TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 19, 2026
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Executive Director
Title
Report on Request for Proposal 25-RFP-05 Professional Underwriting Services for District Bond Sales
Body
Dear Sir:
The Government Finance Officers Association (GFOA) recommends that issuers select professional service providers on the basis of merit using a competitive process of either a request for proposal (RFP) or request for qualifications. Such a process allows the issuer to compare the qualifications of proposers and to select the most qualified firm based upon the scope of services and evaluation criteria outlined in the RFP.
It is required that the underwriting teams utilized in District bond sales be knowledgeable and experienced, exhibit professionalism, and possess the expertise and financial ability to carry out the required functions correctly and with the necessary timeliness. The Request for Proposal (RFP) 25-RFP-05, Professional Underwriting Services for District Bond Sales, was advertised on November 19, 2025. Twenty-eight responsive proposals were received by January 16, 2026. The RFP evaluation team, comprising staff from the Treasury, Law, and Procurement and Materials Management departments, rated each firm’s proposal for experience and qualifications in public finance and the underwriting and sale of general obligation bonds; technical approach and understanding of the requirements; and financial capability to underwrite bonds.
The evaluation committee created two lists as a result of this qualification process: eligible “Senior/Co-Senior Managing Underwriter” and eligible “Co-Managing Underwriter”. The lists of eligible firms identified by the RFP process are attached (Attachment A) and will be maintained for a five-year period ending March 18, 2031. The District may extend the life of the lists for a period of up to two years, in one-year increments, at the conclusion of the five-year period with the approval of the Board of Commissioners.
Firms will be recommended from the eligible lists to provide services for any bond sales that occur during the stated period based upon their ranking on the list, the specific requirements of the bond sale, and the District’s Minority-/Women-/Veteran-owned Business Enterprise participation goals. The total number of firms recommended for each bond sale will be dependent upon the size of that bond sale. The District provides no assurances that every firm ranked as eligible will be appointed to participate in a bond sale during the stated period.
Fifteen firms from the eligible lists also submitted a Minority-Owned Business Enterprise (MBE)/Women-Owned Business Enterprise (WBE)/Veteran-Owned Business Enterprise (VBE) verification form; these firms are noted in Attachment A. Whenever possible, a minimum of 33% of the work and services required by the RFP for each bond sale will be awarded to one or more MBE/WBE/VBE firm(s) from the lists of eligible firms. At the time of each bond sale, the Diversity Section will verify the recommended firms’ MBE/WBE/VBE status if recommended for appointment.
All underwriters appointed for each bond sale will be removed from the respective eligible list for the remaining bond sales executed during the stated period. The two lists are independent of each other, i.e., if a firm that is eligible under both lists is appointed as Senior or Co-Senior Managing Underwriter for a bond sale, it will be removed from the “Senior/Co-Senior Managing” list but remain eligible to serve as Co-Managing Underwriter for another sale; and if a firm that is eligible under both lists is appointed as a Co-Managing Underwriter for a bond sale, it will be removed from the “Co-Managing” list but remain eligible to serve as Senior or Co-Senior Managing Underwriter for another sale. The District reserves the right to reinstate eligible MBE/WBE/VBE firms to the lists within this period if there are not enough firms remaining to meet the bond sale’s participation goals.
The evaluation committee believes this is a fair process which accomplishes the District’s goal to utilize multiple eligible underwriting firms in order to ensure that the District’s bonds become available to the broadest possible marketplace of investors at the lowest interest cost.
The next bond sale is expected to take place in 2026. Best and final offer (BAFO) cost proposals will be requested from firms eligible to serve as Senior Managing Underwriter when the bond sale timing and structure is defined. The BAFO cost proposals will be scored and added to the Technical Scores to arrive at a composite score for each firm; these composite scores will be used to determine a final ranked list of eligible Senior Managing Underwriters.
Firms will be recommended for appointment for the 2026 bond sale at a future Board Meeting date in 2026. The Senior Managing Underwriter will be selected from the final ranked list, which includes a technical component for competence/experience and a cost component. The Co-Senior Managing Underwriter and Co-Managing Underwriters will be selected based upon technical competence and experience and an ability to meet the District’s MBE/WBE/VBE participation goals.
The underwriters’ discount (fee for services) and administrative expenses will be paid according to the BAFO cost proposal of the Senior Managing Underwriter for that sale, at a specified rate per $1,000 principal amount of bonds sold; therefore, an exact cost will not be available until the size of the bond issuance is determined. No fees for professional services connected with the bond issuance will be paid unless the sale is completed.
The Board of Commissioners will be asked to approve the appointment of all professional underwriting services firms for each bond sale. Industry practice is to execute a bond purchase agreement (BPA) with only the Senior Managing Underwriter for each bond sale; therefore, the District will execute a BPA with the Senior Managing Underwriter appointed for each sale.
Requested, Steven J. Lux, Treasurer, SJL:WS:lb
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for March 19, 2026
Attachment