received on the basis of the following criteria in descending order of importance: A. Scope of Work, as described in Section 4.2, Tabs 2 and 3. B. Experience, as described in Section 4.2, Tabs 4 and 5. C. Staffing Plan and Key Personnel, as described in Section 4.2, Tab 6. 11
    • Consulting Services for DHCD-CDA Local Government Infrastructure Finance Program 5.4 Price Proposal Selection Criteria Price Proposals will not be opened until the evaluation of the Technical Proposal is complete. The Price Proposal evaluation will be based upon the prices submitted by the Offeror on Attachment C – Price Proposal Form, and best and final offers, if any. Proposals will be ranked in order from lowest to highest cost to the State. 5.5 Weighting of Technical and Price Proposals The Technical Proposal will have greater weight than the price proposal in determining the most advantageous offers. 5.6 Contract Award It is DHCD’s intention to award the contract to the Offeror whose proposal is determined to be the most advantageous to the State. 12