Request for Proposal for S33-T25656: Approve an Ordinance Awarding a Contract to Hilltop Securities, Inc. for a total amount not to exceed $4,655,509.12 for Financial Advisory Services for the Finance Department.
Specific Explanation:
The Director of the Finance Department and Chief Procurement Officer recommend that City Council approve an ordinance awarding a three-year contract, with two one-year options to Hilltop Securities, Inc. in an amount not to exceed $4,655,509.12 for financial advisory services for the Finance Department. The Chief Procurement Officer may terminate this contract at any time upon thirty (30) days written notice to the contractor.
The scope of work requires the contractor to provide financial advisory services for the General Obligation, Houston Airport System, Combined Utility System and Convention and Entertainment Facility credits. The services to be provided by the financial advisor include, but are not limited to, financial advisory services related to new-money bonds sold on a competitive and negotiated basis, pre-pricing and post-pricing analysis of competitive and negotiated sales, refunding analysis and other debt restructurings, managing the process for securing and negotiating new credit facilities, re-investment analysis, development of debt management policies and procedures, monitoring of secondary-market activities, training, assistance in the procurement of debt management-related services, and analysis of debt management-related fees.
The Request for Proposal (RFP) was advertised in accordance with the requirements of the State of Texas bid laws. One hundred-five (105) prospective proposers viewed the solicitation document on the Strategic Procurement Division’s e-bidding website and, as a result, proposals were received from: Backstrom McCarley Berry, CLB Porter LLC, Coastal Securities, Estrada Hinojosa, Frasca & Associates, Hilltop Securities, The PFM Group, Phoenix Capital and TKG & Associates. The evaluation committee consisted of members from the Houston Airport System, Controllers Office, Department of Public Works & Engineering and the Finance Department.
The proposals were evaluated based upon the following criteria:
1. Responsiveness
a. Document material requirements
b. M/WBE participation
2. Technical Competence
a. Qualifications and Experience
b. Financial Strength
3. Price
Hilltop Securities, Inc. received the highest overall score. The Finance Department is confident that Hilltop Securities, Inc. is well qualified to perform the required services as outlined in the RFP.
M/WBE Subcontracting:
The RFP solicitation was advertised with an 24% goal for MWBE participation. Hilltop Securities, Inc. has designated the below-named companies as its certified MWBE subcontractor:
|
Company
|
Type of Work
|
Amount
|
Percentage
|
|
TKG & Associates LLC
|
Co-Financial Advisory Services
|
$558,661.09
|
12%
|
|
YaCari Consultants LLC
|
Co-Financial Advisory Services
|
$558,661.09
|
12%
|
Pay or Play Program:
The proposed contract requires compliance with the City's 'Pay or Play' ordinance regarding health benefits for employees of City contractors. In this case, the contractor will provide health benefits to eligible employees in compliance with City policy.
Hire Houston First:
The proposed contract requires compliance with the City's 'Hire Houston First' ordinance that promotes economic opportunity for Houston businesses and supports job creation. In this case, Hilltop Securities, Inc. does not meet the requirement for HHF designation; no HHF firms were within three percent.
Fiscal Note:
Funding for this item is included in the FY2017 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policy Ord. 2014-1078.
____________________________________ ___________________________________
John J. Gillespie, Chief Procurement Officer Department Approval Authority Signature
Finance/Strategic Procurement Division
Estimated Spending Authority
|
Department
|
FY 2017
|
Out-years
|
Sub-total
|
|
General Fund
|
$100,000.00
|
$0.00
|
$100,000.00
|
|
General Debt Services Administration Fund
|
$255,750.00
|
$1,132,851.60
|
$1,388,601.60
|
|
Houston Airport System
|
$255,750.00
|
$1,132,851.60
|
$1,388,601.60
|
|
Combined Utility System
|
$255,750.00
|
$1,132,851.60
|
$1,388,601.60
|
|
Convention and Entertainment Facility
|
$71,775.00
|
$317,929.32
|
$389,704.32
|
|
Grand Total
|
$939,025.00
|
$3,716,484.12
|
$4,655,509.12
|