Press Release

New York Fed Launches Prequalification Process for Potential Cash Investment Manager for Commercial Paper Funding Facility as Part of Competitive Procurement

December 09, 2020

NEW YORK—The Federal Reserve Bank of New York today announced that it is launching a prequalification process for cash investment management services for the Commercial Paper Funding Facility (CPFF).  This is part of a multiphase competitive procurement process commenced by the New York Fed in October.

When the Federal Reserve launched a number of emergency liquidity facilities earlier this year, some vendor roles were filled through direct negotiations with service providers to expedite program implementation and support the flow of credit to households and businesses in the face of the severe economic disruption caused by the COVID-19 pandemic. The New York Fed did so with a view that, once the immediate need to commence operations of the facilities had passed, those roles would be subject to a competitive procurement process. 

The New York Fed is prospectively undertaking a prequalification process to identify and select firms to participate in a potential request for proposals (RFP) for a cash investment manager for the CPFF for the duration of the facility’s life. The CPFF’s authorization to purchase 90-day commercial paper will cease on March 31, 2021, unless the Board of Governors and the Department of the Treasury extend the facility.

Firms interested in participating in the potential RFP must submit the information detailed in the prequalification form. The New York Fed will evaluate the responses in conjunction with an updated assessment of its business needs to determine whether to issue an RFP. A firm’s participation in the prequalification process does not guarantee that the firm will be invited to submit a proposal in response to any RFP should one be issued.  The prequalification form is due no later than 5:00 p.m. Eastern Time on December 23, 2020.

The New York Fed is using the prequalification process to facilitate broad awareness of this opportunity and encourage a wide range of firms to review the eligibility criteria and consider expressing their interest. Through these efforts, the New York Fed seeks to further its mandate to support equal opportunity and diversity in the implementation of these facilities. The New York Fed is committed to transparency and inclusive access as it undertakes this competitive procurement process.

The New York Fed plans to host an information session regarding the procurement process for these vendor roles. Details for the session are posted here.

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