RFR LOT Number 1506 - MSLC - STRIPS

The Massachusetts State Lottery Commission (the Lottery) is seeking to pre-qualify a pool of qualified firms to provide zero coupon non-callable U.S. Government securities, commonly referred to as STRIPS (Separate Trading of Registered Interest and Principal of Securities), through a competitive offering process. The Lottery will establish a pool of eligible firms that meet the minimum qualifications, which include being designated as a Government Securities Dealer, maintaining investment grade ratings, having at least 5 years of experience in the STRIPS business, and demonstrating excess net capital of at least $250 million. Qualified firms will be eligible to submit proposals to the Lottery to fund specified annual cash flows using STRIPS, with the winning proposal being the one offering the desired cash flow at the lowest total cost. The RFQ will remain open from March 26, 2015 through January 31, 2018, with firms being approved on a rolling basis.

The RFQ includes several administrative requirements, such as submitting proposals by 10:30 AM Eastern Standard Time, not including any fees or charges beyond the direct cost of the securities, agreeing to the Lottery's trade and settlement procedures, and completing forms related to tax compliance, business references, and the Invest in Massachusetts program. The Lottery reserves the right to reject any or all proposals and does not specify a maximum obligation amount, as this is structured as a rate contract. There are no set-asides indicated, and the incumbent contractor is not identified. The contract will be funded through the Lottery's appropriated funds, subject to available funding and allotments.