Arbitrage Services and Technical Assistance

The Commonwealth of Kentucky, acting through the Kentucky Infrastructure Authority, is seeking qualified firms to provide arbitrage services and technical assistance through Request for Proposal (RFP) 082 2600000238. The primary services include performing annual arbitrage calculations on four outstanding bond series (2012A, 2015A, 2016A, and 2018A) totaling approximately $284.88 million in original principal to satisfy Section 148 of the Internal Revenue Code requirements. Deliverables encompass data review and analysis, computation of excess earnings and rebatable amounts, preparation of IRS forms, legal opinions on tax liability, evaluation and recommendations on investment and record-keeping practices, regulatory compliance monitoring, and assistance with IRS inquiries. Qualified bidders must demonstrate relevant experience, strong organizational qualifications, qualified staff with expertise in arbitrage calculations, and sound calculation methodologies. The RFP evaluation will assess technical proposals on 600 points (150 points each for experience, organizational qualifications, staff qualifications, and calculation methodology), cost proposals on 400 points, and potential oral presentations on up to 250 points, for a maximum of 1,250 possible points. Written questions are due by February 9, 2026 at 4:00 p.m. Eastern Time, with anticipated Commonwealth responses by February 13, 2026, and proposals must be submitted electronically by March 6, 2026 at 4:00 p.m. Eastern Time through the Kentucky Vendor Self Service system. The anticipated contract term is July 1, 2026 through June 30, 2028, with the Commonwealth reserving the right to renew for up to two additional two-year periods subject to approval by the Secretary of Finance and Administration Cabinet and the Legislative Research Commission Government Contract Review Committee.

Reciprocal preferences apply for Kentucky resident bidders and qualified bidders as defined under Kentucky Revised Statutes (KRS) 45A.490, 45A.492, and 45A.494. All bidders must be registered with the Commonwealth eProcurement System, and foreign entities must provide their certificate of authority from the Kentucky Secretary of State. The Commonwealth currently contracts with American Municipal Tax-Exempt Compliance Corp. (AMTEC) for rebate services, indicating that proposals will be evaluated against established performance benchmarks. Pricing shall be submitted on an hourly rate basis with a total cost not-to-exceed amount for the two-year contract period; the specific budget allocation or estimated award value is not disclosed in the solicitation documents. Contractors must maintain compliance with tax and employment laws under KRS chapters 136, 139, 141, 337, 338, 341, and 342, and the contract is contingent upon final approval by the Secretary of Finance and Administration Cabinet and Legislative Research Commission Government Contract Review Committee filing, with no billable work authorized until the contract is fully executed.