Request for qualifications no. 580-26-RFQ-0016 for arbitrage compliance services

The Texas Water Development Board (TWDB) is issuing a Request for Qualifications (RFQ) for arbitrage compliance services to ensure adherence to Internal Revenue Code Section 148 and related Treasury regulations. The procuring agency seeks a qualified contractor to manage arbitrage compliance reporting and related services for TWDB's 39 outstanding bond issues as of August 31, 2025. Key deliverables and responsibilities include creating and maintaining compliance records, performing annual arbitrage yield and liability calculations, providing detailed reports within 90 days after fiscal year-end and within 60 days of calculation anniversaries, preparing IRS transmittals and forms, delivering quarterly status reports, and furnishing advice on yield reduction payments and compliance issues. The solicitation was released on April 14, 2026, with a deadline for submitting questions by April 21, 2026, and a proposal response deadline of May 28, 2026, at 5:00 p.m. The anticipated contract start date is September 1, 2026, with an initial three-year term through August 31, 2029, and potential extensions for up to three additional one-year increments. Evaluation criteria are weighted as follows: 45 points for firm experience and qualifications, 25 points for approach and methodology, and 30 points for qualifications of assigned personnel. The contractor must possess professional liability insurance equal to the contract award value and maintain coverage with companies licensed in Texas with an A.M. Best "A" rating.

All respondents must complete and submit a Historically Underutilized Business (HUB) Subcontracting Plan as part of their proposal, regardless of whether they intend to subcontract. The maximum total project cost will not exceed $363,000, with compensation structured according to a detailed fee schedule addressing per-issue and per-report charges for various services including report base fees, setup fees, commingled funds analysis, transferred funds analysis, debt service fund testing, variable or floating rate bond issue analysis, yield restriction analysis, universal cap calculations, late interest computations, and IRS form preparation. TWDB intends to award one contract to the qualified respondent. The contract is subject to standard state terms and conditions, including compliance with the Drug-Free Workplace Act, E-Verify requirements, cybersecurity training, and various state certifications and affirmations. No bidders conference or site visit is specified in the RFQ, and no incumbent vendors or existing contractors are identified in the solicitation materials.