Cash Management/Advisory Services and Custody RFP Questions and Answers March 24, 2016

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Elvin Little
6 years ago
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1 Cash Management/Advisory Services and Custody RFP Questions and Answers March 24, In respect of Long Island Power Authority's RFP referenced above, may I ask the Authority would please consider holding a pre-bid conference as a good faith effort to facilitate matching of prime and sub-contractor (MWBE, SDVOB) firms that are truly interested in sub-contracting (beyond searching a database of certified firms) on this RFP with the objective of fulfilling the conditions specified in Section X.C and X.G of the RFP document? The Authority will not be holding a pre-bid conference. Please see answer to question Further to my previous query, may I also ask if Long Island Power Authority will publicize a plan holders list of firms that will be bidding as prime contractors on this RFP so that sub-contractors may fairly have the opportunity to work with primes? The Authority will not be publicizing a list of firms that will be bidding as prime contractors. Please see answer to question Can the Authority please clarify its MWBE goals in this RFP? There are several references to a 0% goal in the RFP itself (page 14, question 23; page 24, Section X.C) while Exhibit C states a 2% goal for MWBE firms. Exhibit C has been updated to include the correct MWBE goal of 0%. Please see answer to question Could you please direct us to the Contractor Disclosure of Prior Non-Responsibility Determinations? We were not able to find this posted online. The Contractor Disclosure of Prior Non-Responsibility Determinations is Attachment 2 of Lobbying Guidelines Regarding Procurements, Rules, Regulations or Ratemaking, which is included on the web page Does the 20 page limit include both Scope A Cash Management and Advisory AND Scope B Custodial Services? Or is it a 20-page limit for each section? Scope A and Scope B are exclusive of one another, and as such, each has its own 20 page limit.

2 6. Why is the RPF being issued? The purpose of this RFP is to solicit proposals from qualified Cash Managers/Advisors and Custodians that have the experience and qualifications in providing the services described in the RFP. 7. What are the current fees? This question seeks information that is not related to this RFP and is not necessary for a proposer to submit a responsive proposal. 8. Is the UDSA account included under Scope of Services (with different guidelines) part of this RFP? The UDSA was included in the scope of services however, as there are significant restrictions on the funds in that account, it is unlikely that there will be significant opportunities to manage such funds. 9. Is there a pay down schedule for the Construction accounts we could reference? Is there any historical or projected cash flow data or additional information available that will assist us with providing a recommended investment solution and the appropriate benchmark for each of the four investment accounts? Approximately $35M of construction spending monthly with cash movement of approximately $100K on a quarterly basis. 10. Is the custody bid for only the investments that are included in the RFP? Or are you looking for a master custodian for additional monies and managers? The custody bid is for the investments outlined in the RFP. 11. Section of the Investment Guidelines references the minimum ratings of financing documents with regard to Corporate Notes, CD s and Muni s. Are the financing documents applicable to any of the four investment accounts included in the RFP? If so, have they been amended or waived as expected in 2015? What are the amendments? The Financing Documents have been amended and therefore Section of the Investment Guidelines no longer applies.

3 12. Are the funds currently being managed under the investment guidelines dated 3/26/15? Yes, as those are the guidelines currently in effect. 13. Is it possible to get a list of respondents to this RFP who we can contact regarding potential partnership/subcontracting with in achieving our goal to support the Authority while simultaneously supporting the Authority s goal of doing business with New York State Service-Disabled Veteran-Owned Businesses? The Authority will not be publicizing a list of firms that will be bidding as prime contractors. 14. I am interested in reviewing the LIPA s Cash Manager RFP, but was unable to locate the document on the website, as suggested in the notice. Would you kindly provide a copy, at your convenience? Please find RFP location as follows: The agreement contained within this RFP refers to a Consultant, however, it is our understanding that this RFP is for investment management services. Upon review, some of the concepts presented here are not applicable, and many concepts that are typical of an investment advisory agreement are missing. That said, can you comment on your ability to allow us to engage in an investment management agreement negotiation in the event we were to win the mandate? As specified in the RFP, Proposers must either provide a statement accepting the terms and conditions in the Authority s Standard Consulting Agreement posted on the RFP web site, or must alternately identify any exceptions taken to the terms and conditions. If exceptions are taken, the Proposer must clearly identify the language that is being taken exception to and provide the suggested alternate language for each such exception. The nature and extent of exceptions, if any, taken by the Proposer to the Authority s terms and conditions will be a factor considered in evaluating proposals. Proposers that demonstrate a willingness to accept the Authority s terms and conditions will be given more favorable consideration by the Authority. 16. As indicated in Section of the Investment Policy Statement, were the minimum rating credit ratings for Corporate notes, Certificates of Deposit, and Municipal Obligations revised in 2015 to reflect those quoted in section 2.24, 2.25 and 2.28 respectively or are they remain as defined in Section 2.2.9? The Financing Documents have been amended and therefore Section of the Investment Guidelines no longer applies.

4 17. What has been the daily cash flow experience been for each fund? Are there single net cash movements or multiple movements? Only the Operating Fund has daily cash flows, typically once per day. 18. Are disbursements for all funds and especially the Operations and maintenance Fund to a single operating (DDA) account for each Fund? Yes, the disbursements from the Operating Portfolio are typically to a single demand deposit account Where are LIPA's operating accounts for each fund (DDA accounts) maintained? They are currently maintained with a custodian. 20. Based on the upcoming SEC changes to money market mutual funds will LIPA require their money market fund option be a stable NAV fund (US Treasury and Government MMF)? LIPA s requirements will vary by the account being managed and the need to readily access the funds. 21. We are contemplating proposing jointly with a banking institution we would provide cash & investment management services while the bank would serve as custodian. In this case, with two separate prime contractors each proposing to provide one scope of services, would the General Information page limit (18 pages) apply separately to each prime contractor? Scope A and Scope B are exclusive of one another, and as such, each has its own 20 page limit. 22. It is our understanding that the Authority has removed its subcontracting goal for MWBE participation in this RFP. Has the NYS Disabled-Veterans subcontracting goal of 6% likewise been waived? No. Based on the results of a Request for Information the Authority published to gauge MWBE opportunities for the RFP, the Authority determined that no such opportunities existed and as such did not set MWBE requirements for the RFP. However, as stated in the RFP, New York State has established a state-wide goal of 6% New York State Service-Disabled Veteran- Owned Business goal. Proposers should identify ways that they might be able to assist the Authority to help achieve this New York State goal. Please also see answer to question 36.

5 23. What is the current make up of the portfolio? Do you currently own mutual funds? Or, is everything in separately managed account format? The portfolio consists of separately managed accounts. 24. On page 7, under section V. Cash Position, you mention that AUM is approximately $1.3 billion. On page 19, under section B. Cost, you list 4 accounts for a total of $950mm. The account not listed is UDSA account. Is UDSA account in the scope of this RFP? If so, can you please confirm UDSA account size? Around 350mm? Page seven provides the balance in the accounts at the end of the year, whereas page nineteen provides information with regard to the assumptions the Proposer should utilize in preparation of their proposal. As noted above, the UDSA account is within the scope of this RFP however as there are significant restrictions on the funds in that account, it is unlikely that there will be significant opportunities to manage such funds. 25. For some of the accounts, we might propose money market mutual funds. With the upcoming money market fund reform, do you have a preference for Constant NAV (Government/Agency funds) or Variable NAV (corporate/prime funds)? LIPA s requirements will vary by the account being managed and the need to readily access the funds. 26. Can you share why LIPA is performing the search. Are you unhappy with services or products from your current provider? The purpose of this RFP is to solicit proposals from qualified Cash Managers/Advisors and Custodians that have the experience and qualifications in providing the services described in the RFP. 27. Can you share who is currently providing these services? This question seeks information that is not required to submit a responsive proposal. 28. Is there special reporting required? Reporting requirements have been outlined in the RFP.

6 29. Can you share the portfolio? Please see footnotes to financial statements. 30. For the UDSA account mentioned on page 9, is this cash pool in scope for this RFP? If so, in what capacity advisory / management? Custody? The UDSA was included in the scope of services however, as there are significant restrictions on the funds in that account, it is unlikely that there will be significant opportunities to manage such funds. 31. What are the AUM (Assets Under Management) for this UDSA entity? Please see Section B Cost, which provides assumed AUM for purposes of this RFP 32. On page 15, question 26, the term represent appears in reference to our relationship with National Grid, Lockheed Martin Corporation and other entities. Please define what you mean by represent? If you have an ongoing relationship with any of the firms listed at question 26 please briefly describe that relationship 33. On page 18, question numbers 13 and 16 seem duplicative? Please elaborate. Feel free to refer to question 13 when responding to Item #3 Section Xa4 on page 23, Contractor Disclosure of Prior Non-Responsibility Determinations form, is not included as an attachment. The Contractor Disclosure of Prior Non-Responsibility Determinations is Attachment 2 of Lobbying Guidelines Regarding Procurements, Rules, Regulations or Ratemaking, which is included on the web page On page 12 under General Information, LIPA is very specific on how many pages each bidder s response can be. But some providers are only bidding on scope A, some on scope B, and some will be responding for both scope A & B. For those of us responding to both scopes, can the General Information section be a total of 36 pages, as a number of the questions ask for responses to BOTH scopes. Scope A and Scope B are exclusive of one another, and as such, each has its own 20 page limit.

7 36. The RFP states that LIPA ( The Authority ) has established an overall subcontracting goal of 0% for MWBE participation. Notwithstanding this goal, is the Authority interested in learning about opportunities for joint ventures, sub-contractor or subadvisory relationships with New York State certified MWBE firm(s) to achieve a higher MWBE participation in the contract to provide the services requested in the RFP? Would the Authority view the responding Firm s willingness to include New York State certified MWBE firm(s) as a part of the Firm s contract/utilization plan to provide the services requested in the RFP as a positive variable in the Authority s evaluation of a Firm s RFP response? Based on the results of a Request for Information the Authority published to gauge MWBE opportunities for the RFP, the Authority determined that no such opportunities existed and as such did not set MWBE requirements for the RFP. However, the Authority is always interested in learning about opportunities to achieve MWBE and SDVOB participation in its contracts and will consider same as part of the overall technical evaluation of the responses.

Co-Sourcing of Internal Audit Services

REQUEST FOR PROPOSAL FOR Co-Sourcing of Internal Audit Services Long Island Power Authority 333 Earle Ovington Boulevard Uniondale, New York 11553 Released on: July 24, 2017 Page 1 of 15 TABLE OF CONTENTS