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Questions & Answers

  1. Are joint proposals or the use of subcontractors allowed to fulfill any of the specific services requested?

    Because VHFA is a relatively small Agency with a small number of bond sales per year, we want to minimize the number of partners as well as the complexity of each deal.  Therefore, we would prefer not to deal with subcontractors.  A joint proposal may be reasonable depending on how it is structured.  At the moment, Piper Jaffray provides the Agency with General Advisory and Swap Advisory Services and Grant Street Group supports our Guaranteed Investment Contract needs.  Our contractual arrangements with them are separate.

  2. To confirm, on Attachment 5.2 (Cost/Fee Proposal Form), are the hourly fees listed in Table 2 subject to the 'Not to Exceed' amount in Table 1?

    I would expect each firm to respond based on the way they currently support and charge their existing clients.  I would prefer to see a fixed fee or hourly rates “not to exceed” for standard FA activities such as:  structuring and supporting bond deals, cash flows, redemptions etc. (1st Table)   The hourly rates should be the same as those outlined in the second table.  The second table is also meant to apply to “special projects” that are unusual and difficult to estimate and quote.  I would expect the FA and VHFA to discuss and negotiate the cost of special projects based on the quoted hourly rates as those projects arise.