Provide Financial Advisory and Capital Markets Services to the CHIPS Program Office

MAY 22, 2023 - RELEASE OF AMENDMENT A006

Reference the attached document for amendment details. 

MAY 18, 2023 - RELEASE OF AMENDMENT A005

Reference the attached document for amendment details. 

MAY 16, 2023 - RELEASE OF AMENDMENT A004

Reference the attached document for amendment details. 

MAY 12, 2023 - RELEASE OF AMENDMENT A003

Reference the attached document for amendment details. 

MAY 4, 2023 - RELEASE OF AMENDMENT A002

Reference the attached document for amendment details. 

MAY 2, 2023 - RELEASE OF AMENDMENT A001

Reference the attached document for amendment details. 

APRIL 22, 2023 - RELEASE OF REQUEST FOR PROPOSAL

Request for Proposal Number 1333RNB130010 has been posted. Reference the attached document for all solicitation requirements. 

APRIL 19, 2023 - PRE-SOLICITATION NOTICE UPDATE #3

Request for Proposal Number 1333ND23RNB130010 remains open and active, however, the release date for the solicitation is pending.  The due date for proposals will be updated upon release of the solicitation. 

MARCH 14, 2023 - PRE-SOLICITATION NOTICE UPDATE #2

NIST anticipates posting the solicitation not later than March 24th, 2023. The due date for proposals will be updated upon release of the solicitation. 

FEBRUARY 23, 2023 - PRE-SOLICITATION NOTICE UPDATE

1. NIST anticipates posting the solicitation not later than March 10th, 2023.

 2. The following question and response is hereby provided: 

QUESTION:   Would the government please confirm that firms currently serving the CHIPS Program office on semiconductor analysis, program management, and/ or content development are conflicted from bidding on the upcoming opportunity to provide Financial Advisory and Capital Markets Services to the CHIPS Program Office (sam.gov ID: 1333ND23RNB130010) due to their access to material non-public, inherently governmental program information?

RESPONSE:  The Government will evaluate any potential or actual organizational conflicts of interest in accordance with FAR 9.5. Based on the information known to date, the Government does not believe that firms currently providing support services to the CHIPS program office have organizational conflicts of interest arising from that work that would preclude them from performing the financial advisory and capital markets services for the CHIPS program.

PRE-SOLICITATION NOTICE POSTED ON FEBRUARY 10, 2023

Historically, the semiconductor industry of the United States of America (USA) dominated many parts of the international semiconductor supply chain. Semiconductors have historically been top US exports and the US used to lead in R&D, design, and manufacturing of chips. Yet the position of the USA within the semiconductor industry has been declining. In 1990, the USA accounted for approximately 40% of global semiconductor fabrication capacity. By 2019, that number had dropped to about 11%.

To help strengthen the position of the USA in semiconductor research and development and manufacturing, Congress authorized a set of programs known as the Creating Helpful Incentives to Produce Semiconductors for America (CHIPS) as part of the William M. (Mac) Thornberry National Defense Authorization Act (NDAA) for Fiscal Year 2021 (Pub. L. No. 116-283) in January 2021.

Sections 9902 and 9906 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (referenced herein as “the CHIPS Act”), were amended and funds were appropriated by Congress to become the CHIPS and Science Act of 2022 (“CHIPS+”). CHIPS+ appropriates $50.2 billion to the Department of Commerce (Department) to catalyze long-term growth in the domestic semiconductor industry in support of national and economic security, including approximately $40 billion to incentivize domestic semiconductor manufacturing and approximately $10 billion for research and development.

The Department has identified four measurable strategic goals for the CHIPS program:

  -Assure a sufficient and secure supply of older-generation semiconductor chips for defense and critical sectors;

  -Increase U.S. production of leading-edge logic and memory chips;

  -Strengthen U.S. R&D leadership to catalyze and capture the next set of critical technologies, applications, and industries; and

  -Grow a diverse semiconductor workforce and build strong communities that participate in the prosperity of the semiconductor industry.

CHIPS+ gives the Department considerable flexibility in determining how to structure financial incentives to drive additional investment in domestic semiconductor manufacturing, which could include federal grants, loans, and/or loan guarantees. Financing structures could include corporate finance, project finance, and joint ventures, among others, to draw in private investment and capital markets support, in addition to the CHIPS incentives. The CHIPS Program Office (CPO) will be managing the investment and financial structuring process for a wide range of applicants, including, but not limited to, large, complex multinational companies.

CPO requires a Contractor to provide financial advisory and capital markets services to: (a) support CPO’s evaluation and analysis of individual applications for grants, loans, and loan guarantees; (b) assist CPO with the negotiation and documentation of transaction terms resulting from those applications; and (c) provide capital markets advice and expertise.

CPO requires financial advisory services to support the evaluation of individual applications and negotiation of individual transactions resulting from those applications. The Contractor will review applications for completeness and accuracy. The Contractor will develop financial models that illustrate cash flows and underlying assumptions, key metrics and leverage ratios, scenario analysis, return and risk distributions, and other features that highlight financial properties and sensitivities of individual applications. The Contractor will also provide analysis of the business, finances, and operations of applicants, who will have a variety of corporate, ownership, and capital structures.

CPO requires advice on the state of the capital markets especially related to the semiconductor industry. The Contractor will advise CPO on debt capacity, capital structures, and public and private debt and equity instruments for individual applications. The Contractor will advise CPO on market terms and rating agency considerations. The Contractor will provide advise CPO on the size, structure, pricing, tenor, and other terms of the financial instruments (loans, loan guarantees, other) for individual applications.

Task areas shall include all of the following:

Financial Advisory Aspects

-Develop and/or support the development of financial models that illustrate cash flows and underlying assumptions, key metrics and leverage ratios, scenario analysis, return and risk distributions, and other features that highlight financial properties and sensitivities of individual applications;

- Provide analysis of the business, finances and operations of individual applicants, and any associated parties thereto, or categories of applications, which may include a variety of corporate, ownership and capital structures;

-Advise and provide input and recommendations to the Government with respect to the evaluation of individual applications and negotiation of individual transactions;

-Review applicant proposals for completeness of data and evidence provided in the application to support the level of funding and accuracy of information in the proposal.

Capital Markets Aspects

-Provide advice and input to the Government on the state of the financial markets especially related to the semiconductor industry, and debt capacity, market terms, rating agency considerations, and structuring options for individual applicants;

-Provide independent analysis and input on the size, structure, pricing, tenor, and other terms of the financial instruments (loans, loan guarantees, other) for individual applicants.

The NAICS code for this requirement is 541611 with a small business size standard of $24.5 million. Negotiated acquisition procedures shall be utilized under the authority of Federal Acquisition Regulation (FAR) Part 12 Commercial Items and FAR Part 15 Contracting by Negotiation.

A determination has not yet been made relevant to use of full and open competition or a small business set-aside. That determination will be set forth in the solicitation.

Award of a single firm fixed price contract is anticipated.  

The competitive Request for Proposal (RFP), amendments, and all questions and answers related to this procurement shall be made available via the Internet at the System for Award Management (www.SAM.Gov) under RFP Number 1333ND23RNB130010.  

Potential offerors shall be responsible for obtaining this solicitation and related amendments, if any, from www.sam.gov after the solicitation has been posted.  It is, and will continue to be, the responsibility of each potential offeror to monitor www.sam.gov for any amendments or other information related to the solicitation. 

Any communications regarding this acquisition must be made in writing and forwarded via email to carol.wood@nist.gov, and shall identify the solicitation number, company name, company address, as well as point of contact email address and phone number.

NIST anticipates posting the solicitation approximately 15 days after the date of publication of this notice.