TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 21, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order to Bloomberg Finance L.P. for the ongoing Maintenance and Provision of a Real-Time Financial Information Network, Providing News, Data, Analysis, Straight-Through Processing, and Electronic Trading Tools, in an amount not to exceed $82,200.00 for a three-year period, Account 101-11000-612280, Requisition 1515430
Body
Dear Sir:
Authorization is requested to issue a purchase order to Bloomberg Finance L.P. for the ongoing maintenance and provision of a real-time financial information network, providing news, data, analysis, straight-through processing, and electronic trading tools, for a three-year period starting April 1, 2019, and ending March 31, 2022.
During the 18 years of utilization by the District, the Bloomberg platform has proven to be an invaluable tool in the cash management of District funds. The Financial Analysts can view, compare, and select from offered commercial paper of the largest brokers and direct corporate issuers, permitting a well-informed, competitive investment decision. Better rates have been received through direct purchases without broker sales fees embedded in the cost. U.S. Government Agency securities being offered by major dealers are scanned and compared for yield advantage. The credit ratings of issuers are checked online as necessary, and relating to District security, instruments being held as collateral for District investments are market-valued at will to determine their adequacy of coverage. Real-time data is uploaded into spreadsheets for investment analytics, ratings, and collateral valuation as required by the District’s Investment Policy Statement. Financial market bulletins and news educate and inform the investment personnel of the latest market trends and anomalies, with customized alerts allowing Treasury staff to efficiently monitor the market. The District would have a critical competitive disadvantage without the use of the Bloomberg platform.
Bloomberg Finance L.P. is the developer and supplier of proprietary software, and no other vendors in the market currently offer Bloomberg’s full range of services. All of the District’s 31 active broker-dealers use the Bloomberg system as a crucial research tool in providing investment offerings to the District, which also allows the District to access their inventory and compare offerings. Because of its robust suite of services and ability to compare offerings, Bloomberg is considered a sole source of supply for such a financial network, and said purchase order may be issued without competitive bidding pursuant to Section 11.4 of the Purchasing Act.
The existing purchase order with Bloomberg Finance L.P. expires on March 31, 2019. This purchase order request for services includes the utilization of Bloomberg’s trading platform and analysis tools, and access to its financial research and proprietary software.
In view of the foregoing, it is requested that the Director of Procurement and Materials Management be authorized to issue a purchase order to Bloomberg Finance L.P. for the described services in an amount not to exceed $82,200.00.
The 2019 expenditures in the amount of $17,300.00 will be utilized for the period of April through December 2019; funds are available in Account 101-11000-612280. The estimated expenditures are $27,700.00 for 2020, $29,700.00 for 2021, and $7,500.00 for the first quarter of 2022. Funds for the 2020 through 2022 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Requested, Mary Ann Boyle, Treasurer, MAB
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for February 21, 2019