Rebate consultant RFP_0 by nuhman10


									         REQUEST FOR PROPOSAL






                           REQUEST FOR PROPOSAL FOR

A.   Purpose

     The Maine Municipal Bond Bank, Maine Health & Higher Educational Facilities Authority and the
     Maine Governmental Facilities Authority (the Authorities) seeks to retain a consultant to review and
     evaluate the Authorities arbitrage/rebate preparation processes, provide audit review (if requested),
     assist (as needed) and train (as requested) Authority personnel in arbitrage rebate calculation services
     for all tax-exempt bonds issued by the Authorities, which are subject to the 1986 Tax Reform Act,
     beginning with fiscal year ending June 30, 2010.

     The initial award shall cover a one year period starting on July l, 2009 and ending June 30, 2010, and
     shall be subject to renewal at least through the fiscal year ending June 30, 2012, assuming
     satisfactory performance and continued competitive pricing of the estimated costs of the engagement,
     as outlined in Section III.

     Proposals submitted for consideration will be evaluated by a committee. While maximum cost of the
     proposal is an important factor in the evaluation of the proposals, it is not the sole criteria. The
     Authorities wish to select a firm that can best demonstrate the capability to provide the desired
     services, both currently and in the future, with quality and innovation at a competitive price. During
     the evaluation process, the Authorities reserve the right, where it may serve the Authorities best
     interest, to request additional information or clarifications from proposers, or to allow corrections of
     errors or omissions. At the discretion of the Authorities, firms submitting proposals may be
     requested to make oral presentations as part of the evaluation process. Not all firms may be
     requested to make oral presentations.

B.   General Information

     The Authorities are instrumentalities and are considered component units of the State of Maine. The
     Authorities were created by the legislature to provide long-term financing, including lease to own, for
     capital projects to various governmental units, not for profit institutions (501(c)(3)) and agencies of
     the State of Maine for the construction of long-term capital projects through the use of municipal

     The Authorities maintain rebate calculations for each of the fixed rate bond issues in Mun-Ease
     software and file 8038-T’s with the IRS on every five year anniversary, as required. Investment
     detail is imported into the software monthly through an electronic statement download interface
     directly from the bond trustees and custody bank. The rebate calculations are updated semi-annually
     for financial statement purposes.

     The fiscal year of the Authorities is from July 1 to June 30.

C.   Contact Person

     Questions regarding this Request for Proposal (RFP) should be directed to:

     David R. Delano, CPA, Chief Financial Officer, Maine Municipal Bond Bank, PO Box 2268,
     Augusta, Maine 04338-2268, 207-622-9386,

D.   RFP Submission

     To be considered, proposals must be received by David R. Delano, CPA, Chief Financial Officer,
     Maine Municipal Bond Bank, PO Box 2268, Augusta, ME 04338-2268 no later than 4:00 p.m.,
     Monday, April 5, 2010. Proposals received after the date and time specified will not be considered.

     One original and two copies of the proposal must be submitted. Once submitted, proposals become
     the property of the Authorities. Proposals must be signed by a duly authorized official of the
     Contractor's organization.

     The Authorities reserve the right to retain all proposals submitted and to use any ideas in a proposal,
     regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the
     firm of the conditions contained in this Request for Proposals, unless clearly and specifically noted in
     the proposal submitted and confirmed between the Authorities and the firm.

E.   Indications of Interest/Informational Call

     If you intend to respond to the RFP, please inform the Authorities by sending an e-mail to with the name and contact information no later than Monday, March 22, 2010.

F.   Contract Term

     The initial term of the contract shall be for a one year period starting on July l, 2009 and ending June
     30, 2010, and shall be subject to renewal at least through the fiscal year ending June 30, 2012,
     assuming satisfactory performance. The award of the contract will be subject to the approval of the
     Board of Commissioners of each Authority.

     The Authorities reserves the right to discontinue the contract at any time during the term, without

G.   Extension

     The contract may be automatically extended for two (2) additional one (1) year increments, unless the
     Authorities notifies the Contractor in writing thirty (30) days prior to the end of the contract.

H.   Conditions for Proposal Acceptance

     This RFP does not commit the Authorities to award a contract or to pay any costs incurred for any
     services. The Authorities, at its sole discretion, reserves the right to accept or reject any or all
     proposals received as a result of this RFP, to negotiate with any qualified source, or to cancel this
     RFP in part or in its entirety. All proposals and work product developed will become the property of
     the Authorities.

I.   Preparation Costs

     The Authorities will not be liable for any costs associated with the preparation, transmittal or
     presentation of any proposals or material submitted in response to the RFP.

J.   Subcontractors

     No part of the work to be performed under the contract will be subcontracted or assigned to another
     firm without prior written consent by the Authorities. The Contractor must furnish the names,
     qualifications, and experience of the proposed subcontractor(s). The primary contractor will remain
     completely responsible for all services performed and shall assure compliance with all requirements
     of the contract.

K.   Maintenance and Inspection of Records

     The selected firm shall maintain records of all staff time, staff costs, and direct costs expended in
     performing all work under any contract resulting from this RFP. The Contractor shall permit the
     Authorities and other authorized individuals to inspect and audit all data and records of the
     Contractor relating to performance for a period of up to six (6) years after completion of this project.
     All data will remain and rebate computations will become property of the Authorities. Copies of all
     rebate computations will also be delivered to and become property of the Authorities.

L.   Evaluation Criteria

     Proposals should be concise and to the point. Firms will be evaluated on the basis of their written
     responses to this RFP, additional written information requested by the Authorities and oral
     interviews, if any, against the following criteria:

        Experience of the firm in providing arbitrage rebate services to complex municipal bond issuers
         including the firm’s understanding and level of competence in developing innovative or
         alternative solutions to managing arbitrage rebate exposure.

        Demonstrated ability to meet all deadlines associated with arbitrage rebate compliance standards
         as set by the IRS and any other rebate deadlines as may be set by the Authorities.

        Quantitative abilities of the firm.

        Qualifications of the Contractor’s team; including the experience and availability of the primary
         contact and the breadth and depth of the other professionals available to provide services to the
         Authorities, as described.

        Team organization and approach including the ability of the firm to adequately staff and complete
         time-sensitive transactions and to interact effectively with the staff of the Authorities.

        Overall quality of the written proposal, and oral presentation, if any.

        Fee proposal. Specify any underlying assumptions.

M.    Oral Interview

      After written proposals have been reviewed initially, discussions with prospective firms may or may
      not be required. If scheduled, the oral interview will be a question/answer format for the purpose of
      clarifying the intent of any portions of the proposal. The individual, from your firm, that will be
      directly responsible for carrying out the contract, if awarded, should be present at the oral interview.
      Oral interviews may be conducted by telephone.

II.   Services to be Provided
      The scope of services to be provided by the tax arbitrage rebate services consultant will include, but
      is not be limited to, the following:

      The primary purpose of this RFP is for the consultant to provide to the Authorities’ auditor, Baker
      Newman Noyes, confirmation that the Authorities are properly preparing arbitrage/rebate
      calculations. This will be accomplished by the consultant initially reviewing the staff’s methods and
      processes in maintaining the arbitrage database, preparing rebate calculations and filing reports with
      the IRS.

      Depending on the findings of the initial review, the consultant may be asked to review a
      representative sample of the calculations prepared by the staff for accuracy and compliance with the
      Internal Revenue Code and related arbitrage regulations. These reviews will provide the auditor with
      assurance that the rebate calculations have satisfactorily stated the rebate liability as of the fiscal year
      end. Timing of these reviews will be coordinated with the staff and the auditor.

      The consultant will also provide consulting services to the Authority’s staff as requested. Such
      services may include, but is not limited to, answering staff questions, assisting the staff to interpret
      bond documents and reviewing specific entries/transactions to assure that the calculation complies
      with the Code. These services will generally be provided utilizing the telephone, e-mail and fax.

      The consultant will also provide training to the Authority’s staff as requested. Training can be held
      either at the Authority’s office, at the consultant’s facility, an independent training facility or on-line,
      depending on which method best meets the needs of the Authority’s staff. Training should contain
      general information relating to the Tax Code and also be specific to the type of bonds issued by the
      Authorities. Incorporating actual bond issues of the Authorities into the training would be helpful.
      Training may be requested on a specific area of the Code and how it applies to the Authoritys’ bonds;
      unusual bond activity/transactions, such as refundings; or new bond types (Build America Bonds or
      bonds issued under the American Recovery and Reinvestment Act).

      The consultant may also be asked to consult with Bond Bank staff and advisors, as necessary,
      regarding tax arbitrage-related matters, record keeping and compliance, strategies to maximize
      investment earnings, while complying with tax regulations, and changes in tax laws and their effects
      on outstanding issues and future issuance. The consultant may also be asked to assist the staff in any
      IRS review or audit of any series of bonds issued by any one of the Authorities.

      III.   Fee Schedule
      The fee schedule should include a maximum, not to be exceeded amount to provide the initial review
      services of the Authorities methods and processes in maintaining the arbitrage database, preparing
      rebate calculations and filing reports with the IRS.

      The fee schedule should also include a maximum, not to be exceeded amount to provide review
      services, if requested, of up to five (5) rebate calculations prepared by the Authorities staff as part of
      the annual audit. The length of time such a schedule would be honored should be indicated.

      The fee schedule should also include a quote for consulting services at an hourly rate. Please indicate
      whether all rates are fixed during the three year term of the contract.

      If it is necessary for the consultant to travel to the office of the Authorities, state what the consultant’s
      policy is for billing travel expenses?

IV.   Required Information
A.    Describe your firm’s experience in providing arbitrage rebate calculation services (e.g., How long has
      your firm been providing rebate services?). Also, describe whether your firm provides similar
      consulting services to other issuers of tax exempt bonds who prepare their own calculations. Please
      provide a list of these issuers.

B.    Provide evidence of the size of your arbitrage rebate staff and designate the individual(s) who will be
      working on day-to-day activities with the Authorities staff. Provide a brief description of their
      experience, office location, accessibility and a copy of their resume. Provide the names and contact
      person(s) for the current/active client(s) for which your firm provides arbitrage calculation services.

C.    Describe your firm's ability and availability for future and/or additional rebate provision services (i.e.,
      new bond issues subject to rebate).

D.    Illustrate how you propose to handle amending your calculations if there are new IRS guidelines

E.    State whether you are familiar with Mun-Ease by Prescient Software.


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