The RFP states that offer must use a 4.4% interest rate. Does that mean “Treasury Rate” or a “full up rate” for calculating financing costs?
The interest rate is derived from the nominal discount rate specified in Appendix C of OMB Circular A-94. The 4.4% figure cited in Note F of Section B was based upon last year’s figures. Note F will be amended to cite a figure of 3.9% which was calculated based upon simple averaging of the most recent 3 year (3.7%) and 5 year (4.1%) nominal interest rates cited in the most recent Appendix C (January 2005).
