The Federal Transit Administration (FTA) has issued an RFP seeking qualified firms to provide Financial Capacity Assessments and Financial Assessments support services. The Government anticipates awarding more than one IDIQ contract concerning this requirement. This requirement is being competed as a small business set-aside. The program provides discretionary funding for fixed guideway investments such as new and expanded bus rapid transit, heavy rail, commuter rail, and light rail as well as corridor-based bus rapid transit investments that emulate the features of rail. FTA utilizes financial contractors to help FTA make its determination of local financial commitment for each project seeking Capital Investment Grants (CIG) funds. Many projects seeking CIG funds are multi-billion-dollar projects with complex financial plans. Therefore, it is imperative that financial contractors have financial analysis experience and knowledge of Financing large transit capital infrastructure projects, Operation and maintenance of transit systems, and Federal regulations, policy, and guidance.
FTA conducts two types of financial reviews for CIG projects: Financial Assessments (FA) and Financial Capacity Assessments (FCA). The purpose of this procurement is to obtain contractor support to conduct detailed FAs and FCAs, which are defined as follows:
- An FA is a written financial assessment of a proposed CIG project that includes proposed ratings of high, medium-high, medium, medium-low, or low to three subfactors described in FTA’s guidance for the CIG program. The subfactors are current capital and operating condition; commitment of capital and operating funds; and reasonableness of capital and operating cost estimates and planning assumptions, and capital and operating funding capacity. A summary financial rating is assigned based on a combination of the individual ratings for each measure according to the weights identified in FTA’s guidance.
- An FCA is an important, time-sensitive document that supports FTA’s decision to provide a construction grant to a CIG project. An FCA includes the following elements:
- An analysis of the project sponsor’s system-wide financial condition;
- An analysis of the project sponsor’s system-wide financial capability;
- Stress tests, which explore the impact on the project sponsor’s financial plan of changes in assumptions found to be of concern in the financial capability analysis;
- An updated local financial commitment rating; and
- The financial contractor’s assessment of the project sponsor’s ability to satisfy the financial capacity requirement for CIG funds.
The period of performance is from date of award through a five year period including a one-year base period and four one-year option periods.