RFP 48-26 2026 Liquidity Facility for CP Program

The Massachusetts Bay Transportation Authority (MBTA) issued RFP 48-26 on March 20, 2026, seeking qualified financial institutions to provide a liquidity facility for Commercial Paper (CP) Sales Tax Bond Anticipation Notes totaling up to $150 million. The liquidity facility will support Series C and Series D CP Notes, each consisting of tax-exempt and federally taxable subseries with up to $75 million aggregate principal amounts outstanding at any time, with the facility expected to commence on or about June 24, 2026, replacing an expiring facility. Respondents must be actively licensed Broker-Dealers with Securities and Exchange Commission registration, FINRA membership in good standing, and qualified personnel holding FINRA Series 53 licenses; firms must submit proposals with a minimum principal commitment of $50 million per bank. The RFP requires comprehensive submissions including the Form of Commercial Paper Advance Agreement with requested modifications, legal counsel identification with legal expenses capped at $45,000 per bank facility, fee schedules for 3-year, 4-year, 5-year, and other term options at current rates, current long-term and short-term credit ratings from major rating agencies, and various certifications regarding tax compliance and debarment status. The question submission deadline was March 26, 2026, with proposal responses due by April 14, 2026, at 2:00 PM EST; bank facility providers will be identified for further review and negotiation by April 17, 2026, with final bank selection occurring on or around April 20, 2026. Pricing for the liquidity facility shall consist of annual commitment fees payable quarterly in arrears based on both utilized and unutilized portions of the facility, and the MBTA reserves discretionary rights to award one or multiple vendors.

The RFP does not identify specific set-aside designations or restrictions limiting response to particular organization types based on disadvantaged enterprise status. All respondents must demonstrate tax compliance by submitting a Certificate of Tax Compliance in Good Standing issued by the Massachusetts Department of Revenue within the past year or proof of a pending request, and must complete comprehensive disclosure forms addressing licensing, registration, disciplinary actions, litigation history, and regulatory investigations by the SEC, FINRA, Massachusetts Attorney General's Office, or other regulatory agencies. Respondents must maintain long-term credit ratings from at least two of the three major rating agencies (Moody's, S&P, or Fitch) at specified minimum levels without credit enhancement support, and must submit annual certifications no later than 30 days after June 30 confirming continued compliance with minimum qualifications. No incumbent vendor or current contractor information was identified in the procurement documents; however, the facility is structured to replace an existing liquidity commitment expiring on June 24, 2026. The maximum liquidity facility value is $150 million, with banks required to commit a minimum of $50 million per bank, though the MBTA retains the right to structure the awards with one or multiple vendors based on proposal evaluation and negotiation outcomes.