Section  1    Background Information

       Section  2    Objectives

       Section  3    Instructions to Bidders

       Section  4    Specifications/Scope of Work

       Section  5    Bidder History, Background, Qualifications

       Section  6    Evaluation Criteria

       Section  7    Terms and Conditions
 
 
 
 
 

SECTION 1

The State University of New York at Buffalo, Office of Student Financial Aid is requesting Proposals from qualified companies to provide a Single Lender Alternative Loan Program to our student clients. Proposals are to be received in Procurement Services, State University of New York at Buffalo, 224 Crofts Hall, Buffalo, NY 14260 onOctober 15 1999 until2:00 P.M., at which time a representative of Procurement Services will announce publicly the names of those companies submitting Proposals.

The State University of New York at Buffalo is New York’s major public Research University and the largest and most comprehensive unit of the State University System (SUNY). Founded in 1846 as a private Medical School, the University joined the SUNY system in 1962, and now educates yearly more than 16,000 undergraduates and 8,500 graduate and professional students through its 15 schools/colleges. The University offers approximately 93 Undergraduate Programs, and more than 200 Graduate and Professional Degree Programs. The University has established a national and international reputation in select programs and enjoys membership in the prestigious Association of American Universities.
 
 
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SECTION 2

The Purpose of the Request for Proposal (RFP) is to establish a Single Lender Alternative Loan Program that provides cost effective, efficient, customer service oriented loan options to the University student population. This alternate loan will be exclusively packaged to our students. We reserve the right to certify loans from other financial institutions if 1) your institution denies our student the loan, or 2) the student chooses not to take the loan from your institution.

We believe that the University’s goals will be achieved through:

• A student loan processing and delivery system that is fast and efficient.
• A program that is almost entirely electronic/automated.
• Disseminating information in an easy to understand and attractive format.
• Support services available to students not only while in attendance, but after the student has left the institution.
• An understanding that the financial product must provide a product to all education levels, from baccalaureate to post-doctoral study.
• Return on Investment opportunities to provide scholarships and services to students.

SECTION 3

1.     Proposals must be addressed and delivered to the State University of New York at Buffalo,
        Procurement Department, 224 Crofts Hall, and Buffalo, NY 14260 on or before the time and date set for closing.
        Department, 224 Crofts Hall, and Buffalo, NY 14260 on or before the time and date set for closing. Proposals
        should be in sealed envelope marked:

                            Name of Bidder
                            Title of Bid
                            RFP Number
                            Date and Time Proposal is Due

2.     Original and four (4) copies of the Proposal should be submitted.

3.     Bidders may withdraw Proposals at any time prior to the time and date set for opening.

4.     No department, school, or office at the University has the authority to solicit official proposals other than Procurement
        Services Department. All solicitation is performed under the direct supervision of the Assistant Vice President for
        Procurement Services and in complete accordance with University policies and procedures.

5.     Bidders submitting proposals that meet the selection criteria and are deemed to be the most advantageous to the
        University may be requested to give an oral presentation to a selection committee. The Procurement Services
        Department will do the scheduling of these oral presentations.

6.     Award shall be made to the responsible Bidder whose Proposal is determined to be the most advantageous to the
        University taking into consideration the evaluation factors set forth in the solicitation.

7.     Any information considered to be proprietary by the Bidder shall be placed in a separate envelope and marked
        "Proprietary Information." To the extent the Assistant Vice President for Procurement Services concurs, this information
        will not be considered public information. The Assistant Vice President for Procurement Services is the final authority as
        to the extent of material that is considered confidential. Pricing information cannot be considered proprietary.

8.     Proposal must be submitted in the format shown in Section 8. Proposals in any other form will be considered incorrect
        and will be rejected. Conditional Proposals will not be considered. All Proposals must be signed by an individual
        authorized to extend a formal Proposal. Proposals that are not signed may be rejected.

9.     The University reserves the right to reject any or all Proposals or any part thereof, or to ac cept any Proposal, or any
        part thereof, or to withhold the award and to waive or decline to waive irregularities in any Proposal when it determines
        that it is in its best interest to do so. The University also reserves the right to hold all Proposals for a period of 60 days
        after the opening date and the right to accept a Proposal not withdrawn before the scheduled Proposal opening
        date.

10.   The successful Bidder is expected to enter into a standard form of Agreement approved by the Office of the State
        Comptroller. The New York State Standard Clauses Exhibits A & A-1 Contract Terms and Conditions are included
        therein. These terms and conditions shall be incorporated into the Agreement between the University and the successful
        bidder.

11.   Any person, firm, corporation or association submitting a Proposal shall be deemed to have read and understood all the
        terms, conditions and requirements in the specifications/scope of work.

12.   All inquiries or requests for clarification or interpretation or to notify the University of errors or omissions relating to this
        request for Proposal must be directed, in writing or by facsimile, to:

                    Christine M. Mills, C.P.M.
                    Purchase Associate
                    State University of New York at Buffalo
                    Procurement Services
                    224 Crofts Hall
                    Buffalo, NY 14260
                    Phone 716-645-3529 Fax 716-645-2687

        Proposals must be submitted on the Bidder Inquiry Form.

13.   Only those Vendors who supply complete information will be considered.

14.   The Vendor must provide a detailed implementation plan for the proposed services.

15.   By submitting a Proposal, the firm agrees that it will neither make any claims for, nor assert any right to,damages
        because of any misunderstandings or lack of information.

 
Alternative Loan Program RFP Timeline

JULY 28-AUGUST 11                  Meet with lenders, discuss items to include in RFP

AUGUST 18-OCTOBER 4           Write and refine RFP, send to Albany for review/feedback

OCTOBER 4                                 Send advertisement to Contract Reporter for 10/11/99 publication

OCTOBER 11-OCTOBER 15        Advertisement appears in Contract Reporter

OCTOBER 18-NOVEMBER 12    Mail info packets to prepared lender list, respond to bidder
                                                        requests for more information

NOVEMBER 12                             Deadline to receive bids back from lenders (requesting 4 copies)

NOVEMBER 12-JANUARY 1       Review bids, Prepare contract, Award contract, Start implementation

2000

JANUARY 1-MARCH 1                Send contract to Albany for review, Continue implementation,
                                                        Advertise on campus.

MARCH 15-MAY 1                       Testing with lender

MAY 1                                             Implementation of new Alternative Loan Program
 

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SECTION 4

4.1   PROGRAM SPECIFICATIONS

   4.1a   Eligibility

•  The loan program should encompass all of the following populations:

• Undergraduates
• Graduates
• Professionals
• Miscellaneous
• All students must be registered for a minimum of 3 credit hours.
• Families should be able to choose from the following options:
• Student applies for loan with a cosigner.
• Student applies for loan without a cosigner.
• Parent/guardian applies for loan and assumes all responsibility.

• Minimum
• Undergraduates
• Graduates
• Professionals
• Specify your maximum annual and cumulative loan limits for each student population as it relates to cost of attendance:
• Undergraduates
• Graduates
• Professionals

• See Exhibit A for a flowchart of the preferred application process from initial application to disbursement. If your program deviates from the preferred process, provide a flowchart of your process.
• Provide a timeline correlating to the items on your flowchart.
• We prefer to use web-based applications wherever possible throughout the entire program.
• Lender notifies UB and borrower if application is approved, denied, or pending. If application is denied, lender notifies student and/or borrower of additional options such as:
• Student can re-apply with a different cosigner.
• Student is approved for a lower amount.
• Students who are not citizens or permanent residents can apply with a cosigner who is a U.S. citizen or permanent resident.
• Credit requirements
• Specify your method of determining the applicants’ credit worthiness. We prefer that only credit scoring be used in determining the applicants’ credit worthiness.
• Specify the approval rate for your alternative loan program. Specify the expected approval rate for this program.
• How long is your credit decision valid for? We prefer that the credit decision be valid for at least 3 months.

• We prefer Electronic Funds Transfer.
• Specify the method and turnaround time for the following:
• Electronic Funds Transfer
• Disbursements
• Loan Cancellations/Reductions

• We prefer that students be eligible for in-school deferment when enrolled at least half time at any accredited institution.
• We prefer that our health professions students maintain their deferment status while participating in a required residency program.
• Please specify the maximum years of deferment for each student population:
• Undergraduates
• Graduates
• Professionals
• We prefer that student status confirmation reports be processed through the clearinghouse we currently participate in.

• For all student populations (Undergraduates, Graduates, and Professionals)
• Specify your minimum monthly payment.
• Specify if you have any repayment incentives.
• We prefer that there be no prepayment penalties.
• Specify your grace period.
• Specify your in-school forbearance.
• How long do you forbear principal and interest?
• Specify the maximum number of years for repayment for each student population.
• Undergraduates, Graduates
• What repayment options do you offer?
• Level, Graduated
• Income contingent
• Interest only payments during forbearance

• Specify your method for reconciliation. We prefer an automated process to reconcile your records with ours.

   4.2a    Interest Rate

• Specify your interest rate for each student population. We prefer that the interest rate be as competitive or better than that of the Federal Direct Loan Programs.
• Undergraduates, Graduates, Professionals
• We prefer that the cap on interest rate be as competitive or better than that of the Federal Direct Loan Programs.
• We prefer that unpaid interest be added to principal only at the end of the in-school or forbearance period.

• Specify the total cost for a borrower who borrows a total of $40,000 ($10,000 per year for 4 years) and is enrolled in a 10-year repayment program. Give the total cost for each student population:
• Undergraduates, Graduates, Professionals

• Specify your origination fee, if any.
• Specify your cap on the origination fee. We prefer that the cap on the origination fee be similar to that of the Federal Direct Loan Programs.
• Specify fees assessed at repayment, if any.
• Specify your policy on reimbursement of fees for cancelled or reduced loan amounts (penalty or no penalty?)

• Specify what your late fee payment policy is.

• Specify what loan insurance you provide, if any (i.e., disability, death).

4.3   TECHNOLOGICAL STANDARDS

    4.3a    Web Based Services for Borrowers (high priority item)

• Apply online (web page)
• Online approvals
• Approval time?
• Entrance/exit counseling online
• Debt management online
• Borrower can print own prom note
• Disbursement occurs before borrower returns prom note??
• Loan information/status online

• Loan information/status online
• Make adjustments, cancellations, grad date changes
• Front end certification
• Deferments
• Who gets this access?

    4.4a     Debt Management/Exit Counseling

    4.4b     Entrance Counseling

    4.4c     Loan Consolidation

    4.4d     Exclusive Customer Service

• Knowledgeable customer service representatives
• Toll free number for borrowers
• Abandon rate
• Wait time
• Evening & weekend hours

• Periodic updates provided to borrowers

    4.4g     Other Financial Services

• No fee checking accounts for students
• Direct pay - $ to pay bill is taken directly out of student or parent’s account
• Credit cards, mortgages

• Ease of payment
• Customer service (web, phone)

4.5 CUSTOMER SERVICE – UB STAFF

      4.5a    Exclusive Customer Service

• Phone lines and staff for school staff use
• Toll free number
• Available 8:30 – 5:00

      4.5c    Technical Support

      4.5e    Annual/Quarterly Meetings

      4.5f     Approval Rosters and Disbursements Sent

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SECTION 5

• Two client references in support of successful implementation of such programs ONE CLIENT REFERENCE OF AN UNSUCCESSFUL IMPLEMENTATION.
• Evidence that the vendor or its officers have been engaged for at least the past four years in providing services as requested in this RFP.
• Financial Health sufficient to support this Contract. Providing a Financial Statement/Annual Report, or other financial documentation must support this.

• Who is/are your servicers?
• While in school
• During repayment
• Who is/are your guarantors?
• Do you sell your loans or service them for life?
• Who does the credit checks?
• Years of experience in student loans?
• What schools do you have exclusive relationships with?

• The Contract may not be assigned or transferred without prior approval by the University.
• The vendor may not subcontract or assign, in whole or in part any portion of this Contract without prior approval by the University. Also, Vendor will comply with all federal and state laws, and Executive Orders of the President of the United States, that govern equal employment opportunities and non discrimination in hiring, promotion, transfer salary/wages etc. Further the Vendor will comply with the directives, spirit and intent of the University at Buffalo’s Affirmative Action Program.
• In the event that the Vendor fails to meet all requirements, the University shall declare the Vendor’s program unacceptable, declare the Vendor in default and terminate all agreements, written or verbal, without penalty or obligation to the University consistent with the provisions of the termination for default clause required in the contract.

All vendor proposals received by the closing deadline will be evaluated according to the following criteria:

I.     Vendor Evaluation – 40 Points

            Financial health
                Proven ability to provide services requested
                Evaluation of Agency’s reputation and references

II.    Cost – 30 Points

III.   Creative Marketing Strategy – 30 Points


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SECTION 7

1. Independent Contractor - The firm and its employees engaged in the performance of the work shall at all times be deemed to be performing as an independent contractor and not as agents or employees of the State University or State of New York. The firm shall indemnify and hold harmless the University and its employees. Therefore, the firm bears full responsibility for any and all liability, loss, damages and expenses which may be suffered from any claim, demand, suit or cause or action which may be made or held against them by reason of negligence or malpractice on the part of the firm, its agents or employees.
2. Financial Stability - The Bidder must be financially stable and able to substantiate the financial stability of its firm upon request within five working days of the request. The University reserves the right to reject any Bidder who does not demonstrate financial stability sufficient for the scope of the contract.
3. Ownership - All information collected during the project and subsequent recommendations will be the sole property of the University at Buffalo. Any use of this information or of the recommendations that emerge must receive prior written approval from the Assistant Vice President for Procurement Services.
4. Exceptions - Exceptions taken to this proposal must be submitted in writing specifying item and page number of the clause being excepted.
5. Termination - The University shall reserve the right to cancel any contract that may be awarded as a result of the RFP for recurring non-compliance with the preceding terms and conditions or unsatisfactory work.
6. Presentation - Finalists may be asked to provide a presentation about their proposal at their own expense.
7. Indemnification and Hold Harmless – The Bidder shall indemnify and hold harmless the University, its employees and designated representatives from any and all claim, suits, actions, liabilities and costs of any kind, including attorney’s fees, for personal injury or damage to real property or tangible personal property arising from the acts or omissions of the Bidder, its agents, officers, employees or subcontractors. Notwithstanding anything herein to the contrary, in no event shall the Bidder be liable for any indirect or economic consequential damages arising thereunder.