RFP:122-26 Fuel Hedging Services

The Massachusetts Bay Transportation Authority ("MBTA" or "Authority") seeks the services of a qualified and experienced Fuel Hedge Advisor ("Advisor") to provide professional fuel hedging, market analysis and insights, risk management, hedge transaction execution/facilitation, post-execution confirmation and contracting support, reporting, and related consulting services.

The MBTA maintains a fuel hedging program as part of its overall strategy to manage exposure to fluctuations in fuel prices and provide greater predictability in its operating budget. The MBTA currently hedges approximately 50% of its budgeted annual fuel usage. For Fiscal Year 2027 ("FY27"), the MBTA's budgeted fuel usage is approximately 21 million gallons, resulting in an hedge volume of approximately 10.5 million gallons.

The Advisor shall have a minimum of ten (10) years of demonstrated experience in fuel and/or energy commodity hedging, including market analysis, hedge strategy, transaction execution, and administration of fuel hedge transactions.

The selected Advisor shall assist the MBTA in evaluating, maintaining, and, where appropriate, enhancing its existing fuel hedging program. Services shall include ongoing market monitoring and insights, pricing, recommendations regarding hedge timing and structure, execution or facilitation of authorized hedge transactions, transaction/order confirmation, coordination of post-hedging contract documentation, risk analysis, program reporting, monthly settlement verification, and strategic consultation.

Fuel Hedging Program Review and Strategy

The Advisor shall review the MBTA's existing fuel hedging program, practices, policies, objectives, historical transactions, hedge positions, and related procedures. [...] All recommendations shall be subject to review and approval by the MBTA.

Fuel Hedge Transaction Execution

The Advisor shall provide the services necessary to support and complete the timely execution of authorized fuel hedge transactions consistent with the MBTA's approved objectives and direction. [...] The Advisor shall not execute or facilitate a transaction without the appropriate authorization from the MBTA. Final execution of contracts and other documents requiring MBTA signature shall remain with the appropriately authorized MBTA representative.

Market Pricing and Monitoring

The Advisor shall continuously monitor fuel and energy markets relevant to the MBTA's fuel purchasing and hedging activities using recognized market information and pricing resources, such as Bloomberg, OPIS, Argus, or equivalent industry-standard sources.

Market Analysis and Updates

The Advisor shall periodically provide the MBTA with market analysis, insights, and updates regarding conditions affecting fuel prices and the MBTA's hedging program.

Fuel Purchasing and Risk Management Advisory Services

The Advisor shall provide general consulting and advisory services relating to the MBTA's fuel purchasing, hedging, and price-risk management activities.

Program Status, Position and Performance Reporting

The Advisor shall provide comprehensive reporting sufficient for the MBTA to monitor the status and performance of its fuel hedging program. Reports shall be provided as requested by the MBTA.

Meetings, Records and Responsiveness

The Advisor shall participate in meetings, conference calls, and other discussions with MBTA staff as reasonably required for the effective administration of the fuel hedging program. [...] The Advisor shall maintain appropriate documentation relating to services performed under the Contract.

**Submission:** Bidder is required to prepare and submit all required documents to MBTA electronically via COMMBUYS. Proposals must be submitted electronically no later than **11/19/2026 2:00 PM**.

Questions:** All questions and clarification requests shall be made by Bidder through the "Bid Q&A" tab in COMMBUYS. Questions are due **10/30/2026 2:00 p.m.** Official answers will be published **11/6/2026 2:00 p.m.

**Contract term:** The initial term of the Contract shall be three (3) years. The MBTA shall have the option, at its sole discretion, to extend the Contract for up to two (2) additional one-year renewal periods.

**Evaluation:** Basis of award is a Best-Value Proposal. The MBTA may at its own discretion award contract(s) to one or multiple Bidders.

**Insurance:** Commercial General Liability with limits not less than **$1,000,000** per occurrence and **$1,000,000** annual aggregate. Workers' Compensation Insurance, including Employers Liability Insurance, with minimum limits of **$1,000,000** each accident, **$1,000,000** each employee for disease, and **$1,000,000** aggregate policy limit for disease.

**Site visit:** Upon Request.