1. (a) When requests for proposals are to be used.

   1. (1) The general rule for the selection of professionals for the Arkansas Development Finance Authority’s programs and projects involves the use of RFPs to solicit structured proposals that will permit the authority to compare and evaluate the relative qualifications of the professionals for the concerned tasks.

   2. (2) In a typical program and project, this will involve the selection of:

      1. (A) Underwriters;
      2. (B) Bond counsel; and
      3. (C) A trustee.
   3. (3) It is also possible that RFPs will be used to select professionals for other roles such as independent auditors, financial advisors, issuer’s counsel, special counsel, master loan servicer, etc.
   4. (4) There are occasions when the use of an RFP process is not practical or not in the best interest of the program or project (and, consequently, not in the best interest of the authority and the State of Arkansas).

   5. (5) Following are examples of programs and projects in which, unless an exception exists, the RFP process will be followed:

      1. (A) Ongoing authority programs, e.g.:

2. (i) Single-family housing;

   1. (ii) College savings bonds; and

      1. (iii) Wastewater System Revolving Loan Fund;
      2. (B) New or proposed programs, e.g., Drinking Water State Revolving Loan Fund Account;
      3. (C) Multifamily housing projects;
      4. (D) Bond guaranty pools — projects pooled from all areas of the state into one (1) bond issue guaranteed by the authority;

      5. (E) Bond guaranty standalone issues — bond issue for one (1) company, guaranteed by either:

         1. (i) The authority;
         2. (ii) The Arkansas Economic Development Commission; or
         3. (iii) A combination of both; and

      6. (F) Nonguaranteed standalone issues, e.g.:

         1. (i) Governmental;
         2. (ii) Private activity;
         3. (iii) 501(c)(3); and
         4. (iv) Taxable.

3. (b) Exceptions to request for proposal process.

   1. (1) Special programs and projects (“proprietary proposals”).

      1. (A) Professionals who present their own written financing proposals for programs or projects that, in the judgment of the Staff Professional Selection Committee with the concurrence of the Board Professional Selection Committee, are not currently being utilized by the authority will not fall under the RFP process.
      2. (B) If the new proposal is accepted by the authority, the professional who brought in the new proposal will be the professional for that program or project.
      3. (C) These special programs or projects should be presented to the Chair of the Staff Professional Selection Committee in a written proposal allowing for a preliminary substantive evaluation of the program.

   2. (2) Refundings.

      1. (A) Refunding proposals submitted by underwriters fall outside of the RFP process unless either:

         1. (i) The Staff Professional Selection Committee, with the concurrence of the Board Professional Selection Committee, shall decide that refundings of issues within a particular program should be covered by the term program RFP process outlined in subdivision (c)(2) of this section; or
         2. (ii) More than one (1) underwriter submits a written proposal within seven (7) calendar days of receiving the first written proposal.
      2. (B) In subdivision (b)(2)(A)(ii) of this section, the underwriters who submitted a refunding proposal will be evaluated in the RFP process against each other.
      3. (C) Refunding proposals will not be accepted prior to one hundred eighty (180) days from the proposed refunding transaction date (i.e., closing date).
      4. (D) The bond indenture requirements shall be the sole determinant as to which bond issues are callable.
      5. (E) The decision to refund or not refund shall be based upon the overall benefit to the authority and the applicable program/borrower.

      6. (F) It shall be the sole discretion of the Staff Professional Selection Committee and the Board Professional Selection Committee to determine whether a refunding will take place.

         1. (c) Professional team policies.

   3. (1) Special projects.

      1. (A) In many cases involving proposals for special project financings, a team of professionals (e.g., underwriter, counsel, and trustee) will have participated in the development of the proposed project and it may prove to be useful to handle the project using the already assembled team.
      2. (B) In cases where the submitting professional expects to propose one (1) or more other professionals to be part of its team in the project, if accepted by the authority, the submitting professional must clearly state this fact in the written proposal submitted and, as appropriate, address the pricing issues for all professionals who are part of the proposed team.
      3. (C) The authority reserves the right to accept the proposal in whole or in part, including the proposed team.

   4. (2) Term program RFPs.

      1. (A) In the RFP process for certain programs (the “term programs”), it is deemed useful to provide continuity by selecting a team of professionals for a defined period of time and, absent extraordinary circumstances in which a team member may be removed by the Board of Directors of the Arkansas Development Finance Authority, the professionals will remain in place as a team for the designated term.

      2. (B) Programs (including refundings of bond issues within a program) may be added to or removed from the list of term programs, and the term length may be shortened or extended, all by action from time to time of the board.

         1. (d) Transmittal of special proposals. Written proposals that fall outside of the RFP process shall be:
   5. (1) Submitted to: rfp@arkansas.gov (preferred) or Staff Professional Selection Committee Chair Arkansas Development Finance Authority #1 Commerce Way, Suite 602 P.O. Box 8023 Little Rock, AR 72202 ; or
   6. (2) Delivered by such other means as shall be directed by the authority from time to time.

4. (e) RFP process — Distribution and response.

   1. (1) The RFP issuance process is a key component of the selection process.
   2. (2) The RFP is initiated by a need to select a professional or professional team to provide a service to the authority.
   3. (3) In order to carry out the selection process, an RFP must be structured to include the appropriate criteria for the selection process.

   4. (4) The steps involved in issuing an RFP for professional services are as follows:

      1. (A) Draft of the RFP is reviewed by the authority’s staff, and revisions are made to the draft at least one (1) month prior to selection being made;

      2. (B) Final RFP is distributed via the internet or email format:

         1. (i) RFP emailed to Communications Manager to post on the authority’s website on the date of the RFP issuance;
         2. (ii)
5. (a) (a) Email professionals on the RFP distribution list for the services being requested to notify them that the RFP is posted on the authority’s website (http://adfa.arkansas.gov) and it is currently an open RFP.

6. (b) (b) Attach a return receipt for the notice to ensure the professional received; and

   1. (iii) RFP is moved to the “Closed RFP” section, for three (3) months and can be accessed for informational purposes, when the deadline for receiving proposals has passed;

      1. (C) RFP responses are received via email by the Chair of the Staff Professional Selection Committee, at rfp@adfa.arkansas.gov, by the RFP response deadline;
      2. (D) RFP responses are gathered and attached to an email that is distributed to the members of the Staff Professional Selection Committee;

      3. (E) Staff Professional Selection Committee meeting is held to:

         1. (i) Discuss the proposals; and
         2. (ii) Develop a recommendation to be presented to the Board Professional Selection Committee at the next regularly scheduled meeting; and
      4. (F) Staff Professional Selection Committee recommendation is made to the Board Professional Selection Committee and the board’s decision is made.

Codification Notes: "RFP" means request for proposal. "501(c)(3)" refers to 26 U.S.C. § 501(c)(3).