TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 6, 2025
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Acting Executive Director
Title
Issue purchase order and enter into an agreement for Contract 25-RFP-15 Deferred Compensation Plan Investment Consulting Services with Innovest Portfolio Solutions, LLC in an amount not to exceed $146,818.00, Account 101-25000-612430, Requisition 1638161
Body
Dear Sir:
Authorization is requested to issue a purchase order and enter into an agreement with Innovest Portfolio Solutions, LLC (Innovest) to provide deferred compensation plan investment consulting services to the District’s plans for the period from January 1, 2026 through December 31, 2028.
On July 2, 2025, request for proposal Contract 25-RFP-15 Deferred Compensation Plan Investment Consulting Services was publicly advertised. On August 1, 2025, the District received seven (7) responsive proposals from the following vendors: Gallagher Fiduciary Advisors, LLC; HUB Investment Partners, LLC; Innovest; Marquette Associates, Inc.; Mercer Investments LLC; Retirement Plan Advisors, LLC; and The 457 Consulting Group.
The proposals were evaluated by staff from the Human Resources Department, the Treasury Section, and the Procurement and Materials Management Department. The criteria for these evaluations were outlined in request for proposal Contract 25-RFP-15 and included: understanding of the services; approach to the work; technical competence of the firm and assigned consultants; financial stability; compliance with insurance requirements; submission of licenses/permits; and cost. Following the preliminary evaluation of the proposals, five (5) proposers were invited to a finalist interview.
Finalist interviews were held September 10-15, 2025. Interviews were conducted by the Deferred Compensation Committee. On September 29, 2025, a solicitation was sent to the finalists for an unqualified “best and final” offer. The “best and final” offers were returned to the Director of Procurement and Materials Management on October 3, 2025.
Based on the evaluation of the proposals using the criteria described above and the pricing provided in the “best and final” offers, the Deferred Compensation Committee has recommended that a contract for deferred compensation investment consulting services be awarded to Innovest. Innovest advises over 310 clients with over $52 billion in total assets. Of these clients, 185 are public sector plans ($34 billion in assets), including multiple water and wastewater districts nationally. They have a highly qualified team of investment consultants and research staff averaging 25 years of experience. Innovest provides unbiased, independent investment recommendations by operating on a fee only model and not selling investment products of their own. They would serve as a co-fiduciary for the District deferred compensation and 401(a) plans. Fiduciary training will be provided to the committee as part of the services and fiduciary topics will be included in every investment meeting agenda. Innovest has strong fiduciary and governance expertise as demonstrated through their participation as an expert witness in more than 75 engagements involving fiduciary breach cases. Rigorous due diligence and ongoing monitoring of the plan are documented in quarterly reporting which includes a one-page Manager Scorecard to summarize the data for the Committee. Innovest will conduct a share class review of all mutual funds included in the investment lineup and fee benchmarking on an annual basis. Innovest is a women-led firm with a dedication to diversity. The firm has a 98% client retention rate and a Net Promoter Score of 91 compared to the financial services sector average of 44.
The Diversity Section reviewed the scope of work for the proposal. In view of the continuity required to provide the services, the consultant must ensure its direct involvement and stewardship in completing the scope of work. This does not provide practical opportunities for subcontracting the services. As such, Appendix A and Appendix V were not included in this contract.
In view of the foregoing, it is requested that the Director of Procurement and Materials Management be authorized to award a contract to Innovest in the amount of $146,818.00.
The estimated annual expenditures are as follows: $47,500.00 in 2026, $48,925.00 in 2027, and $50,393.00 in 2028. Funds will be requested in 2026, 2027 and 2028 and are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Requested, Thaddeus J. Kosowski, Director of Human Resources, TJK:JEF
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for November 6, 2025
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