Illinois Public Higher Education Cooperative
Announcement of a Sole Source Purchase
Vendor: PFM Asset Management
Change Order Amount: $0
The original Sole Source documentation was entered as a one-time purchase, but should have been entered as a term of 7/1/2020 - 6/30/2023. This Change Order reflects the new term 7/1/2020 - 6/30/2023.
The University award process may be delayed up to thirty days as this award goes through a state approval process.
Awarded to:Vendor: PFM Asset Management, Chicago, IL
Amount: An estimated $600,000
Terms: One-time transaction
The University award process may be delayed up to thirty days as this award goes through a state approval process.
The hearing has been cancelled since no vendors registered to attend or submitted comments regarding this notice.
The Chief Procurement Officer for this procurement is now Ben Bagby.
The State Purchasing Officer for this procurement is now Catherine Bradbury.
First published Thursday, June 11, 2020
The University awarded a contract for Investment of Bond Proceeds to PFM Asset Management, Chicago, IL, for an estimated $600,000.
Given the portfolios of the University's investment accounts, and the immediate need for this service following the beginning of the fiscal year for a multi-year period, it is not prudent to terminate a manager and liquidate an account simply due to a contract expiration. The Office of Capital Financing conducts due diligence and performance monitoring on the investment manager on an ongoing basis and would terminate a relationship if concerns arise. Moreover, the Office of Capital Financing is currently structuring a pending bond sale scheduled to close at the beginning of the next fiscal year that will require the services of this vendor to invest the proceeds of said sale for the next three years.
The University has determined that this purchase is only economically available from this source because the The termination of existing managers could result in a liquidation of current portfolio holdings, currently valued at $86 million. The funds currently invested are proceeds of bond sales that require certain yields to be met to sufficiently fund construction projects currently underway. The re-hiring of new managers could trigger the realization of our unrealized gain/loss position that is largely driven by the direction of interest rates ultimately leading to a deficit of project funding. If we allow these securities to mature at par, we would generally not realize a gain/loss unless the issuer defaults (very unlikely given the high quality nature of the portfolios). We are currently in the process of readying a bond transaction scheduled to close in early July. As this vendor is already familiar with our investment requirements and the transaction, we would be unprepared and unable to invest the proceeds of this sale
For instructions on how to obtain a comprehensive purchase description, disclosure or contract forms, contact:
Graham LaMontagne
Phone: (217) 300-6452
Chief Procurement Officer - Ben Bagby
State Purchasing Officer - Catherine Bradbury
The State of Illinois has a policy to encourage prospective vendors to hire
qualified veterans, minorities, females, persons with disabilities and ex-offenders.
