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Public Higher Education Bulletin

 
Illinois Public Higher Education Cooperative
SoleSource #Investment20202

Announcement of a Sole Source Purchase

Award Info Published Wednesday June 24, 2020
Awarded to:
Vendor: Income Research and Management, Boston, MA
Amount: An estimated $2,787,500
Terms:
An estimated start date of 7/1/2020 through 6/30/2023, 36 months
Renewals:
None
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 Tuesday, June 9, 2020
The University awarded a contract for Investment Management of Operating Pool Funds to Income Research and Management, Boston, MA, for an estimated $2,787,500.
The cost of terminating all Operating Pool Managers (in total as they expire concurrently) and re-hiring new managers could exceed $25 million (excluding man hours) with little to no benefit to the University. The termination of existing managers would result in a liquidation of current portfolio holdings. This would trigger the realization of our unrealized gain/loss position that is largely driven by the direction of interest rates. 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). Our unrealized loss position has reached nearly $25 million recently and would have been catastrophic or even impossible had the transactions occurred when credit markets were frozen following the peak of COVID market stress.
The University has determined that this purchase is only economically available from this source because the The cost of terminating all Operating Pool Managers (in total as they expire concurrently) and re-hiring new managers could exceed $25 million (excluding man hours) with little to no benefit to the University. The termination of existing managers would result in a liquidation of current portfolio holdings. This would trigger the realization of our unrealized gain/loss position that is largely driven by the direction of interest rates. 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). Our unrealized loss position has reached nearly $25 million recently and would have been catastrophic or even impossible had the transactions occurred when credit markets were frozen following the peak of COVID market stress.

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

Date:
June 24, 2020
Time:
9:00 AM
Location:
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 19, 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.

Bulletin Navigation

 
To obtain documents, log on:
Sole Source Justification
  • Investment20202IncomeResearchandManagement.pdf (760 KB)
Sole Source Justification Part 2
  • Investment20202Pt2.pdf (28 KB)