Build America Bureau Technical Advisory Services

Amendment 1 is issued 2/26/19 to extend the proposal due date to March 4, 2019 at 3 pm eastern and make changes to the RFP. See Amendment 1 for details..

UPDATED INFO: RFP issued 1/30/2019; proposal due date is 2/28/2019. See RFP document for all details.
ORIGINAL SYNOPSIS: This is a pre-solicitation notice (synopsis) for a full and open competitive procurement. The USDOT / Federal Highway Administration (FHWA) intends to issue a solicitation to result in multiple award Indefinite Delivery/Indefinite Quantity (IDIQ) contracts for "Build America Bureau Technical Advisory Services." Estimated RFP Release date is 1/11/19 with an estimated closing date of 2/11/19.
The objective of the planned IDIQ contract awards is to provide lender's technical advisory services in the surface transportation infrastructure finance area to support the activities of the Bureau. This shall include technical due diligence and reporting to inform the Bureau's credit analysis prior to financial close, post-closing construction monitoring and reporting (often as frequently as monthly), 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). The selected Offerors will serve as the external technical advisor panel for the Bureau, on both a government-pay or an applicant-pay basis. The Bureau engages external technical advisors to provide independent expertise and to advise on technical matters for 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. SEE DRAFT STATEMENT OF WORK BELOW.
The NAICS Code for this effort is 541330. 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 Areas

Task Area A - Technical Due Diligence Prior to Financial Close
• Visit and inspect site as necessary, but at least once, as part of due diligence;
• Review, evaluate and advise on design and construction including drawings and specifications, geotechnical and site conditions, permitting, construction methodologies, site services, technology, suitability for intended use and compliance with codes and other legal and regulatory requirements;
• Advise on the experience and capabilities of project participants involved in building, managing, operating and maintaining the project and related project management structure/arrangements;
• Review and comment on the terms of principal legal contracts as they pertain to technical aspects of the project including RFP documents, concession agreements, construction contracts, operations and maintenance contracts, and interface agreements, and if applicable, address back-to-back arrangements and pass-downs of obligations;
• Comment on and provide bottom up buildup or other suitable independent verification of construction costs and opine on adequacy of the proposed construction budget, including advising on:
o risks that could result in cost overruns;
o adequacy of funding and contingencies;
o major suppliers or subcontractors;
o technical-related aspects of financial model including budgets and drawdown schedules;
• Review and advise on the adequacy of construction performance security including liquidated damages, third party bonds/guarantees, parent company guarantees, caps on liability, warranties, latent defect provisions. Include testing of adequacy of support under various default and delay scenarios;
• Evaluate and advise on the expected performance of the project during operations. Include analysis of the following:
o Potential start-up and commissioning risks;
o Possible interface issues;
o Reasonableness of the borrower's operating budget, including independent build-up and or other satisfactory verification of cost assumptions;
o Complexity of output specifications and/or other operating requirements;
o Stringency of payment mechanism, including likelihood of deductions and scenario testing;
o Adequacy of performance security, caps on liability and reserves;
o Lifecycle and handback regimes and recommendations on buildup of reserves.
• Review and advise on appropriates of construction/implementation schedule including testing of sufficiency of margins under various documents to accommodate likely delays;
• Attend calls or meetings with the Bureau and its other advisors when necessary;
• Identify and advise on any other technical aspects of the projects that could impact the borrower's ability to timely repay its debt obligations.

Task Area B - Reporting Prior to Financial Close
• Provide an initial "fatal flaws" report identifying any issues that could materially impact the success or performance of the project;
• Provide a detailed draft report reflecting documentation and other information available at the time;
• Prior to closing, submit a final report addressing all findings and recommendations.

Task Area C - Portfolio Management - Construction Monitoring and Reporting
• Visit construction site, attend site meetings, and conduct project inspection [monthly]. Provide the bureau with regular construction update reports. Reports should include inter alia the following:
o Assessment of progress against original schedule;
o Assessment of costs against construction budget;
o Assessment of design changes, if any, and quantification of impacts on budget;
o Confirmation that funds remaining from original project sources are adequate to complete the Project, and if not, assessment of additional funds required;
o Assessment of any technical and construction issues that have arisen since last report, including delays, cost overruns, and defective work, etc.;
• Review monthly invoices and monitor quality control;
• Comment and advise on change orders;
• Confirm and advise on Project completion, completion of punch list and rectification of defects at the appropriate time;
• If applicable, confirm the Project will have sufficient funds upon issuance of any additional debt to complete the Project;
• Attend calls or meetings with the Bureau and its other advisors when necessary.

Task Area D - Portfolio Management - Operating Phase Monitoring and Reporting
• Provide [annual]/regular operating period reports which shall include the following:
o Assessment of operating costs against original and most recent budget and discussion of variances;
o Review of plan of finance and budget and comment on appropriateness of future cost assumptions;
o Review of revised major maintenance plan and assessment/identification of any deferred or accelerated major maintenance;
o Update of [five] year look forward of major maintenance/renewal work and associated costs;
o Review build-up of major maintenance reserve account to determine whether additional contributions are required;
o Discuss any closures or other operating issues, including excessive deduction, that have arisen since the previous report and assess impact on Project and financial projections. Discuss any required remedial or corrective actions and associated costs;
o Attend calls or meetings with the Bureau and its other advisors when necessary.
• The Contractor may be called upon from time to time after loan closing to assist in the resolution of and advise on specific technical issues that arise during construction and operations.

.

This is a pre-solicitation notice (synopsis) for a full and open competitive procurement. The USDOT / Federal Highway Administration (FHWA) intends to issue a solicitation to result in multiple award Indefinite Delivery/Indefinite Quantity (IDIQ) contracts for "Build America Bureau Technical Advisory Services." Estimated RFP Release date is 1/11/19 with an estimated closing date of 2/11/19.
The objective of the planned IDIQ contract awards is to provide lender's technical advisory services in the surface transportation infrastructure finance area to support the activities of the Bureau. This shall include technical due diligence and reporting to inform the Bureau's credit analysis prior to financial close, post-closing construction monitoring and reporting (often as frequently as monthly), 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). The selected Offerors will serve as the external technical advisor panel for the Bureau, on both a government-pay or an applicant-pay basis. The Bureau engages external technical advisors to provide independent expertise and to advise on technical matters for 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. SEE DRAFT STATEMENT OF WORK BELOW.
The NAICS Code for this effort is 541330. 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 Areas

Task Area A - Technical Due Diligence Prior to Financial Close
• Visit and inspect site as necessary, but at least once, as part of due diligence;
• Review, evaluate and advise on design and construction including drawings and specifications, geotechnical and site conditions, permitting, construction methodologies, site services, technology, suitability for intended use and compliance with codes and other legal and regulatory requirements;
• Advise on the experience and capabilities of project participants involved in building, managing, operating and maintaining the project and related project management structure/arrangements;
• Review and comment on the terms of principal legal contracts as they pertain to technical aspects of the project including RFP documents, concession agreements, construction contracts, operations and maintenance contracts, and interface agreements, and if applicable, address back-to-back arrangements and pass-downs of obligations;
• Comment on and provide bottom up buildup or other suitable independent verification of construction costs and opine on adequacy of the proposed construction budget, including advising on:
o risks that could result in cost overruns;
o adequacy of funding and contingencies;
o major suppliers or subcontractors;
o technical-related aspects of financial model including budgets and drawdown schedules;
• Review and advise on the adequacy of construction performance security including liquidated damages, third party bonds/guarantees, parent company guarantees, caps on liability, warranties, latent defect provisions. Include testing of adequacy of support under various default and delay scenarios;
• Evaluate and advise on the expected performance of the project during operations. Include analysis of the following:
o Potential start-up and commissioning risks;
o Possible interface issues;
o Reasonableness of the borrower's operating budget, including independent build-up and or other satisfactory verification of cost assumptions;
o Complexity of output specifications and/or other operating requirements;
o Stringency of payment mechanism, including likelihood of deductions and scenario testing;
o Adequacy of performance security, caps on liability and reserves;
o Lifecycle and handback regimes and recommendations on buildup of reserves.
• Review and advise on appropriates of construction/implementation schedule including testing of sufficiency of margins under various documents to accommodate likely delays;
• Attend calls or meetings with the Bureau and its other advisors when necessary;
• Identify and advise on any other technical aspects of the projects that could impact the borrower's ability to timely repay its debt obligations.

Task Area B - Reporting Prior to Financial Close
• Provide an initial "fatal flaws" report identifying any issues that could materially impact the success or performance of the project;
• Provide a detailed draft report reflecting documentation and other information available at the time;
• Prior to closing, submit a final report addressing all findings and recommendations.

Task Area C - Portfolio Management - Construction Monitoring and Reporting
• Visit construction site, attend site meetings, and conduct project inspection [monthly]. Provide the bureau with regular construction update reports. Reports should include inter alia the following:
o Assessment of progress against original schedule;
o Assessment of costs against construction budget;
o Assessment of design changes, if any, and quantification of impacts on budget;
o Confirmation that funds remaining from original project sources are adequate to complete the Project, and if not, assessment of additional funds required;
o Assessment of any technical and construction issues that have arisen since last report, including delays, cost overruns, and defective work, etc.;
• Review monthly invoices and monitor quality control;
• Comment and advise on change orders;
• Confirm and advise on Project completion, completion of punch list and rectification of defects at the appropriate time;
• If applicable, confirm the Project will have sufficient funds upon issuance of any additional debt to complete the Project;
• Attend calls or meetings with the Bureau and its other advisors when necessary.

Task Area D - Portfolio Management - Operating Phase Monitoring and Reporting
• Provide [annual]/regular operating period reports which shall include the following:
o Assessment of operating costs against original and most recent budget and discussion of variances;
o Review of plan of finance and budget and comment on appropriateness of future cost assumptions;
o Review of revised major maintenance plan and assessment/identification of any deferred or accelerated major maintenance;
o Update of [five] year look forward of major maintenance/renewal work and associated costs;
o Review build-up of major maintenance reserve account to determine whether additional contributions are required;
o Discuss any closures or other operating issues, including excessive deduction, that have arisen since the previous report and assess impact on Project and financial projections. Discuss any required remedial or corrective actions and associated costs;
o Attend calls or meetings with the Bureau and its other advisors when necessary.
• The Contractor may be called upon from time to time after loan closing to assist in the resolution of and advise on specific technical issues that arise during construction and operations.

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