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HomeMy WebLinkAboutRFP - 8963 REVOLVING LOAN FUNDRFP 8963 Revolving Loan Fund Page 1 of 13 REQUEST FOR PROPOSAL #8963 REVOLVING LOAN FUND The City of Fort Collins is requesting proposals from qualified Vendors to manage a Revolving Loan Fund for businesses. As part of the City’s commitment to Sustainable Purchasing, proposals submission via email is preferred. Proposals shall be submitted in a single Microsoft Word or PDF file under 20MB and e-mailed to: purchasing@fcgov.com. If electing to submit a hard copy proposal we require one (1) hard copy and one (1) electronic copy on a jump drive to be received at the City of Fort Collins' Purchasing Division, 215 North Mason St., 2nd floor, Fort Collins, Colorado 80524. Proposals must be received before 3:00 p.m. (our clock) on July 11, 2019 and referenced as Proposal No. 8963. If delivered, they are to be sent to 215 North Mason Street, 2nd Floor, Fort Collins, Colorado 80524. If mailed, the address is P.O. Box 580, Fort Collins, 80522-0580. Please note, additional time is required for bids mailed to the PO Box to be received at the Purchasing Office. The City encourages all Disadvantaged Business Enterprises (DBEs) to submit proposals in response to all requests for proposals. No individual or business will be discriminated against on the grounds of race, color, sex, or national origin. It is the City’s policy to create a level playing field on which DBEs can compete fairly and to ensure nondiscrimination in the award and administration of all contracts. All questions should be submitted, in writing via email, to Gerry Paul, Purchasing Director at gspaul@fcgov.com, with a copy to Project Manager, Shannon Hein, at shein@fcgov.com, no later than 5:00 PM MST (our clock) on June 27, 2019. Please format your e-mail to include: RFP 8963 Revolving Loan Fund in the subject line. Questions received after this deadline may not be answered. Responses to all questions submitted before the deadline will be addressed in an addendum and posted on the Rocky Mountain E-Purchasing System webpage. Rocky Mountain E-Purchasing System hosted by Bidnet A copy of the RFP may be obtained at http://www.bidnetdirect.com/colorado/city-of-fort-collins. This RFP has been posted utilizing the following Commodity Code(s): 94625 Banking Services 94656 Investment Management Services 94660 Loan Administration Financial Services Purchasing Division 215 N. Mason St. 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6775 970.221.6707 fcgov.com/purchasing RFP 8963 Revolving Loan Fund Page 2 of 13 Public Viewing Copy: The City is a governmental entity subject to the Colorado Open Records Act, C.R.S. §§ 24-72-200.1 et seq. (“CORA”). Any proposals submitted hereunder are subject to public disclosure by the City pursuant to CORA and City ordinances. Vendors may submit one (1) additional complete proposal clearly marked “FOR PUBLIC VIEWING.” In this version of the proposal, the Vendor may redact text and/or data that it deems confidential or proprietary pursuant to CORA. Such statement does not necessarily exempt such documentation from public disclosure if required by CORA, by order of a court of appropriate jurisdiction, or other applicable law. Generally, under CORA trade secrets, confidential commercial and financial data information is not required to be disclosed by the City. Proposals may not be marked “Confidential” or ‘Proprietary’ in their entirety. All provisions of any contract resulting from this request for proposal will be public information. New Vendors: The City requires new Vendors receiving awards from the City to fill out and submit an IRS form W-9 and to register for Direct Deposit (Electronic) payment. If needed, the W-9 form and the Vendor Direct Deposit Authorization Form can be found on the City’s Purchasing website at www.fcgov.com/purchasing under Vendor Reference Documents. Please do not submit with your proposal. Sales Prohibited/Conflict of Interest: No officer, employee, or member of City Council, shall have a financial interest in the sale to the City of any real or personal property, equipment, material, supplies or services where such officer or employee exercises directly or indirectly any decision-making authority concerning such sale or any supervisory authority over the services to be rendered. This rule also applies to subcontracts with the City. Soliciting or accepting any gift, gratuity favor, entertainment, kickback or any items of monetary value from any person who has or is seeking to do business with the City of Fort Collins is prohibited. Collusive or Sham Proposals: Any proposal deemed to be collusive or a sham proposal will be rejected and reported to authorities as such. Your authorized signature of this proposal assures that such proposal is genuine and is not a collusive or sham proposal. The City of Fort Collins reserves the right to reject any and all proposals and to waive any irregularities or informalities. Utilization of Award by Other Agencies: The City of Fort Collins reserves the right to allow other state and local governmental agencies, political subdivisions, and/or school districts to utilize the resulting award under all terms and conditions specified and upon agreement by all parties. Usage by any other entity shall not have a negative impact on the City of Fort Collins in the current term or in any future terms. The selected Vendor shall be expected to sign the City’s standard Agreement prior to commencing Services (see sample attached to this Proposal). Sincerely, Gerry Paul Purchasing Director RFP 8963 Revolving Loan Fund Page 3 of 13 I. BACKGROUND & OBJECTIVE / OVERVIEW A. Objective The City of Fort Collins is requesting proposals from qualified vendors who are licensed and accredited capital providers to manage and administer the City of Fort Collins revolving loan fund for small businesses and startups located in Fort Collins1. B. Background A revolving loan fund is a gap financing tool used for the development and expansion of small businesses and startup companies. It self-replenishes its pool of money through interest and principal payments from previous loans to issue new ones. Businesses with 1-100 employees make up 98% of all firms in Fort Collins. These businesses employ 47% of the workforce and provide 40% of the total wages in our community Demonstrated need: • The City’s Economic Health Office (EHO) has identified access to capital as a barrier to the small business community through Economic Health Strategic Objective, B.4, Increase Capital to Support Startup Companies and Entrepreneurs. As such, EHO believes a revolving loan fund can support in meeting Strategic Objective B.4. • Data from the small business needs assessment deployed in 2018 demonstrated the need and interest for capital resources from women-owned businesses, specifically women-owned businesses in the revenue band of $100,000 - $499,000. • A report by Minority Business Development Agency, found that, “Among firms with gross receipts under $500,000, loan denial rates for minority firms were about three times higher, at 42 percent, compared to those of non-minority-owned firms, 16 percent.” The City views this RFP as the first step in the development of a loan fund that will, over time, become an “evergreen” source of capital for underserved and disadvantaged borrowers in our community. Goals: The goals of the revolving loan fund include: A. Encourage business starts, strengthening’s and/or expansions through self-employment and facilitating job creation as a means of economic self-sufficiency for low-and moderate-income individuals. B. Help bridge the financing gap for small businesses which might eventually qualify for bank financing and prepare them for traditional bank relationships. C. Foster diversity in the business community by encouraging business ownership among traditionally underserved minorities, women, and the disabled. 1 For the purposes of this RFP, a business is defined as one that has obtained a sales tax license in the City of Fort Collins. This also includes non-profits. RFP 8963 Revolving Loan Fund Page 4 of 13 D. Promote entrepreneurship and business innovation as a means of harnessing the creative potential of small businesses and investing in the economic success of the community. E. Leverage the selected vendor partnership to significantly grow the initial seed money provided by the City of Fort Collins. Definition of Key Terms: • Revolving Loan Fund - A financing tool used for the start, strengthening or expansion of small businesses and startup companies, often used for businesses that are not yet able to qualify for conventional bank financing. • Small business – for the purpose of this request for proposal and the revolving loan fund, a small business is defined as having 100 employees or less and annual gross revenues of $500,000 or less. • Business start, strengthening, or expansion o Start - new business created within the prior 12 months; o Strengthening - business revenues increased by 10% or more from the prior year o Expansion - one or more non-family, full-time employees added. II. SCOPE OF PROPOSAL A. Scope of Work The selected vendor will receive approximately $164,000 of seed capital for a revolving loan fund from the City of Fort Collins. The City expects the selected vendor to provide strategies to grow the fund by several multiples (at least 2x) of lending capital, grow the overall available lending pool through matching funds, and at least an equal match from the selected vendor. The revolving loan program will be entirely administered by the selected vendor. It is the City’s expectation the awarded vendor will be responsible for any losses from non- performing loans in this revolving loan fund. The City is looking for a vendor partner that can provide opportunities for additional sources of lending capital, collaboration, education, consulting, and understands our desire to engage and provide business support to underserved entrepreneurs. All loans will be co-branded between the vendor and City of Fort Collins. Timeline: The revolving loan program is expected to launch in quarter three of 2019. Eligibility Criteria: • All eligible borrowers of the revolving loan fund must have their primary business operations in the City of Fort Collins, possess a City of Fort Collins sales tax license, and all applicable and legally required City permits, licenses, and insurance for their specific enterprise. • Eligible borrowers must be in good standing with the sales tax and utilities departments. Businesses with outstanding balances with the City of Fort Collins of any kind will not be considered. RFP 8963 Revolving Loan Fund Page 5 of 13 • Nonprofits are defined as a business and can apply if in good standing in all areas listed above. • Other points of criteria will be determined by the City of Fort Collins and the vendor. As a public entity, the City intends to require eligibility criterium that prohibits participation in the program by certain businesses engaging in selling or providing products or services that are known to be injurious to the public’s health, safety or welfare. Other Loan Parameters: Term loans should be made available to eligible entrepreneurs and businesses for up to $50,000, up to 10 years, and for any of the following purposes: • Working capital • Equipment • Inventory • Business purchase Rates and origination fees vary and will depend on the amount of the loans, loan term and other screening factors. Loan products and borrowing parameters may be adjusted by the City of Fort Collins and selected vendor in order to align with the size and growth of the overall revolving loan fund and changing market needs over time. Oversight: A representative from the selected vendor will meet with City of Fort Collins staff at least semi-annually to review the program, lending data, and to provide updates. City of Fort Collins staff will support marketing efforts as appropriate. Period of Award: The revolving loan fund contract will be subject to annual renewal with an initial term of up to five (5) one (1) year periods. The vendor shall be solely responsible for servicing all loans for the term of such loans in accordance with the terms and conditions of the contract irrespective of the agreement term. B. Deliverables/Milestones Initial lending goals: • 5 loans made in 2019. This can include loans for the purpose of business starts, strengthening’s, or expansions • 15 additional loans made in 2020. This can include loans for the purpose of business starts, strengthening’s, or expansions. Estimated milestones: • Contract execution – August 2019 (estimate) o Upon contract execution, the City of Fort Collins and selected vendor will establish an advisory panel. The advisory panel will not make credit decisions. Responsibilities of the panelists may include attending routine meetings to review reports, monitor progress, identify needs and gaps of the community, bridge relationships with bankers, be a community champion to promote the program to their network, and assure equity and inclusion among borrowers. RFP 8963 Revolving Loan Fund Page 6 of 13 • Program funded by City of Fort Collins – within 45 days of contract execution • Marketing campaign launches (including announcement at the Business Appreciation Breakfast on September 26, 2019) within 60 days of contract execution • First quarterly report submitted – February 2020 C. Key Areas of Responsibility The vendor will be responsible for the following: • Create and manage the revolving loan fund • Screen loan applicants in accordance with the criteria established by the City, vendor, and advisory panel • Administer loan disbursements • Manage loan payments from the borrower • Meet with Economic Health Staff to review quarterly reports • Appoint one representative to serve on the advisory panel • Instrumental in securing additional funds from banks through outreach and existing relationships • Marketing the program to the Fort Collins community • Assume credit risk and responsibility for loan losses D. Minimum Qualifications • The selected vendor must be licensed to offer small business loans in the State of Colorado and have experience in loaning and servicing funds, defining specific parameters of the loan fund, and designing underwriting guidelines. • Have a local presence to provide accessible counseling, support, and engagement. • Ability and experience working with traditionally underserved and non-English speaking entrepreneurs is desirable, but not required. • Capacity to provide education, consulting, and technical assistance to eligible borrowers is also preferred. E. Anticipated Schedule The following represents the City’s target schedule for the RFP. The City reserves the right to amend the target schedule at any time. • RFP issuance: June 14, 2019 • Question deadline: 5:00 PM MST on June 27, 2019 • Proposal due date: 3:00 MST (our clock) on July 11, 2019 • Interviews (tentative): Week of July 22nd • Award of Contract (tentative): August 2019 F. Budget The budget for this project includes initial seed money of an estimated $164,000 plus expected contributions of $20,000 annually by the City of Fort Collins. Vendors are invited to submit proposals with the tasks prioritized to aid the City in working together with the RFP 8963 Revolving Loan Fund Page 7 of 13 selected firm to identify and implement core tasks within the budget available for this project. Vendors may also wish to include budget forecasting for additional contributions they may be able to secure from established partnerships. G. Interviews In addition to submitting a written proposal, the top-rated Vendors may be interviewed by the RFP assessment team and asked to participate in an oral presentation to provide an overview of the company, approach to the project and to address questions. The evaluation criteria for the oral interviews will be the same as the criteria for the written evaluations and is included in Section IV. H. Subcontractors Vendors will be responsible for identifying any subcontractors in their proposal. Please note that the City will contract solely with the awarded Vendor; therefore subcontractors will be the responsibility of the Vendor. I. Proposal Format Please limit the total length of your proposal to a maximum of twenty-five (25) double sided or fifty (50) single sided 8 ½ x 11” pages (excluding cover pages, table of contents, dividers and Vendor Statement form). Font shall be a minimum of 10 Arial and margins are limited to no less than .5” for sides and top/bottom. Extended page sizes, such as 11” x 17”, count as a single page. Please, no embedded documents. Proposals that do not conform to these requirements may be rejected. J. Financial Statement Vendors are to submit the most recent financial statement (audited preferred) including balance sheet and income statement, as well as a statement of cash flows. The financial information shall be submitted in a separate file marked Confidential. The financial information will be considered confidential commercial and financial data pursuant to the Colorado Open Records Act (C.R.S.24-72-201 et. seq.). K. Laws and Regulations The Vendor agrees to comply fully with all applicable local, State of Colorado and Federal laws and regulations and municipal ordinances. L. Invoicing and Payment Invoices should be emailed monthly to invoices@fcgov.com with a copy to the Project Manager. The cost of the work completed shall be paid to the Vendor each month following the submittal of a correct invoice by the Vendor indicating the project name, Purchase Order number, task description, hours worked, personnel/work type category, hourly rate for each employee/work type category, date of the work performed specific to the task, percentage of that work that has been completed by task, 3rd party supporting documentation with the same detail and a brief progress report. Payments will be made using the prices listed on the agreed-to Price Schedule. In the event a service is requested which is not listed on the Price Schedule, the Vendor and the City will negotiate an appropriate unit price for the service prior to Consultant initiating such work. RFP 8963 Revolving Loan Fund Page 8 of 13 The City pays invoices on Net 30 terms. III. PROPOSAL SUBMITTAL For this section, Vendors are required to provide detailed written responses to the following items in the order outlined below. The responses shall be considered technical offers of what Vendors propose to provide and shall be incorporated in the contract award as deemed appropriate by the City. A proposal that does not include all the information required may be deemed non-responsive and subject to rejection. Responses must include all the items in the order listed below. It is suggested that the Vendors include each of the City’s questions with their response immediately following the question. The City of Fort Collins shall not reimburse any firm for costs incurred in the preparation and presentation of their proposal. A. Cover Letter / Executive Summary The Executive Summary should highlight the content of the proposal and features of the program offered, including a general description of the program and any unique aspects or benefits provided by your firm. Indicate your availability to participate in the interviews/demonstrations on the proposed dates as stated in the Schedule section. B. Vendor Information 1. Describe the Vendor’s business and background 2. Number of years in the business 3. Details about ownership 4. An overview of services offered and qualifications 5. Size of the firm 6. Location(s) of offices. If multiple, please identify which will be the primary for our account. 7. Primary contact information for the company including contact name(s) and title(s), mailing address(s), phone number(s), and email address(s). Complete Section V, Vendor Statement. C. Scope of Proposal 1. Provide a detailed narrative of the services proposed if awarded the contract per the scope above. The narrative should include any options that may be beneficial for the City to consider. 2. Describe how the project would be managed and who would have primary responsibility for its timely and professional oversight of the program. 3. Identify what portion of work, if any, may be subcontracted. D. Firm Capability Provide relevant information regarding previous experience related to this or similar Projects, to include the following: RFP 8963 Revolving Loan Fund Page 9 of 13 1. Provide an Organization Chart/Proposed Project Team: An organization chart containing the names of all key personnel and sub consultants with titles and their specific task assignment for this Agreement shall be provided in this section. 2. A list of qualifications for your firm and qualifications and experience of the specific staff members proposed to perform the consulting services described above. 3. Provide a minimum of three similar projects with public agencies in the last 5 years that have involved the staff proposed to work on this project. Include the owner’s name, title of project, beginning price, ending price, contact name, email and phone number, sub-consultants on the team and a brief description of the work and any change orders. 4. Provide examples of at least two projects where you’ve worked with your sub- consultants. List the sub-consultant firm(s) for this Agreement, their area(s) of expertise, and include all other applicable information herein requested for each sub- consultant. Identify what portion of work, if any, may be sub-contracted. 5. References (current contact name, current telephone number and email address) from at least three similar projects with similar requirements that have been completed within the past five (5) years and that have involved the staff proposed to work on this project. Provide a description of the work performed. The Consultant authorizes City to verify any and all information contained in the Consultant’s submittal from references contained herein and hereby releases all those concerned providing information as a reference from any liability in connection with any information they give. E. Assigned Personnel 1. List of Project Personnel: This list should include the identification of the contact person with primary responsibility for this Agreement, the personnel proposed for this Agreement, and any supervisory personnel, including partners and/or sub consultants, and their individual areas of responsibility. 2. A resume for each professional and technical person assigned to the Agreement, including partners and/or sub consultants, shall be submitted. Please limit resumes to one page. 3. Some functions of this project may require the use of sub-consultants. If you intend to utilize sub-consultants you must list each and provide resumes for their key personnel. F. Sustainability/TBL Methodology In concise terms (no more than two pages), please describe how your organization strives to be sustainable. Address how your firm incorporates Triple Bottom Line (TBL) into the workplace. See Section IV: Review and Assessment for additional information. If possible, please highlight areas of opportunity in the project where sustainability could be applied and/or improved. RFP 8963 Revolving Loan Fund Page 10 of 13 G. Cost In your response to this proposal, please provide the following: 1. Program Expenses. Include an itemized list of all reimbursable expenses required to initiate, launch, market and manage the program for the term of the loans. Detail expense items proposed to be reimbursed by the City and those that will be either rolled into the loan or directly reimbursable by the business as part of the loan application process. 2. Interest Rates. Provide an overview of the methodology that will be used to establish the interest rates including the formula and index that will be utilized. H. Additional Information Provide any information that distinguishes Vendor from its competition and any additional information applicable to this RFP that might be valuable in assessing Vendor’s proposal. Explain any concerns Vendor may have in maintaining objectivity in recommending the best solution. All potential conflicts of interest must be disclosed. Exceptions to the Scope of Services shall be documented. IV. REVIEW AND ASSESSMENT CRITERIA A. Proposal and Interview Criteria Vendors will be evaluated on the following criteria. These criteria will be the basis for review and assessment of the written proposals and optional interview session. At the discretion of the City, interviews of the top-rated Vendors may be conducted. The rating scale shall be from 1 to 5, with 1 being a poor rating, 3 being an average rating, and 5 being an outstanding rating. See Next Page for the Assessment Criteria RFP 8963 Revolving Loan Fund Page 11 of 13 WEIGHTING FACTOR QUALIFICATION STANDARD 2.0 Scope of Proposal Does the proposal address all elements of the RFP? Does the proposal show an understanding of the project objectives, methodology to be used and results/outcomes required by the project? Are there any exceptions to the requirements? 2.0 Firm Capability Does the firm have the resources, financial strength, capacity and support capabilities required to be a successfully partner to the City? Has the firm successfully participated in similar programs? 2.0 Assigned Personnel Do the persons who will be working on the project have the necessary skills and qualifications? Are sufficient people of the requisite skills and qualifications assigned to the project? 1.0 Sustainability/TBL Methodology Does the firm demonstrate a commitment to Sustainability and incorporate Triple Bottom Line methodology in both their Scope of Work for the project, and their day-to-day business operating processes and procedures? 3.0 Value Is the methodology for setting the prevailing interest rates competitive and consistent with industry standards? Are the proposed fees competitive? Has the firm committed to match the City’s funds? Does the firm have a strong financial network and have they provided compelling evidence of additional potential sources for loan capital? Definitions Sustainable Purchasing is a process for selecting products or services that have a lesser or reduced negative effect on human health and the environment when compared with competing products or services that serve the same purpose. This process is also known as “Environmentally Preferable Purchasing” (EPP), or “Green Purchasing”. The Triple Bottom Line (TBL) is an accounting framework that incorporates three dimensions of performance: economic, or financial; environmental, and social. The generally accepted definition for TBL is that it “captures the essence of sustainability by measuring the impact of an organization’s activities on the world…including both its profitability and shareholders values and its social, human, and environmental capital.” RFP 8963 Revolving Loan Fund Page 12 of 13 B. Reference Evaluation Criteria Prior to award, the Project Manager will check references using the following criteria. Negative responses from references may impact the award determination. CRITERIA STANDARD QUESTIONS Overall Performance Would you hire this Vendor again? Did they show the skills required by this project? Timetable Was the original Scope of Work completed within the specified time? Were interim deadlines met in a timely manner? Completeness Was the Vendor responsive to client needs; did the Vendor anticipate problems? Were problems solved quickly and effectively? Budget Was the original Scope of Work completed within the project budget? Job Knowledge If a study, did it meet the Scope of Work? If Vendor administered a construction contract, was the project functional upon completion and did it operate properly? Were problems corrected quickly and effectively? RFP 8963 Revolving Loan Fund Page 13 of 13 V. VENDOR STATEMENT Vendor hereby acknowledges receipt of the City of Fort Collins Request for Proposal and acknowledges that it has read and agrees to be fully bound by all of the terms, conditions and other provisions set forth in the RFP. Additionally, Vendor hereby makes the following representations to City: a. All of the statements and representations made in this proposal are true to the best of the Vendor’s knowledge and belief. b. Vendor commits that it is able to meet the terms provided in this proposal. c. This proposal is a firm and binding offer, for a period of 90 days from the date hereof. d. Vendor further agrees that the method of award is acceptable. e. Vendor also agrees to complete the proposed Agreement with the City of Fort Collins within 30 days of notice of award. If contract is not completed and signed within 30 days, City reserves the right to cancel and award to the next highest rated firm. f. Vendor acknowledge receipt of addenda. Firm Name: Physical Address: Remit to Address: Phone: Name of Authorized Agent of Firm: Signature of Authorized Agent: Primary Contact for Project: Title: Email Address: Phone: Cell Phone: NOTE: VENDOR STATEMENT IS TO BE SIGNED & RETURNED WITH YOUR PROPOSAL.