Oregon Investment Council
                                             Request For Proposals
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Oregon Investment Council
                                                                 Request For Proposals
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Oregon Investment Council
                                                                        Request For Proposals
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Oregon Investment Council
                                                                          Request For Proposals
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Oregon Investment Council
                                                                          Request For Proposals
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Oregon Investment Council
                                                                        Request For Proposals
  ...
Oregon Investment Council
                                                                          Request For Proposals
...
Oregon Investment Council
                                                                          Request For Proposals
...
Oregon Investment Council
                                                                     Request For Proposals
     ...
Oregon Investment Council
                                                                      Request For Proposals
    ...
Oregon Investment Council
                                                                         Request For Proposals
 ...
Oregon Investment Council
                                                                      Request For Proposals
    ...
Oregon Investment Council
                                                                          Request For Proposals
...
Oregon Investment Council
                                                                       Request For Proposals
   ...
Oregon Investment Council
                                                                         Request For Proposals
 ...
Oregon Investment Council
                                                                          Request For Proposals
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Oregon Investment Council
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Microsoft Word - RFP for Investment Consulting Services ...

  1. 1. Oregon Investment Council Request For Proposals Oregon Savings Growth Plan (457 Plan) Oregon Investment Council Request for Proposals Investment Consulting Services Oregon Savings Growth Plan (457 Plan) May 21, 2009 Page 1 of 17
  2. 2. Oregon Investment Council Request For Proposals Oregon Savings Growth Plan (457 Plan) Table of Contents Page Number Introduction 3 Background 3 Oregon Savings Growth Plan (OSGP) Overview 4 Scope of Work 5 Proposal Timeline 7 Proposal Submission & Deadline 7 Exceptions to RFP 7 Questions regarding RFP 8 Public Records Information 8 Proposal Questionnaire 9 Proposal Evaluation 17 Page 2 of 17
  3. 3. Oregon Investment Council Request For Proposals Oregon Savings Growth Plan (457 Plan) INTRODUCTION The Oregon Investment Council (Council or OIC) is seeking to hire a general investment consulting contractor to provide investment and other advice related to the Oregon Savings Growth Plan, the State of Oregon’s 457 plan. Qualified respondents will comprise the pool from which the Council intends to base its consulting contract selection. The initial contract term for general investment consulting services will be three years. The contract may, at the discretion of the Council, be renewed for two additional two- year periods. By submitting its proposal, the successful vendor (Contractor or Consultant) agrees to be bound by the terms and conditions of the State of Oregon Personal/Professional Services Contract (Contract) that is attached to this Request for Proposal (RFP) as Exhibit A (posted at http://www.ost.state.or.us/news/RFP/index.htm). Any proposal that is received conditioned on the Council’s acceptance of any other terms and conditions or rights to negotiate will be rejected as non-responsive BACKGROUND OREGON INVESTMENT COUNCIL Oregon Revised Statute (ORS) 293.706 establishes the Oregon Investment Council, which consists of five members, four of whom are subject to Senate confirmation. One member of the Council is a public member who serves on the Public Employees Retirement Board. Three members, who must be qualified by training and experience in the field of investment or finance, are appointed by the Governor, and one member is the State Treasurer. In addition, the Director of the Public Employees Retirement System is an ex officio member of the Council. The Council maintains a Deferred Compensation Investment Program (Program) providing investment options with varying levels of risk and returns for those eligible employees who choose to participate in the Program. OREGON INVESTMENT COUNCIL MEMBERS Katy Durant, Chair * Appointed by Governor Portland Term expires: 9/19/2010 Ben Westlund, State Treasurer Serves by statute Salem For term of office Harry Demorest Appointed by Governor Portland Term Expires: 1/22/2010 Keith Larson Appointed by Governor Portland Term expires: 9/30/2011 Richard Solomon Appointed by Governor Portland Term Expires: 1/31/2010 Paul Cleary PERS Director Portland Ex officio Page 3 of 17
  4. 4. Oregon Investment Council Request For Proposals Oregon Savings Growth Plan (457 Plan) *Chair elected by the Council OFFICE OF THE OREGON STATE TREASURER The Oregon State Treasurer is a constitutional officer and a statewide elected official. The Treasurer serves as the chief investment officer for the state and is responsible for the prudent financial management of state money. The Office of the State Treasurer staff (Treasury staff or OST staff) provides on-going assistance to the Council. OREGON SAVINGS GROWTH PLAN OVERVIEW The Oregon Growth Savings Plan (Plan or OGSP) is the State of Oregon’s 457 deferred compensation plan. It is a voluntary supplemental retirement plan that provides eligible state and local government employees the opportunity to defer receipt of a portion of their current salary. These deferrals are invested in various investment vehicles until they are paid to the employee. Employees choosing to participate in the Plan build additional savings to supplement Social Security or other retirement benefits they may later receive. Generally, participants begin receiving payment from this Plan at retirement. Approximately 23,000 eligible employees participate in the Plan, which has assets totaling more than $774 million (as of 3/31/09). Oversight of the Plan’s investment program is the responsibility of the Oregon Investment Council and supported by Treasury staff. The Plan offers an array of eight investment options (Short-Term Fixed Option, Stable Value Option, Intermediate Bond Option, Large Company Value Stock Option, Stock Index Option, Large Company Growth Stock Option, International Stock Option, Small/Mid-Size Company Stock Option) and 10 Target Date Asset Allocations Options. Plan participants may individually direct their salary deferrals to any of these options. Each investment option is supported by multiple investments in mutual funds and/or commingled accounts (see Exhibit B posted at http://www.ost.state.or.us/news/RFP/index.htm ). Oversight of the Plan’s non-investment related administrative program is the responsibility of the Oregon Public Employees Retirement Fund Board (OPERF Board) with support from the OSGP manager. Additional oversight is provided by a seven member Deferred Compensation Advisory Committee established under ORS 243.505. The Deferred Compensation Advisory Committee studies and advises the OPERF Board on various activities within the Oregon Public Employees Retirement Fund (“OPERF”), such as: • The OSGP fee structure and procedures; • State and federal legislative issues related to the administration of a deferred compensation plan; • The administration of the catch-up and the financial hardship provisions in Section 457 of the Internal Revenue Code of 1986, as amended (Code); • Ways and means to inform and educate eligible employees about the Plan; • The expressed desires of eligible employees as to the Plan. • The actuarial characteristics of eligible employees. Page 4 of 17
  5. 5. Oregon Investment Council Request For Proposals Oregon Savings Growth Plan (457 Plan) SCOPE OF WORK A. INVESTMENT CONSULTING 1. Annual Reporting to the OIC. The Consultant shall work with OST staff to prepare and present to the OIC a comprehensive annual report covering: • The appropriateness of the current Plan structure and an analysis for alternative structures or structural changes including, but not limited to: a)Bundled vs. unbundled investment providers and record keepers, b)Active vs. passive management, c)Commingling and unitizing OPERF, d)Creating separate pools of assets that use OPERF managers, and e)Inclusion of brokerage windows. • Risk-adjusted performance of the various investment options and underlying fund managers. • Recommended changes to overall Plan structure including the investment policies, fund and option additions, deletions, and allocation modifications, and performance objectives and standards for each investment fund and option. • The appropriateness of the asset allocation structures used for the target date retirement funds employed by the Plan. 2. Quarterly Reporting to the OIC. On a quarterly basis, Contractor shall monitor, review, and evaluate of all investment funds and options used in the Plan and provide the OIC with a formal report of such review and evaluation. 3. On-going Monitoring. Contractor shall continuously monitor investment funds used in the Plan for adverse events such as key person departures, significant changes in organizational ownership, significant client losses, and other negative product concerns. Advise OST staff and the OIC as to the continuing appropriateness of a Plan investment manager or investment fund or option when concerns are identified about such manager, fund or option. 4. Investment Manager Searches. Contractor shall assist OST staff with investment manager search activity and make recommendations to the OIC regarding the hiring of any investment manager. 5. Current Trends and Issues. Contractor shall keep the OIC and OST staff informed about current investment trends and issues in the defined contribution industry. 6. Requests for Proposals. Contractor may be asked to provide assistance on drafting requests for proposal (RFP) for more complex investment vehicles such as stable value or target date retirement funds and evaluating the responses submitted. 7. Transitions. The Contractor may be asked to assist in the transition of administrative or investment management services or assets from one provider to another. 8. Fiduciary Duties. Contractor will act as a fiduciary to the Plan. Page 5 of 17
  6. 6. Oregon Investment Council Request For Proposals Oregon Savings Growth Plan (457 Plan) B. PLAN ADMINISTRATION 1. Request For Proposal Development (RFP) and Review of Responses - The Contractor will, at the request of the OIC, assist the OSGP manager and Treasury staff in developing requests for proposal for third-party administrative and recordkeeping services, evaluating responses to those proposals, making recommendations to the OSGP for action, and assisting in contract negotiations. 2. Plan Design – The Contractor will be asked to provide input and advice with respect to Plan design including: • The expansion of the Plan to include new services or product offerings; • Technical/Retirement Services – on an as-needed basis, evaluate and provide commentary with respect to a variety of tax, technical and retirement plan issues for use in day-to-day administration of the Plan and research of related matters; and • Providing expert advice and analysis with respect to the following: Proposed or actual Federal legislation and regulations affecting 457 plans; Potential modifications to OSGP’s plan’s provisions; Questions which may arise from time to time in the administration of the Plan concerning the interpretation of Federal rules and policies and their applicability to OSGP’s plan; A broad range of questions related to retirement or tax-deferred saving concepts or issues not necessarily directly related to Section 457 of the Code or defined contribution plan administration; and Administrative rules governing the Plan such as participant trading restrictions. 3. Communications – The Contractor may be asked to provide assistance with communications including: • Design and review of communications materials promoting the Plan or educating participants regarding various aspects of the Plan; • Development of marketing strategies for the Plan. Marketing strategies may be geared towards encouraging participation in the Plan as well as educating participants regarding various aspects of the Plan; and • Development and evaluation of participant assessments such as surveys and customer satisfaction evaluations. 4. IRS Audit - The Contractor may be asked to assist in responding to an IRS audit. Page 6 of 17
  7. 7. Oregon Investment Council Request For Proposals Oregon Savings Growth Plan (457 Plan) PROPOSAL TIMELINE RFP Release May 21, 2009 Exceptions to RFP June 4, 2009, 2009 Responses Due June 18, 2009, 2009 Selection of Finalists To be determined Finalist Presentations to Treasury staff To be determined Selection of Contractor To be determined PROPOSAL SUBMISSION & DEADLINE A proposal must be signed by a duly authorized representative of the vendor empowered to bind the vendor. Seven (7) copies of a vendor’s response must be submitted in a sealed package(s) or envelope(s). To ensure proper identification and handling, each package or envelope should be clearly marked with “Oregon Savings Growth Plan (457) - Investment Consulting Services Response.” IN ORDER TO EVALUATE EACH RESPONSE WITHOUT CONSIDERATION OF COST ESTIMATES, SEVEN (7) COPIES OF THE FEE SCHEDULE MUST BE SUBMITTED IN A SEPARATE ENVELOPE. IT SHOULD BE CLEARLY MARKED "CONFIDENTIAL – INVESTMENT CONSULTING SERVICES PRICING SCHEDULE" AND SUBMITTED WITH THE RESPONSE DOCUMENT. Responses must be received by 4:00 p.m., Pacific time, on June 18, 2009, at the Office of the Oregon State Treasurer—no faxed responses will be accepted. Responses should be directed to: Michael Viteri Public Equity Investment Officer Office of the Oregon State Treasurer 350 Winter Street NE, Suite 100 Salem, Oregon 97301-3896 EXCEPTIONS TO THIS RFP Exceptions to any of the terms of this RFP (including the Contract form attached to this RFP) to which a vendor will not or does not agree must be presented by the vendor in writing as provided in this section and directed to: Michael.Viteri@ost.state.or.us by the deadline indicated in the Timeline above. Such exceptions must be specific, and the vendor must state a reason for each exception and propose alternative language, if appropriate. The purpose of the exception process is to permit the OIC to correct, prior to the opening of the proposals, any technical or contractual requirement, provision, ambiguity or conflict in the RFP and related documents, which may be unlawful, improvident, unduly restrictive of competition or otherwise inappropriate. Unless timely submitted as an exception, any such ambiguity, conflict or problem shall be resolved in favor of the OIC. Page 7 of 17
  8. 8. Oregon Investment Council Request For Proposals Oregon Savings Growth Plan (457 Plan) QUESTIONS REGARDING RFP Questions regarding this RFP shall be directed to: Michael Viteri at 503-378-3466 or Michael.Viteri@ost.state.or.us. Vendors shall not contact, directly or indirectly, any other employee or member of the OIC, OSGP or the Oregon State Treasury. Contact shall be limited to inquiries and exceptions as set forth herein. The OIC reserves the right to eliminate from consideration any vendor who does not comply with these requirements. Vendors are cautioned that a proposal requirement contained in this RFP will change as a result of an exception or question regarding this RFP only if confirmed by a written addendum to this RFP. Any addendum will be e-mailed directly to respondents and will be posted at http://www.ost.state.or.us/news/RFP/index.htm PUBLIC RECORDS This Request for Proposals and one copy of each original response received (excluding the pricing/fee information), together with copies of all documents pertaining to the award of the Contract (excluding pricing/fee information), shall be kept by the Board and made a part of a file or record which shall be open to public inspection. If a response contains any information that may be exempt from disclosure under the Oregon Public Records Law, ORS 192.410 through 192.505, a vendor must clearly designate that portion of its response it considers to be exempt, along with a justification and citation to the authority relied upon. Application of the Oregon Public Records Law will determine whether any information is actually exempt from disclosure. Identifying a Proposal as exempt from disclosure is not acceptable and will not be effective to exempt the response or any part of it from disclosure. Failure to identify the portion of the response claimed as exempt from disclosure, and to specify a justification and the authority relied upon, will be deemed a waiver of any future claim based on disclosure of that information. Proposals will be opened in a manner to avoid disclosure of their contents to competing proposers during any process of negotiation. Proposals will not be open for public inspection until after the notice of intent to award a contract is issued. The fact that proposals are open at a meeting, as defined in ORS 192.610, will not make their contents subject to disclosure, regardless of whether the Council fails to give notice of or provide for an executive session for the purpose of opening proposals. Disclosure of the contents of the proposals after the Council's issuance of its notice of intent to award a contract is subject to the Oregon Public Records Law." Page 8 of 17
  9. 9. Oregon Investment Council Request For Proposals Oregon Savings Growth Plan (457 Plan) PROPOSAL QUESTIONNAIRE The following questionnaire must be completed and included with your response to this RFP; otherwise the response will be considered non-responsive. LIMIT YOUR RESPONSE TO THIS QUESTIONNAIRE TO NO LONGER THAN 35 PAGES IN TOTAL. Responses to requests for sample reports or exhibits will not be included in the 35-page maximum, as noted below for specific questions. TYPE RESPONSES IN THE SAME ORDER AS THE QUESTIONS, LISTING THE HEADING FIRST (EX., “MINIMUM QUALIFICATIONS” AND “GENERAL QUESTIONNAIRE”), REPEATING THE QUESTION NUMBER AND TEXT, FOLLOWED BY YOUR ANSWER. MINIMUM QUALIFICATIONS: Provide your firm’s specific responses demonstrating that you meet each of the following Minimum Qualifications (IF YOU DO NOT DOCUMENT AND SUPPORT YOUR FIRM’S RESPONSE TO THE FOLLOWING THREE MINIMUM QUALIFICATIONS, YOUR FIRM’S PROPOSAL WILL NOT BE CONSIDERED FURTHER.): 1) The firm must provide consultation primarily to institutional investors. 2) The firm must provide consultation to defined contribution plans or 457 plans. 3) The firm must have full-service traditional consulting capabilities (including but not limited to consultation on asset allocation, manager research, and performance monitoring). GENERAL QUESTIONNAIRE: A. CONSULTING FIRM Location and History 1) What is your firm’s complete name, address, web address, voice telephone and fax numbers? Include the name and title of the individual who will act as your primary consultant and the location from which the consulting work will be done. 2) Please provide a brief history, from inception, of your firm and any parent organization. Within the past three years, have there been any significant developments in your organization, such as changes in ownership, restructuring, or personnel reorganizations? Do you anticipate future significant changes in your organization? If yes, please describe. Page 9 of 17
  10. 10. Oregon Investment Council Request For Proposals Oregon Savings Growth Plan (457 Plan) Organization, Ownership, and Independence 3) Describe the ownership structure of your organization giving specific details with regard to any parent or affiliates. Include an organizational chart. 4) Describe the line(s) of business of your firm, any parent organization and any affiliated companies. How many employees are involved in each line of business? 5) Is your firm, any parent or any affiliate, a registered investment advisor with the SEC under the Investment Advisors Act of 1940? If yes, please provide copies of all financial statements, including those for any affiliates, that were required to be filed with the SEC. If not, what is your fiduciary classification? The firm must contractually agree that in the performance of its duties it owes the OSGP and the OIC the highest professional care and responsibility. The financial statements will not be counted toward the 35 page maximum. 6) Within the last five years, has your organization or an officer or principal been involved in any business litigation or other legal proceedings relating to your consulting activities? If so, provide an explanation and indicate the current status or disposition. 7) Please describe the level of coverage for errors and omissions insurance and any fiduciary or professional liability insurance your firm carries. List the insurance carrier(s) supplying the coverage. 8) Are there any circumstances specifically related to your investment consulting activities under which your firm, its parent, affiliate, joint venture, its directors, officers or employees receive direct or indirect compensation from investment managers? If so, describe in detail. 9) Does your firm, its parent, affiliate, joint venture, its directors, officers or any employee sell information or any other services, directly or indirectly, to investment managers? If so, describe in detail. 10) Disclose any other affiliations, strategic alliances, joint ventures, and referral arrangements, if not previously disclosed in your response to this RFP. 11) Provide a complete listing of any business relationships that your firm, its parent, or any affiliate of your firm has with any investment management firms. 12) Has your firm adopted the CFA Institute’s Code of Ethics and Standards of Professional Conduct? Page 10 of 17
  11. 11. Oregon Investment Council Request For Proposals Oregon Savings Growth Plan (457 Plan) Employees 13) Provide biographies of the key individuals who would be assigned to providing investment consulting services to the OIC, as well as other key human resources of your firm. Please include descriptions of their qualifications such as education, experience, years with firm, and years working with 457 plans. (Note: The number of pages for this response will be excluded when determining compliance with the 35 page maximum.) 14) List senior staff hires and departures over the last three years. 15) Provide data relating to turnover ratios of your investment management research staff over the last three years. 16) Do any of your investment consulting employees have portfolio management or plan sponsor experience? Please give details and identify such individuals. 17) Describe your firm’s compensation arrangement for professional staff. How does this arrangement encourage the retention of key individuals? B. CONSULTING CAPABILITIES Asset Allocation & Investment Policy Analysis 18) Outline your firm’s approach to the development of an investment policy. Provide a sample with your response. (Note: The number of pages of this sample will be excluded when determining compliance with the 35 page maximum.) 19) Describe your firm’s involvement in preparing guidelines regarding contractual requirements for individual investment managers. 20) Describe your firm’s experience and capabilities for evaluating and providing expert advice on asset allocation models. 21) What role does passive management play in your firm’s general view of the asset allocation process for your clients? Performance Measurement 22) Describe your experience and capabilities for evaluating performance of investment products within 401k, 457, and 529 plans. Please include a sample performance measurement report for a 401k, 457, or 529 plan. (Note: The number of pages of this sample will be excluded when determining compliance with the 35 page maximum.) Page 11 of 17
  12. 12. Oregon Investment Council Request For Proposals Oregon Savings Growth Plan (457 Plan) Investment Manager Research 23) Give an overview of your firm’s criteria and approach for ranking investment managers. Differentiate among the rankings. 24) Has your investment manager ranking framework ever been tested for its efficacy? 25) How does your firm provide investment manager research? a. Does your firm maintain an in-house database of investment managers? b. If not, what vendor provides this information to you? c. How many managers, by asset class and subcategory, are contained in the database? 26) What is your firm’s investment manager research process? Describe how your firm or your firm’s vendor(s) gathers, verifies, updates and maintains the data collected on investment managers for the database. 27) Describe the process used by your firm to evaluate new, prospective investment managers before they are included in the database. 28) Does your firm or your vendor(s) charge direct or indirect fees for investment managers to be included in your firm’s database? 29) If your firm has an in-house database, does your firm sell it to third parties? If so, how does your firm receive compensation? 30) Does your firm have individuals in-house dedicated to investment manager research? If so, describe their qualifications, number, and location. 31) Describe your firm’s policy regarding frequency of on-site investment manager visits. Describe their role in the investment manager search process. 32) Describe in detail your firm’s process for evaluation and selection of investment managers. Give a list of criteria your firm uses to screen your database. Detail some of the key issues you would examine in the process. Include an actual investment manager research report with your response. (Note: The number of pages of this report will be excluded when determining compliance with the 35 page maximum.) 33) Does your firm charge investment managers any direct or indirect fees when they are selected as investment manager in searches that your firm conducts on behalf of clients? Page 12 of 17
  13. 13. Oregon Investment Council Request For Proposals Oregon Savings Growth Plan (457 Plan) 34) Does your firm receive any direct or indirect fees associated with transition management services that your firm conducts on behalf of clients? Research 35) Describe the internal structure and organization of your firm’s research department. If no separate department exists, describe how this function is performed. 36) Describe the manner in which external resources and sources of information are used by your firm in its research process. How does your firm integrate internal and external research? Outline your firm’s process for monitoring and reporting on market trends. 37) Please describe in detail the type and frequency of research or educational opportunities that would be provided to the OIC. Through what media is it provided? 38) Include in your response three recent research reports on special topics generated by your firm. (Note: The number of pages of these reports will be excluded to determine compliance with the 35 page maximum.) C. 457 PLAN ADMINISTRATION & DEVELOPMENT OF REQUESTS FOR PROPOSAL 39. Provide examples of innovative approaches you have initiated or assisted in developing with respect to defined contribution plan design concepts. These examples may relate to the organization of administrative services, the structure of investment option menus, the expansion/enhancement of related program types or services, etc. 40. Describe the resources you can make available to the Plan for the purpose of expert technical review of defined contribution plan statutes and regulations. Provide some background on your experience with respect to Section 457 regulations. 41. Describe any experience your firm has in either pre-testing for an Internal Revenue Service (IRS) audit or assisting plan sponsors in navigating an actual IRS audit. 42. Discuss your experience in the design of requests for proposal for plan administration (including recordkeeping, communication and enrollment services). Provide some background on your development process for this type of Page 13 of 17
  14. 14. Oregon Investment Council Request For Proposals Oregon Savings Growth Plan (457 Plan) requests for proposals, including the gathering of plan data, establishing timelines, etc. 43. In the last three years, how many such requests for proposals has your company helped develop? For each, please indicate the plan, plan type (e.g. Section 457, 401(k), etc.), approximate number of participants and assets. Describe the resources utilized in generating and reviewing questions related to such requests and summarizing results for clients. 44. Provide examples of innovative approaches you have initiated or otherwise assisted in developing with respect to print communication materials and campaigns. These examples are not limited to the field of retirement planning or investing and may include any subject matter you choose. 45. OSGP has an approximate 23% participation rate. This number includes eligible state employees as well as employees of local government and school districts. Broken down by agency or school, participation rates range from as low as 0% to as high as 100%, depending on the population. The low-participation groups are typically those which are difficult to access through in-person meetings because they are spread out over a large geographic area and are often involved in field work. Describe how you would develop a marketing strategy to encourage these employees to enroll in the plan. Do not assume that large-scale group meetings will be a primary tool for increasing participation for this group. 46. OSGP conducts periodic participant surveys for various purposes. These surveys may be targeted at limited populations, or the entire population, and are direct- mailed to participant homes. OSGP’s contract with its third party administrator (TPA) provides that the TPA will help develop, mail and tabulate the surveys, but the Plan is not limited to using the TPA only. Describe any unique qualifications/experience you have in survey development and execution. D. CLIENTELE Current Clients 47) Describe your firm’s experience in providing consulting services to 457 plans. 48) Provide the names, portfolio sizes (as of March 31, 2009), and inception of the engagements for clients that use your firm’s services for 401k, 457, and 529 plans. In addition, please provide similar data on your firm’s defined benefit business. Page 14 of 17
  15. 15. Oregon Investment Council Request For Proposals Oregon Savings Growth Plan (457 Plan) 49) Please provide a current list of the appropriate contacts at each client organization. After first informing you of our intentions, the OST staff may contact any of these clients as references. Former Clients 50) Please provide the names of all clients who have terminated your firm’s services in the last three years. In each case, detail the reason for termination and the services that were being provided. E. FEE SCHEDULE ALL FEE/PRICING INFORMATION MUST BE SUBMITTED SEPARATELY. SEE PAGE 7 FOR INSTRUCTIONS RELATING TO SUBMISSION OF PROPOSED FEES. Please provide a quote of your firm’s proposed fees, in hard dollars, for the following services: 1) Annual fee for full-service consulting arrangement. Please detail the scope of services to be provided under such an arrangement and provide quotes for any additional services not covered under the annual fee. As a benchmark, you should anticipate one (1) Oregon Investment Council meeting and four (4) Deferred Compensation Advisory Committee meetings annually. Provide a separate fee for each additional meeting over five (5) in a calendar year. Although the Contract will be for an initial three (3) year term, it may be renewed for two (2) additional two-year periods. Please provide the escalation rates, if any, to be used for the annual renewal periods. That is, provide fees for a seven (7) year horizon beginning August 1, 2009. Page 15 of 17
  16. 16. Oregon Investment Council Request For Proposals Oregon Savings Growth Plan (457 Plan) MISCELLANEOUS The OIC may, at any time prior to the execution of a contract, reject any and all proposals and cancel this RFP, without liability therefore, upon finding that it would be in the public interest to cancel this RFP. Further, regardless of the number and quality of proposals submitted, the OIC shall under no circumstances be responsible for any costs or expenses incurred in submitting a response to this RFP. Each firm that submits a proposal does so solely at its own cost, expense and risk. The OIC accepts no responsibility for the return of successful or unsuccessful proposals. RESERVATION OF RIGHTS The OIC reserves the right to: (a) amend or cancel this RFP at any time if it is in the best interest of the State of Oregon to do so; (b) award in part, reject any and all proposals in whole or in part, and waive technical defects, irregularities and omissions of any proposal, if, in its judgment, the best interest of the State of Oregon will be served; (c) determine the responsiveness of any proposal by reference to the proposal taken as a whole and seek additional information from vendors to clarify the best and final offers of the vendors; (d) negotiate specific contract terms with any vendor that may be selected; and (e) correct any inaccurate awards resulting from clerical errors. The timing and sequence of the events under this RFP will ultimately be determined by the OIC. The selected firm will be held to the terms submitted in its proposal, but may be required to reduce costs depending upon services that the OIC determines to be unnecessary or for which the OIC decides to assume responsibility. Page 16 of 17
  17. 17. Oregon Investment Council Request For Proposals Oregon Savings Growth Plan (457 Plan) EVALUATION To evaluate the proposals, the OIC, or an evaluation committee which may be comprised of a Council member(s) and others selected by the Council, will consider the vendor’s relevant staff experience in and knowledge of 457 plans, in addition to investment consulting experience and pricing, personnel hourly rates, and time estimates. The OIC reserves the right to request clarifications, supplements and additions to the information provided by any vendor. It is expected that a Contractor will be selected and a Contract executed. The OIC reserves the right to negotiate specific Contract terms (including but not limited to compensation) with any vendor that may be selected by the OIC. The OIC will determine which proposal offers the best means of serving the needs and interests of the OIC and the Plan. The OIC also reserves the right to determine the responsiveness of a proposal by reference to the proposal taken as a whole. Should the OIC fail to negotiate and execute a Contract with the selected vendor, the OIC may terminate such negotiations and commence negotiations with another vendor. The OIC may choose to compile a list of any number of finalists and may seek additional information from these firms to clarify best and final offers or permit an oral presentation to the OIC, or an evaluation committee. The OIC generally will not completely review or analyze any proposal which on its face fails to comply with the requirements of the RFP or which clearly is not the best proposal, nor will the OIC generally investigate the references or qualifications of those who submit such proposals. The OIC may reject, in its discretion, any proposal that fails to meet the proposal content and submission requirements set forth herein. EVALUATION CRITERIA Evaluation of responses to this RFP will correspond to the questions included in the questionnaire using the following weights. 457 Consultant Scoring Matrix SCORER'S NAME ---> Max RFP Category Points A. Consulting Firm 25.0 Location and History (questions 1-2) 5.0 Organization, Ownership, Independence (questions 3-12) 10.0 Employees (questions 13-17) 10.0 B. Consulting Capabilities 35.0 Asset Allocation & Investment Policy Analysis (questions 18-21) 10.0 Performance Measurement (question 22) 5.0 Investment Manager Research (questions 23-34) 15.0 Research (questions 35-38) 5.0 C. Plan Administration & Development of Requests for Proposal 10.0 Plan Administration and Development of RFPs (questions 39-46) 10.0 D. Clientele Current and Former Clients (questions 47-50) 10.0 E. Fee Schedule To be completed based on bids submitted 20.0 Total Possible Points 100.0 Page 17 of 17

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