RFP:122-26 Fuel Hedging Services

The Massachusetts Bay Transportation Authority (MBTA) is soliciting a qualified Fuel Hedge Advisor to provide professional fuel hedging, risk management, and consulting services. The primary objective is to manage exposure to fuel price fluctuations, with the advisor supporting a program that currently hedges approximately 50 percent of the MBTA's budgeted annual fuel usage, which is estimated at 10.5 million gallons for Fiscal Year 2027. The scope of work includes strategic analysis of existing policies, market monitoring, providing pricing and timing recommendations, executing authorized hedge transactions using instruments such as swaps, futures, and forward contracts, and providing monthly settlement verification and reporting. The contract will be awarded on a best-value basis through a multi-stage evaluation process. Bidders must first pass legal and financial stability screenings before being evaluated on technical criteria, including experience, hedging approach, risk management, and reporting capabilities. To be eligible, advisors must demonstrate a minimum of ten years of experience in fuel or energy commodity hedging. The selection process requires a minimum average technical score of 3, and only the top three highest-scoring technical proposals will proceed to the price evaluation. Administrative requirements include submission via the COMMBUYS portal, adherence to the MBTA invoicing system, and compliance with various state and federal regulations. Contractors must certify compliance with non-discrimination laws, the Small Business Program, and the Massachusetts Right-to-Know law regarding chemical hazard communication. Additionally, the selected vendor must maintain specific insurance levels and provide an annual Enterprise Security Policy to the MBTA.