General and Merchant Banking, pCard, Debit Card, Cashiering, and Payment Acceptance

The City of Tucson, Arizona is seeking sealed proposals from qualified financial institutions to provide comprehensive banking services through RFP No. 240172, which covers eight distinct service groups including General Banking Services, Institutional Custody Services, Merchant Card Processing, Commercial Card Services, Payroll/Prepaid Debit Card Services, Cashiering System, Utility Payment Acceptance, and Corporate Trust Services. The procurement aims to secure a banking partner capable of managing the city's complex financial operations, which include processing approximately 2.8 million merchant card transactions annually with a total volume of $175.8 million. Minimum qualifications for respondents include being a well-capitalized financial institution with a satisfactory Community Reinvestment Act rating and maintaining local banking offices in Tucson. The RFP requires detailed responses addressing qualifications, experience, technical capabilities, customer service, reporting, fee structures, and implementation plans. Key dates include a pre-submittal conference on April 5, 2024, and a proposal submission deadline of May 15, 2024 at 2:00 P.M. local Arizona time. PFM Group Consulting LLC has been retained to assist in issuing the RFP and evaluating proposal responses, with final evaluation decisions to be made by the Evaluation Committee.

The City of Tucson has structured this procurement to encourage participation from diverse financial institutions, though specific set-aside designations are not explicitly detailed in the provided documents. The city currently maintains 16 demand deposit accounts and the Tucson Housing Authority has 11 standalone accounts, with a target of $100 million in bank deposits. While no incumbent vendor is specified, the RFP indicates the city seeks a banking partner with robust technological integration capabilities, including API functionality, compatibility with existing systems like Workday and Naviline, and comprehensive security protocols. The initial contract term will be three years, with options to extend for up to four additional two-year periods. The city's current budget is $2.2 billion, and the banking services will need to support complex financial operations including lockbox processing (approximately 398,000 checks per month), remote deposit capture, ACH transactions (14,700 per month), wire transfers, and multiple payment acceptance channels including ACH, credit cards, Apple Pay, and Google Pay. The RFP suggests the city is open to competitive pricing structures, with considerations for earnings credit rates, transaction fees, and potential rebates.