Financial Custodian Services

The Texas Water Development Board (TWDB) is seeking to award a service contract for Financial Custodian Services through this Request for Proposals (RFP). The TWDB registers political subdivision obligations (PSOs) issued by entities participating in its financing programs with the Depository Trust and Clearing Corporation (DTCC) and utilizes DTCC's clearing services for processing principal and interest payments. The TWDB requires a qualified firm to provide financial custodian services, including registration, safekeeping, delivery, securities valuation, investment performance reporting, securities lending, and other related services. The RFP has a release date of June 7, 2024, and a submission deadline of June 28, 2024. The contract term is from September 1, 2024, through August 31, 2025, with up to four optional renewal periods.

The RFP does not mention any set-asides or restrictions on the types of organizations that can respond. There are also no indications of an incumbent provider. The RFP specifies that fees must be provided in the pricing section, and the selected contractor will be responsible for billing the issuer directly for any DTC fees assessed. The TWDB is not formally classified as a banking institution, so it accesses the DTCC system via a contractual relationship with a Financial Custodian. The RFP does not provide any information regarding the possible award value or budget range for this contract opportunity.