B.03 Justification for Other Than Full and Open Competition.pdf

Justification for Other Than Full and Open Competition

I. AGENCY & CONTRACTING DIVISION

Federal Retirement Thrift Investment Board Office of the Chief Financial Officer/Acquisition Management Division 77 K Street N.E., Suite 1000 Washington, D.C. 20002

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

The Federal Retirement Thrift Investment Board is seeking a subscription that allows the Agency to benchmark the Thrift Savings Plan (TSP) against other Defined Contribution (DC) plans. FRTIB seeks a source offering access to a comprehensive picture of the DC landscape. This access includes benchmarking data on participant demographic data, operational data, investment data, and plan feature data. Access to this data will allow the Agency to understand trends in the marketplace, analyze market data, and gather information that will shape future offerings for the TSP.

III. DESCRIPTION OF THE PRODUCTS/SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

The subscription to CEM Benchmarking will allow the Agency to benchmark the TSP against other large and mega Defined Contribution (DC) plans. CEM has a database of over 130 DC plans totaling over $1.5 Trillion in Assets under management. The CEM Benchmarking subscription will give the Agency insights into investments (performance and costs), operational activities (expense ratios, recordkeeping services), and plan features. The CEM Benchmarking subscription will provide an annual plan specific report detailing how the TSP compares to other plans as well as access to an online dashboard that provides interactive tools. It should be noted the online dashboard has an unlimited number of users.

Also, the CEM Benchmarking subscription will give the Agency access to a peer network and access to an annual conference.

Description of Products and Services Requested Delivery Date /Period of Performance Annual

Quantity

Annual Benchmarking Subscription

Winter 2025 (base period - 12 months) 1 Winter 2026 (option period #1 - 12 months) 1 Winter 2027 (option period #2 - 12 months) 1 Winter 2028 (option period #3- 12 months) 1 Winter 2029 (option period #4- 12 months) 1

AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION

The Federal Retirement Thrift Investment Board follows the Competition in Contracting Act, 41 U.S.C.

sec. 3301 et seq., framework where in the best interest of the participants and beneficiaries of the Thrift Savings Plan. 41 U.S.C. sec. 3101(c)(1)(B); 5 U.S.C. secs. 8472(h) and 8474(c)(1).

Only one responsible source and no other products or services will satisfy FRTIB requirements.

In the Summer of 2023, a vendor, CEM Benchmarking, approached the Agency and stated they could provide readily available Defined Contribution (DC) industry benchmarking data. They stated CEM works with over 500 plans and over 150 large to mega size plans. Their current client base spans commercial plans as well as State plans. From there the Agency took a trust but verify approach and created a Request for Information (FRTIB1-24-RFI-0001) asking industry if they offered the following:

From the RFI “The FRTIB seeks a commercially available tool that will give on-demand information to the FRTIB on how the TSP compares to other Defined Contribution Plans. The FRTIB seeks to compare, but not limited to, the following types of information:

Assets Under Management, Fees, Average account balance, Cash flow, Withdrawal and loan data, and asset allocation.

The FRTIB seeks the information to be in dashboard format and should also have summary level information. Information obtained from this RFI will allow the FRTIB to identify and assess the costs, risks, rewards, and other relevant factors associated with a commercially available tool that will allow the FRTIB to benchmark the TSP against other Defined Contribution plans.”

IV. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS MANY

POTENTIAL OFFERORS AS DEEMED PRACTICABLE

The Agency created a Request for Information (FRTIB1-23-RFI-001). Three companies responded.

V. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE

AGENCY WILL BE FAIR AND REASONABLE

While there are no direct comparisons to CEM Benchmarking, the Office of Planning and Risk utilizes similar services that could reasonably provide the Government a basis for considering the total cost of the CEM Benchmarking suite of services.

The closest comparable service to the DC PABS that the FRTIB has recently utilized was a benchmarking study provided by RVK (Award # TIB-2021-A-0015). This report from RVK provided comparable data on DC industry trends and some metrics. However, the information from CEM will provide direct comparable peer data.

While there is no comparable service to the DC Investment Benchmarking Service, OPR has utilized other data benchmarking services in the past. For example, OPR utilizes a data service, Cerulli, that provides access to US DC industry data. This service does not provide access to other Defined Contribution data for other countries.

VI. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS, OR A STATEMENT OF

THE REASONS MARKET RESEARCH WAS NOT CONDUCTED

OPR’s independent market research analysis has revealed no new contractors that meet our requirement since the RFI’s posting.

VII. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN COMPETITION

This requirement has been a subscription service used by FRTIB through limited sources documentation resulting in award TIB-2020-P-0009.

VIII. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE PROCUREMENT

Vendor Name Vendor Address and Website (if available) Seven Outsource None Provided Sunstone Advisory Group 25 Castle Haven Road

Hampton, VA 23666 MicroStrategy 1850 Towers Crescent Plaza

Tysons Corner, VA 22182 microstrategy.com/en

CEM Benchmarking 372 Bay Street #1000 Toronto, ON M5H 2W9 Canada cembenchmarking.com

R.V. Kuhns & Associates, Inc. 1211 SW 5th Avenue, Suite 900 Portland, OR 97204 rvkinc.com

IX. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME

ANY BARRIERS TO COMPETITION BEFORE MAKING SUBSEQUENT PROCUREMENTS FOR THE REQUIRED

PRODUCTS AND SERVICES

OPR will continue evaluating the industry for better tools.