Government Contract | Virginia
Banking Services

Bid Information

Bid Alert No: 00000538574

Bid Title: Banking Services

Agency Bid No. Title: 2016-061

Received Date: 04/12/2016

Close Date: 05/03/2016

Purchase Type: Term:

Delivery Point: Lynchburg, Virginia

Delivery Date: Not Stated

Special Notices: Questions Due By 04/28/2016 02:00 PM


Specifications include, but are not limited to:. SCOPE OF SERVICES All proposals must be made on the basis of, and either meet or exceed, the requirements contained herein. All Offerors shall submit a proposal demonstrating their capability for rendering the following prescribed tasks: A. MANDATORY REQUIREMENTS 1. The Offeror shall maintain a Concentration Account which will be a demand deposit account for receipt of all City deposits. The Schools deposits will be made to the Schools Zero Balance Depository Account (ZBA) first, and will be transferred daily into the Concentration Account. All balances are maintained in the Concentration Account. Incoming and outgoing wire transfers are made in this account principally for investment purchases, to fund debt payments, to fund other ZBA disbursement accounts, other disbursements, receive Federal/State agencies monies, and to clear the ZBA depository account. There are also Automated Clearing House Transactions (ACH) processed in this account. Deposits are made by various City departments, which use deposit tickets with MICR encoding that identifies each department. The Offeror shall indicate the ability to provide this service and any costs related to the printing of the encoded deposit tickets. The Offeror shall provide detailed deposit information including date, amount, department name and code, and a description for the daily deposits. The Offeror shall provide information for adjustments to this account for deposits (debit and credit advices). This adjustment information shall provide the date of the original deposit, amount, indicate department name and code, and a description. A monthly bank statement shall be required for this account. Provisional credit shall be given for all deposits received by 1:00 p.m.; the City will be given credit for the deposits that same day.Page 4 of 16 2.The Offeror shall maintain a Zero Balance Depository Account (ZBA) for the deposit of the Schools receipts, the deposit of EMS-MC receipts, and the deposit of Waste Zero receipts. EMS-MC bill and collect ambulance fees for the City. These accounts will be cleared daily and transferred to the Concentration Account. The Schools ZBA depository account will receive wire transfers and ACH transactions from Federal and State agencies. Waste Zero collects trash bag fees for the City. These accounts will be cleared daily and transferred to the Concentration Account. The Offeror shall provide detail deposit information including date, amount, and a description for the daily deposits. The Offeror shall provide information for adjustments to this account (debit and credit advices). This adjustment information shall provide the date of the original deposit, amount, and a description. A monthly bank statement shall be required for this account. 3.The Offeror shall maintain four (4) additional Zero Balance Disbursement Accounts(ZBA). The Concentration Account will fund these disbursements, automatically, for only those checks presented for payment on a daily basis. The accounts are for the Citys Accounts Payable and Public Assistance Programs disbursements, Citys Payroll, and Schools Accounts Payable and Payroll. The Offeror shall provide information for adjustments to these accounts (debit and credit advices). A monthly bank statement shall be required for these accounts. 4.The Offeror shall maintain a Separate Depository and Interest Bearing Account for the Citys Social Services Division to maintain certain funds associated with children in the Foster Care Program. This account will have ongoing deposits, wire transfers from the Social Security Administration, and wire transfers out. The Offeror shall provide information for adjustments to this account (debit and credit advices.) A monthly bank statement shall be required for this account. 5.The Offeror shall maintain one (1) Non-Interest Bearing Government Account for the receipt and disbursement of funds related to the Federal Department of Housing and Urban Development (HUD) Section 108 Loan Program. Funds are deposited into the account from the developer for the Bluffwalk Center Project. The City will wire the deposited funds to HUD as debt payments for the Section 108 loan. 6. The Citys investments for longer-term maturities are placed through the Local Government Investment Pool (LGIP) Program with the State of Virginia. Currently, the City has investment management program services provided through an agreement with a brokerage firm. The Offeror will automatically invest daily any excess cash balance left in the Concentration Account through an Overnight Repurchase Agreement and Investment Sweep process. All interest earned on Repurchase Agreements will be automatically credited to the Concentration Account. The Offeror shall provide a Schedule of Interest Rates for the month of July 2015. The Offeror can provide other options for overnight investments of excess cash balances for the City to consider, including July 2015 interest rates. 7. The Offeror shall provide on a monthly basis a full Account Reconciliation for Zero Balance Disbursement accounts specified in this Proposal. The Offeror shall include with any Proposal the computer specifications for automated account reconciliation. The Offeror shall provide available options to provide this information in an electronic format. Full reconciliation will include the following minimum requirements: (a) Listing of matched items (check serial number, date issued, amount paid, date paid). (b) Paid items listing (date paid, check number, amount paid). (c) Listing of non-match items. (d) Outstanding check listing. (e) Listing of duplicate check numbers paid. (f) Checks sorted by number in ascending order. (g) Other processes as appropriate and based on technology. 8. Automated Clearing House (ACH) Requirements (a) The Offeror shall provide an ACH Bank Draft Payment option for the City to offer its customers as an alternative method of payment. Each Offeror shall submit with this Proposal the software specifications for review to determine compatibility with current City systems. This service must be submitted through an electronic transmission. Each Offeror shall quote any charges that will occur with this service,Page 5 of 16 including other bill types, such as real estate, personal property, and other forms of payment. (b)The Offeror shall provide ACH Deposits of receipts for City and Schools. The Offeror shall provide a description of the steps taken to ensure that the information transmitted by ACH from the City to the Offeror is secure at all times. (c)Offeror shall provide a description of the services that insure that only authorized ACH transactions are being posted to the Citys bank accounts. 9.File Transfer Requirements(a)The Offeror shall provide an automated solution, including necessary software, for the transfer of data files from the Citys and Schools computer systems to the Offerors institution for the reconciliation of check payments to vendors, public assistance recipients, and payroll. (b)The Offeror shall provide information for Positive Pay Service. The Offeror shall describe services that reduce check fraud events. The City utilizes the positive pay service for payroll, accounts payable, and public assistance checks. The Positive Pay Service provides for the banks matching of checks presented to the bank with an automated file of all check disbursements previously sent to the bank by the City. (c)The Offeror shall provide a description of the steps taken to ensure that the information delivered by the above file transmission process from the City and Schools to the Offeror is secure at all times. 10.Internet Based On-line ServicesThe Offeror shall provide the City and Schools with the capability to perform the following processes using on-line Internet access to the Citys and Schools accounts: (a)Initiate wire transfers (including but not limited to payroll, debt payments, investments, funding other accounts, receiving payments from Federal and State agencies, etc.). (b) Stop payments (all ZBA disbursement accounts). (c) Issuance of disbursement payments (all ZBA disbursement accounts). (d) Cancellation of checks (all ZBA disbursement accounts). (e) ACH services for payroll disbursements, and vendor payments. (f) ACH services for electronic customer/citizen receipts and utility bill drafts. 11. The Offeror shall provide On-line Services for Account Information Inquiry and Reporting . Internet based on-line access to the following information is used currently to manage these disbursements and receipts. The Offeror shall provide this information through on-line inquiry and on-line ability to generate reports. (a) Ledger, collected and available daily balances. (b) Daily Concentration Account balance, activity of the overnight investment and ZBA accounts (disbursement and depository), and transaction detail information will be available. (c) Daily deposits, incoming electronic funds transfers, ACH receipts, and other additions. (d) Deposit imaging for details on checks included in deposits. (e) Daily cleared checks, outgoing electronic funds transfers, ACH disbursements, and other deductions. (f) Detail of all cleared items including check number, amount, and date paid are required on payroll, accounts payable, and public assistance disbursement accounts. (g) Stop payments and on-line processing. (h) ACH Return Notifications of direct deposit file transmittal and Returned Checks Notification. (i) Check imaging for cleared checks. (j) The Offeror shall provide a secure on-line management process which permits the Citys system administrators (requiring at least two administrative approvals) to manage the access of all the Citys and Schools users. This management process establishes which functionality and accounts users are allowed to use and permits the on-line ability to reset certain security conditions such as login violations. ThisPage 6 of 16 important functionality avoids having to call the Offeror when a password needs reset, any functionality added or removed, or users added or removed from the system. (k)Using the prescribed Internet system the Offeror shall provide a description of the processes and procedures to ensure on-line security in the available data. The Citys administrators will approve the access and functionality of each individual using the system. (l)The Offeror must include with the Proposal computer specifications for any of the Citys and Schools computers used for on-line account information and reporting. 12.Other Services(a)The Offeror shall provide Check Imaging by which the City and Schools will receive a file monthly with the images of canceled checks. Offeror shall provide proprietary software for retrieval and viewing of check images. The Offeror destroys actual checks. Offeror shall describe procedures for check imaging. (b)The Offeror shall provide Change and Currency Order Services with pick-up and delivery for the Billings and Collections Divisions tellers. Offeror shall describe the procedures for requesting change and currency orders and delivery. (c)The Offeror shall provide a Listing of Branches and Night Depository Locations within the City. (d)The Offeror shall describe procedures available for Return Check Handling and Notification. (e)The Offeror shall provide the procedure and time period of when the City and Schools will receive ACH Return Notifications. (f)The Offeror shall provide an 800 number for Customer Service. 13. The Offeror shall provide On-site Training Services to City and Schools personnel for the operation and use of the Offerors services and related automated systems. Training, operating manuals, and on-going support are to be supplied by the Offeror for all services provided. 14. The Offeror shall provide adequate, cooperative, and timely Support of any Testing the City and Schools must perform as a result of new or changed procedures initiated by the Offeror or by the City and Schools in conjunction with automated banking services . In the event of changes by the Offeror to their on-line services, the Offeror will provide written documentation as requested by the City or Schools, on the scope of these changes, particularly as they relate to, but are not limited to, the internal security policy of the City or Schools. 15. The Offeror must include with any Proposal a Disaster Recovery Plan both automated and manual, in the event that the Offerors on-line services are unavailable due to unplanned interruptions of more than two hours in length. 16. The Offeror shall provide a monthly Account Analysis Report . The City utilizes account analysis to monitor transaction volume, cost, compensating balance and earnings allowance. Offeror shall include a sample of their account analysis statement and describe the capability to provide this information in an electronic format and/or on-line access. The minimum requirements of this analysis shall be: (a) Average Interest-Bearing Balance (b) Average Non-Interest-Bearing Balance (c) Average Ledger Balance Less Uncollected Funds (d) Average Collected Balance Less Reserves (e) Average Earning Balance (f) Earnings Allowance (g) Transaction Volumes (h) Transaction Prices 17. The Offeror shall provide the City the Option to Fund a Compensating Balance in the Concentration AccountPage 7 of 16 for banking services costs or to pay banking fees, depending on market conditions. 18.The City and Schools possesses certain confidential and proprietary software systems and data banks. The Offeror agrees to Protect the Confidentiality of such proprietary documents and data. Furthermore, the Offeror shall indemnify and hold the City and Schools harmless for any damages, direct or consequential that may arise from the Offerors breach of confidentiality. Certification and acceptance of such agreement is made with signing of the Contract. All information obtained by the Contractor from the City as a result of a subsequent Contract including employee names shall be confidential; and, shall not be used for any purposes other than that specifically authorized, without the prior written permission of the City. 19. Electronic Payment Concentrator: The Offeror should provide information on how the Offeror would provide a payment concentrator to poll various on-line payment methods to provide the City with a single payment file. The citizen payment methods considered should be, but not limited to, on-line check payments from various institutions, ACH, wire-transfers, credit cards, lock box, etc.; all of which should be receipts to the City. (a) Electronic payments are sent daily to the electronic payment concentrator by originators, through various online payment methods for credit and posting for various billers (b) The electronic payment concentrator performs the following functions on every payment received: Validation Reformatting Parsing (c) Transactions are validated based on customer specific edit criteria (d) Daily detailed and summary reports are submitted to the City on a daily basis (e) Duplicate file checking is performed (f) The Offeror should monitor each process to ensure daily files are received based on designated timelines. (g) The Offeror should reconcile the assigned internal settlement accounts daily based on the files received. (h) Payments that do not pass the validation file are transmitted directly back to the originator. 20. Electronic Payables using Credit card based payment systems. (a) The Offeror shall provide an option for the payment of the Citys vendors using single use credit card account numbers. The Offeror shall demonstrate how the system will add fraud protection, flexibility, and streamlined reconciliation using this process. (b) The Offeror shall provide support for the enrollment of initial vendors, as well as an ongoing enrollment program for future vendors. (c) The Offeror shall provide a file layout that is to be used between the City and the Offeror to facilitate the payments that need to be made to vendors. These files will be submitted through electronic transmission. (d) The Offeror shall provide a revenue sharing option using using the credit card based payment systems. (e) The Offeror shall provide a detailed schedule for the settlement of all payments. B. DESIRABLE/NEGOTIABLE ITEMS 1. The Offeror should submit information on how the Offeror would provide Citizen Credit Card/Debit Card Payments to the City. The fees and types of cards accepted (Master Card, American Express, Visa, etc.) continues to be a problem because of the requirement for the City to absorb fees. This function would be needed on-line, Parks and Recreation Department, the Museums, the Police Department, the Visitors Center and at the Citys teller windows location. 2. The Offeror shall submit any information on how the Offeror would provide debit transaction functionality at our teller windows in City Hall. The customer presents a hard copy check and the City would like to process it as a debit transaction. 3. The Offeror shall submit any information on how the Offeror would provide check imaging at the teller windowPage 8 of 16 and the automated payment processing machine to allow for the electronic transmission of the check data files. The hard copies of the checks would be retained and destroyed by the City of Lynchburg. 4.The City would like to create web services for online account number validation when electronic payments are created. The Offeror should submit information on how their processes for on-line payments or the payment concentrator could or could not use the web services. 5.Additional Services: There are many other services that are customarily provided to corporations and governmental entities. The City in reviewing Proposals will generally assess these services that the Offeror can provide also. The City reserves the right to add other services at a reasonable cost during the term of the Contract.

Product Code: 94625

Agency Information

Issuing Agency: City of Lynchburg

State: Virginia

Agency Type: State and Local

Contact: Stephanie Suter Procurement Division, 900 Church Street, 3rd Floor, Lynchburg, Virginia, 24504

Phone: 434-455-3963

Fax: 434-845-0711




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