TFSAFSA14CI0005-000001.pdf

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TFSAFSA14CI0005

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1 copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGEMENT TO BE RECEIVED AT

THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

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Parkersburg WV 26101 200 Third Street

FSA-PARKERSBURG

Avery 5F Administration Branch Division of Procurement Bureau of the Fiscal Service

Parkersburg WV 26101 Attn: T. Ayers

FSA-TAYERS

200 Third Street Avery 5F Division of Procurement Bureau of the Fiscal Service

01/17/2014000001

13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS. IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

12. ACCOUNTING AND APPROPRIATION DATA (If required) is not extended.is extended, Items 8 and 15, and returning

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods: (a) By completing

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

FACILITY CODE CODE

10B. DATED (SEE ITEM 13)

10A. MODIFICATION OF CONTRACT/ORDER NO.

9B. DATED (SEE ITEM 11)

9A. AMENDMENT OF SOLICITATION NO.

CODE

8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)

7. ADMINISTERED BY (If other than Item 6)CODE 6. ISSUED BY

PAGE OF PAGES

4. REQUISITION/PURCHASE REQ. NO.3. EFFECTIVE DATE2. AMENDMENT/MODIFICATION NO. 5. PROJECT NO. (If applicable)

1. CONTRACT ID CODE

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

01/02/2014

CHECK ONE A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority) appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

E. IMPORTANT: Contractor is not, is required to sign this document and return __________________ copies to the issuing office.

ORDER NO. IN ITEM 10A.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

The purpose of this Amendment #1 is to respond to vendors questions that were submitted by the due date, herein.

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)15A. NAME AND TITLE OF SIGNER (Type or print)

15C. DATE SIGNED 16B. UNITED STATES OF AMERICA 15B. CONTRACTOR/OFFEROR 16C. DATE SIGNED

(Signature of person authorized to sign) (Signature of Contracting Officer)

BRENT JENKINS

STANDARD FORM 30 (REV. 10-83)

Prescribed by GSA

FAR (48 CFR) 53.243

NSN 7540-01-152-8070

Previous edition unusable

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

Q&A – Amendment 000001 Department of the Treasury, Bureau of the Fiscal Service

Division of Procurement

TFSAFSA14CI0005 – FISCAL SERVICE SECURITIES LIQUIDATIONS

Questions & Answers

1. Is this is a new requirement or is there previous provider of this service? If so, could you provide the vendor and/or contract number?

Response: This is a reoccurring requirement for the Government. The current Contractor/provider is Merrill Lynch & Company, Inc. who has been providing the services under Blanket Purchase Agreement number TPDBPDBPA100003 that is set to expire on 12/31/14 or 30 days after a notice is given to them that a new contract will be awarded.

2. Are there any historical pricing details from previous contracts, available for review?

Response: The Government isn’t able to provide the current Contractor’s unit pricing details, however, please see the response to question 13 below for total commissions and fees paid to the Contractor over a five year period.

3. Additionally, any details on who the previous vendors were providing this service would be helpful.

Response: Please see the response to question 1 above.

4. Do you have an indication of volumes/numbers expected to be liquidated over the next 12 months? If so, do you have an estimate of the number of equities, Bonds (by type), International equities/bonds, etc. to be liquidated?

Response: Please see the second tab in the attachment labeled “Attachments A (1-3) - Securities Liquidation Commission & Fees.xlsx” for the estimated amounts per type of security and per additional fee for each period that the Offeror will use to calculate their total evaluated price (Attachment A-2 – Total Evaluated Price). The estimated amounts may not accurately reflect the work that will occur over the life of the contract, due to it is difficult to forecast the expected volume of future transactions from year to year as transactions are contingent on executive agencies forwarding their obligations to Fiscal Service.

5. Additionally, will you require onsite presence for occasional face to face meetings and/or on site on a permanent basis?

Response: No.

6. When do you expect the engagement to begin?

Response: Please see the response to question 1 above. The Government anticipates being able to make an award decision by mid-April of 2014.

Division of Procurement

7. What type of assurance will Treasury/ Fiscal Service provide to demonstrate that the securities being liquidated are free and clear to sell? i.e., negotiability.

Response: Fiscal Service has an internal process in place that involves the program office and legal counsel for obtaining proof of ownership and Letter of Intent to sell the securities from clients.

8. Will the awarded/ winning Contractor (Broker Dealer) firm need to be registered as a Broker Dealer in the states that Treasury/ Fiscal Service is holding the securities or in the states we plan to solicit customer orders from which is required by regulators?

Response: Offerors are responsible for determining and complying with state licensing requirements that are applicable to the services sought in the solicitation. The Government Accountability Office (GAO) has held that determining and obtaining of such licenses and permits is a matter which must be settled between the local authorities and contractors. See 53 comp. Gen. 36, 38 (1973).

The Government is requiring that the Offerors understand and comply with whatever state permits and licenses are required for the services they will be performing. If a license lapses or is nonexistent, then the Contractor can be terminated for default for failing to meet a contract requirement. While it is up to the Offeror/Contractor to figure out and comply with the state requirements, please also see the U.S. Securities and Exchange Commission website pertaining to Broker-Dealer Registration - Where to File. http://www.sec.gov/answers/brkrdlr.htm

Offerors shall provide documentation to the Government in their proposal to demonstrate that they are in compliance.

9. What is the past experience regarding how much securities volume will flow through to the Contractor on a daily, weekly and monthly basis for liquidation? Can you provide a list by security types as well?

Response: Please see the response to question 4 above.

10. Page 2, Section 2.0 uses a term in the Scope that the contractor will perform the transactions in a manner "...that does not have an impact on the market." This same term is also used on Page 16. A given transaction could have some effect on the market and the extent of such affect would not be known until "after it has occurred." An objective of a seller to their agent would certainly be that they have the experience and recent research available to undertake a transaction that " doesn't unduly, or appreciably, or substantially affect the market" - will the Contractor have the access to the appropriate representatives from Fiscal Service to discuss and agree upon the timing and release of specific securities in the marketplace so price, volume and other factors do not unduly impact the given market.

Response: Yes. The Contractor shall have access (i.e. phone, email) to the Ordering Official(s) who placed the order to discuss a liquidation strategy.

Division of Procurement

11. Under the existing contract, was there ever a time when the volume or size of the securities contemplated for liquidation raised concern about impact to the market(s)? If so, how was it handled?

Response: Yes, the Government has large volumes of securities on a somewhat regular basis. Normally these transactions will take more than one day and the broker-dealer will call the Ordering Official each day with the opening price to approve the sale of share(s), until all shares are sold.

12. To assist in the determination of human resources and estimating our pricing, especially for small business, some idea of the flow of transactions simply as to count only like every day, few times a week/month would be helpful if not the actual number of transaction months, if available.

Response: Please see the response to question 4 above.

13. Who is the incumbent Contractor and what was the amount paid under the existing Contract over the 5-year period?

Response: Please see the response to question 1 above. Total Commission and Fees paid for Fiscal Years 2008 – 2012 was $554,503.99.

14. Pursuant Section 6.8 is it the government's intention a Prime and each individual subcontractor be registered as a broker dealer. Parenthetically, are your stating that if a Respondent plans to partner with three (3) subcontractors, this section is saying that each subcontractor must be a BD,? Is this the correct interpretation?

Please clarify.

Response: Yes.

15. Given the short turnaround time between January 16 (date the questions are required for submission) and

February 3 (date of RFP Response), would the Fiscal Service consider an extension to the February 3 date?

Response: No.

16. What is the expected turnaround time for the government's response to the questions submitted on January 16?

Response: The Government was able to provide responses to the above submitted questions by vendors in one business day, as posted on January 17, 2014.