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  • 1. TEXAS TECH UNIVERSITY SYSTEM Request for Proposals Investment Consultant Please access TechBid for additional information and submittals: techbid.ttu.edu 1
  • 2. TABLE OF CONTENTS Page 3 Section 1 General Information Page 5 Section 2 Proposal Requirements Page 8 Section 3 RFP Procedures Page 10 Section 4 Proposal Contents Page 14 Section 5 Award and Evaluation Page 15 Section 6 Insurance Requirements Page 17 Section 7 General Terms and Conditions 2
  • 3. SECTION ONE GENERAL INFORMATION 1.1 Purpose of the Request for Proposals. Texas Tech University System ("System") is accepting competitive proposals to contract for Investment Consulting services. This Request for Proposal (“RFP”) provides sufficient information for interested parties (“Proposers”) to prepare and submit proposals for consideration by System. Additional information may be made available by written addendum to this RFP. Proposers are encouraged to propose contractual arrangements offering the maximum benefit to System in terms of (1) total overall cost and (2) investment expertise. PROPOSERS ARE CAUTIONED TO READ THE INFORMATION CONTAINED IN THIS RFP CAREFULLY AND TO SUBMIT A COMPLETE RESPONSE TO ALL REQUIREMENTS AND QUESTIONS AS DIRECTED. SCOPE OF WORK The System is soliciting proposals to provide investment consultant services to the Office of Investments and the Investment Advisory Committee (“IAC”). The IAC is a 9-member committee charged with advising the System Board of Regents on asset allocation and investment policy. Services would include, but not be limited to, performance reporting, asset allocation studies, investment manager searches, research (both markets and manager related), and assistance in meeting the investment goals of the System. The primary role of the investment consultant is to provide advice, consultation, and other services, as necessary, to the Office of Investments and the IAC on all matters related to investments. The investment consultant will work under the direction of the Office of Investments and the IAC, maintaining a working partnership relationship on all investment matters. Any special projects for which the investment consultant will require additional compensation must be approved, in advance, by the Office of Investments. The investment consultant will, at a minimum, perform the following services: 1. Provide performance reports monthly by the end of the following month. 2. Provide performance measurement and evaluation reports in conjunction with IAC meetings. These reports shall include, at a minimum, returns, rankings against similar funds, risk/return analysis, and a policy index comparison. Reconciliation with manager reported returns is expected. 3. Review asset allocation and investment policy, at least annually, and make recommendations for revisions. As part of this, assistance with implementing 3
  • 4. investment policy objectives for short/intermediate term fixed income investments may be needed. 4. Investment manager searches as requested. 5. Assist with other value-added programs such as cash overlay, commission recapture programs, and rebalancing/transition process management as requested. 6. Provide assistance in meeting the System’s investment goals. 7. Attend and present at IAC meetings, typically held in Dallas or Houston, but occasionally in other cities in the state or during manager searches on the East & West coasts. Meetings are held at least quarterly, but can number around 8-10 per year; no maximum. 8. Attend and/or present at meetings of the Board of Regents and Texas Tech Foundation as requested. Meetings are usually in Lubbock, but can be in other cities in the state. 1.2 Information about Texas Tech University System The System is composed of three component institutions – Texas Tech University, Texas Tech University Health Sciences Center, and Angelo State University. These three separate academic institutions are governed by the same nine-member Board of Regents. The Regents are appointed by the Governor of the State of Texas to six-year terms. The Chancellor is the chief executive officer of the System and is appointed by and reports directly to the Board of Regents. Texas Tech University, based in Lubbock, is one of the state’s largest major comprehensive universities and the only such institution within an area of some 350,000 square miles. Over 28,000 students enroll annually, coming from 50 states and more than 80 foreign countries. These students choose from among 152 undergraduate, 107 master, and 64 doctoral programs. Texas Tech University Health Sciences Center has an enrollment of approximately 2,200 students in its schools of medicine, nursing, allied health, pharmacy, and the graduate school of biomedical sciences. The Lubbock campus serves as the administrative hub for the Health Sciences Center, with regional campuses located in Amarillo, El Paso and the Permian Basin (Odessa/Midland), and with academic centers in Dallas and Abilene. Angelo State University, based in San Angelo, Texas, was established in 1928 as San Angelo College; in 1965 new legislation was passed to create Angelo State College. ASU’s campus covers more than 268 acres and enrolls more than 6,200 students from 210 of Texas 254 counties and 41 other states and 22 countries. 4
  • 5. 1.3 Texas Tech University System Investment Information The primary investment pool related to the RFP is the Long Term Investment Fund (“LTIF”). The LTIF is comprised primarily of System endowments, with some eligible institutional funds also included. It is roughly $700 million in size, and currently employs 33 managers across 44 funds. It’s operated on a total return basis, with 4.5% of a 12-quarter rolling average being distributed for spending back to the endowments. As of July 2008, the target range allocations to various asset classes were as follows: Domestic Equities 15-30% International Equities 10-30% Fixed Income/Cash 5-15% Real Assets (incl. real estate & energy) 5-15% Private Equity 15-30% Hedges/Absolute Return 15-30% The Office of Investments is also responsible for the operating investment pool, the Short/Intermediate Term Investment Fund (“STIF”). It’s comprised of fixed income securities, generally Treasuries and Agencies, and currently operated on a hold-to- maturity basis. The STIF is roughly $620 million in size, and distributes interest income earned back to participants. It is currently internally managed, but assistance with policy and implementation may be required of the consultant. The investment policy for both funds is located at http://www.depts.ttu.edu/oppol/Chapter09.pdf. 1.4 Historically Underutilized Business (HUB) Firms. The System endeavors to promote full and equal opportunity for businesses to supply the System with Services that are necessary to support the System's educational mission. In this regard, the System commits to select Proposers in accordance with (i) System needs, (ii) System resources, (iii) HUB goals and guidelines established by the Texas Legislature and the Texas Comptroller’s Office, and (iv) System policies and procedures for contracting with Historically Underutilized Businesses. 1.5 System's Right to Reject This RFP does not commit the System to select a Proposer or to award a Contract to any Proposer. The System reserves the right to accept or reject, in whole or in part, any Proposal it receives pursuant to this RFP. In addition, the System reserves the right to cancel the RFP at any time and will notify all parties through the TechBid portal. 1.6 Schedule of Events The System will make a good faith effort to follow the timeline below for evaluating, negotiating and issuing an award: Event Date RFP Distributed to Proposers July 23, 2008 5
  • 6. Deadline for Questions August 1, 2008 Answers to Questions posted on TechBid August 6, 2008 Submittal of Proposals August 15, 2008 Evaluation of Proposals August 15-September 19, 2008 Notification of Finalists September 19, 2008 Finalists Presentations TBD Board of Regents Approval & Award October 31, 2008 SECTION TWO PROPOSAL REQUIREMENTS 2.1 Right to Modify, Rescind, or Revoke RFP The System reserves the rights to modify, rescind, or revoke this RFP, in whole or in part, at any time prior to the date on which the authorized representative of the System executes a Contract with the Selected Proposer. 2.2 Compliance with RFP Requirements By submission of a Proposal, a Proposer agrees to be bound by the requirements set forth in this RFP. The System, at its sole discretion, may disqualify a Proposal from consideration, if the System determines a Proposal is non-responsive and/or non- compliant, in whole or in part, with the requirements set forth in this RFP. 2.3 Binding Effect of Proposal Unless otherwise agreed in writing signed by the Vice Chancellor and Chief Financial Officer, each Proposer agrees to and shall be bound by the information and documentation provided with the Proposal, including prices quoted for Services. 2.4 Signature, Certification of Proposer The Proposal must be signed and dated by a representative of the Proposer who is authorized to bind the Proposer to the terms and conditions contained in this RFP and to compliance with the information submitted in the Proposal. Each Proposer submitting a Proposal certifies to both (a) the completeness, veracity, and accuracy of the information provided in the Proposal and (b) the authority of the individual whose signature appears on the Proposal to bind the Proposer to the terms and conditions set forth in this RFP. Proposals submitted without the required signature shall be disqualified. By submitting an electronic Proposal via the TechBid website detailed in section 2.6, the Proposer will qualify as having submitted a proposal with the required signature. 2.5 Submittal Deadline The System will accept proposals until 3:00 p.m., central time, Friday, August 15, 2008 at which time all received proposals will be acknowledged publicly via the TechBid website. Mailed Proposals will be accepted at the address listed under System Contacts until the deadline time and date listed in this section. Electronic submittals are preferred 6
  • 7. by the System. Any proposals received after the opening time and date, will be rejected. The System cannot be responsible for failure of carrier service to deliver on time. 2.6 Requirements for Submission Proposal shall be submitted electronically through the TechBid submission system. The site is located at techbid.ttu.edu. Any supplemental printed material referenced with the RFP, may be scanned and attached to the submission in TechBid or may be submitted in the Office of Purchasing and Contracting on or before the time and date specified, and delivered to: Ms. Jennifer Adling Director Purchasing and Contracting Texas Tech University Box 41094 361 Drane Hall 15th Street and University Avenue Lubbock, TX 79409-1094 NOTE: For delivered/mailed submission, show the Request for Proposal title and submittal date in the lower left-hand corner of your sealed proposal. Additional information shall be clearly marked in order that it will be coordinated with the electronic submission. The materials submitted by mail or delivery services must be enclosed in a sealed envelope (box or container); the RFP title must be clearly visible; and name and the return address and contact information of the Proposer must be clearly visible. Late proposals properly identified will be returned to Proposer unopened. Late proposals will not be considered under any circumstances. All proposals that are estimated to be $100,000 or greater in value must contain a properly completed HUB Subcontracting Plan. HSP forms can be found at the following website: http://www.window.state.tx.us/procurement/prog/hub/hub- forms/HUBSubcontractingPlan.pdf. **All proposals submitted by mail or delivery service must contain a signed Proposer Affirmation (Section 4) by a representative of the Proposer authorized to commit to the provisions of this proposal. Proposals submitted electronically on the TechBid website will require acknowledgement of the Proposer Affirmation. 2.7 Withdrawal or Modification No proposal may be changed, amended, modified by telegram, fax or otherwise, after the submittal deadline. Modifications will be allowed in the TechBid website. No proposal may be withdrawn after the submittal deadline without approval by the System, which shall be based on Proposers submittal, in writing, of a reason acceptable to the System. 7
  • 8. 2.8 Validity Period Proposals are to be valid for System's acceptance for a minimum of 120 days from the submittal deadline date to allow time for evaluation, selection, and any unforeseen delays. Proposals, if accepted, shall remain valid for the duration of the Contract, if awarded. 2.9 Risk of Loss, Damage, Delay Proposer acknowledges and agrees to release and hold harmless the Texas Tech University System, its campus components, Board of Regents, officers, employees, agents, and personnel, from and against any and all claims, liability, damages, and costs, including court costs and attorneys' fees, arising out of or pursuant to delivery of the Proposal or failure to deliver the Proposal to the Purchasing and Contracting Office at Texas Tech University, as designated in Sections 2.5 and 2.6 of this RFP. 2.10 Ownership of Proposals All Proposals become the physical property of the System upon receipt. 2.11 Use, Disclosure of Information Proposers acknowledge that the System is an agency of the State of Texas and is, therefore, required to comply with the Texas Public Information Act. Texas Gov't Code Ch. 552. If a Proposal includes proprietary data, trade secrets, or information the Proposer wishes to except from public disclosure, then the Proposer must specifically label such data, secrets, or information as follows: "PRIVILEGED AND CONFIDENTIAL -- PROPRIETARY INFORMATION." To the extent permitted by Texas law, information labeled by the Proposer as proprietary will be used by the System only for purposes related to or arising out of the (a) evaluation of Proposals, (b) selection of a Proposer pursuant to the RFP process, and (c) negotiation and execution of a Contract, if any, with the Proposer selected. 2.12 Costs of Participation The System specifically disclaims responsibility and/or liability for any and all costs, expenses, or claims related to or arising out of the Proposers participation in this RFP process, including but not limited to costs incurred as a result of preparing, copying, shipping, presenting, and/or clarifying the Proposal and the information relevant to the Proposal. 2.13 Compliance with Applicable Laws, Regulations, Ordinances, Board of Regents Policies, System Policies and Procedures By submitting a Proposal, the Proposer agrees to and shall comply with all applicable local, state and federal laws and regulations, as well as with all applicable policies and procedures of the Texas Tech University System. Policies and procedures may be accessed at the following Internet address: http://www.ttu.edu 8
  • 9. SECTION THREE RFP PROCEDURES 3.1 Request for Electronic Copy A Proposer may request an electronic copy of the RFP from the Techbid website techbid.ttu.edu. 3.2 Request for Clarification The System reserves the right to request clarification of any information contained in a Proposal. Clarifications will be submitted in writing to the contact information listed in this RFP. 3.3 Questions by Proposers The deadline for questions submitted by Proposers is 5:00 p.m. central time on Friday, August 1, 2008. The System will accept no questions after this date. Questions must be submitted in writing; the question, written System response, and addenda, if any, related to the RFP will be distributed to all Proposers on the Techbid website. If the System determines a question has been sufficiently answered in the RFP, the inquiring Proposer will be referred to the relevant section of the RFP. Questions may be emailed to the Director of Purchasing and Contracting (jennifer.adling@ttu.edu). 3.4 Addenda to the RFP Each Proposer will be provided with copies of System-approved addenda, including amendments to the RFP by posting the addendum on the TechBid website. If and as necessary, as determined by the System, Proposers will, in turn, be allowed time to revise or supply additional information in response to such addenda. It is the responsibility of the proposer to check the TechBid website for any and all addenda posted for this RFP. 3.5 Communications with System Personnel Except as provided in this RFP and as is otherwise necessary for the conduct of ongoing System business operations, Proposers are expressly prohibited from engaging in communications with System personnel who are involved in any manner in the review and/or evaluation of the Proposals; selection of an Proposer; and/or negotiations or formalization of a Contract unless it is in a formal manner as directed by the Director of Purchasing and Contracting. If any Proposer engages in conduct or communications that the System determines are contrary to the prohibitions set forth in this section, the System may, at its sole discretion, disqualify the Proposer and withdraw the Proposer’s Proposal from consideration. 3.6 Contract Notices Any notice under any contract resulting from this RFP, shall be in writing and delivered to the party to be notified either by messenger service or United States mail. Notice will 9
  • 10. be effective upon delivery by messenger service or four (4) business days after the date of mailing by prepaid certified mail, return receipt requested. For purposes of notice, the name and address of the person to be notified on behalf of the System is: Jennifer Adling Director of Purchasing and Contracting Texas Tech University Drane Hall, Room 361 15th and University Ave Box 41094 Lubbock TX 79409-1094 Telephone: (806) 742-3841 Fax: (806) 742-3820 10
  • 11. SECTION FOUR PROPOSAL CONTENTS 4.1 Proposal Contents Organization 1. Provide a description of your firm's organization. Describe the firm’s ownership structure and locations. Please include experience in investment consulting for endowments/foundations. Also include breadth of firm experience with investment consulting in general, especially in regards to other nonprofit entities. 2. Detail your organizational structure and how consulting for endowments/foundations fits within that structure. Give numbers of employees for the last five years in total for your firm and those devoted solely to endowments/foundations. 3. List the name, experience within this area, and qualifications of each employee assigned to work with the System in the event of a successful proposal. 4. List your most significant current clients that are endowments/foundations. Please also note any clients that are institutions of higher education in Texas. 5. List the firm’s current assets under advisement (AUM), and historical AUM for the last five years. Show amounts for total consulting and for endowment/foundations. Detail the current demographics of the firm’s client base; average account size; retention rate, etc. 6. List all clients lost in the last three years, size of account, and reason for leaving. 7. Provide a copy of your firm’s latest audited financial statements and Form ADV, if available. Services Provided 1. Describe your firm’s overall philosophy and guiding principles in regards to investments, capital markets, asset allocation, and risk vs. return. Also include discussion of strategic asset allocation. Describe the approach and framework in developing capital market assumptions and an asset allocation strategy. 2. Provide examples of the firm’s ability to evaluate a variety of asset classes, including hedge funds, private equity, venture capital, and real estate. Describe the firm’s process for evaluating asset classes and investment managers. Provide a description of the firm’s methodology for classifying investment managers and the definition of asset classes. For private equity and real estate, include methods used for cash flow forecasting and modeling in order to achieve target allocations. 3. Give a description of the research resources available to your firm, including the qualifications of research staff, especially in regards to alternative assets. 4. Please provide examples of investment policies that your firm has helped implement for other endowments/foundations, preferably for public universities. Especially include any for entities in Texas. Also note any examples dealing with short/intermediate fixed income pools, i.e. operating fund investment pools. 5. For manager searches, describe your processes in compiling, organizing, and assessing manager data. Include discussions of qualitative vs. quantitative data, 11
  • 12. due diligence performed, and manager databases used. Also include your firm’s ability to gain access to top-tier funds. 6. Describe your different investment performance universes and what entities are included in each universe (ex. total endowments, domestic all-cap equity, etc.). Note comparisons made with NACUBO and other higher education surveys/databases. 7. Describe any experience working as one of a group of consultants for a single client, including processes of coordinating and segregating duties. Reporting 1. Provide examples of performance evaluation reports, including indices used. Include examples of monthly performance reports and quarterly performance and evaluation reports. 2. Describe the flexibility of your firm’s reporting package(s) and the ability to provide custom reports. 3. Provide examples of risk management reports, including different measures of risk used and asset classes assessed. 4. Provide examples of transparency reports, especially related to hedge fund leverage. Fees 1. Provide a fee schedule for investment consulting, including retainer-based and fee-for service, if available. 2. Provide information on additional fees and expenses that will be required in any resulting contract. References 1. Please provide at least three client references, preferably endowment/foundation clients. Especially include any within the state of Texas and/or those that are public universities. Include one reference that is no longer a client of your firm. Disclosures 1. Disclose conflicts of interest (identifying each and every matter in which the firm has, within the past calendar year, represented any entity or individual with an interest adverse to the System or the State of Texas, or any of its boards, agencies, commissions, universities). 2. In an effort to minimize potential conflicts of interest, please disclose any investment management and/or brokerage services provided by your firm or its affiliates. Disclose any fees received from and services provided for investment managers. 3. Disclose any stop order, consent decree, censure, reprimand, or other disciplinary action received by your firm or any member of your firm from any federal or state regulatory agency during the last five years. 12
  • 13. 4. Affirm the firm’s willingness to comply with policies, directives and guidelines of the System and the Attorney General of the State of Texas. 4.2 Rates for Services Each Proposer must provide specific information about fees for all Products and Services. Proposers are requested to extend the pricing, and all terms and conditions offered in their proposal to state agencies listed as institutions of higher education as defined by Section 61.003, Education Code, Government Code Section 2155.134, as well as other State of Texas “Certified”, public educational entities. In the event an award is made, the individual agencies may or may not elect to use the agreement. The remainder of this page left blank intentionally. Additional information on the following page. 13
  • 14. 4.3 Proposer Affirmation Clauses (may be acknowledged electronically on TechBid) Each Proposer must affirm and incorporate in its Proposal all of the Affirmations set forth in this Section 4.3. If the System determines a Proposer has submitted a false statement in whole or in part, in regard to any of these affirmations, then the System will disqualify the Proposer from consideration and report the false statement as such to the Texas Comptroller’s Office (“Comptroller”). In turn, the Comptroller can remove the Proposer from the Centralized Master Bidders List (CMBL). Accordingly, the Proposer affirms all of the following, without limitation: A. The Proposer has not conferred or offered to confer, either directly or indirectly, any benefit whatsoever on a public servant in connection with the submitted Proposal or the subject matter of the Proposal; B. Bidder/proposer affirms that no blood or marriage affiliation exist between owners, officers, administrators and employees of the bidder/proposer and The System which could be construed as a conflict of interest. C. The Proposer either is not subject to the payment of franchise taxes to the State of Texas or is not currently delinquent in regard to the payment of franchise tax owed to the State of Texas. D. The Proposer, individually or acting by and through its officers, principals, employees, contractors, subcontractors, agents, or personnel, has neither (i) violated state or federal antitrust laws nor (ii) communicated any of the contents of the Proposal to its competitors or any other person or entity engaged in such line of business; E. The Proposer did not participate in or receive compensation for preparation of the RFP; F. As required by section 231.006 of the Texas Family Code (relating to payment of child support), the Proposer certifies that the individual or business entity named in this Proposal is not ineligible to receive payments from the ensuing contract, if any, and acknowledges that the ensuing contract can be terminated and/or payment can be withheld if this Child Support certification is inaccurate G. The Proposal must include the name and Social Security Number of each person maintaining an ownership interest of 25 percent or more of the business entity submitting the Proposal. Proposers that have pre-registered this information on the Texas Comptroller’s Office Centralized Master Bidders' List will be deemed to have satisfied this requirement; Name SSN 3
  • 15. H. Pursuant to section 2155.004 of the Texas Government Code (relating to the collection of state and local sales and use taxes), the Proposer certifies that the individual or business entity named in the Proposal is not ineligible to enter into a resulting contract, if any. If this certification is inaccurate, then the resulting contract can be terminated and/or payment can be withheld; I. Proposer understands that acceptance of funds under this contract acts as acceptance of the authority of the State Auditor's Office, or any successor agency, to conduct an audit or investigation in connection with those funds. Proposer further agrees to cooperate fully with the State Auditor's Office or its successor in the conduct of the audit or investigation, including providing all records requested. Bidder/Proposer will ensure that this clause concerning the authority to audit funds received indirectly by subcontractors through Bidder/Proposer and the requirement to cooperate is included in any subcontract awards; J. The Proposer shall defend, indemnify, and hold harmless the State of Texas, all of its officers, agents and employees from and against all claims, actions, suits, demands, proceedings costs, damages, and liabilities, arising out of, connected with, or resulting from any acts or omissions of the Proposer or any agent, employee, subcontractor, or supplier of contractor in the execution or performance of the resulting contract; K. By signing the Proposal, the Proposer certifies that if a Texas address is shown as the address of the proposer, the proposer qualifies as a Texas Resident Bidder, as defined in Rule 1 Texas Administrative Code, section 111.2.; L. The Proposer acknowledges and agrees that the dispute resolution process provided in chapter 2260 of the Texas Government Code must be utilized by the System and/or its campus components and the Proposer to attempt to resolve all disputes arising under the Contract; SUBMITTED: Firm: (SEAL: If Proposal is by a Corporation) By: Title: 4
  • 16. SECTION FIVE EVALUATION, SELECTION, AWARD 5.1 Type of Contract The successful Proposer will be required to enter into a contract. The Proposer may submit its standard form contract for review by the System. The System is subject to the laws of the State of Texas including the Dispute Resolution Procedure set out in Texas Government Code 2260. The System will not be bound to another state’s laws in any resulting contract. 5.2 Public Information The System considers all information, documentation and other materials requested to be submitted in response to this solicitation to be of a non-confidential and non-proprietary nature and therefore shall be subject to public disclosure under the Texas Public Information Act (Texas Government Code, Chapter 552.002, et seq.) after a contract is awarded. Proposers are hereby notified that System strictly adheres to all statutes, court decisions, and opinions of the Texas Attorney General with respect to disclosure of RFP information. 5.3 Contract Award Process An award for the services specified herein will be made following a procedure using competitive sealed proposals. Proposals will be acknowledged publicly to identify the names of the Proposers, but will be afforded security sufficient to preclude disclosure of the contents of the proposal, including prices or other information, prior to award. After opening, an award may be made on the basis of the proposals initially submitted, without discussion, clarification or modification, or on the basis of negotiation with any of the Proposers or, at System's sole option and discretion, System may discuss or negotiate all elements of the proposal with selected Proposers which represent a competitive range of proposals. For purposes of negotiation, a competitive range of acceptable or potentially acceptable proposals may be established comprising the highest rated proposal(s). After the submission of a proposal but before making an award, System may permit the offeror to revise the proposal in order to obtain the best final offer. System may not disclose any information derived from the proposals submitted from competing offers in conducting such discussions. System will provide each offeror with an equal opportunity for discussion and revision of proposals. Further action on proposals not included in the competitive range will be deferred pending an award, but System reserves the right to include additional proposals in the competitive range if deemed in the best interest of System. System reserves the right to award a Contract for all or any portion of the requirements proposed by reason of this request, award multiple Contracts, or to reject any and all proposals if deemed to be in the best interests of System and to re-solicit for proposals, or temporarily or permanently abandon the procurement. If the System awards a contract, it will award the contract to the offeror whose proposal is the most advantageous to System, considering price and the evaluation factors set forth in this RFP. 5
  • 17. 5.4 Evaluation of Proposals System personnel will evaluate proposals. Submission of a Proposal indicates the Proposer’s acceptance of the evaluation process set forth in this RFP and the Proposers acknowledgement that subjective judgments must be made by the System in regard to the evaluation process. The System will name finalists with regard to the selection and have those finalists present to the IAC before contract award. Award will be made based on evaluation of proposals and quality of presentations. 5.5 Criteria for Evaluation The evaluation will include the overall response to the RFP and the general requirements defined in the RFP. The System will evaluate and name the finalists on the proposals that are determined to be the best values to the State based on the criteria listed below. All proposals must be complete and convey all of the information requested to be considered responsive. If the proposal fails to conform to the essential requirements of the RFP, the System alone will determine whether the variance is significant enough to consider the proposal susceptible to being made acceptable and therefore a candidate for further consideration, or not susceptible to being made acceptable and therefore not considered for award. The following weights have been assigned for the evaluation process: Demonstrated competence & qualifications 65% Fee Structure 10% References 25% Total 100% 5.6 Consideration of Additional Information The System reserves the right to ask for and consider any additional information deemed beneficial to the System in evaluation of the Proposals. SECTION SIX INSURANCE 6.1 The Proposer agrees to furnish insurance certificate reflecting the following coverage: Type of Coverage Limits of Liability Worker's Compensation Statutory Employer's Liability $50,000/$50,000/$250,000 Comprehensive General Liability a. Bodily Injury $250,000 each occurrence 6
  • 18. b. Property Damage $50,000 each occurrence $150,000 aggregate Comprehensive Automobile Liability (if any vehicle is brought onto the System campus): a. Bodily Injury $150,000 each person $150,000 aggregate b. Property Damage $150,000 each occurrence 6.2 Effect of Indemnification Obligations No provision, term, or condition in the Contract regarding indemnification obligations shall be construed to limit the application of insurance procured by the Proposer in accordance with requirements set forth in the Contract. 6.3 Additional Named Insured, Subrogation With the exception of the Workers' Compensation policy, the System shall be an additional-named insured on all policies, and subrogation against the System must be waived. 6.4 Certificates of Coverage At least thirty (30) days prior to the effective date of the contract and at least thirty (30) days prior to the commencement of any renewal term of the contract, the Proposer shall furnish the Purchasing and Contracting Office with certificates of insurance in a form acceptable to the System’s Risk Manager, certifying that the Proposer carries the required insurance polices and coverage. The certificates shall be sent to the Purchasing and Contracting Office, at the address or fax number listed previously in the RFP. 6.5 Notification of Cancellation Each insurance policy shall contain a covenant by the insurance company issuing the policy that the policy will not be modified or canceled unless thirty (30)-days' prior written notice of modification or cancellation is given to the System's Purchasing and Contracting Office. In the event the Proposer receives notice of modification or cancellation of any of the policies required under the contract, then, prior to the effective date of modification or cancellation of the policy, the Proposer shall obtain a policy of insurance affording the required coverage from an insurance carrier acceptable to the System's Risk Manager. If the Proposer fails to obtain such an insurance policy, the System may immediately terminate the Contract without further notice to the Proposer. 7
  • 19. SECTION SEVEN GENERAL TERMS AND CONDITIONS 7.1 Initial Term; Renewal Terms The initial term for this agreement will be three (3) years. This agreement may be extended for three (3) additional one (1)-year periods upon mutual agreement of both parties with provisions remaining the same following completion of original contract. 7.2 Termination The Contract may be sooner terminated on the first to occur of the following: A. Termination without Cause: In the event either the System or the Proposer shall, with or without cause, at any time give to the other at least 30 days’ advance written notice, the Contract shall terminate on the future date specified in such notice. C. Mutual Agreement: In the event the System or the Proposer mutually agree in writing, the contract may be terminated on the terms and date stipulated in the writing. D. Termination by Default: In the event either party shall give notice to the other that the other party has substantially defaulted in the performance of any obligation under the contract, and the default has not been cured within 10 business days following the receipt of such notice by the party alleged to be in default, the party giving notice shall have the right to terminate the contract immediately, upon the close of System business, or at 5p.m., Central Time on the 10th business day after notice was received. In the case of this contract, default shall also include loss by the Proposer of any required licenses or any investigation into fraud in the performance of their line of work. E. Termination for Insolvency, Bankruptcy, Assignment to Creditors: The System may, without further notice, terminate this agreement immediately if the Proposer (i) petitions for reorganization under the Bankruptcy Code or is adjudged bankrupt; (ii) becomes insolvent or a receiver is appointed due to the insolvency; or (iii) makes a general assignments or sale of its assets or business for the benefit of creditors. F. Funding Out: The System shall have the right to cancel this contract at the end of the then current fiscal period if funds are not allotted for the next fiscal year to continue this contract. 8
  • 20. The System may effect such cancellation by giving the Proposer written notice of its intention to cancel not less than thirty (30) days prior to the end of the then current fiscal period, stating its reasons for cancellation. Upon cancellation of this contract as provided in this section 7.2.E, the System shall not be responsible for the payment of any services received which occur after the end of the current contract period. 7.3 Requirements for Recordkeeping The Proposer shall maintain records generated pursuant to services rendered in accordance with the contract for a period of at least four (4) years after submission of the last accounting report date on which services were rendered, or until final resolution of any proceedings arising out of the contract, whichever date is later in time. 7.4 Right to Inspect The System retains the right to examine, inspect, audit, and copy, regardless of location, any and all documents, records, files, data, and information generated or utilized by the Proposer in the performance of the contract. 7.5 Definition of Terms Contract The term "contract" shall mean the written agreement, if any, executed by the authorized representatives of the System and the Selected Proposer(s) that formalizes the terms, provisions, covenants, and obligations, including but not limited to those contained in this RFP, of the respective parties to the arrangement for provision of services. System Liaison The term "System Liaison" shall be defined as the Section Supervisor of Purchasing and Contracting for purposes of this RFP. In the contract, the “System Liaison” shall be redefined. Proposer's Personnel The term "Proposers Personnel" shall mean and include any and/or all of the following, without limitation: employees, leased employees, agents, officers, directors, staff, independent contractors, contractors, or subcontractors, or any individuals furnished, referred, or provided by the Proposer for purposes arising out of or related to this RFP, the Proposer's Proposal, and the contract, if any, that results from the award made by the System to the Selected Proposer. Fiscal Year/Academic Year A fiscal year begins on September 1 and ends on August 31. An academic year starts with the first day of fall classes and ends with the last day of spring or summer semester classes. Sex Offender Registration All sex offenders required to register with local law enforcement authorities under 9
  • 21. chapter 62 of the Texas Code Of Criminal Procedure and who intend to work or carry on a vocation (full-time or part-time) on any campus of Texas Tech University System for a consecutive period exceeding fourteen (14) days or for an aggregate period exceeding thirty (30) days in a calendar year are required to register (or verify registration) with the law enforcement authority for campus security in accordance with article 62.064 of the Texas Code Of Criminal Procedure within 7 days of beginning work on any campus of Texas Tech University System. In addition, such sex offenders are required to notify the law enforcement authority for campus security within seven (7) days of terminating work on any campus of Texas Tech University System. For additional information, please contact the Texas Tech University Police Department, 2901 4th St., Lubbock, Tx 79409, 806-742-3931. 10