TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 31, 2017
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authorization to enter into an agreement with Marquette Associates, Inc., for Contract 17-RFP-13 Retiree Health Care Trust Investment Consulting Services, for a five-year period in an amount not to exceed $275,000.00, Account P802-11000-798200
Body
Dear Sir:
Authorization is requested to enter into an agreement with Marquette Associates, Inc., for investment consulting services for the District’s Retiree Health Care Plan and Trust (the “Trust”), in which the Treasurer is charged with responsibility for appointing financial advisors and consultants, subject to the approval of the Board of Commissioners, which acts as Trustee for the Plan.
The Request for Proposal 17-RFP-13 was advertised on April 5, 2017. Thirteen (13) firms were notified, and twenty-seven (27) firms requested proposal documents. Five (5) acceptable proposals were received on April 28, 2017. The scope of work defined in this Request for Proposal included update of the investment policy and; asset selection, allocation, and evaluation strategies; portfolio analysis; reporting; training; and other support services. The Investment Consultant is to provide services to the Trust beginning on or about September 1, 2017 until August 31, 2022.
The RFP process was coordinated through the Director of Procurement and Materials Management. The evaluation committee which reviewed and evaluated the submitted RFP’s consisted of staff from the Treasury, Law, Finance, and Procurement and Materials Management Departments. Responses were evaluated according to the criteria defined in the RFP. Firms were ranked based on the numeric score calculated by the evaluation committee. The criteria included understanding of the project, approach to work, technical competence, and cost of services.
The committee reached a consensus that all five proposers met the technical qualifications portion of the RFP. The finalists were AndCo Consulting, LLC; Marquette Associates, Inc; Mill Creek Capital Advisors, LLC; NEPC, LLC; and PFM Asset Management, LLC. These firms were interviewed by the committee and requested to submit their “best and final” offers to the Director of Procurement and Materials Management. A final evaluation matrix, including the interview evaluations and the best and final offers, resulted in an overall top ranking for Marquette Associates, Inc. This overall top ranking was based on a composite evaluation score which was calculated from the committee’s individual evaluations for each firm’s experience, qualifications, technical approach to the work, understanding of the project, financial stability, and cost of services. Based on the evaluation of the proposals using the criteria described above and on the interviews, it is recommended that a service agreement be awarded to Marquette Associates, Inc. for a five-year period.
Marquette Associates, Inc. (“Marquette”) is an independent, full-service investment consulting firm assisting institutional investors of all types. The firm was established in 1986 and is headquartered in Chicago. Marquette is the twenty-second largest United States investment consulting firm with approximately $139 billion in assets under advisement. The firm is comprised of investment consultants providing services to all types of employee benefit plans throughout the United States, specializing in investment consulting, implementing investment solutions, and investment research. Marquette has the ability to provide innovative investment strategies, detailed reporting and analysis, extensive investment research, and training for the District’s Retiree Health Care Trust. Inasmuch as the firm Marquette Associates, Inc., possesses a high degree of professional skill, it is requested that the Director of Procurement of Materials Management be authorized to enter into an agreement for a five-year period ending August 31, 2022, per Section 11.4 of the Purchasing Act, in an amount not to exceed $275,000.00.
Due to the scope of the work, the requested services do not provide practical or cost effective opportunities for direct or indirect subcontracting. Therefore, affirmative action participation goals are not applicable to this agreement.
The District’s Retiree Health Care Trust monies will be utilized to pay this expense. Funds are available in P802-11000-798200.
Requested, Mary Ann Boyle, Treasurer, MAB:bnr
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for August 31, 2017