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ARKANSAS DEVELOPMENT FINANCE AUTHORITY

REQUEST FOR PROPOSALS

FOR

FINANCIAL ADVISORY SERVICES

 

 

SPECIAL NOTE: YOUR IMMEDIATE ATTENTION IS CALLED TO SECTION I.C. YOU NEED TO SEND TO US AN E-MAIL ADDRESS FOR TRANSMISSION OF NOTICES OF INQUIRIES.

 October 26, 2000

Arkansas Development Finance Authority
100 Main Street, Suite 200
Little Rock, AR 72201
(501) 682-5900

SECTION I: INSTRUCTIONS TO PROPOSERS/ GENERAL INFORMATION

    1. PURPOSE. The Arkansas Development Finance Authority ("Authority" or "ADFA") was created May 1, 1985, by Act 1062 of 1985, and is a public body politic and corporate, with corporate succession, to be an independent instrumentality exercising essential public functions.

ADFA’s mission statement "to be dedicated to providing affordable financing for the housing, economic, agricultural and governmental needs of Arkansas. The authority accomplishes this through a powerful network of partners dedicated to promoting greater economic opportunities and fostering the general health, safety and welfare of the state and its citizens." ADFA is the state’s largest source of low-cost financing for low-to-moderate income housing development, small industries, government, education, agricultural business enterprises and health care. It is through the issuance of taxable and tax-exempt bonds and notes, the administration of private and public grants and partnering with other state and federal agencies that ADFA gives Arkansans the most cost-effective financing choices possible. Additional information on ADFA and the Authority’s programs may be found at www.state.ar.us/adfa.

ADFA Bond History over the last 5 Years

Single Family Housing

$ 894,355,000

Multi-Family Housing

138,440,000

Economic Development

300,950,000

Governmental

176,985,000

Wastewater Revolving Loan Fund

53,265,000

Total over Five Years

$ 1,563,995,000

The above listing includes bonds issued in the past by ADFA and should be representative of the future bonds to be issued by ADFA. It should be further noted that initiated Act 1, that will be voted on November 7, 2000, will give ADFA authority to issue bonds backed by the Tobacco Settlement proceeds.

The board and management of ADFA plan to evaluate the possibility of engaging one or more financial advisor firms to provide services relating to the many different aspects of its bond and other financial operations, including but not limited to the following:

Any financial advisor selected pursuant to this RFP shall serve at the pleasure of ADFA, and the professional services of any firm may be terminated, at the sole discretion of ADFA, upon delivery of written notice of such termination to the selected firm.

B. SUBMISSION OF PROPOSALS. Written proposals responding to the questions and requests for information in the manner specified in this Request For Proposal ("RFP") should be submitted to the following:

Mr. Patrick Patton, Vice President for Internal Audit
ARKANSAS DEVELOPMENT FINANCE AUTHORITY
100 Main Street, Suite 200
P. O. Box 8023
Little Rock, AR 72203 (The zip code for street address delivery is 72201.)

To be considered, ten (10) copies of the proposal should be delivered to ADFA not later than November 13, 2000, by 12:00 p.m. All proposals shall be time and date stamped upon receipt. Late proposals will not be accepted. ADFA reserves the right to reject any or all proposals.

C. ADDITIONAL INFORMATION. It is the responsibility of the proposer to inquire about and clarify any aspect of the RFP. Questions related to this RFP should be directed to Patrick Patton, Vice President for Internal Audit (ADFA), at (501) 682-5902. Substantive questions and answers will be documented in letterform and will be sent by electronic mail to those who provide us with an e-mail address. IN ORDER TO BE ON THE DISTRIBUTION LIST FOR INTERNET TRANSMISSION OF ALL RESPONSES TO INQUIRIES, YOU MUST IMMEDIATELY ADVISE PATRICK PATTON OF ADFA (ppatton@adfa.state.ar.us) THE INTERNET E-MAIL ADDRESS TO WHICH YOU WANT ALL SUCH TRANSMISSIONS SENT.

D. PROPERTY OF ADFA. Any information or materials submitted as a response to this RFP shall become the property of ADFA and will not be returned. All submitted materials will be available for public review.

E. RESPONSE TO REQUEST FOR PROPOSAL. Financial Advisors wishing to respond to this RFP can interact and contact Mr. Patrick Patton. NO CONTACT WITH ADFA BOARD MEMBERS IS ALLOWED AND ANY SUCH CONTACT WILL BE GROUNDS FOR IMMEDIATE REJECTION OF A FIRM’S PROPOSAL.

F. PROPOSAL TIMETABLE.

October 26, 2000 Request for Proposal Issued
November 13, 2000 Response to Proposals Due by 12:00 p.m.
November 16, 2000 Short list to be announced
To be announced Oral Presentations
December 21, 2000 Board Action (Appoint/ratify appointment of Financial Advisor, authorizes the President of ADFA to negotiate fees)

G. SELECTION PROCESS. The Staff Professional Selection Committee composed of selected members of ADFA will review the proposals. Proposals will be evaluated based upon responses to specifics outlined in the Proposal Format section of this RFP and based upon the selection criteria. Proposals, which omit any of these items, may be rejected as non-responsive. From this review, a select group of financial advisors could be chosen for oral interviews. All proposing financial advisors will be advised of the financial advisors selected for oral interviews, if necessary. After interviewing, the ADFA Board of Directors Professional Selection Committee will make its decision on a recommendation for selection, which will be reported to the Board of Directors of the Authority at its December 21, 2000, regular meeting. The final selection will be made by a vote of Board members.

ADFA may at any time prior to the selection of the financial advisor reject any and all proposals and cancel this RFP, without liability therefore, upon finding that there is good cause for rejecting all proposals and that it would be in its interest to cancel the solicitation. Further, regardless of the number and quality of proposals submitted, ADFA shall under no circumstances be responsible for any proposer costs and expenses incurred in submitting a response to this RFP. Each proposer who submits a response does so solely at the proposer’s cost, risk and expense. ADFA accepts no responsibility for the return of successful or unsuccessful proposals. This RFP in no way obligates ADFA to select a financial advisor.

H. SELECTION CRITERIA. The Staff Professional Selection Committee composed of selected members of ADFA will review the proposals. The committee generally will use the following criteria to evaluate all acceptable proposals and to develop recommendations to be presented to the ADFA Board Professional Selection Committee; however, the Committee reserves the right to evaluate proposals based upon factors beyond the listed criteria.

CRITERIA

    1. Experience performing financial advisory services for various types of organizations, including, in particular, state housing finance agencies, other governmental agencies, non-profit organizations or other similar organizations.
    2. Qualifications of the staff to be assigned to the financial advisory services.
    3. Responsiveness of written proposals to the purpose and scope of services to be performed.
    4. Responsiveness and reasonableness of proposed pricing structure.

SECTION II: PROPOSAL FORMAT

A. TRANSMITTAL LETTER. A brief transmittal letter prepared on the proposer’s business stationery should accompany the original and required copies of the proposal.

    1. PROPOSAL. The proposal should be labeled "Proposal for Financial Advisory Services." The proposal must contain sufficient information to enable the Staff Professional Selection Committee to evaluate the proposal. It should be prepared in a clear and precise manner and should address all appropriate subsections.

1. Financial Advisory Team and Personnel. Describe the manner in which you would organize your firm’s resources to serve as the financial advisor for the proposed services. In doing so, please address the following questions or issues:

1.1 Identify the individual who will manage this service on a day-to-day basis. Define this individual’s position within the firm and indicate the degree to which he or she will be able to commit the firm’s resources to the program. What is this person’s availability for this service and what other commitments does he or she have?

1.2 Identify other professionals from your firm who will be assigned to work on this project, their roles and responsibilities and relevant aspects of their background. How will these individuals work with the other members of the ADFA staff?

2. Comments on Scope of Services. Elaborate on the services you propose to perform as the financial advisor for the proposed service.

3. Arkansas Presence. Please explain your firm’s presence within Arkansas and describe how that presence is relevant to the proposed transaction.

4. Potential Conflicts. List any relationship which might lead to a potential conflict in performing any services for ADFA. Please list specifically any conflicts resulting from material adverse matters, as distinguished from the conduct of business as usual. Indicate what steps would be taken to eliminate any such conflict.

5. Rationale for Appointment and Proposal Summary. This section of the proposal should be used by each proposer to present the case for its appointment to the position sought. It would be useful for you to describe how your qualifications and experience is relevant to the proposed transaction. In particular, you may want to select, e.g., three (3) or more recent engagements that you have been selected to perform financial advisory services and summarize their similarity to this program. Include in your response how you would conduct the financial advisory services with ADFA and its staff.

6. Financial Advisory Fee Determination. Selection of a financial advisor will not be based on a competitive bid. ADFA will attempt to negotiate with the top qualified firm to establish a fair and reasonable fee. If an agreement cannot be reached with the top qualified firm, negotiations will be attempted with the other firms in order of their qualifications.

Provide the basic assumptions on which your firm’s fee would be predicated and any factors that would change the actual fee. State what you consider to be the most appropriate method for determining a reasonable financial advisor fee for this representation, and state your rationale.