Escrow Agent Services

The Virginia Department of Energy has issued a Request for Proposals (RFP #409:10-04-24) for Escrow Agent Services to be utilized by the Virginia Gas and Oil Board, with a specific focus on serving Brunswick County. The primary objective is to procure a contractor responsible for establishing and managing an interest-bearing escrow account containing proceeds from approximately 406 gas units, with funds held until ownership disputes are resolved. The selected contractor must provide comprehensive accounting services, including electronically making funds available, maintaining sub-account payment receipts, and generating monthly and quarterly reporting. Deliverables include establishing an escrow account in the Board's name, handling disbursements as authorized by Board orders, and maintaining detailed financial records. The initial contract period will run from January 1, 2025, through December 31, 2025, with an option to renew for nine successive one-year periods. Sealed proposals are due by 1:00 PM on October 28, 2024, and the evaluation criteria will assess the adequacy of approach (30 points), ability to perform services (30 points), small business subcontracting plan (20 points), personnel qualifications (15 points), and price reasonableness (5 points).

The contract is specifically set aside with award priority for DSBSD-certified micro businesses or small businesses, creating a targeted opportunity for smaller enterprises. Contractors must be firms or businesses licensed to do business in the Commonwealth of Virginia and maintain specific insurance requirements, including $1,000,000 per occurrence and $3,000,000 aggregate in professional liability insurance for accounting services. Payment to the contractor is structured uniquely, with fees not exceeding the monthly interest applied to the account and charges transferred directly from the Escrow Account upon Board authorization. The Notice of Award indicates that The First Bank & Trust Company of Bristol, VA (eVA ID VS0000053207) has been selected as the incumbent vendor for this contract. While exact award values are not specified, the contract's financial mechanisms suggest that compensation will be derived from the interest generated by the escrow account. Contractors must also provide a fidelity insurance policy and demonstrate the capability to manage complex financial accounts related to gas and oil unit ownership disputes.