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Cash Management Proposal to the Banks - PDF

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					140 East Town Street / Columbus, Ohio 43215–5164 / Tel. (614) 228–2975 / www.op–f.org




                  July 17, 2009


                  Dear Potential Provider:

                  Enclosed is Ohio Police & Fire Pension Fund’s (OP&F’s) response to questions submitted
                  before and during the Bidders’ Conference on July 15, 2009 regarding the Treasury Cash
                  Management System Request for Proposal (RFP).

                       1. Do you have a preference to the delivery method: Installed, hosted, or ASP?
                          While there is not a preference for delivery method (installed, hosted, or ASP), OP&F
                          would be interested in reviewing the various options available with the associated
                          costs.

                       2. Do you have a preference on the technology side: Database - SQL or other, or no
                          preference?
                          The preference is SQL 2005.

                       3. What is the number of core treasury users?
                          There are three (3) core treasury users.

                       4. Are all of the core users at one location?
                          Yes, all core users are at one location.

                       5. What is the number of remote users – non-core users that would use the system
                          to enter forecasts or receive balance information?
                          There are two (2) remote users- non-core users that would use the system to enter
                          forecasts or receive balance information.

                       6. Please confirm that the interfaces to be included are:
                          • CODA – Accounting journals from “Vendor”?
                             Yes
                          • PAM - what information would be brought into “Vendor”?
                             Yes, for trade information.
                          • V3 – what information would be brought into “Vendor”?
                             Yes, for cash flow.
                          • Bank of New York – Payments and statements?
                             Yes, both payments and statements
July 17, 2009
Page 2 of 6

       •   Huntington – Payments and statements?
           Yes, both payments and statements

   7. Is there any foreign exchange requirement, or are all securities in USD?
      There is no foreign exchange requirement at this time as all securities are in USD.

   8. Is there a risk management requirement? (By risk management, the vendor
      means simple things like mark to market of a trade or portfolio, or something
      more complex, like running scenarios, simulations, Value at Risk and the like.)
      Mark to Market and VAR calculations are handled by OP&F’s “PAM” accounting
      system. Simulations might be nice, but are not a requirement.

   9. Is this a budgeted project?
      The project has been approved; however budget for the project will be determined
      with input from the selected vendor.

   10. Is OP&F considering ASP or software-as-a-service web hosted solutions in this
       treasury cash management evaluation process?
       Yes.

   11. “Vendor” would like to know what interest the OP&F has in working with a
       solution provider to develop some of the functionality required if it is not
       available as part of the core system. For example, what ratio of the
       requirements must be available and already implemented (i.e., 90%, 75%, 50%).
       If none of the providers have a 100% solution, OP&F may be interested in working
       with a solution provider on developing the remainder.

   12. Has the budget for this project been approved for 2009 or is it a 2010 project?
       This is a current budget item.

   13. What is the expected timeframe for the Project Start Date? The RFP states that
       it is contingent on success of Proof of Concept but can you provide any
       indication as of now (i.e., Q4 2009, Q2 2010)?
       As it is a current budget item, Q4 2009 is the targeted project start date.

   14. Relating to sections 5, 6 and 7 of the RFP.
       What is OP&F's intent with these areas RFP?
       Section 5 is a general questionnaire section of the RFP. OP&F is conducting the
       appropriate due diligence before proceeding with a major investment of this type.
       OP&F is ensuring that the selected firm is legally, fiscally and ethically responsible.

       Section 6 with regards to costs, OP&F is requesting the fees associated with
       implementing the Treasury Cash Management System project.
July 17, 2009
Page 3 of 6

       Section 7 with regards to references, OP&F is requesting references to ensure that
       the respective firm is able to and has completed successful implementations and that
       their clients are generally overall satisfied with the system that was selected.

   15. How does our company protect its IP be placed into the public forum?
       The Ohio Police & Fire Pension Fund is governed under Ohio Revised Code Section
       149. OP&F may agree to provide notification to the vendor should a public records
       request be submitted in order that a company may assert claims of trade secret, etc.
       However, the vendor bears the sole responsibility for seeking an injunction in the
       matter and unless a motion for protection/injunction is filed, the records will be made
       public.

   16. How do we share the information OP&F needs, comply with the RFP, and still
       keep aspects for the information private?
       The Ohio Police & Fire Pension Fund is governed under Ohio Revised Code Section
       149. OP&F may agree to provide notification to the vendor should a public records
       request be submitted in order that a company may assert claims of trade secret, etc.
       However, the vendor bears the sole responsibility for seeking an injunction in the
       matter and unless a motion for protection/injunction is filed, the records will be made
       public.

   17. What is the proposed length of the contract?
       This would be negotiated dependent on the proposals.

   18. In regard to our treasury workstation offering, we need to know some additional
       details for pricing. How many system users will there be? How many accounts?
       How many different banks reporting? How many GL interfaces?
       There will five (5) system users. Sixty-five (65) plus accounts. Two (2) different
       banks. One (1) GL interface.

   19. Can you give us an idea as to the balances that will be held in checking accounts
       that you would hold with us? Ledger and collected would be preferred.
       OP&F does not hold any bank accounts with “Vendor X”. This RFP is for Cash
       Management Software only.

   20. Is the investment side of this business up for bid, the business you are currently
       conducting with Huntington and Bank of New York? If so, what are the
       balances and structure associated with this activity?
       This RFP is for Cash Management Software only.

   21. Under optional features there is a reference to linking to an ECM system. What
       is an ECM system? What is the required format (i.e. Excel)?
       This refers to an “Enterprise Content Management” system; or electronic document
       retention system for bank audit purposes. Formats will be multiple (normal office
       based, then PDF, GIF, TIF, etc).
July 17, 2009
Page 4 of 6

   22. The RFP also refers to a “short term account”. Is this not a DDA account? Is
       BAI2 formatted information available for this account from a web-based
       reporting service?
       Yes, short-term accounts can be Demand Deposit.
       Yes, the industry standard BA12 is available from our banks via web.

   23. In the request it stated that this opportunity is not just for the
       treasury/investment side of the business, but for A/R and A/P as well.
       This RFP is for Cash Management Software only. OP&F mentioned A/R in the
       context of account reconciliation which would refer bank fee and cash movements.

       a. Please describe what you are looking for in A/R services – collection services
          (like lockbox, remote deposit, branch deposits). We would need to know
          volume information for cash, deposited items, number of depositing
          locations.
          The RFP is for Cash Management Software only.
       b. Please describe what you are looking for in A/P services – Payroll (dollar
          amount of direct deposit file), paying vendors electronically with ACH
          (dollar value of ach volume is needed), commercial cards (expected spend of
          commercial card activity)? Please provide dollar values for ach and card
          transactions.
          The RFP is for Cash Management Software only.
       c. Do you have a strategic objective of electronifying A/P – in other words,
          having these become electronic payments as opposed to checks?
          The RFP is for Cash Management Software only.

   24. “Vendor” would like to seek one clarification with regards to the Forecasting
       feature for the treasury cash management software. OP&F requires a variety of
       statistical forecasting options such as moving averages, periodic trends, linear
       regression as well as provision of user defined forecast rules, modeling of
        historical trends and construction of forecasts with different parametric inputs
       or hypothetical projections.

       “Vendor” has discussed this particular functionality with a number of their
       clients in the past and it was not particularly desired by our most sophisticated
       users. Rather, “Vendor” supports easy export of historical data into MS Excel
       for the purposes of modeling. Additionally, “Vendor X” provides several tools
       for the easy import of new forecast data from spreadsheets, text files or other
       systems.

       Would such easy export of data for forecast modeling techniques in Excel and
       import of models based on hypothetical projections satisfy OP&F’s
       requirement?”
       One of the primary reasons OP&F is looking for a software package is to move away
       from hand manipulation in Excel. If that turned out to truly be the best option, then
       OP&F would consider the package.
July 17, 2009
Page 5 of 6


   25. Has budget been allocated and approved for this project?
       The project has been approved; however budget for the project will be determined
       with input from the selected vendor.

   26. Is the project incorporating a third party consulting firm for analysis and
       recommendation? Implementation?
       No, OP&F is not seeking a third party consulting firm for analysis and
       recommendation or implementation.

   27. Why are you asking for the Treasury Cash Management system to support other
       bank information formats such as SWIFT and FINSTA when your current
       custodians only use BAI2?
       To ensure any future changes are covered.

   28. Does OP&F use Bloomberg commercial linkage?
       Yes.

   29. Would you consider a system that does not directly link with Bloomberg but
       instead utilizes uploading data into the system?
       Yes, it would be considered as long as it is automatic.

   30. Vendor requests clarification on Appendix D and Appendix F of the RFP.
       Appendix D is the Reporting and Registration Requirements under Ohio Law, which
       will be required should the vendor progress to the contract stage of this process.
       Please note as requested in question 15 of the general questionnaire, the vendor
       should generally describe any objections to its willingness to comply with this
       requirement.

       Appendix F is the Business Associate Agreement, which was provided as a sample
       agreement. The vendor should review and generally note any objections to the
       agreement, as it may become part of the final contract. Please note that the Vendor
       may also submit copy of their standard services agreement with their response.

   31. How is this RFP different then previous RFP?
       The RFP requirements have not changed.

   32. Were there different goals within the new RFP?
       This RFP is an entirely new search. OP&F will not compare the RFPs.

   33. Will OP&F be sending link to the vendors?
       The website address for OP&F is www.op-f.org. All properly submitted questions and
       OP&F responses, as well as, clarifications regarding this RFP are posted at
       www.op-f.org, under the RFP Section, Treasury Cash Management System RFP.
       OP&F will not send individual communications to the vendor other than noted in
       Section 4.9 of the RFP.
July 17, 2009
Page 6 of 6



We look forward to your response on or before 3:00 PM (EDT) on August 12, 2009.

Sincerely,


Janeane N. Mayesky, C.P.M., A.P.P.
Purchasing Manager

cc:    William J. Estabrook, Executive Director
       J. Keith Byrd, Deputy Executive Director
       Theodore G. Hall, Chief Investment Officer
       Robert Theller, Senior Investment Officer Public Markets
       RFP Review Committee

				
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