REQUEST FOR INFORMATION TO ESTABLISH

FISCAL YEAR 2008-2009 LIST OF PRE-QUALIFIED ACCOUNTING/LAW FIRMS TO PROVIDE ARBITRAGE REBATE COMPLIANCE SERVICES

The Department of Budget and Finance (DBF) is in the process of establishing a Pre-Qualified List of accounting/law firms for arbitrage rebate compliance services pursuant to Section 103D-304, Hawaii Revised Statutes. The established pre-qualified list will be used to select firms during the period July 1, 2008 to June 30, 2009. Firms interested in qualifying to be on the DBF s Pre-Qualified List are being asked to submit one original and four copies of a letter of Expression of Interest and a Statement of Qualifications as more fully explained below.

I. The Expression of Interest Letter must indicate, at minimum, the following:

A. The standard scope of arbitrage rebate compliance services your firm provides to its clients.

B. A description of the types of bond transactions that the firm is staffed and qualified to provide arbitrage rebate compliance services for.

C. That your firm is willing and authorized to accept all terms and conditions of the State of Hawaii (State) Contract for Professional Services, a form of which is attached, including the indemnity provision in the Special Conditions sections.

II. The Statement of Qualifications must provide, at minimum, the information requested below. Please note that the firm s marketing brochure does not meet the requirement for a Statement of Qualifications.

A. Information about the firm: Official name of the firm; the date and state in which the firm is incorporated; the principal place of business of the firm; number of years the firm has been providing arbitrage rebate compliance services; the number and location of all offices of the firm; and the average number of employees employed by the firm for the past five years.

B. Specify whether the firm is doing business in the State. If the response is affirmative, include the number of locations by street address, number of employees, and numbers of years doing business in Hawaii.

C. Provide the names and contact persons of at least three (3) municipalities or municipal level agencies for which your firm has provided arbitrage rebate compliance services for five (5) or more bond issues during the past two (2) years.

D. Resumes of key personnel who will be involved in the arbitrage rebate compliance services. Indicate in detail each person s background, work experience, and professional certifications relative to providing arbitrage rebate compliance services.

E. Provide a brief description of the firm s approach used to accomplish the arbitrage rebate calculations. Include the information and assistance required of the State in completing the arbitrage rebate calculations. Also include information as to the firm s approval process for finalizing arbitrage reports.

F. For the standard scope of arbitrage rebate compliance services outlined in I.A. above, provide a detailed project schedule, identifying all tasks and deliverables to be performed, durations for each task, and overall time completion.

G. Describe the legal expertise available within and/or to your firm with regard to the arbitrage provisions of Section 148 of the Internal Revenue Code and all applicable regulations. (If the requisite legal expertise is available within your firm, please describe your firm s expertise with the relevant provisions of the Internal Revenue Code and applicable rules and regulations. If the legal advice is to provided outside your firm, identify the source of this expertise and explain the source s knowledge of the relevant Code and regulations sections.)

Describe the assurance your firm can provide to ensure that work performed is consistent with the current federal tax and other applicable laws. Describe any legal opinions that may be required to support each arbitrage calculation, and describe the scope and extent of representation in the event of proceedings before the Internal Revenue Service or in other legal proceeds.

H. Identify arbitrage rebate compliance services provided to the State and/or any of its counties. Please list the bond transactions and provide the following information on each transaction: date of sale, the issuer, the issue, and the par amount.

I. Federal Tax I.D. Number and Hawaii General Excise Tax I. D. Number. It is anticipated that selected firms will perform services in the State of Hawaii and that a Hawaii General Excise Tax I. D. Number will be required.

J. Litigation. Disclose any lawsuits or administrative actions taken against you by the Federal Government, a state, a municipality, or any other entity during the past three years related to arbitrage rebate compliance services. Disclose the nature and status of the action. If none, so indicate.

K. Governmental Compliance. Disclose if your firm has been involved in any suspension or disbarment proceedings for award of contracts by the Federal Government, a state, or a municipality. If yes, provide the resolution of the findings. If none, so indicate.

The firm may submit other information that it believes will be relevant to support their placement on the DBF s Pre-Qualified List of firms to provide Arbitrage Rebate Compliance Services. Expressions of Interest and Statements of Qualification must be received by 4:00 pm., HST, June 6, 2008, at the following address:

Ms. Georgina K. Kawamura, Director of Finance

Department of Budget and Finance

250 South Hotel Street, Room 302

Honolulu, Hawaii 96813

Facsimile transmissions of the Expression of Interest and Statement of Qualifications will not be accepted. The State accepts no financial responsibility for costs incurred by firms responding to this request. Any and all material submitted to the State in response to this letter will become the property of the State.

Attachment

PNS: May 2, 2008