HomeMy WebLinkAboutAward RecommendationCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Daniel J. Alfonso, DATE: February 26, 2016 FILE:
City Manager
FROM: Annie Perez, CPPO
SUBJECT: Recommendation for Approval to
Award Contracts to establish a Municipal Bond
Underwriting Services Pool
REFERENCES: RFQ521381
Director, Procurement ENCLOSURES:
Recommendation
Based on the findings below, the Procurement Department ("Procurement") hereby recommends
approval for the award of contracts to establish a Municipal Bond Underwriting Services Pool (Pool) for
the City of Miami, pursuant to Request for Qualifications (RFQ) No. 521381. These awards will
establish a pool of pre -qualified firms to serve as Senior, Co -Senior, or Co -Managers for the Pool, who
will negotiate bond transactions on a non-exclusive, and as needed basis, in connection with the
advancement of the City's Capital Improvement and Transportation Program. Bonds include, but are
not limited to, general obligation bonds and special obligation bonds.
Once the pool is established, as the need arises, the City, through a competitive work order process
amongst pool members, will select a firm from the pool for each transaction on the basis of their
qualifications for the particular transaction. Establishment of a pre -qualified pool provides the City with
an expedited selection of firm(s) with the requisite expertise to assist the City in bond issuance.
The term of the contract is for four (4) years, with four (4) additional one (1) year option to renew
periods.
Background
On November 23, 2015, Procurement issued a solicitation under full and open competition to obtain
proposals from qualified firms to establish a pool of Bond Underwriters. On December 16, 2015, fifteen
(15) proposals were received in response to the solicitation; all proposals were deemed responsive.
The Evaluation Committee (Committee) has completed the review and evaluation of the proposals
following the guidelines published in the solicitation. The Committee decided not to hold oral
presentations, as the proposals did not require further clarification.
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Memo to Daniel J. Alfonso
Award Memo for RFQ521381 Municipal Bond Underwriting Services Pool
The evaluation criteria were given respective weights for a maximum of one hundred (100) points per
Committee member. The average scores of the five (5) Committee members were then calculated.
The final scores are listed below in order of ranking:
Ranking
Proposers
Total Technical Score
(Max 105)
1
Merrill Lynch, Pierce, Fenner, & Smith
Incorporated
95.5
2
Wells Fargo Bank, N.A.
93.66
3
Estrada Hinojosa & Company, Inc.
91.14
4
Jefferies, LLC
90
5
Janney Montgomery Scott LLC
89.4
6
Raymond James & Associates, Inc.
89
7
PNC Capital Markets LLC
87.6
8
Stifel, Nicolaus, & Company, Incorporated
85.2
9
Siebert, Brandford, Shank & Co., LLC
84.4
10
Citigroup Global Markets, Inc.
84.2
11
Goldman, Sachs & Co. Limited
83.4
12
J.P. Morgan Securities LLC
81.4
13
Stern Brothers & Co.
80.2
14
Drexel Hamilton, LLC
73.2
15
FTN Financial Capital Members
66
Local Preference was assigned to this solicitation. Three proposers, Merrill Lynch, Pierce, Fenner &
Smith, Incorporated, Wells Fargo Bank, N.A., and Estrada Hinojosa & Company, Inc., qualified for the
preference, pursuant to Section 1.48, Local Preference of the solicitation, and received an additional
five -percent (5%) of their total score. The Committee determined that firms scoring 72 points and
above, inclusive of the local preference, and have the necessary qualifications, relevant overall
qualifications and experience, ability to underwrite Municipal Bonds, and who proposed the best
approach to providing services to meet the needs of the City, will be offered participation in the Pool.
Fourteen (14) proposers met this threshold. Negotiations will not be held since this is a pool.
Proposers will be offered the pool contract for signature, in accordance with the method of award
specified in the solicitation.
Due diligence was conducted to determine proposer's responsibility, including verifying corporate
status, and that there are no performance or compliance issues. There were no adverse findings
related to any of the proposer's responsibility. Due diligence will also be conducted during the work
order process.
Vendors Recommended for Inclusion in the Pool
The Committee recommended the following proposers be considered for participation in the Pool:
1. Merrill Lynch, Pierce, Fenner, & Smith Incorporated
2. Wells Fargo Bank, N.A.
PR 16105 2
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Memo to Daniel J. Alfonso
Award Memo for RFQ521381 Municipal Bond Underwriting Services Pool
3. Estrada Hinojosa & Company, Inc.
4. Jeffries, LLC
5. Janney Montgomery Scott LLC
6. Raymond James & Associates, Inc.
7. PNC Capital Markets LLC
8. Stifel, Nicolaus & Company, Incorporated
9. Siebert, Brandford, Shank & Co., LLC
10. Citigroup Global Markets, Inc.
11. Goldman, Sachs & Co. Limited
12. J.P. Morgan Securities LLC
13. Stern Brothers & Co.
14. Drexel Hamilton, LLC
Notwithstanding the foregoing, the City does not guarantee the number of bonds transactions, if any,
issued during the contract period, or the number of transactions in which an individual member of the
pool will participate.
Approved:
Daniel J. 1 so, ity Manager
Date: 3 '7 `/ 0
cc: Fernando Casamayor, Assistant City Manager/Chief Financial Officer
Jose M. Fernandez, Finance Director
Lydia Osborne, CPPO, Assistant Director, Procurement
Pablo J. Velez, Assistant City Attorney
PR 16105 3