Build America Bureau Insurance Advisory Services

UPDATED INFO: RFP issued 1/31/2019; proposal due date is 2/28/2019. See RFP document for all details. ORIGINAL INFO: This is a pre-solicitation notice ( synopsis) for a full and open competitive procurement. The USDOT / Federal Highway A d m inistration (FHWA) in tends to issue a solicitation to result in m u ltiple award Indefinite Delivery/Indefinite Quantity (IDIQ) contracts for "Build America Bureau Insurance Advisory Services." The estimated RFP release date is 1/11/2019 with an estimated proposal due date of 2/11/2019. The Build America Bureau, an office within the U.S. Department of Transportation, Office of the Under Secretary for Policy, has a requirement for non-personal financial advisory services in the transportation infrastructure project finance area to support its activities and programs. The Bureau administers the Transportation Infrastructure Finance and Innovation Act (TIFIA) credit program and the Railroad Rehabilitation and Improvement Financing (RRIF) credit program. TIFIA and RRIF, the Credit Programs, provide (secured) direct loans, loan guarantees, and standby lines of credit to borrowers seeking to develop major surface transportation projects, railroad projects, port projects and transit-oriented development projects. Further information about the Credit Programs can be found at: https://www.transportation.gov/buildamerica. The objective of the planned IDIQ contract awards is to provide lender's insurance advisory services in respect of the surface transportation infrastructure finance area to support the activities of the Bureau. This shall include due diligence and reporting to inform the Bureau's credit analysis prior to financial close, post-closing construction monitoring and reporting, and ongoing operational oversight and reporting. This work may pertain to a specific project transaction, portfolio management actions or non-project matters (e.g. training of Bureau staff or assisting with credit policy matters). The Bureau engages external insurance advisors as necessary to provide independent expertise and to assist in identifying the risks and potential liabilities related to a project and to advise on the appropriateness (from a secured Lender's perspective) of a proposed insurance program, on projects/applications that have advanced to the underwriting and structuring phase, and to monitor each project after closing, often for the term of the related loan, as part of the Portfolio Management process. The Contractor shall serve as the external financial advisor for the Bureau, on both a government-pay or an applicant-pay basis. SEE DRAFT STATEMENT OF WORK BELOW. The NAICS Code for this effort is 524298. The planned multiple award IDIQ contracts will include a five-year ordering period with a total ordering ceiling value of $2.25 Million for all task orders issued against all contracts. Task Orders awarded under this multiple award IDIQ will fall into one of the following two categories: (1) At Cost to the Government: "At Cost" TOs will be issued by the Federal Government and funded with Federal funds. (2) No Cost to the Government: "No Cost" TOs will be issued by the Federal Government with tiny_mce_marker funding (i.e., no Federal funds). The applicant for credit assistance (or its affiliate) will directly make payment to the Contractor for services rendered in accordance with the terms of a sponsor payment letter/agreement executed by the applicant (or its affiliate) and the Contractor. No Cost task orders, which will be paid by non-governmental entities, will not count against the IDIQ ordering ceiling value. This synopsis is not a request for proposals (RFP). The FHWA intends to release a solicitation electronically only via www.fbo.gov. As such, no written, telephonic or other type of request for an advance copy of the solicitation will be entertained. Interested offerors/vendors are encouraged to register on www.fbo.gov to receive any further information about the subject action inclusive of any announcements, and/or amendments to the solicitation after its release. No other procurement information is available now. Draft Statement of Work Task Area A - Due Diligence • Work with the Bureau's legal advisers to comment on the credit agreement, advising on the practicality and security that the proposed insurance regime offers lenders and assist in drafting lender's special conditions and endorsements. • Review and comment on the insurance implications of the proposed contractual structure and key agreements, including inter alia Project Agreement, Construction Contract, Operation and Maintenance Agreement and Loan Documentation. • Identify project risks and proposed mitigation and present results in the form of a risk matrix which can be used during the period of performance to inform completion of the other task items and will be incorporated in the report referenced below. • Review and comment on the proposed insurance program including: o Market security for proposed insurance and claims paying ability of insurers; o Adequacy of policy wording; o Adequacy of sums insured considering probable maximum loss estimates o Premium costs; o Deductible levels; o Limitations on the amounts recoverable under the proposed insurance and analysis of exclusions from cover; o Other risk transfer mechanisms and indemnities given by other parties on the project o The suitability and cost effectiveness of wider or other forms of insurance coverage for the project. • Advise on any statutory regulations and legal requirements with respect to the risk and insurance exposures. • Determine adequacy of coverage based on documentary analysis and conferring with the Legal and Technical Advisors. • Review annual reporting requirements related to insurance under the credit agreement and make recommendations as required. Task Area B - Reporting • Provide an Insurance Schedule, which will form an appendix to the Credit Agreement, outlining the Bureau's requirements for the insurance program during construction and operations. • Issue a report summarizing the results of the analysis conducted during the due diligence process and confirm whether the Cover Note and Policy terms are appropriate for the Project and in compliance with the credit agreement. Task Area C - Portfolio Management • Issue regular reports (usually annually at policy renewal) confirming that the new insurance program complies with requirements set out in the Credit Agreement. • Agree on an on-going program to monitor and approve proposed material changes to the core program. • Check adequacy of insurance policies placed after financial close. Task Area D - Other Bureau Matters • Attend meetings in Washington, D.C. (and elsewhere in the United States as the Bureau determines is necessary and appropriate) and participate in conference calls involving DOT project team and the borrower (including potentially their advisors), as necessary. • Provide additional analysis, as may be required, that could be incorporated into briefing memoranda prepared by the Bureau credit team making recommendations to appropriate DOT authorities on the credit. • Train the Bureau team on topics determined in consultation with the COR.