ADDENDUM #4 RFP: Central Treasury Banking and Cash ...

June 23, 2020

Printed on paper containing 30% post-consumer material NYC DEPT OF FINANCE of 22 Addendum #4 – Central Treasury Banking and Cash Management Services EPIN 83619P0006

ADDENDUM #4

RFP: Central Treasury Banking and Cash Management Services

PIN: 83619P0006

---------------------------------------------------------------------------------------------------------------------

Section 1: Vendor Questions & Answers

Section 2: Revised Proposal Due Date, Time and Location

Section 3: Acknowledgement of Addenda

---------------------------------------------------------------------------------------------------------------------

------------------

Section 1: Vendor Questions & Answers

1. Into what kind of investment vehicles are funds swept?

DOF Response: Commercial Paper and Treasuries.

2. Section 3.4 – does the talent experience requirement (“a minimum of three (3) years

relevant experience delivering and servicing the products required by this RFP”) extend to all

operations staff, or is it limited to relationship management, sales, and service coverage?

DOF Response: All operational staff.

3. The initial contract term for consideration is a firm 5 years. In the event of any negative

material impact to the financial services industry or markets in general (such as in the case of the

current pandemic) and to the extent the resulting collateral effect hinders the vendor’s ability to

maintain the pricing agreed, how will the City look to mitigate the circumstances?

DOF Response: This RFP is scheduled to go through an evaluation process before vendor

selection and contract award. For issues after contract registration, the City will review on a case

by case basis.

4. Please confirm all payment initiation methods (file transmission, file upload, mobile,

single entry, etc.) for all payment types (i.e., wire, RTP, ACH, check, card)

DOF Response: Cash Management: Fed wire, Chips, ACH, Book, Single entry and Mobile.

5. Please describe the purpose and general functions of the Cashiering platform, and the

name of the vendor that provides the platform.

DOF Response: The cashiering platform enables cashiers in our walk-in business centers to

receive payments and issue receipts, and tracks the status of the underlying receivables,

providing daily updates to all systems of record at DOF and our client agencies.

Core/Wonderware currently provides the platform.

6. Please describe the Echo platform.

DOF Response: There is no echo platform, per se. The process ensures delivery of the data

file(s) from the City of New York to the Bank. The Bank simply resends the file in its complete

form immediately back to the City. The City then compares the file sent to the bank against

June 23, 2020


what was received (i.e., the echo file) to confirm that all records were delivered to the Bank’s file

transfer server – in a readable format.

7. Please confirm the source system (ERP) for generating payment files.

DOF Response: The City’s Financial Management System (FMS) is the Financial Operating

System of the City.

8. Please explain the operational dynamics behind the City encountering intraday overdrafts

of up to $700MM.

DOF Response: Due to the nature of our business in which we manage all the funds under the

City’$90 billion plus annually. On a few occasions, we could have large payroll transactions

totaling $700 million plus and at the end of June there are large payments of over $1 billion, and

since our investment netting is normally finalized immediately after noon, our financial

institution provided us with a $700 million intraday overdraft line to cover the occasional

morning transactions.

9. Pg 24 – please define “dedicated service team”. Is this team required to be located in the

NYC?

DOF Response: It’s a model where the City and the vendor mutually agree on the workload and

the project requirements. The dedicated team will concentrate on issues as they arise.

10. Please describe all Custom file formats. Can examples of these file formats be shared

now?

DOF Response: Check Issuance File (Positive Pay):

• The file is a positional format that includes, check number, bank account number, bank

account code (our internal identifier of the specific account), check date, payee name 1

and payee name 2, transaction code (check stop, void, check type) and fund.

Daily Paid Items:

• Similar format as above, including check status (i.e., paid, cancelled, etc)

Monthly Checks Outstanding:

• Similar format as above Paid items, but only checks that are not cleared - excludes stale

dated checks.

Retainage (Collateral) Account Balances:

• Positional file format with accounts and balances.

11. For Perfect Presentment, does the City use Next Day Positive Pay, whereby the

decisioning on pay/no pay items is made the next day?

DOF Response: The City utilizes Next Day Positive Pay.

12. Please confirm the City’s parameters for branch proximity. Is there a minimum distance,

and when will City locations be shared?

DOF Response: Located within the 5 Boroughs.

13. Does the City utilize an armored courier? If so, please list all providers.

DOF Response: The two armored courier services currently utilized are Brinks and Garda.

June 23, 2020


14. Regarding the requirement to return a file receipt confirmation back to Echo to one of the

City agencies and the Financial Information Services Agency (FISA), within five (5) minutes of

file receipt; is this a standard acknowledgement of receipt?

DOF Response: Yes, this is a standard acknowledgment of receipt.

15. Regarding the requirement for a bank to submit electronic payment request forms to the

Federal government and credit fund transfers to the City’s Master bank account. Please confirm

in what form, system or file format this is to utilize?

DOF Response: Normally this is done on the large commercial bank online platform. Banks

normally provide online banking platform to execute via Fed, Chips, ACH and book transfers.

16. Regarding The City’s Financial Information Services Agency (“FISA”) electronic

transmission to the Contractor of a check issue file every day, please confirm the FISA's file

layout (custom formats) specifications?

DOF Response: See response to Question 10. Disbursements (Checks and ACH’s) are generated

every City business day and are sent to the bank for processing on the following City business

day.

17. Please confirm the requirement for the collateralization of deposits in regular

transactional checking accounts. If a banking provider has an existing collateral agreement with

the City, please confirm that the deposits related to this RFP can be included in the existing

collateral agreement.

DOF Response: Yes. Confirmed.

18. Please explain the requirement (on pg 4) related to Check Stale Date Management U.S.

Government electronic funding

DOF Response:

• Check Stale Date Management

• U.S. Government electronic funding

19. Please confirm the highest single-day dollar value of ACH payments.

DOF Response: Cash Management $99,999,999.99 x 4 for debits in a single day. For credits

the highest could range between $2 billion and $3 billion.

20. Please confirm the average daily balance across all DDA accounts

DOF Response: Cash Management manages the following operating bank account. The Central

Treasury (main bank account), Capital Proceeds, EFT Vendor payment, Vendor Checking. All

accounts are ZBA, except capital proceeds which is a pass-through account for bonds issuance

and is maintained at a zero balance. Therefore, the City’s main account average is about $5 to

$10 million.

21. Please confirm the average daily balance across all sweep/investment accounts

DOF Response: We don’t have any investment accounts with a financial institution.

June 23, 2020


22. Pricing Sheet - Row 51 – does the volume of 3 indicate a single three-tiered structure, or

three individual structures?

DOF Response: Three single tiered structures.

23. Pricing Sheet - Row 76 – Web Initiated Payments – please confirm the payment type

(i.e., wire, RTP, ACH)

DOF Response: The payment type is ACH.

24. Pricing Sheet - Row 38 – please confirm there are 93 RDC scanners.

DOF Response: Confirmed.

25. Pricing Sheet - Row 24 – please describe the “CFS” service.

DOF Response: Monthly maintenance charge based on volume tiers on CFS website.

26. Pricing Sheet - Row 25, 26, 27 – please describe the “Check Surcharge” service.

DOF Response: The per-check charge to process checks through the Federal Reserve System to

District 2.

27. Pricing Sheet - Row 28 – please describe the details of the “check image capture” service

– are images transmitted via file, or made available on the bank portal?

DOF Response: Bank Portal.

28. Pricing Sheet – Row 34 – please describe the “CIP” service.

DOF Response: Website interface for web initiated ACH/credit/debit card payments.

29. Pricing Sheet – Row 40 - Initiated Payments – please confirm the payment type (i.e.,

wire, RTP, ACH) and how they are initiated.

DOF Response: Web initiated payments – ACH/credit/debit.

30. Pricing Sheet – Row 50 – please describe “Tickets”

DOF Response: Deposit ticket slips.

31. Pricing Sheet – Row 60 – please explain what is meant by “Network Payments – All”.

DOF Response: Per transaction rate via merchant card networks.

32. Pricing Sheet – Row 71 – please explain what is meant by “Standing Order

Maintenance”.

DOF Response: Fee to maintain a specific override on an account (debit filter) that has a generic

debit block.

33. How many accounts are standalone accounts versus in a ZBA structure?

DOF Response: Every custodial account is stand alone. 1 Comptroller account is standalone.

Central Treasury account is standalone

34. Does the City utilize Lockbox services?

DOF Response: The City utilizes Lockbox services.

June 23, 2020


35. Is the City of NY a SWIFT client?

• If yes, will you always instruct via properly formatted MT54x / MT56x

messages?

• If not, what will be the way of instructing the bank?

DOF Response: The City is not a member of SWIFT. For Cash Management, Online banking

platform is used for payment instructions.

36. Is there a regulatory requirement for the City to appoint a Custodian based in the US? Or

would you be open to appointing HSBC London - UK, as your custodian, with relationship

coverage out of HSBC USA?

DOF Response: We are not aware of any regulatory requirement for the City to appoint a

Custodial bank based primarily in the US.

37. Does the City have an indication on expected custody activity?

• value of assets (assets under custody – AUC) you are planning to hold with the

bank

• number of settlements per month

• how many custody (securities) accounts are expected to be needed?

• One cash account for custody purposes is expected to be opened?

• types of securities (listed equities DTCC eligible and FED Treasuries?)

• US market only? Or non-US markets as well (if so, which ones)?

DOF Response: 1. value of assets (assets under custody – AUC) you are planning to hold with

the bank – As of May 19, 2020 we have $93,064,108.13 in assets

2. number of settlements per month – varies month to month but an average of 20

settlements

3. how many custody (securities) accounts are expected to be needed? We currently have

330 accounts.

4. One cash account for custody purposes is expected to be opened? A cash account is

required for each security account. (i.e. if we have 330 security accounts, we would

need 330 cash accounts)

5. types of securities (listed equities DTCC eligible and FED Treasuries?) Confirmed.

6. US market only? Or non-US markets as well (if so, which ones)? US Market only

38. Does the City expect full Corporate Actions service (for DTCC eligible equities?)

DOF Response: The custodial bank should be providing the full Corporate Actions services for

DTCC eligible equities.

39. Please confirm the meaning of the below services mentioned in the RFP.

• Deposit of Securities -> settling purchase trades

• Release of Securities -> settling delivery trades

• Release of Cash -> settling purchase trades against payment (i.e. releasing cash to

settle the purchase of the securities)

June 23, 2020


• Maintenance of Accounts -> custody (securities) account opening and maintained

in the custodian’s books

DOF Response: Confirmed.

40. Please clarify the below services mentioned in the RFP:

• Cash Management -> typically Custodians do not offer Cash Management

services. A cash account is opened in relation to the custody relationship, which

should only hold cash related to custody (e.g. cash to settle trades, cash resulting

from dividends distribution etc).

• Substitution of Matured Securities -> is this a requirement for collateral services?

• Reporting requirements -> type of reports needed and frequency? SWIFT or via

portal?

• Investment of Idle Balances -> typically custodians do not offer such services;

please provide more details on this requirement

• Delivery of a daily BAI output file that reports each account’s debits and credits

including automated funds transfers between accounts. Is this related to cash

management or custody? Does the City anticipate any changes to this BAI output

file at the start of the new contract. If so, please share the BAI output file format

and background on anticipated changes

DOF Response:

• Cash Management -> typically Custodians do not offer Cash Management

services. A cash account is opened in relation to the custody relationship, which

should only hold cash related to custody (e.g. cash to settle trades, cash resulting

from dividends distribution etc). Confirmed.

• Substitution of Matured Securities -> is this a requirement for collateral services?

Yes.

• Reporting requirements -> type of reports needed and frequency? SWIFT or via

portal? Via portal.

• Investment of Idle Balances -> typically custodians do not offer such services;

please provide more details on this requirement. If this question pertains to

Custody accounts, the answer is cash.

• Delivery of a daily BAI output file that reports each account’s debits and credits

including automated funds transfers between accounts. Is this related to cash

management or custody? Does the City anticipate any changes to this BAI output

file at the start of the new contract. If so, please share the BAI output file format

and background on anticipated changes. No changes are anticipated at this

time.

June 23, 2020


41. Is the City referring to wire transfer or ACH activity here? If ACH, can the City explain

why a time-stamp is required, as ACH processing occurs within a batch processing window, and

not at exact times. RFP P. 15, Bullet 1 (time-stamp EFT transactions)

DOF Response: Regarding Cash Management transaction mainly for payroll tax payments and

or sales tax, we normally processed ACH batch transactions with a latest time stamp of 3 p.m.

42. Can the City define what it means by “eCheck”? Is this simply outbound ACH activity?

Also, who is the City’s Payment Gateway vendor? Can the City provide the file format for the

“daily file of eCheck instructions” provided to the Contractor? RFP P. 20-21, Section VI. ACH

eCheck Origination.

DOF Response: These are ACH debits to customer accounts generated by online payments.

43. What is the current custody account structure? RFP P. 22, Section VIII. Custody

Requirements.

DOF Response: Please refer to the section noted as it explains what is being provided by our

current custodial bank. RFP P. 22, Section VIII. Custody Requirements.

44. Please confirm that there will be one account (one TIN)?

DOF Response: Yes. Confirmed.

45. Please identify how many sub-accounts, consisting of retainage and security accounts, are

required.

DOF Response: Approximately 330, this number is subject to change based on city’s

contractual agreements.

46. Please confirm that the portfolios/investments are self-managed by the City.

DOF Response: Portfolios/investments are not self- managed by the City.

47. How many monthly paydown events can be expected (from MBS securities)?

DOF Response: Not Applicable.

48. Please confirm that you do not engage in Repo’s? If not, how do you handle repos with

your current custodian?

DOF Response: Not Applicable.

49. How many new vendor accounts would be opened in a typical year? How many closed?

DOF Response: On estimate about 15 to 20 opening and/or closing.

50. Would the custodian be required to use pre-existing forms/agreement as established by

the City or the State? If so, please provide a sample agreement.

DOF Response: No pre-existing forms are required.

51. Are there any pre-existing forms that you require when releasing securities or cash to the

vendor?

DOF Response: No.

June 23, 2020


52. Is it possible that the custodian would be involved in any disputes between the vendor

and the City? If so, please explain.

DOF Response: No.

53. Please disclose the aggregate amount of investments and cash ($ amount). How does this

amount vary throughout the year?

DOF Response: The aggregate amount is based on the timing of the contract between the

vendor and the City.

54. Please provide number of securities transactions in a given year (buys, sells, free delivery

and free receipt).

DOF Response:

Buys - 0

Sells - 2

Deliver Free – 100

Receive Free – 160

55. Please provide number of outgoing wires per annum.

DOF Response: Approximately 1,100 for calendar year 2019.

56. Please provide a recent holdings report of all assets in excel.

DOF Response: See attachment 1 and 2 for cash and position holdings for custody account

as of June 15, 2020.

57. Our policies require that we charge a portfolio fee for any open account even if there are

no holdings. We will close accounts based on written instructions. Will the City accept?

DOF Response: Yes.

58. Please explain any cash activity within custody account.

DOF Response: Cash activity occurs when a held security matures or when the security

generates interest. The funds generated from the maturity or from interest revenue is transferred

to the cash account. Funds are held until the contractor fulfills their contractual obligation to the

City or substitutes the cash with new securities.

59. Does the investment portfolio utilize a custody money market sweep to invest cash

positions within the custody account? If so, please provide an average balance.

DOF Response: Comptroller, No.

60. Given the length of our annual reports/financial statements and to reduce the volume of

paper used, will the City accept links to these documents?

DOF Response: Yes, the City will accept links.

61. Can the City provide AFP codes related to each line item in the Pricing Worksheet codes

and brief line item descriptions for the pricing schedule? Can the City provide a sample

account analysis statement?

June 23, 2020


DOF Response: We do not provide AFP Codes.

62. Who does the City currently have in place that provides these services? Could you

provide the contract number for these services?

DOF Response: Citibank, N.A. The contract number is CT183620121424454.

63. The RFP notes the award will have a five year term, plus two renewals of two years each.

Will these services be needed beyond this scope and therefore bid out again in the future?

Either in about 5 years or later depending if renewals are used?

DOF Response: It is anticipated that the term of the contract(s) awarded from this RFP will be

for five (5) years with a one, two (2) year option to renew. The Agency/Department reserves the

right,

prior to contract award, to determine the length of the initial contract term and each option to

renew, if any. Needs of the agency will be re-assessed annually and towards the end of the

contract term.

64. Given the current social distancing mandates related to COVID-19, will the City consider

changing proposal submission to electronic submission only instead of mailed paper

copies? If not, will there be someone available to accept overnight package deliveries? If

electronic submission via email is acceptable please confirm the requirement outlined in

section 4.2 Item 1 for a CD ROM/DVD/flash drive is also waived.

DOF Response: Yes, proposals can be submitted electronically. Please ensure all proposals are

submitted via [email protected] and received by July 8, 2020 at 3 p.m. local time. Section

4.2, item 1 applies to mailed paper and in-person submissions. Please see Addendum #4.

65. Please confirm the term of the contract is 5 years with one 2-year optional renewal given

Page 20 says five (5) years plus three (3) one(1) year renewal periods of the anticipated

Contract)

DOF Response: It is anticipated that the term of the contract(s) awarded from this RFP will be

for five (5) years with a one, two (2) year option to renew. The Agency/Department reserves the

right, prior to contract award, to determine the length of the initial contract term and each option

to renew, if any.

66. Can the City provide the names of the incumbent bank(s)?

DOF Response: Citibank N.A.

67. Is the City currently utilizing an account verification service? If so, what is the name?

DOF Response: We are not using such a service but have explored piloting a proof-of-

concept.

68. What on-line ARP reports is the City receiving via on-line banking service?

DOF Response: Though the bank’s portal, Cash Management needs the daily transaction

reports and in some accounts such as Vendor payment via Check or EFT the current balance.

June 23, 2020


69. Will the City consider allowing proposers to bid on specific parts of the City’s banking

business? (e.g. Central Treasury, CPSS, Controller’s Department)

DOF Response: Proposers cannot bid on specific part of the City’s banking business, it must

be on the entire RFP, however you can work with another company under a Joint Venture or

subcontractor relationship to fulfill the scope of the RFP.

70. What is the estimated volume of items you need to validate each month (e.g. number of

new transactions and/or number of requests to change existing account information)?

DOF Response: About 500 vendors per month.

71. Do you need account status information only or both account status and account

ownership?

DOF Response: Account status and ownership.

72. Do you want to integrate Account Validation into your administrative system?

DOF Response: Yes, ideally this system will integrate seamlessly with both the Payee

Information Portal (PIP) EFT enrollment process and tie into NYC's Financial Management

System (FMS).

73. Do you want to access Account Validation information via secure web portal, API/direct

connection or both?

DOF Response: Both.

74. If you are interested in submitting inquiries via API/direct connection, will you submit all

your inquiries from a single location, or will multiple locations be involved?

DOF Response: We do not currently utilize payment APIs due to infrastructure constraints,

but planning is underway to move to a cloud infrastructure after which APIs will be more

feasible. However, it is too early to say definitively whether single or multiple origination

points would be required.

75. What is your use case for Account Validation (e.g. fraud prevention, avoiding ACH

returns and payment exceptions)?

DOF Response: The use case is NYC vendor enrollment for the EFT program.

76. Is the City using Same-Day ACH Services?

DOF Response: Currently Department of Finance doesn’t utilize this function; however we

prefer for them to be priced.

77. Is the City utilizing any Automated Programable Interface’s (API)? If so, which ones?

DOF Response: No. The City is not utilizing any Automated Programable Interface’s.

78. What is the total volume of monthly notice of change (NOC) requests received by the

City?

DOF Response: Information is confidential and will not be disclosed.

June 23, 2020


79. What is the total dollar amount of ACH originated files per day? (e.g. $2,000,000)

DOF Response: The average ACH file is $218 million per business day.

80. What impact does COVID-19 have today and will have in the future on the City’s

banking and treasury operations?

DOF Response: Due to the COVID-19 pandemic, check printing services are outsourced for

agencies that don’t have the ability to do so and we anticipate this trend to continue. As staff

numbers are limited within the office many agencies have opted to bank by mail.

81. Are CHIPS wires required?

DOF Response: Yes, some members may not be on Fed, then the payment can be processed

via Chips.

82. What is your implementation timeline and goals?

DOF Response. Live by January 1, 2021

83. How are your development teams staffed?

DOF Response: A dedicated development team is assigned to DOF; a unit within the team of

approximately 25 developers manages most Treasury and Payment development efforts.

84. Are you using any 3rd party API integrations in the applications you are hosting? Is so,

who are they?

DOF Response: No. The City is not utilizing any 3rd party API integrations in reference to

this Procurement.

85. Who are your processor partners? (as mentioned in your on-line payment service)

DOF Response: Fiserv; KMS/Elavon; Paypal.

86. Who is the City’s vendor for the cashiering platform?

DOF Response: See response to question 5. Core/Wonderware currently provides the

platform.

87. Does the City’s online payment service send NACHA formatted files?

DOF Response: Yes

88. How many contract retainage and franchise security accounts are required?

DOF Response: Currently 330.

89. Can you share the number of positions and market value of the accounts?

DOF Response: As of May 19, 2020, 200 positions with a market value of $48,671,204.53.

90. Can you share the asset types that are held in the accounts?

DOF Response: FED Treasuries, Municipal, and DTCC eligible.

June 23, 2020


91. Can you share estimated transactional volumes in the accounts?

DOF Response: Approximately 20-50 transactions monthly.

92. Can you share the amount of cash held in the accounts?

DOF Response: As of May 19, 2020, $44,392,903.60.

93. Is the cash portion of the accounts held in a money market fund or bank deposit product?

Can you share where the cash is currently held (ticker if available).

DOF Response: Bank Deposit

94. Will the selected Custodian receive and deliver wires directly from/to the vendor?

DOF Response: Based on City’s instructions.

95. Can the City provide a recent account analysis statement?

DOF Response: This information is confidential and will not be disclosed.

96. Can the City provide the average collected balances of all the City’s checking accounts?

DOF Response: Not proprietary to the Request for Proposal and will not be disclosed.

97. Does the City originate “balanced” or “unbalanced” ACH files?

DOF Response: For Cash Management: Not Applicable.

98. What is the maximum dollar threshold for total ACH transactions in a day? Broken out

by debit or credit.

DOF Response: Normally the maximum for ACH transaction, credit or debits are in

increments of $99,999,999.99. At times, we could receive between $2 billion to $3 billion of

credits. Debit are processed similar with maximum of $400 million in debits to the IRS

(FTPS).

99. What is the average size of the ACH transactions? Broken out by debit and credit.

DOF Response: In regard to, Cash Management: $75 million.

100. U.S. Government Incoming Transfers Electronic Funding Services: Can the City clarify

“electronic payment request forms”? how is this done today? Is this a paper document or

form that the contractor must input on the City’s behalf?

DOF Response: For Cash Management, an OMB 1199 paper form is manually filled out with

the account details. An EFT enrollment form for payments to be received via ACH.

101. “Information concerning the Proposer’s ability to electronically deliver a statement or

advice of the purpose of the payment was (an addendum record) in the CTX format to the

receiving vendor;” can the City clarify this? What is the City’s expectation?

DOF Response: That this is within the banks’ capability.

June 23, 2020


102. “Provide the availability of funds for check deposits made through various deposit

channels such as branches, cash vaults, remote deposit services, and lockboxes through

which checks are delivered to the Proposer” Where are your lockboxes located? How

many lockboxes do you operate? How many daily lockbox deposits does the City make

per day? How many checks does each deposit contain? How are the lockbox deposits

moved to the depository account? Does the City operate the lockboxes?

DOF Response: Where are your lockboxes located? Brooklyn, NYC

How many lockboxes do you operate? Two, for account ending in x0176 and account

ending in x2001.

How many daily lockbox deposits does the City make per day? The lockboxes are

operated by Chase and Chase makes several trips to the PO Box daily to collect the

checks for processing.

How many checks does each deposit contain? Varies daily, as customers have to send

their check payments to the PO box on their statement.

How are the lockbox deposits moved to the depository account? At this time it is done

manually by NYC Department of Health and Mental Hygiene (DOHMH). We are

working on automating the J6 sweeps.

Does the City operate the lockboxes? No.

103. What are the total monthly cash deposits, in dollars, taken to the vault?

DOF Response: The current configuration of this account structure does not accept cash.

104. What are the total monthly total cash deposits, in dollars, taken to a branch?

DOF Response: For this RFP; none.

105. Are branches required to participate in this RFP? How many branches does the City

utilize for cash deposits?

DOF Response: No.

106. Would the City consider routing all your cash deposits to a vault?

DOF Response: Yes.

107. How many check scanners do you deposit to via Remote deposit?

DOF Response: 93.

108. How many accounts do you deposit to via Remote deposit?

DOF Response: Approximately 60.

109. What is the make and model of your check scanners?

DOF Response: The majority are Digital Check TS240’s.

110. Can the City define the following descriptions as found on the Appendix Pricing Sheet?

• Bal and Time Triggered Pymt

• CFS Monthly Maintenance

June 23, 2020


• CIP Monthly Maintenance

• Tickets – is this a deposit ticket? Where is it used vault or branch?

• Initiated Payments – what payment types are these (e.g. check, wire, ACH) How

are they originated?

• Online – Disbursement Cheque

• Online EDI Solution Package

• Online -Disb Module

• Online – Monthly Rpts/Ing

• Domestic Target Balancing – Hdr -is this the primary level of a ZBA structure?

• GA Cash Deposited is this the total dollar amount deposited? (e.g. $6,061.00) or

another deposit amount deposited? (e.g. $606,100) the 6,061 cash deposited

seems low as compared to Deposit Fee volume of 169 (line 55)

• GA Cash Deposited – is this cash deposited into a branch or vault?

• Incoming Book transfer – is this a wire transaction?

• Match Paid

• Network Payments – All Is this a consolidated payable product? If so, what

payment methods does it include? (e.g. check, wire, ACH)

• Regulatory Charge – is this deposit cover or similar to FDIC?

• TreasuryVsion Liquidity Manager-Premium

• Pre-Encoded Item Discnt – where were these items deposited? (e.g. branch, vault)

• Web Initiated Payments – what type of payments are these? (e.g. check, ACH,

Wire)

DOF Response: Web initiated payments are ACH and common services are identified

differently

by the banks.

111. Is the city willing to accept a submission using a 3rd party bank for certain services, such

as branch and cash vault services?

DOF Response: Only if that bank is designated.

112. As we are not able to provide a few of the required services, such as Cash Vault /Coin &

Currency, would this disqualify us from the bidding process?

DOF Response: Our current contract does not provide vault services or allow branch deposit. It

is in this RFP but would not rule out if not provided

113. Due to COVID-19 and not having access to our offices at this time, would the City be

willing to accept electronically signed documents within the response? Also, if we are not

able to have the documents notarized, will the City accept at a later date?

DOF Response: DOF will accept electronic submissions for this RFP. Please ensure that all

proposals are submitted via [email protected] and received by July 8, 2020 at 3 p.m. local

time.

mailto:[email protected]

June 23, 2020


In Lieu of notary, please submit the following on a separate page with your

proposal:

As a result of the COVID-19 pandemic, Department of Finance is waiving the

notary requirement for the Central Treasury Banking and Case Management Services

RFP EPIN:83619P0006.

On this _______ day of ________________, 20__, I,

______________________________, on the basis of satisfactory evidence, provided

below, is the individual whose name is subscribed to the within instrument, who,

did depose and say that s/he is the Authorized Officer, TITLE of the NAME OF

CORPORATION described in and which executed the above instrument; and that s/he

affix her/his name thereto by like order.

In Lieu of personal appearance before a notary, please sign a copy of a valid

State or Federal identification and submit a legible copy with the RFP.

114. Is there an M/WBE requirement/participation goal for the services sought in the RFP? If

there is not, must we complete the forms or apply for an exception?

DOF Response: The MWBE Participation Goal established for the Contract issued pursuant

to this RFP is 30%. The MWBE goal participation amount is reflected in Attachment K of

the RFP. The Department of Small Business Services (SBS) offers One-on-One Technical

Assistance to businesses that are interested in bidding on City contracts and will meet with

you to review your particular proposal or submission, and provide feedback and guidance to

help you submit the best proposal possible. To schedule One-on-One Technical Assistance,

email [email protected] and an SBS representative will contact you. If you are a prime

contractor and require assistance in finding NYC Certified Minority and Women-owned

Business Enterprise (M/WBE) Program companies, please visit the NYC Online Directory of

Certified Businesses at www.nyc.gov/buycertified.

115. Can the City please share background on how the 30% MWBE participation goal was

determined.

DOF Response: Please see Attachment H of the RFP for the requirements governing the

City’s MWBE program.

116. Are Lockbox services a requirement of the RFP? If the answer is ‘Yes’ then what line

items on the Pricing- Worksheet-Central-Treasury-Banking excel file apply to lockbox?

DOF Response: Lockbox services is not a requirement for this RFP. It is only listed as a

deposit channel.

117. Does the City also require the remit to address be a NY address?

DOF Response: This is out of scope for this RFP.

118. What is the monthly volume of the lockboxes?

DOF Response: Lockbox services is not a requirement for this Request for Proposal.

119. How many retail boxes are there? What is the monthly volume?


http://www.nyc.gov/buycertified

June 23, 2020


120. How many wholesale boxes are there? What is the monthly volume?


121. Do the retail boxes have scannable coupons? How many different types? Can you

provide sample coupons and envelopes?


122. How many invoices accompany each individual remittance check (wholesale lockboxes)?


123. Do all of the lockboxes receive a daily payment transmission?


124. Do any of the boxes receive image transmissions? Which ones?


125. Do any of the boxes require access to an image archive for researching previous

payments? Which boxes?


126. Do all of the boxes require an online exception management tool to complete exceptions

items the lockboxes cannot process?


127. How many individual bank accounts are required?


128. Do the retail boxes include ARC deposits of funds?


129. Are there credit card payments? If so, is PCI compliance a requirement? Which boxes?

Lockboxes receive checks only.


130. What is the size of portfolio and the volumes?


131. Will all scanning occur within the U.S.?


132. How many locations will be needed?


June 23, 2020


133. How many workstations/scanners will be needed in each location?


134. What is the monthly check volume? If your volume is low are you interested in Business

Mobile?


135. What is the monthly check volume that is directed to a lockbox?

DOF Response: Lockbox services is not a requirement for this Request for Proposal

136. What is the monthly check volume that is deposited directly into the bank account? If

deposited directly to a bank account- Will you need additional retention beyond the

standard 30 days?


137. Will the accounts be Regular or Controlled Disbursement? How many accounts are

Controlled Disbursement?

DOF Response: Two controlled disbursement accounts; one is the City’s main vendor

payment

account and one is the Labor Law account.

138. Will the accounts require Positive Pay? Positive Payee? How many accounts are Positive

Pay; Positive Payee?

DOF Response: Yes. Positive Pay Payee verification as part of this RFP, there are 2

disbursement accounts.

139. How do you prefer to access images of paid checks? Online? If so, for how long do you

want to have access to the images? CD-ROM or Image Transmission?

DOF Response: The Contractor will capture electronic images of all checks paid on Central

Treasury accounts and deliver these images, via a web-based interface, viewable (front and

back) on City computers. The City requires that check images be available for online access

for a minimum of one hundred twenty (120) days after the end of the month and seven (7)

years file retention for checks paid against a City’s main vendor checking account.

140. Will you want daily or monthly output files (data transmissions) for Reconcilement?

DOF Response: Daily output files.

141. How do you prefer to receive reconcilement reports? CD-ROM or Transmission (reports

in Word and Excel)?

DOF Response: Transmission.

142. How many check writing accounts?

DOF Response: Two check writing accounts.

June 23, 2020


143. How many paid checks per month per account?

DOF Response: Collectively approximately 20,000.

144. How many stop payments per month?

DOF Response: Approximately 100-120 stop payments per month; 1,200-1,300 Stop

Payments

a year normally. During the Quarantine, it's up about 150 per month.

145. Will you print and mail your own checks or are you looking to outsource that function

(Check Issuance)? Are all of your checks mailed within the US? If no, what is volume of

international mail? How many accounts do you require for Check Issuance services?

DOF Response: Two Vendor Payments and Labor Law Settlements.

146. How many different check layouts will you require? How many different logos?

DOF Response: Two different check layouts / logos.

147. Do you require any checks to be delivered back to you instead of US mail to the payee?

Volume per month? Do you require an electronic check register back after checks are

printed & mailed?

DOF Response: Yes approximately 1100 a month. We do not require electronic check register.

148. Do you require any enclosures? Please describe.

DOF Response: No.

149. Can the City provide a check image that you are currently using?

DOF Response: Please see attached Check sample.

150. Regarding the U.S. Government Incoming Transfers Electronic Funding Services, is this

a function currently being fulfilled by the incumbent bank? Can the City provide more

detail and samples of the forms relating to U.S. Government Incoming Transfers

Electronic Funding Services in Section III Scope of Services, page 13? We are uncertain

as to what this program is?

DOF Response: Yes, this is a Federal form OMB1199.

151. Are you currently utilizing a 11-digit check number today? If so is there a naming

convention used for these check #s such as 3 digit fund number followed by check

number?

DOF Response: 10 digits is the maximum number of supported characters.

152. Is your current provider truncating any digits from your check number? If so what is the

process of re-association of the full 11 digits through online reporting and account

reconcilement?

DOF Response: 10 digits is the maximum number of supported characters. The bank offers a

June 23, 2020


full set of reports both file based and through the internet banking portal as part of the

reconciliation process.

153. Appendix A: if a proposing bank wishes to negotiate any terms related to Appendix A

General Provisions Governing Contracts then how should the bank identify those specific

clauses within their proposal response?

DOF Response: Please indicate your exceptions to Appendix A as part of your response.

154. Pages 49 Attachment G: City of New York

Department of Finance Confidentiality Agreement applies to the agreement to adhere to

the secrecy and confidentiality provisions of the New York City Administrative Code,

New York State Tax Law and the Internal Revenue Code (“Tax Code”). The

confidentiality document and Exhibit A require that we keep tax return information in

confidence. In providing treasury services to the City, the Bank does not anticipate

having any access to tax returns or tax returns-related information that is covered by the

Tax Code and secrecy requirement. The confidentiality agreement requires certain

specific physical protections, which would only apply to locations which were dedicated

to the client and certain related services. Please provide details regarding how the City

anticipates that the Bank will have access to the tax returns or tax returns-related

information, if applicable. If there is no such access anticipated and no dedicated

locations in scope, we respectfully request that that the City delete the requirement of

having this confidentiality agreement in place.

DOF Response: Attachment G is subject to consideration for a contract award from this RFP.

155. Does the City have a format or price points for the Custody portion of the RFP response

that the bidders should adhere to?

DOF Response: The city currently does not have a format or price point for the Custody

portion of this RFP.

June 23, 2020


Section 2: Revised Proposal Due Date, Time and Location

1. Proposal Due Date, Time and Location:

Date: June 24, 2020

Time: 3:00 PM EDT

Proposals to be emailed to the following:

Bids (DOF) [email protected]

Cc: [email protected]

E-mailed proposals will be accepted by the Agency.

Proposers may submit hard copy proposals for this RFP. Vendors who intend to

submit proposals by mail or in-person must contact the Authorized Agency

Contact Person by email at least seven (7) days before the Proposal Due Date.

Proposals received after the Proposal Due Date and Time are late and shall not

be accepted by the agency, except as provided under New York City’s

Procurement Policy Board Rules. The agency will consider requests made to the

Authorized Agency Contact Person to extend the Proposal due Date and Time

prescribed above. However, unless the agency issues a written addendum to this

RFP which extends the Proposal Due Date and Time for all proposers, the

Proposal Due Date and Time prescribed above shall remain in effect.

The above RFP due date, time and location is now extended to:

Date: July 8, 2020

Time: 3:00 PM EDT

Proposals to be emailed to the following:

Bids (DOF) [email protected]

Cc: [email protected]

E-mailed proposals will be accepted by the Agency.

Proposers may submit hard copy proposals for this RFP. Vendors who

intend to submit proposals by mail or in-person must contact the Authorized

Agency Contact Person by email at least seven (7) days before the Proposal

Due Date.

Proposals received after the Proposal Due Date and Time are late and shall not be accepted

by the agency, except as provided under New York City’s Procurement Policy Board

Rules. The agency will consider requests made to the Authorized Agency Contact Person to

extend the Proposal due Date and Time prescribed above. However, unless the agency

issues a written addendum to this RFP which extends the Proposal Due Date and Time for

all proposers, the Proposal Due Date and Time prescribed above shall remain in effect





June 23, 2020


---------------------------------------------------------------------------------------------------------------------

Section 3: Acknowledgement of Addenda

Please be reminded that you must acknowledge the receipt of this addendum by completing and

submitting Attachment B with your proposal.

---------------------------------------------------------------------------------------------------------------------

ALL OTHER TERMS AND CONDITIONS REMAIN THE SAME

Adenike Bamgboye, Agency Chief Contracting Officer

June 23, 2020


ATTACHMENT B

ACKNOWLEDGEMENT OF ADDENDA

Proposer: ___________________________________________

E-PIN: 83619P0006

COMPLETE PART I OR PART II, WHICHEVER IS APPLICABLE.

PART I: List below the dates of issuance for each addendum received in connection with this RFP:

ADDENDUM #1 DATED: ____________________________, 2020

ADDENDUM #2 DATED: ____________________________, 2020

ADDENDUM #3 DATED: ____________________________, 2020

ADDENDUM #4 DATED: ____________________________, 2020

ADDENDUM #5 DATED: ____________________________, 2020

ADDENDUM #6 DATED: ____________________________, 2020

ADDENDUM #7 DATED: ____________________________, 2020

ADDENDUM #8 DATED: ____________________________, 2020

PART II: Check, if applicable.

______ NO ADDENDUM WAS RECEIVED IN CONNECTION WITH THIS RFP.

DATE _____/____/____

PROPOSER (NAME): ______________________________________________________

PROPOSER (SIGNATURE): __________________________________________________

ADDENDUM #4 RFP: Central Treasury Banking and Cash ...

Documents

Transcript of ADDENDUM #4 RFP: Central Treasury Banking and Cash ...