60-39400-26-00076_Sole Source Request Form-Broadridge FY27_Updated.pdf.PDF

2026 Sole Source Form

STATE OF NEW MEXICO

SOLE SOURCE REQUEST AND DETERMINATION FORM

A sole source determination is not effective until the sole source request for determination has been posted for thirty (30) calendar days without Protest and subsequently approved in writing by the State Purchasing Agent. The foregoing requirement is regardless of whether the sole source request for determination has been signed by the Agency.

I. Name of Agency: State Treasurer’s Office Agency Chief Procurement Officer: Dolores Gurule Telephone Number: 505-919-9184 Agency Contact for this request: Christine Anaya, Special Projects Director Email Address: Christine.Anaya@sto.nm.gov

II. Name of prospective Contractor: QED Financial Systems, Inc.

c/o Broadridge Financial Solutions, Inc.

SHARE Vendor Number (must be active): 0000010368 Address of prospective Contractor: 605 Third Avenue, New York, NY 10158 Contact Name, Telephone Number and Email Address:

Joseph Cole, 856-787-8326, Joseph.Cole@broadridge.com Amount of prospective contract before tax: $281,866.70(1 year) $1,127,466.80(4 years) Estimated tax amount (tax is subject to change): $13,741.00(1 year) $54,964.00(4 year)

III. Term of prospective contract: Four (4) Years, July 1, 2026-June 30, 2030. Note:

Please refer to §13-1-150 for contract term limits.

If this is an amendment request to an existing contract, include current sole source posting number issued by SPD: N/A

IV. If this is a Sole Source for new or existing IT software licensing subscription(s), Agency is required to upload the Contractor’s draft Service Level Agreement (SLA) with the Sole Source online submission.

Agency is required to provide the detailed scope of work (or amendment) for this sole source.

Scope of work must match the scope included in the services determination and Horizons declination.

To renew and extend the State Treasurer’s Office’s existing hosted investment accounting and analytics platform for Fiscal Year 2027, ensuring uninterrupted access to critical financial reporting, audit readiness, disaster recovery capabilities, and custodial data aggregation services.

It would be prohibitively expensive to operations to change the integrated Investment- Accounting Software. Continuation of existing services eliminates operational risks associated mailto:Joseph.Cole@broadridge.com with data migration efforts, and implementation delays that would accompany a transition to a different provider.

Scope of Work (Services):

1. Contractor shall host and provide a computer hardware environment appropriate in size and capacity to accommodate the operational and business continuity needs of Agency’s investment business.

2. The computer environment will be remotely accessible by Agency and may be located at a data center operated by vendor or by a third party under agreement.

3. Contractor shall provide a nightly onsite back up and weekly offsite backup storage of Agency’s data as part of disaster contingency services.

4. Contractor shall provide Agency with access to new software releases and updates.

5. Contractor shall provide corrections to material errors in the hosted application software that have been identified and reported to vendor, at no additional charge to Agency.

6. Contractor shall provide normal and routine telephone assistance related to system operation from 8 AM to 6PM Eastern time Monday through Friday, excluding New York Stock Exchange holidays.

7. Contractor shall provide a maximum two (2) consecutive calendar week test of the hosted software application within the disaster recovery environment.

8. At all times during the Agreement and for one year after contract termination, Agency is entitled to a one-time receipt of a file of the Agency’s data in electronic ASCII file format or other machine-readable format as mutually agreed upon in writing, or hard copy format, if requested. Notwithstanding the foregoing, Agency is entitled at all times during the Agreement, to extract and retain Agency data from the hosted application software at no additional cost.

9. Contractor shall host and provide a database to be used for STO Cash and Investment Portfolios and Pool accounts (Local Government Investment Pool (LGIP), Bond Proceeds Investment Pools (Tax Exempt and Taxable), Investing Agencies.

10. Contractor shall provide a price/data retrieval ability to pull in security details to include but not exhaustive of CUSIP, Maturities, Calls, Accounting methodology, ratings, and each of the following:

a. Investment Policy compliance testing reports.

b. Ability to incorporate audit trails.

c. The ability to import and export information suitable for generating investment tickets and accounting entries.

d. Ability to export trade tickets to custodians.

e. Data and/or report(s) with the ability to be downloaded in Comma- Separated Values (CSV), Excel and PDF’s.

f. MS Excel file formats (Reporting data elements should be configurable, and able to be retained and shared between users for repeat usage).

11. Contractor shall provide for Portfolio Tracking Metrics, and must provide the Agency the capability of tracking the portfolio by using the following metrics:

a. Fund

b. Investment Type

c. Custodian

d. Maturity

e. Maturity remaining (for maturity distribution reporting)

f. Broker on trade

g. Weighted average maturity

h. Market value

i. Cost

j. Gain/loss

k. Accrued Income/interest

l. Yield

12. Contractor shall provide for the following investment metrics:

a. Investment number/identifier

b. CUSIP

c. Investment Type

d. Maturity Date

e. Par

f. Price

g. Market value

h. Cost

i. Gain/loss

j. Accrued Income

k. Yield

l. Settlement Date

m. First Coupon Date

n. Coupon/Interest Rate

o. Broker on trade

p. Coupon frequency

13. Mandatory Reporting – Contractor shall provide the ability to produce the following required:

a. Investment Inventory

b. Income Projections

c. Earned Income Detail

d. Asset Allocation

e. Detail Transaction

f. Total Receipts

g. Portfolio Statistics

h. Security Accruals/Amortizations

i. Calls/Step Ups, Step Downs

j. Floating Rate Note Resets

k. Zero Coupon Holding

l. Repo Holdings (Percentage Per Broker)

m. Fixed Income Duration Yield Reporting

n. Net Asset Value Summary

o. Participant Statements

p. Fee Summary

14. Technical Requirements:

a. Contractor shall provide compatibility with all major web browsers

• Edge

• Edge – Chromium

• Chrome

• Compatibility with the most recent Microsoft operating systems with regular system updates provided to ensure compatibility on future operating systems

• Compatibility with MS Dynamics 365

• Supports TLS encryption 1.2 or higher

• All data must be encrypted at AES256 bit at rest and in-transit

• Database level data will use TDE encryption

b. Cloud – Based Solution Requirements (SaaS)

• Contractor shall not run STO applications and data on overseas networks or centers

• The proposed system will follow CIS level 1 Security benchmarks and be FISMA rated

• Windows Security updates will be applied monthly

• Cloud Providers must be compliant with security-oriented laws and auditing programs, including SOC 1 Type 2

• Security reports as agreed between the parties will be available from the system to authorized persons upon request

c. The Contractor must provide unlimited user access for use by the State Treasurer’s Office.

d. The system must be able to interact and interface with various external marketplace vendors.

• Ability to interface with Bloomberg Anywhere and/or Bloomberg AIM and STOs online custody bank JP Morgan Chase.

• Ability to interface with banks to send Safe Transmission Files.

e. The system must be able to interface with the state’s ERP system (Peoplesoft).

• Ability to send account transfer and interest redemption instructions to the state’s SHARE system.

f. Contractor shall provide an Online Portal for Local Government Investment Pool (LGIP) Participants.

• This database to be used for Local Government Investment Pool

(LGIP).

• An online portal for LGIP participants to enable viewing of balances and transaction history and transact contributions, withdrawals, internal transfers, and effect EFT transfer requests for account withdrawals.

• System shall provide ad hoc statements to include monthly LGIP statements for participants.

V. Provide a detailed explanation of the criteria developed and specified by the agency as necessary to perform and/or fulfill the contract and upon which the state agency reviewed available sources. (Do not use “technical jargon;” use plain English. Do not tailor the criteria simply to exclude other contractors if it is not rationally related to the purpose of the contract.)

1. Complete Hosted Solution

• The vendor must deliver a fully managed, cloud-hosted platform for investment accounting and analytics (not just standalone software).

2. Proprietary QED Functionality

• The system must include QED’s proprietary modules (Secure Global Desktop gateway, Investment Accounting Foundation, Business Intelligence, Data Mart, iPAS) exactly as they’re currently configured—no other vendors offer that exact combination.

3. Integrated Custodial Data Aggregation

• Custodial data feeds (e.g. from JP Morgan) must be seamlessly integrated into the accounting platform without custom bridge.

4. Built-In Disaster Recovery & Backups

• The service must include hosted backups, periodic DR testing, and a documented recovery plan to meet audit and business-continuity requirements.

5. Data-Export Capability

• We need the ability to extract full data sets on demand (for reporting, audits, or future migrations), so any alternative must match QED’s export tools exactly.

6. Ongoing Support & Training

• Telephone support, regular maintenance, and on-site or remote training services must be part of the annual agreement.

7. Seat-License Continuity

• All existing user accounts and configurations must carry over without interruption, swapping vendors would require a complete re-license and retraining.

VI. Provide a detailed, sufficient explanation of the reasons, qualifications, proprietary rights or unique capabilities of the prospective contractor that makes their company the only source capable of providing the required professional service, general service, construction or item(s) of tangible personal property. (Please do not state the source is the “best” source or the “least costly” source. Those factors do not justify a “sole source.”)

The combination of proprietary QED modules, Broadridge aggregation, and turnkey hosting is unique, and this uniqueness directly supports the State Treasurer’s Office’s need for a seamless, continuously available investment-accounting software. Specifically:

1. All-in-One, Hosted Architecture o Why unique: QED delivers a fully managed, cloud-hosted environment that includes not just the accounting engine but also business-intelligence dashboards, data-mart services, and a secure global desktop gateway under one annual agreement.

o Relation to purpose: STO requires uninterrupted remote access, automated backups, and built-in disaster-recovery testing to meet audit and reporting deadlines. Everything is handled within one system, eliminating gaps and the need to coordinate between different providers or tools.

2. Proprietary Functional Modules o Why unique: The Secure Global Desktop gateway, Investment Accounting Software, Business Intelligence, Data Mart, and iPAS modules are all proprietary to QED Financial Systems. They have been custom configured over multiple years to reflect STO’s chart of accounts, reporting structure, and audit requirements.

o Relation to purpose: STO relies on built-in reports and tracking tools that would be difficult and time-consuming to recreate elsewhere, with a risk of delays and data issues.

3. Certified Custodial Data Aggregation o Why unique: Broadridge’s custodial data-aggregation engine is the only certified solution that directly ingests feeds from JP Morgan (and other custodians) into the QED platform’s custom-built software that allows different systems to work together.

o Relation to purpose: Accurate, timely custodial data is critical for daily portfolio valuation and month-end reporting. Any alternative would introduce custom interfaces that could break with custodial updates or produce reconciliation errors.

4. Built-In Disaster Recovery & On-Demand Data Export o Why unique: QED’s service includes scheduled backups, annual disaster-recovery tests, and a self-service data-export utility that outputs complete data sets in audit-ready formats.

o Relation to purpose: STO must demonstrate to auditors that it can recover full financial data after a system failure and must be able to extract historical data on demand. This built-in functionality directly fulfills the contract’s objective of audit readiness and business continuity.

5. Ongoing Support & Institutional Knowledge o Why unique: QED and Broadridge maintain a dedicated support team that understands STO’s environment, past change controls, and compliance requirements. This level of institutional knowledge is proprietary and not available from new vendors.

o Relation to purpose: Rapid issue resolution and controlled system updates are vital for preventing downtime during critical fiscal periods. This support continuity ensures STO can meet reporting deadlines without engaging in lengthy vendor onboarding.

Because no other provider offers this exact combination of proprietary modules, certified aggregation, hosted infrastructure, and embedded support services, and because each element is directly tied to STO’s audit, reporting, and continuity requirements, this service is uniquely suited to fulfill the contract’s intended purpose.

VII. Provide a detailed, sufficient explanation of how the professional service, general service, construction or item(s) of tangible personal property is/are unique and how this uniqueness is substantially related to the intended purpose of the contract.

1. Lack of an All-in-One Hosted Solution

Alternative vendors typically offer standalone accounting software or separate hosting services, never a combined, fully managed investment-accounting system with built-in BI, data-mart, and secure remote access. Piecing together disparate products would create operational gaps and increase points of failure, undermining STO’s need for uninterrupted service and audit readiness.

2. Absence of Proprietary QED Modules No other provider holds the proprietary rights to QED’s Secure Global Desktop gateway, Investment Accounting Software, Business Intelligence, Data Mart, and iPAS modules. Replicating these exact capabilities would require rebuilding critical functionality from scratch, a process that would introduce significant development time, cost, and risk to data integrity.

3. No Existing Institutional Knowledge or Support Continuity New vendors would not possess the deep, historical understanding of STO’s chart of accounts, reporting formats, and past change requests that QED and Broadridge support teams maintain. This lack of institutional knowledge would prolong issue resolution, increase training demands, and risk service interruptions during critical fiscal periods.

4. Disruption Risk and Implementation Delay Engaging any other vendor would trigger a full data-migration project, custom interface development, and extensive end-user retraining. Such a transition would likely span several months and expose STO to audit-finding risks, missed reporting deadlines, and potential service outages.

No other vendor offers the same combination of tools, data, hosting, compliance features, and, just as importantly, the institutional knowledge of STO’s operations. Without that, other options would not provide the same seamless and reliable investment accounting.

VIII. Provide a narrative description of the agency’s due diligence in determining the basis for the procurement, including procedures used by the agency to conduct a review of available sources such as researching trade publications, industry newsletters and the internet;; contacting similar service providers; and reviewing the State Purchasing Divisions’ Statewide Price Agreements. Include a list of businesses contacted (do not state that no other businesses were contacted), date of contact, method of contact (telephone, mail, e-mail, other), and documentation demonstrating an explanation of why those businesses could not or would not, under any circumstances, perform the contract; or an explanation of why the agency has determined that no businesses other than the prospective contractor can perform the contract.

To ensure that only a sole-source award to QED Financial Systems (and Broadridge for aggregation) would meet the State Treasurer’s Office’s statutory needs, we carried out the following market research and outreach steps:

1. Review of Existing Contracts and Statewide Agreements o Examined the State Purchasing Division’s current Statewide Price Agreements for investment-accounting software, custodial data-aggregation services, and business-intelligence tools.

o Confirmed that no active SPA combines hosting, disaster recovery, proprietary analytics modules, and custodial aggregation in a single package.

2. Industry Research o Surveyed leading trade publications (e.g., Government Finance Review, Treasury & Risk) and newsletters (e.g., the Association of Government Accountants’ weekly digest) for announcements of comparable hosted investment-accounting platforms.

o Reviewed vendor white papers and product roadmaps on corporate websites (including SS&C GlobeOp, IBM, Oracle, SAP, and BlackRock Aladdin). None offered the exact combination of proprietary BI/data-mart modules, hosted disaster recovery, and certified custodial aggregation.

3. Summary of Findings o No single vendor could match QED’s proprietary suite of Secure Global Desktop, Investment Accounting Software, BI/Data Mart, and iPAS modules.

o Custodial data feeds could not be ingested seamlessly without Broadridge’s certified engine.

o Disaster recovery & data-export capabilities were either add-on services or required separate third-party contracts.

o Combining multiple providers would fragment support, complicate compliance with audit requirements, and introduce scheduling and integration risks.

Conclusion:

Based on our due diligence and industry research, we confirmed that no other vendor offers the integrated, audit-ready, hosted investment accounting and data solution required by the State Treasurer’s Office. This is especially true when considering the institutional knowledge already established with the current system. Only QED Financial Systems (with Broadridge for data aggregation) meet all requirements in a single, fully supported solution.

Agency certifies this sole source submission complies with NMSA 1978, Sections 13-1-28 through 13-1-199, the New Mexico Administrative Code (NMAC) and Governmental Conduct Act, NMSA 1978, Sections 10-16-1 through 10-16-18.

Certified by: Date:____________________

Dolores Gurule, Chief Procurement Officer

Certifying Legal Sufficiency by: Date: ____________________

Kenneth Stalter, Legal/General Counsel

Agency Approval by: Date: ____________________

APPROVED: Date:____________________

State Purchasing Agent

If this sole source is being submitted by a governmental agency or governmental entity not under the authority of the State Purchasing Agent, the State Purchasing Agent’s signature is not required. The signature line may be removed from this form or marked as N/A. Hard Copy Documentation for Courtesy Postings do not need to be submitted to SPD for approval.

5/27/2026

05/27/2026

5.27.26

Ricky Serna, Deputy State Treasurer

I. Name of Agency: State Treasurer’s Office