EMPLOYEES’ RETIREMENT SYSTEM OF THE STATE OF HAWAII

HIePRO REQUEST FOR QUOTATION RFQ

Executive Search Firm Services for Recruitment of ERS Executive Director

HIePRO RFQ Q27000551, Executive Search Firm Services for Recruitment of ERS Executive Director 1

1. ADMINISTRATIVE OVERVIEW

BACKGROUND AND PURPOSE

The Board of Trustees of the Employees’ Retirement System of the State of Hawaii (“ERS Board”) is searching for an experienced executive to become the Executive Director for the Employees’ Retirement System of the State of Hawaii (“ERS” or “System”). This Request for Quotation is to obtain the services of an executive search firm to assist the ERS Board in its search for an Executive Director. The ERS estimates this project will take four-six (4-6) months.

The ERS is one of the largest public pension funds in the country with over 162,000 members, retirees and beneficiaries and assets in excess of $26 billion. The ERS administers the retirement, disability and survivor benefits program for State of Hawaii (“State”) and county government employees. The general administration and responsibility for the proper operation of the ERS is vested in the ERS Board, with certain areas of administrative control vested in the State Department of Budget and Finance.

Interested offerors should note that the ERS Board’s current plan requires that the Executive Director search begin immediately and that the entire search process concluding with the final selection of the Executive Director is expected to be completed within four-six (4-6) months from the time the award of this solicitation is made. See Scope of Work Section 2.1 for timeline requirements.

PROCUREMENT PROCESS AND ERS CONTACT

This RFQ is issued by the Employees' Retirement System of the State of Hawaii.

Refer to sections 2. Scope of Work through section 12. RFQ Evaluation Criteria for detailed description and important information regarding this procurement. This is an electronic solicitation. Offered through HIePRO, State of Hawaii eProcurement (hiepro.ehawaii.gov). All offers are to be received in HIePRO by RFQ in accordance with Section 9. PROCUREMENT TIMETABLE and SIGNIFICANT DATES. This RFQ will be awarded based on Section 12. RFQ Evaluation Criteria.

A standard ERS Purchase Order will be issued.

EXECUTIVE DIRECTOR POSITION IN RECRUITMENT

Appointed by and reporting to the ERS Board, the Executive Director performs as the chief executive officer for the ERS. The position oversees the management of the retirement, disability and survivor benefits programs for all eligible State and county government employees. The Executive Director communicates and works directly with the ERS Board, Firm Services for Recruitment of ERS Executive Director 2

State and county officials, the State legislature, and other stakeholders on issues related to these programs as well as legislative matters. In addition, the position is responsible for the implementation of the ERS Board’s policies and decisions, and for providing leadership to the ERS management team and staff in developing, recommending, and implementing short-and long-term strategies for the accomplishment of the ERS’s mission, goals, and objectives. The Executive Director has five direct reports: Deputy Executive Director, Chief Investment Officer, Departmental Program Officer, Program Specialist and Executive Assistant.

The Executive Director’s primary functions, include, but are not limited to:

• Engages, establishes and maintains a good relationship with the ERS Board; provides regular reports to the ERS Board regarding ERS operations and issues; plans and helps organize ERS Board and committee meetings; consults with the ERS Board on legislative matters; makes recommendations to the ERS Board regarding ERS plans, policies, and procedures; provides timely information, analyses, and recommendations to the ERS Board regarding investment, actuarial, accounting, and retirement matters that affect the System.

• Provides vision and leadership necessary for the administration and management of the

ERS and its employees; formulates and directs the development of staff objectives and operating plans to accomplish the ERS’s mission, goals and objectives; ensures that ERS operations comply with all applicable federal and state statutes, regulations, policies and procedures.

• Represents the ERS and serves as its chief spokesperson in matters concerning the

System; builds and maintains effective relationships with State and other public officials and agencies, the State legislature, employee and retiree organizations, members, and other stakeholders.

• Provides guidance and direction regarding the preparation and administration of the

ERS’s operating budget; directs the development of ERS budget requests.

• Working with the ERS Board, the ERS Chief Investment Officer, the ERS Deputy Executive Director, the ERS Compliance Officer, the ERS Program Support Staff, and the ERS’s investment consultants and managers, oversees the investment program of the ERS in accordance with the ERS Board’s investment policies and procedures.

• Provides guidance and direction regarding the procurement and monitoring of consultants, actuaries, auditors, and other contractors for the ERS.

Firm Services for Recruitment of ERS Executive Director 3

• Provides guidance and direction regarding the accounting operations, audits, and the production of comprehensive annual financial reports of the System.

• Supervises the drafting, analysis, and recommendation of legislation pertaining to the

System; testifies before legislative bodies regarding legislation that impacts the System.

Required or recommended qualifications for the Executive Director position include:

• Bachelor’s degree in Business Administration, Public Administration, Finance, Accounting, Economics or a related field from an accredited college or university. An advanced degree in business or public administration or a related field is preferred.

• 3-5 years in a leadership position in a large, complex private or public organization with significant management experience. While not required, leadership and management experience in a public or private pension fund or a similar benefits program is preferred.

• Excellent communication skills, including speaking, writing and listening.

• Strong experience in team leadership, professional staff development, managing, mentoring and motivating staff to meet organization goals and objectives.

• Knowledge of actuarial and investment principles and practices. Knowledge of the general principles of fiscal management, including familiarity with accounting and auditing requirements.

• Understanding of the legislative process and necessary political skills to work effectively with legislators. Demonstrated familiarity with State of Hawaii processes preferred.

• Must be a citizen, national, or permanent resident alien of the United States. Must become a resident of the State of Hawai‘i within thirty days after beginning employment and as a condition of eligibility for continued employment.

• High ethical standards, sound judgment, and a strong commitment to fiduciary duty and public service.

The ideal candidate will be a strategic and disciplined leader with a long-term perspective and a strong sense of fiduciary responsibility. The candidate is preferred to be a seasoned leader and highly ethical individual with substantial management experience and excellent written and verbal communication skills. The Executive Director must be a strategic thinker, team player, and one capable of leading change in a collaborative environment. The ideal candidate will possess the ability to work effectively with the ERS Board, State leadership, legislators and their staffs, employee and retiree organizations, members and retirees, and other interested parties.

Firm Services for Recruitment of ERS Executive Director 4

The Executive Director salary is determined by the ERS Board and will be based upon experience and capabilities of the candidate. The State of Hawaii is an equal opportunity employer.

2. SCOPE OF WORK

The Executive Search Firm selected will be the primary contact and resource to the ERS Board’s Human Resources Committee (“Search Committee”) during the search process for the permanent Executive Director.

The Executive Search Firm responsibilities shall include:

2.1 Propose a draft timeline for the search process, subject to the Search Committee approval (see Attachment A). Complete the project per timeline agreed to between CONTRACTOR and ERS.

2.2 Assist Search Committee in finalizing the Executive Director’s position description and qualifications if needed. Discuss with Search Committee and/or its designee recruiting, screening, interview, and evaluation processes, if and as needed.

2.3 Coordinate placement of advertising in newspapers and other media (e.g. Pension &

Investments) in accordance with directions from the Search Committee and/or its designee and ensure timely ad postings.

2.4 Receive and screen resumes; act as point of contact for candidate inquiries; keep candidates informed of process and their status.

2.5 Identify potential candidates through screening of resumes and preliminary interviews.

2.6 Select qualified candidates for presentation to the Search Committee.

2.7 Facilitate scheduling of interviews with prospective candidates; provide consultation on interview questions and techniques if needed; provide pre-briefing and debriefing with Search Committee and ERS Board for all interviews.

2.8 Schedule and coordinate second or third interviews as necessary before selection of final candidates.

2.9 Assist Search Committee to select the final candidates for the ERS Board’s consideration.

Firm Services for Recruitment of ERS Executive Director 5

2.10 Schedule and coordinate interviews of the final candidates with the ERS Board.

2.11 Conduct detailed reference checks (minimum of three) and background checks for the final candidates.

2.12 Assist the ERS Board with the final selection.

2.13 Assist the Search Committee and/or its designee in negotiating compensation and benefit package; help develop a mutually beneficial arrangement and ensure everyone is well-informed about the status of the negotiations and offer.

2.14 Facilitate the transition from acceptance of offer by the selected candidate to his or her employment.

2.15 Communicate as appropriate with candidates not selected.

2.16 Meet either in person or virtually via TEAMS or equivalent application with the ERS

Board, management and staff during ERS business hours (Monday-Friday 7:45 am – 4:30 pm, HST).

3. OFFEROR QUALIFICATION

3.1 Offerors shall have a minimum of five (5) years of experience performing executive searches for large complex organizations, to include government agencies, preferably in Hawaii. Examples include, but are not limited to, searches for a Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, Chief Investment Officer, President, Vice President, Treasurer, or comparable executive level positions.

Examples of searches that would not qualify include searches for an Accounting Manager, Information Technology Manager, etc.

3.2 Offerors shall have conducted an executive search within the past five (5) years for a minimum of three (3) large complex organizations.

3.3 Offerors must have the ability to meet either in person or virtually via TEAMS or equivalent application with the ERS Board, management and staff during ERS business hours. A Hawaii-based office or affiliate is preferred.

3.4 Offeror’s primary account contact must have experience conducting business in the

State of Hawaii.

3.5 Offeror must fully complete and submit ATTACHMENT B, OFFER FORMS.

Firm Services for Recruitment of ERS Executive Director 6

4. TERM OF SERVICES

4.1 The ERS Board’s current plan requires that the Executive Director search begin immediately. Consequently, the Executive Search Firm selected will need to initiate the search, review and screening of applicants and provide its recommendations and assessments to the ERS in accordance with a timeline agreed upon between the Executive Search Firm and the Search Committee. See Scope of Work, Section 2.1

5. PRICING

5.1 Offeror shall fully complete and submit the HIePRO Request for Quotation forms attached as Attachment B.

5.2 Offeror’s price quotation shall be a fixed fee that shall include: (a) all fees to be charged by Offeror; (b) all costs incurred in or associated with performing the services required under the Scope of Work, Section 2, except for the placement of advertising as per Section 5.3 below; and (c) Hawaii general excises taxes and all other applicable taxes. The contract will be awarded to the responsive and responsible offeror per the evaluation criteria per Section 12 RFQ EVALUATION CRITERIA.

5.3 ERS will pay directly to publications for the cost of all advertisements for the Executive

Director position that are placed in accordance with the Scope of Work, Section 2.3.

Aside from this, the offeror selected shall be responsible for all costs incurred in or associated with performing the services required under the Scope of Work, Section 2.

5.4 For contract award purposes, any price quotation that is based on a percentage of salary will be evaluated using a salary of $300,000.

Firm Services for Recruitment of ERS Executive Director 7

6. INVOICING AND PAYMENT

A standard ERS Purchase Order will be issued to the awardee of this solicitation.

Invoices shall contain a detailed description of the services performed, the costs paid, the amount invoiced, and the ERS Purchase Order authorizing the work. If charges are reimbursements, please include original receipts to ERS Accounts Payable with the invoice submittals. Invoices submitted are scheduled for payment net 30 terms upon satisfactory completion of services and ERS receipt of an acceptable invoice per State of Hawaii requirements. Submit invoices to the attention as follows:

Bill to:

Employees’ Retirement System Attention: Accounts Payable 201 Merchant St, Suite 1400 Honolulu, Hawaii 96813 Ph (808) 586-1650 dbf.ers.accountspayable@hawaii.gov

7. RESPONSIBILITY OF OFFERORS

Offeror is advised that in order to be awarded a contract under this solicitation, the vendor/contractor/service provider will be required to be compliant with all laws governing entities doing business in the State including the following chapters of the Hawaii Revised Statutes (“HRS”) and pursuant to HRS § 103D-310(c):

1. Chapter 237, tax clearance;

2. Chapter 383, unemployment insurance;

3. Chapter 386, workers’ compensation;

4. Chapter 392, temporary disability insurance;

5. Chapter 393, prepaid health care; and

6. Section 103D-310(c), Certificate of Good Standing for entities doing business in the State.

Offerors are to be duly registered to do business in the State of Hawaii via DCCA registration, (cca.hawaii.gov/resources) and to be compliant in Hawaii Compliance Express (HCE) (vendors.ehawaii.gov/hce), in order to be considered for award. Offerors are strongly encouraged to submit an HCE Certificate of Vendor Compliance in their proposal package to ensure the State's ability to verify vendor compliance.

Firm Services for Recruitment of ERS Executive Director 8

8. PROCUREMENT OFFICER AND CONTRACT ADMINISTRATOR:

The individual listed below, or designee, is the Procurement Officer and Contract Administrator for this procurement.

Mr. Kalbert Young, Executive Director Employees’ Retirement System of the State of Hawaii City Financial Tower 201 Merchant Street, Suite 1400 Honolulu, HI 96813

The ERS contact person for this solicitation is:

Gerri Konishi, MHL Assistant 201 Merchant Street, Suite 1400 Honolulu, HI 96813 Telephone: 808-586-1705 Fax: 808-586-1677

9. PROCUREMENT TIMETABLE and SIGNIFICANT DATES

The following are the important actions and corresponding final dates by which the actions must be taken or completed. Offerors are notified that these dates are estimated by the ERS and are subject to change at the discretion of the ERS. The ERS reserves the right to change any date(s) as deemed necessary and in the best interest of the ERS. If the ERS decides to change a date for any reason, notification will be given via the addendum in HIePRO.

Release of RFQ October 14, 2026 Questions Due Date: October 21, 2026 @ 2:00 PM, HST Questions Answer Date October 26, 2026 Offers Due Date October 30, 2026 @ 2:00 PM, HST Offers Evaluation and Award Decision November 6, 2026 Contract Start Date November 30, 2026 **(estimated) Contract End Date May 1, 2027 ** (estimated)

** The ERS desires to commence this Contract per above. However, due to the time required for evaluation, award, and execution of this Contract, the exact commencement date is indeterminate at this time.

Firm Services for Recruitment of ERS Executive Director 9

10. COMMUNICATIONS WITH ERS, QUESTIONS

Offerors and potential offerors (including agents of offerors or potential offerors) should not contact any member of the ERS Board of Trustees or any member of the ERS staff. An exception to this rule applies to firms who currently do business with the ERS; provided that any contact made by any such firm should be related to that business and should not relate to this RFQ.

Questions must be entered in HIePRO and will be accepted until the deadline listed in the Section 9 Procurement Timetable and Significant Dates. A written response to any questions will be published by the ERS via HIePRO, and an addendum will be issued if required in HIePRO.

11. OFFEROR SUBMITTAL

Offeror(s) shall annotate and sign the ERS provided forms, insert the completed forms into their proposal package and upload the complete proposal into the State of Hawaii’s HIePRO website (https://hiepro.ehawaii.gov/welcome.html) for award consideration by Offer Due Date. Items to be in the offeror's proposal shall include, but not be limited to, the following:

- Proposal:

Offerors Proposal to include an authorizing cover memo, which shall state the proposal signatory authority, read and understands the specifications herein and 103D General Conditions (AG-008 103D General Conditions) and has the authority to commit their company’s resources to provide and perform as stated herein.

Proposal to include Offeror’s core competencies, credentials, certifications, listing of jobs of similar complexity and scope successfully completed and resumes of key personnel. Include any ancillary documents, including service level agreements if/as required. Provide sufficient information for the Offer evaluation per section 12., RFQ Evaluation Criteria, in the following format.

https://hiepro.ehawaii.gov/welcome.html

Firm Services for Recruitment of ERS Executive Director 10

• Company Background

• Experience

• Availability and Project Timeline – Complete

• Fees - Refer section 12., RFQ Evaluation Criteria and section 5. Pricing

Offeror are to be Compliant in accordance with section 7. Responsibility of Offerors at time of RFQ award and remain compliant through-out the engagement terms.

Offeror’s are encouraged to submit a Compliant certificate issued by Hawaii Compliance Express (HCE) (https://vendors.ehawaii.gov/hce/splash/welcome.html) in their response.

- Attachment B Offer Forms.

The Offeror is requested to submit its offer using the Offeror's exact legal name as registered with the Department of Commerce and Consumer Affairs, if applicable;

and to indicate exact legal name in the appropriate space. Failure to do so may delay proper execution of the Contract. Offer is valid for 60 days.

The amount entered on Attachment B Offer Forms 3 Pricing, Line 3 , PRICE QUOTE, Firm & Fixed is entered as the Total in HIePRO.

The Offeror shall list as references, companies for whom the Offeror has provided or is currently providing services similar in nature and in volume to services specified herein. The STATE reserves the right to contact the references to inquire about the Offeror’s past performance.

- Attachment A, TIMELINE FOR ERS EXECUTIVE DIRECTOR (Exec Dir) RECRUITMENT, DRAFT TIMELINE PROPOSED BY OFFEROR

The Offeror shall propose a timeline for recruitment of the Executive Director, subject to the Search Committee approval. The ERS reserves the right to modify the proposed timeline. The CONTRACTOR awarded this procurement will complete the Recruitment Project per timeline agreed to between CONTRACTOR and ERS. See Scope of Work Section 2.1 for timeline requirements.

Firm Services for Recruitment of ERS Executive Director 11

- Attachment C, ERS Confidentiality Agreement for Offeror and Sub-Contractors (if used).

Confidential Information. Offerors shall designate those portions of their offer that contain trade secrets or other proprietary data that are to remain confidential subject to HAR §§ 3-122-21(7) and 3-122-30 (c) and (d). Material designated as confidential shall be readily separable from the offer in order to facilitate public inspection of the non-confidential portion of the offer. Prices, makes, and models, or catalogue number of items offered, deliveries and terms of payment, shall be publicly available at the time of opening regardless of any designation to the contrary.

12. RFQ EVALUATION CRITERIA

Offerors that pass the Minimum Requirements in 3. OFFEROR QUALIFICATION will be evaluated on the following.

CRITERIA POINTS

Experience 30 Company Background 25 Availability and Project Timeline 25 Fees *** 20 Total 100

*** FORMULA CALCULATION

Formula for determining allocation of points for fee:

allocated points = ($ amount of the lowest fee proposal x 20.0) / $ amount of the fee proposal being evaluated per Section 5, PRICING, and as provided on offeror submittal, form Attachment B OFFER FORMS, section 3 PRICE QUOTE.

Firm Services for Recruitment of ERS Executive Director 12

ATTACHMENT A

TIMELINE FOR ERS EXECUTIVE DIRECTOR (Exec Dir) RECRUITMENT

DRAFT TIMELINE PROPOSED BY OFFEROR

DESCRIPTION OF TASK ESTIMATED

COMPLETION DATE

COMMENTS

1. Procure Executive Search Firm

2. Adhoc Committee for EXEC DIR Search: work with Executive Search Firm to finalize EXEC DIR search criteria.

3. Adhoc Committee for EXEC DIR Search to conclude EXEC DIR search.

4. Adhoc Committee for EXEC DIR Search: determine Finalists for ERS Board’s consideration.

5. Executive Search Firm to schedule interviews with EXEC DIR finalists.

6. ERS Board to conduct interviews.

Suggest two (2) all day or four (4) half days.

7. References and other background checks by Executive Search Firm.

8. Final EXEC DIR Selection made by ERS Board.

9. ERS to process State paperwork for hiring EXEC DIR.

10. EXEC DIR start date.

ATTACHMENT B OFFER FORMS

Firm Services for Recruitment of ERS Executive Director 13

Procurement Officer Employees’ Retirement System 201 Merchant Street, Suite 1400 Honolulu, Hawaii 96813

Dear Procurement Officer:

The undersigned has carefully read and understands the terms and conditions specified in the Specifications and the attached General Conditions and agrees to same. Offeror hereby submits the following offer to perform the work as specified in this specification, in accordance with the true intent and meaning thereof. The undersigned further understands and agrees that by submitting this offer, 1) he/she is declaring his/her offer is not in violation of Chapter 84, Hawaii Revised Statutes, concerning prohibited State contracts, and 2) he/she is certifying that the price quote submitted was independently arrived at without collusion.

Offeror Exact Legal Name of Entity: *

Doing Business As (dba): **

Federal Employer ID #: Hawaii Tax No.:

Business address:

City, State, Zip Code:

Payment address (if different than business address):

City, State, Zip Code:

Offeror is:

___ Corporation ___ Limited Liability Company ___ Limited Partnership

___ Other:

State of Incorporation/Organization:

Respectfully submitted:

Date: (x) Authorized (Original) Signature Telephone No.:

Fax No.: Name and Title (Please Type or Print) Email Address:

* Furnish the exact legal name of the entity under which the awarded contract will be executed.

**If Offeror is a “dba” or a “division” of a corporation, furnish the exact legal name of the corporation under which the awarded Contract will be executed.

Firm Services for Recruitment of ERS Executive Director 14

1. Offeror Contact Information

Offeror Name Offeror’s Contact Name

Contact address if different:

City, State, Zip Code:

Telephone No.:

Fax No.:

2. Qualification Requirements

Offeror shall comply with ALL the following qualification items as described in Attachment A, OFFEROR QUALIFICATIONS, Section 3. Any non-compliance (i.e., any “No” answers) for Minimum Qualifications will result in the offeror not qualifying for this award.

Offeror meets Minimum Qualification Yes No

2.1 Offeror has a minimum of five (5) years of experience

performing executive searches for a large complex organization.

2.2 Offeror has conducted an executive search within the past five (5) years for at least three (3) large complex organizations. Contact information for these executive searches must be provided.

2.3 Offeror has the ability to meet either in person or virtually via TEAMS or equivalent application with the Employees’ Retirement System Board of Trustees, ERS management and ERS staff during ERS business hours

2.4 Offeror’s primary account contact must have experience

conducting business in the State of Hawaii

3. PRICE QUOTE

Offeror to provide Executive Search Services price quotation in accordance with Section 5, PRICING for services only. Offeror Total Price Quote for Services below are to be fully encumbered, firm and fixed, lump sum inclusive of all labor, product, taxes and fees but does not include the cost of advertising, noted in Section 5.3 pricing, which shall be reimbursed back to the awardee under separate cover.

Total Price Quote for Services: $

This total price quote, Offeror is to place in HIePRO in total quote for services for the job.

Firm Services for Recruitment of ERS Executive Director 15

4. REFERENCES

List 3 clients within the past 5 years where Offeror conducted an executive search for a large complex organization. Offeror hereby authorizes the Employees’ Retirement System of the State of Hawaii to contact these clients.

(1) Client Name Contact Person Telephone No. Facsimile No.

Description of Service Provided:

Contract Period of Service Provided:

(2) Client Name Contact Person Telephone No. Facsimile No.

(3) Client Name Contact Person Telephone No. Facsimile No.