180000000378.docx

STATE OF MICHIGAN

Department of Technology, Management and Budget Procurement

RFP #: Dept 171, 180000000378 Investment Accounting and Portfolio Management (BOI) System

Solicitation Manager Name: Mahfuz Rahman Telephone Number: 517-284-7047 DTMB-Procurement Telephone Number 1-855-MI-PURCH (1-855-647-8724) E-Mail Address: Rahmanm2@michigan.gov

This is a Request for Proposal (RFP) for a Software as a Service (SAAS solution for Investment Accounting and Portfolio Management services described in Schedule A (the “Contract Activities”).

Anticipated Timeline Issue Date

12/07/2017

Anticipated Date State will Post Answers to Bidder Questions

01/04/2018

Anticipated Contract Begin Date

03/31/2018

*A proposal received at 3:00:01 p.m. EST is considered late.

The information in this document is subject to change. Check www.michigan.gov/SIGMAVSS for the current information.

A vendor, or an employee of a vendor that participated in the development of any component of the solicitation, or will participate in the evaluation of the proposals will not be eligible to receive an award, or perform work as a subcontractor for the awarded vendor.

Investment Accounting and Portfolio Management

PROPOSAL INSTRUCTIONS

1. RESPONSE PREPARATION. The State recommends reading all RFP materials prior to preparing a proposal, particularly these Proposal Instructions and the Bidder Information Exhibit. Bidders must follow Proposal Instructions and provide a complete response to the items indicated in the table below. References and links to websites or external sources may not be used in lieu of providing the information requested in the RFP within the proposal. Include the Bidder’s company name in the header of all documents submitted with your proposal.

RFP Structure and List of RFP Documentation

2. CONTACT INFORMATION FOR THE STATE. The sole point of contact concerning this Request for Proposal (RFP) is:

Mahfuz Rahman, Solicitation Manager 517-284-7047 Rahmanm2@michigan.gov

CONTACTING ANY OTHER STATE PERSONNEL, AGENT, CONSULTANT OR REPRESENTATIVE MAY RESULT IN DISQUALIFICATION.

3. QUESTIONS. Bidder questions about this RFP must be emailed to the Solicitation Manager no later than the time and date specified on the Cover Page. In the interest of transparency, only written questions are accepted. Answers to questions will be posted on www.michigan.gov/SIGMAVSS. Submit questions using the format below; a Microsoft Excel format or similar is suggested.

4. MODIFICATIONS TO RFP PRIOR TO PROPOSAL DEADLINE SUBMISSION DATE. The State may modify the RFP at any time. Changes will be posted on www.michigan.gov/SIGMAVSS. This is the only method by which the RFP may be modified. The posted changes will automatically revise the original RFP.

5. OPTIONAL PRE-PROPOSAL MEETING.

CONFERENCE CALL

A pre-proposal meeting will be held as a teleconference as noted below:

Date and Time: Friday December 18th, 11:30am-12:30pm (may end early if finished early Conference Call Details: 866-434-5269 Access Code: 3652464

The purpose of the pre-proposal meeting is to discuss the RFP and the work to be performed.

Discussions, including answers given by the State at the pre-proposal meeting are not official. To obtain an official answer to any question, the Bidder must submit the question in writing as provided in Questions Section.

6. SAMPLES. The bidder must submit, with their proposal, samples of work that are identical to the proposed Contract Activities. Submitted samples must be provided electronically as raw data table format in Excel and PDF. Sample reports will be evaluated as part of the RFP evaluation criteria.

The State wishes to see examples of the following reports:

1. Holding reports

2. Cash Balance reports

3. Net Asset Value (NAV) reports

4. Accrual reports

5. Payable/Receivable (pool level and plan level) reports

6. Reports to demonstrate the bidder’s ability to export XML data

7. Transaction Report The State reserves the right to request additional sample reports during the evaluation process if needed.

7. DELIVERY OF PROPOSAL. The Bidder must submit its proposal, all attachments, and any modifications or withdrawals electronically through www.michigan.gov/SIGMAVSS. The price proposal should be saved separately from all other proposal documents. The Bidder should provide the documents in a modifiable form (e.g., Microsoft Word or Excel), but has the option to also provide copies of any documents in a non-modifiable form (e.g., PDF). Bidder’s failure to submit a proposal as required may result in disqualification of such proposal. The proposal and attachments must be fully uploaded and submitted prior to the due date identified above. Do not wait until the last minute to submit the bid, as the SIGMA VSS system requires the creation of an account and entry of certain information, in addition to uploading and submitting the materials. The SIGMA VSS system will not allow a proposal to be submitted after the due date and time identified above.

Questions on how to submit information or how to navigate in the SIGMA VSS system can be answered by calling (888) 734-9749.

8. MANDATORY MINIMUM REQUIREMENTS. To avoid disqualification, the bidder must provide documentation to support the following. Failure to provide documentation will result in disqualification

1. SOC 1 certification

2. SOC 2 Type II certification

Only those proposals that meet the mandatory minimum requirements will be considered for evaluation.

9. EVALUATION PROCESS. If all mandatory requirements are met, the State will evaluate each proposal based on the following factors:

STEP 1 – TECHNICAL EVALUATION

Schedule A – Statement of Work Appendix B – Preliminary Enterprise Architecture Solution Assessment

Appendix A – Safeguard Requirements

Proposals receiving 80 or more technical evaluation points will have its pricing evaluated and considered for award.

STEP 2 – SAMPLE REPORTS (PASS/FAIL) Proposals receiving 80 or more technical evaluation points will be evaluated on their sample reports. The table below states the criteria upon which the reports will be evaluated.

Reader can easily follow line of reasoning. Logical connection of points.

STEP - 3 – PRICING. Proposals receiving 80 or more technical evaluation points (Step 1) and the proposed system sample reports having passed evaluation (Step 2) will have pricing evaluated and considered for award.

The State may utilize all Bidder information, without regard to a proposal’s technical score, to determine fair market value for goods or services sought. The State is not obligated to accept the lowest price proposal. If applicable, the State’s evaluation will include consideration of a Bidder’s qualified disabled veteran (QDV) status under MCL 18.1261(8). Additional information on the QDV preference is available at: http://michigan.gov/micontractconnect/0,4541,7-225-48677-123519--,00.html.

The State strongly encourages strict adherence to the Contract Terms. The State reserves the right to deem a bid non-responsive for failure to accept the Contract Terms. Nevertheless, the Bidder may submit proposed changes to the Contract Terms in track changes (i.e., visible edits) with an explanation of the Bidder’s need for each proposed change. Failure to include track changes with an explanation of the Bidder’s need for the proposed change constitutes the Bidder’s acceptance of the Contract Terms. General statements, such as that the Bidder reserves the right to negotiate the terms and conditions, may be considered non-responsive.

The State may, but is not required to, conduct an on-site visit to tour and inspect the Bidder's facilities, require an oral presentation of the Bidder's proposal, attend a proof of concept meeting, conduct interviews with Bidders, or request additional price concessions at any point during the evaluation process.

The State may deduct points or reject a proposal if the Bidder fails to demonstrate to the State’s satisfaction the viability or functionality of the goods or services at the proof of concept meeting, on-site visit tour, oral presentations, or during Bidder interviews or if the State learns of further deficiencies through clarifications.

10. NOTICE OF DEFICIENCY. If the State determines, after the deadline to submit proposals, that there is an area of the RFP that was deficient, unclear or conflicting, the State may issue a request (“Notice of Deficiency”) to bidders. Failure to respond to a Notice of Deficiency may be cause for disqualification.

11. CLARIFICATION REQUEST. If the State determines, after the deadline to submit proposals, that a bidder’s proposal is not clear, the State reserves the right to issue a request (“Clarification Request”) to a bidder to clarify its proposal. Failure to respond to a Clarification Request may be cause for disqualification.

12. RESERVATIONS. The State reserves the right to:

a. Disqualify a Bidder for failure to follow these instructions.

b. Discontinue the RFP process at any time for any or no reason. The issuance of an RFP, your preparation and submission of a proposal, and the State’s subsequent receipt and evaluation of your proposal does not commit the State to award a contract to you or anyone, even if all the requirements in the RFP are met.

c. Consider late proposals if: (i) no other proposals are received; (ii) no complete proposals are received; (iii) the State received complete proposals, but the proposals did not meet mandatory minimum requirements or technical criteria; or (iv) the award process fails to result in an award.

d. Consider an otherwise disqualified proposal, if no other proposals are received.

e. Disqualify a proposal based on: (i) information provided by the Bidder in response to this RFP; (2) the Bidder’s failure to complete registration on www.michigan.gov/SIGMAVSS; or (3) if it is determined that a Bidder purposely or willfully submitted false or misleading information in response to the RFP.

f. Consider prior performance with the State in making its award decision.

g. Consider overall economic impact to the State when evaluating proposal pricing and in the final award recommendation. This includes but is not limited to: considering principal place of performance, number of Michigan citizens employed or potentially employed, dollars paid to Michigan residents, Michigan capital investments, job creation, tax revenue implications, and economically disadvantaged businesses.

h. Consider total-cost-of-ownership factors (e.g., transition and training costs) when evaluating proposal pricing and in the final award recommendation.

i. Refuse to award a contract to any Bidder that has failed to pay State taxes or has outstanding debt with the State.

j. Enter into negotiations with one or more Bidders on price, terms, technical requirements, or other deliverables.

k. Award multiple, optional-use contracts, or award by Contract Activity.

l. Evaluate the proposal outside the scope identified in the Evaluation Process Section, if the State receives only one proposal.

13. AWARD RECOMMENDATION. The contract will be awarded to the responsive and responsible Bidder who offers the best value to the State, as determined by the State. Best value will be determined by the Bidder meeting the minimum point threshold and offering the best combination of the factors stated in the Evaluation Process Section, and price, as demonstrated by the proposal. The State will post a Notice of Recommendation for Award on www.michigan.gov/SIGMAVSS.

14. STATE ADMINISTRATIVE BOARD. Contracts in excess of $500,000 require approval by the State Administrative Board. The State Administrative Board’s decision is final; however, its approval does not constitute a contract. The award process is not complete until the awarded contractor receives a contract fully executed by all parties.

15. DEBRIEF MEETINGS AND PROTEST. The State will post a Notice of Recommendation for Award, which will provide instructions on how to request a debrief meeting.

If you wish to initiate a protest of the award, you must submit your written protest electronically at BidProtest-DTMB@michigan.gov no later than 3:00 p.m. Eastern, 5 business days after posting the Notice of Recommendation for Award on SIGMA VSS, or by 3:00 p.m. Eastern, the next business day if that date falls on a state holiday or weekend. The State reserves the right to adjust this timing and will publish any change on the SIGMA VSS system.

16. Additional information about the protest process is available at www.michigan.gov/micontractconnect under the “Programs and Policies” link.

17. GENERAL PROPOSAL CONDITIONS. The State will not be liable for any costs, expenses, or damages incurred by a Bidder participating in this solicitation. The Bidder agrees that its proposal will be considered an offer to do business with the State in accordance with its proposal, including the Contract Terms, and that its proposal will be irrevocable and binding for a period of 180 calendar days from date of submission. If a contract is awarded to the Bidder, the State may, at its option, incorporate any part of the Bidder’s proposal into a contract. This RFP is not an offer to enter into a contract. This RFP may not provide a complete statement of the State’s environment, or contain all matters upon which agreement must be reached. Other than verified trade secrets, proposals submitted via www.michigan.gov/SIGMAVSS are the State’s property.

18. FREEDOM OF INFORMATION ACT.

a. Under MCL 18.1261(13)(b), records containing “a trade secret as defined under section 2 of the uniform trade secrets act, 1998 PA 448, MCL 445.1902, or financial or proprietary information” are exempt from disclosure under FOIA. And under MCL 18.1470(3), “proprietary financial and accounting” information is also exempt from disclosure under FOIA.

b. If information within a Bidder’s proposal falls under the aforementioned exemptions, and the Bidder seeks to have it withheld from disclosure under FOIA, then by the proposal deadline, the Bidder must: (1) save exempt information in a separate file (i.e., document); (2) name the file/document “FOIA-EXEMPT”; (3) label the header of each page of the file/document “Confidential–Trade Secret,” “Confidential–Financial,” or “Confidential–Proprietary” as applicable; (4) clearly reference within the file/document the RFP schedule, section, and page number to which the exempt information applies; and (5) verify within the FOIA-EXEMPT file/document that the information meets the FOIA exemption criteria.

c. The State reserves the right to determine whether information designated as exempt by a Bidder falls under the FOIA exemptions.

d. Resumes, pricing, and marketing materials are not trade secrets or financial or proprietary information.

e. Do not identify your entire proposal as “FOIA-EXEMPT,” and do not label each page of your proposal “Confidential.” If a Bidder does so, the State may require the Bidder to resubmit the proposal to comply with subsection (b) above.

f. If the State requires a Bidder to resubmit a proposal for failure to follow these instructions, the State reserves the right to disqualify the Bidder if the proposal is materially changed upon resubmission. In other words, amendments to the proposal should be restricted to that which is necessary to separate confidential from non-confidential information.

VENDOR QUESTIONS WORKSHEET

Contractors must provide a detailed response to each question. Attach any supplemental information and appropriately reference within your response.

Bidder Response

1. Company Contact Information.

Sole contact during the RFP process. Include the name, title, and contact information (address, e-mail and phone number).

Sole contact authorized to receive and sign any resulting Contract.

2. Company Background Information.

Legal business name and address.

What State is your business incorporated in?

Phone number.

Website address.

Number of years in business and number of employees.

Legal business name of any applicable parent company and address.

Has there been a recent change in the organizational structure (e.g., management team) or a change of control (merger or acquisition)? If so, why and how has it affected the company?

History of company and if growth has been organic, through mergers and acquisitions, or both?

Has your company ever been debarred, suspended, or otherwise disqualified from bidding, proposing, or contracting with any governmental entity, including the State? If yes, provide the date, governmental entity, and details surrounding the action.

Has your company ever been sued by the State of Michigan? If yes, provide the date, case caption, case number, and identify the court that the case was filed in.

Has your company ever sued the State of Michigan? If yes, provide the date, case caption, case number, and identify court that case was filed in.

Within the past five (5) years, has your company defaulted on a government contract or been terminated for cause by any governmental entity, including the State? If yes, provide the date of action, contracting entity, type of contract, and details surrounding the termination or default.

Within the past five (5) years, has your company defaulted on a contract or been terminated for cause by any private entity in which similar service or products were being provided by your company? If yes, provide the date of action, contracting entity, type of contract, and details surrounding the termination or default.

3. Business Owned by Qualified Disabled Veteran

“Qualified Disabled Veteran,” as defined by Public Act 431 of 1984, means a business entity that is at least 51% owned by one or more veterans with a service-connected disability. The Act defines “Service-Connected Disability” as a disability incurred or aggravated in the line of active military, naval, or air service as defined in 38 USC 101 (16).

Is the bidder a disabled Veteran-owned business?

To qualify for a Business owned by a qualified disabled Veteran, please provide the following:

(a) Proof of service and conditions of discharge: DD214 or equivalent,

(b) Proof of service-connected disability: DD214 if the disability was documented at discharge or Veterans Administration (VA) Rating Decision Letter or equivalent if the disability was documented after discharge, and

(c) Proof of Ownership: Appropriate legal documents setting forth the ownership of the business entity.

In lieu of the documentation identified above, the vendor may also provide a copy of the business entities National Veterans Business Development Council (NVBDC) certification.

4. Experience with the State of Michigan.

Does your company have experience working with the State of Michigan? If so, please provide a list (including the contract number) of the contracts you hold or have held with the State for the last 10 years.

5. Participation in the Development of this Solicitation, and Evaluation Process

Did your company, or an employee of your company, participate in developing any component of the solicitation? If yes, describe how your company, or an employee of your company participated.

Will your company, or an employee of your company, participate in the evaluation of the proposals received in response to this solicitation. If yes, describe how your company, or an employee of you company will participate in the evaluation process.

6. Gross Annual Sales

Contractor must identify the gross annual sales for the last 5 years.

If the award of any resulting contract will increase your gross revenue by more than 25% from the last year’s sales, explain how you will scale up to manage this increase.

7. Experience

Please describe at least 3 relevant experiences from the last 5 years supporting your ability to successfully manage a contract of similar size and scope for the work described in this RFP. References must be those that have been in production with the bidder’s proposed solution for at least 3 years.

Experience 1

Company name Contact name Contact role at time of project Contact phone Contact email

City State Zip Code

1. Project name and description of the scope of the project

2. What role did your company play

3. How is this project experience relevant to the subject of this RFP

Total project cost

Start and end date (MM/YY – MM/YY) of the Project

Status (completed, live, other – specify phase)

Results obtained

Experience 2

Company name

Contact role at time of project

City

Zip Phone

1. Project name and description of the scope of the project

Total project cost

Start and end date (MM/YY – MM/YY)

Status (completed, live, other – specify phase)

Results obtained

Experience 3

Company name

Contact role at time of project

City

1. Project name and description of the scope of the project

Total project cost

Start and end date (mm/yy – mm/yyy)

Status (completed, live, other – specify phase)

Results obtained

Please describe at least 3 relevant experiences from the last 5 years supporting your proposed Program Manager’s ability to successfully manage a contract of similar size and scope for the work described in this RFP. Proposed Program Manager must be a Program Manager for the proposed bidder for a minimum of 5 years..

Experience 1

Company name

Contact role at time of project

City

Zip Code

4. Project name and description of the scope of the project

5. What role did your proposed Program Manager play

6. How is this project experience relevant to the subject of this RFP

Total project cost

Start and end date (MM/YY – MM/YY) of the Project

Status (completed, live, other – specify phase)

Results obtained

Experience 2

Company name

Contact role at time of project

City

4. Project name and description of the scope of the project

Total project cost

Start and end date (MM/YY – MM/YY)

Status (completed, live, other – specify phase)

Results obtained

Experience 3

Company name

Contact role at time of project

City

4. Project name and description of the scope of the project

Total project cost

Start and end date (mm/yy – mm/yy)

Status (completed, live, other – specify phase)

Results obtained

8. Strategic Relationships.

Explain any partnerships and strategic relationships you currently have or have used that would bring significant value to the State, and how that relationship will bring value to the State.

9. Principal Place of Business.

The Contractor must identify the location (city, state and zip code) that would have primary responsibility for this account if awarded a contract.

10. Standard Contract

The Contractor must affirm that it agrees with the attached Contract Terms, or if it does not agree, identify the specific exceptions to the Contract Terms. Exceptions must be listed here and Contractor must provide a redline version as an attachment.

Statement of Work (SOW)

The Michigan Department of Technology, Management and Budget (DTMB), Agency Services, and the Michigan Department of Treasury, Bureau of Investments (BOI) has the need to implement a Software as a Service (SaaS) solution to function as an investment accounting and portfolio management system.

The purpose of this project is to implement and customize a SaaS software package as defined in Section 1.100. Data conversion, migration, training, maintenance and support are included in the project. Services for future enhancements will also be included.

The resulting contract will be for a firm fixed price, and in accordance with the terms and conditions defined in Article 2.

1.002 Background

The Michigan Department of Treasury, Bureau of Investments (BOI) is responsible for the investing activities of the State of Michigan Retirement Systems (SMRS), the general fund of the State, and over 150 trust and agency funds such as the Lottery and Michigan Education Trust. The BOI has an operating budget of approximately $20 million and employs 78 employees of which approximately 44 are investment professionals. In carrying out its investment responsibilities, the BOI runs a broadly diversified portfolio which includes over 7,100 individual investments.

SMRS is a Defined Benefits Plan representing approximately 517,000 members. It is a pooled fund comprised of eight funds which includes the Pension and Other Post Employee Benefits (OPEB) for each of the following: Public School Employees, State Employees, State Police and Judges. The State Treasurer is the sole fiduciary of the SMRS, and is advised by a five-person Investment Advisory Committee (IAC) comprised of governmental, economic and investment professionals.

In carrying out its investment responsibilities, the BOI is comprised of two distinctive investment areas: Public Markets and Private Markets. Combined the investment areas oversee a broadly diversified portfolio of approximately $81.1 billion in assets under management as of September 30, 2016, that are internally and externally managed. According to the February 8, 2016, Survey by Pensions & Investments, the SMRS is the 18th largest Defined Benefit Public Pension Fund in the United States and the 19th largest Defined Benefit Pension Fund in the United States.

The Public Markets investment area is comprised of the Long-Term Fixed Income Division, International Equity Division, Domestic Equity Division, and Defined Contribution, Trusts & Agencies Division.

Long-Term Fixed Income Division: The Long-Term Fixed Income Division manages corporate, government and other fixed income securities, and is responsible for the research, analysis and investment of these securities maturing in more than one year. The strategy is a diversified portfolio of fixed income securities designed to primarily protect principal and generate cash flows pursuant to the guidelines established in the Investment Policy Statements.

International Equity Division: The International Equity Division manages passive and active equity investments targeting the returns of U.S. and international stock indices. The investments targeting the S&P 500 and other benchmark indices are, or closely resemble, enhanced index funds. This division purchases and sells stocks and derivative securities, and provides information for management analysis and decision making.

Domestic Equity Division: The Domestic Equity Division invests in publicly-traded stocks. The object of the division is to maximize the aggregate portfolio’s risk-adjusted returns. The overall strategy is to invest in stocks across the market cap spectrum, with an emphasis on attractive, risk-adjusted opportunities. The division implements various strategies and invests pursuant to the guidelines established in the Investment Policy Statements.

Defined Contribution, Trusts and Agencies Division: The Defined Contribution, Trusts and Agencies Division is responsible for providing investment oversight to the 401(k) and 457 plans’ construction and investment manager line-up. The division is also responsible for the management of a portfolio of non-retirement Trust and Agency Funds administered by the BOI, and for reporting and performing special, in-depth assignments relating to the Defined Benefit Plans the BOI manages.

The Private Markets investment area is comprised of the Compliance and Corporate Governance Division, Private Equity Division, Real Estate and Infrastructure Division, Short-Term, Absolute and Real Return Division, and Trust Accounting Division.

Compliance and Corporate Governance Division: The Compliance and Corporate Governance Division is responsible for management of the Investment Compliance Program. This division provides legal support in securities fraud matters and provides legal research and analysis, reviews partnership agreements, monitors regulatory changes, and recommends new and revised policies or administrative guidelines. The division also analyzes, reviews and drafts proposed legislation, and advises BOI administration on compliance issues and developments.

Private Equity Division: The Private Equity Division manages investments in private equity, primarily through limited partnerships and other vehicles, including but not limited to: leveraged buyouts, venture capital, mezzanine and distressed debt, and special situations. Staff is responsible for establishing and maintaining relationships with investment professionals, evaluating and recommending investments opportunities, and portfolio management.

Real Estate and Infrastructure Division: The Real Estate Division investments represents ownership interest in partnerships and other vehicles including but not limited to: retail, industrial, residential, natural resources, land, energy resources and utilities, transportation assets, water and waste, communications, social infrastructure, and other infrastructure and real asset-related investments or publicly-traded securities that invest in real properties. These investments are expected to provide diversification from traditional capital market risk. Equity participation in concentrated or specialized real estate or infrastructure investments may include the use of leverage. These investments are diversified by asset type, geography, life cycle phase, vintage year, and may include international real estate.

Short-Term, Absolute and Real Return Division: The Short Term investment objective is to invest in fixed income securities with maturities of less than one year including, but not limited to, Treasury bills and notes, commercial paper, bankers acceptances, certificates of deposit, asset backed securities, Eurodollar securities and debentures with less than one year remaining to maturity.

The Absolute Return investments represent ownership interest in hedge funds managed to an overall risk tolerance. Absolute return strategies seek to produce a return patterns over time that have a lower level of correlation with equities and other traditional asset classes. Diversification by fund and by strategies, such as, long/short equities, arbitrage, and event driven is important as a prudent leverage level on a total portfolio.

The Real Return and Opportunistic investments represent ownership interest in either individual real return assets that provide an inflationary protection or portfolios that are managed strategically or tactically utilizing real return assets in isolation or in combination with traditional asset classes to achieve this goal.

Trust Accounting Division: The Trust Accounting Division provides the "back office" custodial and trust services to the various investment divisions within the BOI and to other agencies and state departments. The division is comprised of three sections delineated by function or responsibility:

1. The Operation Section is responsible for processing daily cash and accounting transactions and security settlement.

2. The Accounting and Systems Control Section is responsible for cash and general ledger control functions, and financial statement analysis and preparation.

3. The Specialized Accounting Section is responsible for managing the performance measurement process and accounting for derivatives and international investments.

The Contractor will provide BOI with an Investment Accounting and Portfolio Management System that is cloud based, comprised of software, implementation services, and maintenance support for production and disaster recovery. The system will enable BOI to process investment securities, investment accounting including interfacing to the State of Michigan general ledger system, pooled and separated account fund accounting, manage cash, provide Global Investment Performance Standards (GIPS) compliant performance measurement, account for investments on an average cost basis, and support external interfaces with Licensee’s custodian bank, DTC, trading systems, and other external required interfaces. The Contractor will convert, as needed, BOI’s existing data, train administrative and system personnel, and play a lead role in the management of the expansion, maintenance and upgrade of the system.

The system will have the following characteristics:

· Enable real-time processing,

· Be scalable browser based technology,

· Be compatible on the client/desktop side with the current Microsoft product and compliant with the previous version, and subsequent upgrades,

· Have the ability to export data to external Open Database Connectivity (ODBC) compliant databases,

· support at least 40 concurrent users,

· continue to process high speed large volumes of over 300 transactions per minute,

· provide roll back and roll forward data integrity, and

· provide capabilities for backup and disaster recovery.

This project consists of the following scope:

Business Requirements Facilitated Sessions Validation and Verification Hardware Software Application Design Application Development Implementation Data Conversion Data Migration Configuration Customization Interfaces/Integration Testing Training End user Web training Documentation Operation Services Maintenance and Support Help Desk Onsite Technical Support Knowledge Transfer/Transition Optional Supplemental reasonably related products and services

A more detailed description of the software, services (work) and deliverables sought for this project is provided in Article 1, Section 1.104, Work and Deliverables.

The Contractor will provide a complete solution which will function as the Investment Accounting and Portfolio Management System for the BOI. The Contractor will provide necessary on-site support as required.

Call Center Disclosure - Contractor and/or all subcontractors involved in the performance of this Contract providing call or contact center services to the State must disclose the location of its call or contact center services to inbound callers. Failure to disclose this information is a material breach of this Contract.

1.102 Out Of Scope

The following are out of the scope for this Request for Proposal:

· Equipment and application development services for any system(s) other than those specifically addressed within this RFP.

· Purchase of server/desktop hardware.

The Contractor will confirm any products and services, which they consider outside the scope of this RFP.

1.103 Environment

Enterprise IT Policies, Standards and Procedures Contractors are advised that the State has methods, policies, standards and procedures that have been developed over the years. Contractors are expected to provide proposals that conform to State IT policies and standards. All services and products provided as a result of this RFP must comply with all applicable State IT policies and standards. Contractor is required to review all applicable links provided below and state compliance in their response.

Enterprise IT Policies, Standards and Procedures: http://michigan.gov/dtmb/0,4568,7-150-56355_56579_56755---,00.html

Acceptable Use Policy To the extent that Contractor has access to the State’s computer system, Contractor must comply with the State’s Acceptable Use Policy, see http://michigan.gov/dtmb/0,4568,7-150-56355_56579_56755---,00.html. All Contractor Personnel will be required, in writing, to agree to the State’s Acceptable Use Policy before accessing the State’s system. The State reserves the right to terminate Contractor’s access to the State’s system if a violation occurs.

ADA Compliance The State is required to comply with the Americans with Disabilities Act of 1990 (ADA), and has adopted a formal policy regarding accessibility requirements for websites and software applications. The State is requiring that Bidder’s proposed Solution, where relevant, to level AA of the World Wide Web Consortium (W3C) Web Content Accessibility Guidelines (WCAG) 2.0. Bidder may consider, where relevant, the W3C’s Guidance on Applying WCAG 2.0 to Non-Web Information and Communications Technologies (WCAG2ICT) for non-web software and content. The State may require that Bidder complete a Voluntary Product Accessibility Template for WCAG 2.0 (WCAG 2.0 VPAT) or other comparable document for the proposed Solution. http://www.michigan.gov/documents/dmb/1650.00_209567_7.pdf?20151026134621

The State’s security environment includes:

MDTMB Single Login.

MDTMB provided SQL security database.

Secured Socket Layers.

SecureID (State Security Standard for external network access and high risk Web systems)

MDTMB requires that its single - login security environment be used for all new client-server software development. Where software is being converted from an existing package, or a client-server application is being purchased, the security mechanism must be approved in writing by the State’s Project Manager and MDTMB Office of Enterprise Security.

Look and Feel Standard All software items provided by the Contractor must adhere to the Look and Feel Standards www.michigan.gov/somlookandfeelstandards.

SUITE Documentation In managing its obligation to meet the above milestones and deliverables, the Bidder is required to utilize the applicable State Unified Information Technology Environment (SUITE) methodologies, or an equivalent methodology proposed by the Bidder. The Bidder is required to review http://www.michigan.gov/suite and demonstrate how each PMM/SEM requirement will be met. Bidders wishing to use their own documents must submit an example of the document that will be substituted. If the Bidder deems a document to be non-applicable, please provide reasons for the determination. The State reserves the right to give final approval of substituted documents and items marked as non-applicable.

SUITE’s primary goal is the delivery of on-time, on-budget, quality systems that meet customer expectations. SUITE is based on industry best practices, including those identified in the Project Management Institute’s PMBoK and the Capability Maturity Model Integration for Development. It was designed and implemented to standardize methodologies, processes, procedures, training, and tools for project management and systems development lifecycle management. It offers guidance for efficient, effective improvement across multiple process disciplines in the organization, improvements to best practices incorporated from earlier models, and a common, integrated vision of improvement for all project and system related elements.

While applying the SUITE framework through its methodologies is required, SUITE was not designed to add layers of complexity to project execution. There should be no additional costs from the Bidder, since it is expected that they are already following industry best practices which are at least similar to those that form SUITE’s foundation.

SUITE’s companion templates are used to document project progress or deliverables. In some cases, Bidders may have in place their own set of templates for similar use. Because SUITE can be tailored to fit specific projects, project teams and State project managers may decide to use the Contractor’s provided templates, as long as they demonstrate fulfillment of the SUITE methodologies.

Agency Specific Technical Environment The BOI current technical environment (including entities responsible for administration, maintenance and support), as it relates to the services requested in this RFP, are as follows:

· Operating Systems: Windows 10

· Desktop Workstations: Dell Optiplex GX720

· Software Listing: Microsoft Office 365 Network: IPV4 Cisco Switches Firewall: Checkpoint VPN1 and Cisco AnyConnect Locations: 2501 Coolidge Road, Suites 202 and 400, East Lansing, MI 48823 Disaster Recovery Requirements and Priorities: Disaster Recovery System is needed with testing performed annually.

Browser: Internet Explorer 11, Microsoft Edge, and Chrome (current version)

Bidder shall describe how they comply with the above requirement.

Bidder Response:

1.104 Work And Deliverables

I. Services and Deliverables To Be Provided

The system shall be installed, tested and fully operational by August 1, 2018. Bidders may propose deliverables beyond the specific ones requested in this RFP, provided those additional deliverables could also be installed, tested and fully operational by August 1, 2018.

A. Business Requirements

The Contractor will ensure that the following requirements are adhered to and maintained during the life of the contract:

External and internal electronic communications, interfaces, system functionality, and reporting applications.

General ledger interfaces with the State of Michigan General Ledger System.

Interface to Bloomberg AIM Trade Order Management System, custodial bank and/or other systems.

Interface with other systems, such as a cash management system, additional investment data vendors or service providers, etc., if required by Licensee.

Position and transaction reconciliation interfaces to custodial bank.

Support Depository Trust & Clearing Corporation (DTCC) interface.

Deliverable(s) Identification of business requirements (Contractor gathers the requirements) Verification and validation of business requirements (Contractor ensures software developed) Current Business Operations Document System Concept of Operations Business Work Flow document

Bidder shall describe how they comply with the above requirement

Bidder Response:

MINIMUM SYSTEM ACCOUNTING FUNCTIONALITY

The system will provide functionality as listed below:

1. Pooled/unit fund accounting.

a. The ability to track and report at the participants level (Plans)

b. The ability to track at the Pool level including underlying investments

c. The ability to distribute income to the participants

d. Ability to sweep cash to short term investment

e. The ability to run Net Asset Value (NAV) at will and at a detail and summary level

f. The ability to close accounting periods.

2. Ability to import, export, and run files/reports in various formats (must include but not limited to PDF, CSV EXCEL, XML, etc.), including individual investment and fund or in aggregate; which shall include but not be limited to the following listed reports:

a. Investment Holding

b. Income Accrual

c. Performance

d. Purchase and Sale

e. Trade Accrual

f. Investment Detail Ledger

g. Transaction Detail

3. Ability to value investments at will.

a. Exception based monitoring and reporting for unusual fluctuations or unpriced investments

4. Transaction counter based upon a predetermined time period.

5. Accounting for derivative (i.e. SWAPS, Futures, Options, Forwards, Puts, Calls, etc.).

6. Accounting for limited partnerships on the equity basis.

7. Forecast cash flows (i.e. daily, monthly, yearly).

a. Expected cash flows based upon trade or settlement date.

b. Roll maturities forward.

c. Ability to create a tracking report for late payments.

8. Ability to import relevant corporate actions based upon investment holdings.

9. Cash management from transaction to pool levels.

10. Allow client to open and close accounting periods.

11. Recognize investment transactions on effective date and provide GIPS compliance performance measurement, while recognizing accounting transactions in current open period.

12. Account for investments using average cost.

13. Ability to support, on demand, GIPS compliant performance measurement.

14. Derivative strategies have input, accounting and reporting requirements unique to the State of Michigan Retirement Systems. The requirements are:

15. Accounting for complex international equity swaps, consisting of the following:

International Equity Swap position transactions should be entered in a single integrated transaction process. Transaction defined fields would be used to enter the transactions. User define fields would not be used to enter the transactions.

16. Synthetic Equity Derivatives, consisting of the following:

Synthetic Equity Derivative transactions to be entered in a single integrated transaction process. Transaction defined fields would be used to enter the transactions. User defined fields would not be used to enter the transactions.

17. Synthetic Cash Derivative - contain one “Short” Futures position, a matching equity portfolio, and cash. The Futures position is designated as a Hedge against an equity portfolio. The accounting for a Synthetic Equity Derivative will consist of the following transactions:

18. Limited Partnership Customization…