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Public Higher Education Bulletin

Illinois Public Higher Education Cooperative
SoleSource #Bonding20201

Announcement of a Sole Source Purchase

Change Order
Published Tuesday July 7, 2020
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.
Award Info Published Friday June 26, 2020
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
Published Monday June 22, 2020
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

We will hold a public hearing at the date, time and location specified below, if we receive a request to testify regarding the sole source determination. We will also hold a hearing if any vendor submits a signed statement showing the capability to provide the stated supplies/services at or below the amount indicated.

The public hearing allows any interested party the opportunity to testify for or against the sole source determination as described in this notice. The purpose of the hearing is to receive information from the public in a reasonable manner. Formal rules of evidence will not apply. The hearing officer will produce minutes of the hearing and may record it in order to aid in the production of the minutes. After conclusion of the hearing we will decide whether the sole source determination was appropriate.

We must receive any request to testify and any vendor statement no later than the registration date and time indicated below. If we do not receive a timely request or statement, we will not hold the hearing. We reserve the right to cancel the procurement prior to any scheduled hearing. Please confirm the status of the hearing with the Hearing Contact.

Hearing Details

June 26, 2020
9:00 AM
Stratton Building
Room 511
401 S. Spring Street
Springfield, IL

Hearing Contact:
Catherine Bradbury
Phone:(217) 993-2327
Additional Information: All sole source hearings under the jurisdiction of the Chief Procurement Officer for Higher Education will be conducted by tele-conference only until the in-person option is reinstated.
Date, time, and location are subject to change and/or cancellation. It is the responsibility of potential participants to confirm these details prior to attendance.

Registration Deadline:
June 21, 2020
Register with:
Catherine Bradbury
Phone:(217) 993-2327

The State of Illinois has a policy to encourage prospective vendors to hire qualified veterans, minorities, females, persons with disabilities and ex-offenders.

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Sole Source Justification
  • Bonding20201.pdf (666 KB)
Sole Source Justification Part 2
  • Bonding20201Pt2.pdf (29 KB)