ESBD_397356_1740041944559_Solicitation Document.docx

Teacher Retirement System of Texas

Request for Proposals (RFP) Actuarial Services Solicitation No. TRS000552 NIGP Class/Item Codes: 946-12

Anticipated Schedule of Events

February 20, 2025

Issuance of RFP

Late Proposals will not be considered

April 28, 2025 Presentations and/or interviews by top-ranked Respondents, if requested. TRS may elect to conduct presentations and/or interviews as part of the evaluation process.

Table of Contents

Solicitation Section I:

Summary Details

1. Summary Details

3. Issuing Agency

Teacher Retirement System of Texas Procurement & Contracts 1000 Red River Street Austin, TX 78701-2698 ATTN: Jacob Bledsoe

1) Properly document Respondent’s meeting of the minimum qualifications as referenced in Section V Evaluation Criteria of this RFP.

March 21, 2025, 5:00 p.m., Central time

jacob.bledsoe@trs.texas.gov

All questions and inquiries about this solicitation must be sent to the Procurement and Contracts Representative only.

Failure of a Respondent or any of its representatives to observe this restriction may result in disqualification of any related Proposal.

This restriction does not preclude discussions between affected parties for the purpose of conducting business unrelated to this Solicitation.

(512) 542-6867 blender.hill@trs.texas.gov

Solicitation Section II:

Definitions Definitions

As used in this Solicitation, the following capitalized terms shall have the meaning specified below:

www.txsmartbuy.com/sp.

Section III: Summary of Procurement and Services Overview of the Solicitation and Services

Introduction

The Teacher Retirement System of Texas (TRS), a public pension fund and entity of the State of Texas, issues this Request for Proposals (RFP) #TRS000552 (Solicitation) to solicit proposals from qualified vendors to provide pension and healthcare actuarial services.

TRS desires to contract with one or more qualified, experienced vendors capable of providing actuarial services to large pension and self-funded health plans and have prior experience directly related to the services requested in this RFP. TRS reserves the right to make no award, a single award, or multiple awards.

Services to Be Provided

Respondent shall provide Services in accordance with this Solicitation and the draft Contract (included in PAVES as a separate document). The Scope of Work within the draft contract contains two main categories of services:

Pension Actuarial Services TRS-Care Actuarial Valuation Services

Respondents can propose on Pension Actuarial Services (see section I.), or TRS-Care Actuarial Valuation Services (see section II.), or both.

As part of the Pension Actuarial Services, TRS is also seeking the Mentorship of TRS Pension Actuaries (see section I., 8.). The mentorship services are preferred and should only be proposed if providing Pension Actuarial Services. Preference, including the allocation of additional points during the evaluation process, may be given to proposals that also include these mentorship services.

Contracts and Awards

The executed Contract may include the Pension Actuarial Services, or the TRS-Care Actuarial Valuation Services, or both depending on the Respondent's qualifications and experience.

TRS may contract with the selected firm beginning January 1, 2026, extending until December 31, 2029. The selected firm may serve in a transitional role from December 1, 2025, to December 31, 2025, and as TRS’ designated actuary from January 1, 2026, through December 31, 2029.

TRS History and Background Pension Fund TRS is a service-oriented public pension system providing retirement, healthcare, and related benefit programs for Texas public education employees, retirees, and their beneficiaries (Participants). As of August 31, 2024, the TRS pension had a net position of $210.5 billion and about 2.06 million current members and retirees. TRS’ mission is to improve the retirement security of plan Participants and their beneficiaries by prudently investing and managing trust assets and delivering benefits that make a positive difference in members' lives. This RFP is issued in accordance with section 825.206(c) of the Texas Government Code, which mandates that TRS’ Board of Trustees (Board) re-designate its pension actuary at least once every four years after advertising for and reviewing proposals from providers of actuarial services.

Health Insurance Programs

TRS also manages two health benefit programs: TRS-Care, which is the health insurance program available to TRS retirees and dependents, and TRS-ActiveCare, which is the health insurance program available to TRS active employees and dependents. Category Number 5 (TRS-Care Actuarial Valuation) portion of the RFP is limited to services to be provided relating to valuation of the TRS-Care program (GASB 74), and other GASB schedules (GASB 75). As of August 31, 2024, TRS-Care covers 214,560 retirees and dependents and includes a self-funded plan or retirees and dependents who are not eligible for Medicare coverage, a fully-funded Medicare Advantage plan for retirees and dependents with Medicare A and/or B coverage, and a self-funded plan for retirees and dependents who are Medicare eligible, but have lost Medicare Part B coverage.

Solicitation Section IV:

HUB Subcontracting Plan (HSP) Requirements and Information HUB Subcontracting Plan Information

In accordance with Section 2161.252 of the Texas Government Code and 34 Texas Administrative Code Section 20.285, each state agency that considers entering a contract with an expected value of $100,000 or more over the life of the contract (including any renewals) shall, before the agency solicits bids, proposals, offers, or other applicable expressions of interest, determine whether subcontracting opportunities are probable under the Contract. If subcontracting opportunities are probable, each state agency’s invitation for bids, requests for proposals, or other purchase solicitation documents with an expected value of $100,000 or more shall state that probability and if probable require a Historically Underutilized Business (HUB) Subcontracting Plan (HSP).

An evaluation of potential subcontracting opportunities was conducted for the Contract in accordance with Texas Government Code Section 2161.252, and it was determined that the Contract does not contain any probable subcontracting opportunities. Therefore, TRS is not requiring a HUB Subcontracting Plan (HSP) be submitted with responses to Solicitation.

However, if Respondent determines the need to subcontract for any services, materials and/or supplies to fulfill the terms of this contract, the Respondent must immediately inform TRS so that the solicitation may be updated, and the Respondent must submit a complete HUB Subcontracting Plan with its proposal to be considered responsive. The HSP form may be accessed at:

https://comptroller.texas.gov/purchasing/vendor/hub/forms.php.

TRS will provide guidance on navigating the State of Texas HUB forms and Respondent is encouraged to seek assistance in completing the HSP from the TRS HUB Coordinator, Blender Hill, at (512) 542-6867 or at blender.hill@trs.texas.gov if the Respondent is going to subcontract any portion of the work listened in the scope of work in the sample contract.

TRS HUB Goals:

For purposes of the solicitation, TRS has determined that this procurement falls under the following category:

☐ Special Trade Contraction – The goal is 50% ☒Professional Services – The goal is 10% ☐Other Services – The goal is 25% ☐ Commodities – The goal is 35%

Agency Annual HUB Goals:

TRS’s annual HUB expenditure goals for FY25 are listed below.

HUB Subcontracting Opportunities for this Solicitation

The National Institute of Government Purchasing (NIGP) Commodity Book class and item codes and commodity descriptions for the services requested under this RFP are listed below. Full commodity descriptions can be found at https://comptroller.texas.gov/purchasing/nigp/

The TRS has identified possible HUB subcontracting opportunities listed below related to the Scope of Work under this Solicitation; however, this list should not be considered exhaustive. Additional opportunities may be added at the Respondent’s option.

Finding HUB Vendors

For a list of HUB vendors, Respondent may use the Centralized Masters Bidders List (CMBL) and HUB Directory. Below are instructions on how to search the CMBL:

· Access the CMBL and HUB Directory at: https://mycpa.cpa.state.tx.us/tpasscmblsearch/tpasscmblsearch.do .

· CMBL Page will default to certain fields already checked - ensure that All Vendors are searched.

· Enter Class Code and Item (leave Item blank to select any).

· Enter District Number to select specific geographic location (leave district blank to select all).

· Click the Submit Search button.

· Detail List page will default to certain fields already checked.

· Check Ethnicity, Gender fields, and Business Description as well as any other fields needed. Click go.

· Identify HUBs on the Results For CMBL Plus HUBs Search page (HUB category is on far right of page).

· Select HUB vendor and click on company name. Sometimes a vendor will have more than one listing -use the most current one.

· Confirm that HUB Status is “A” (Approved; Active) on the Vendor Detail page.

· If vendor appears to meet your needs, then solicit a bid or response of interest.

· Repeat this process until you have found a minimum of three (3) certified HUBs per subcontracting opportunity/area, either identified by the TRS or your company.

Solicitation Section V:

Evaluation Process and Criteria

Evaluation Process and Criteria

In purchasing and contracting for goods and services, TRS shall select the vendor that represents the best overall value for TRS based on Respondent’s qualifications, experience, acceptance of TRS contract terms and conditions, proposed pricing, and other relevant factors that are in TRS best interests and comply with TRS's fiduciary duties.

TRS reserves the right to ask questions or request clarification from any Respondent at any time before the scoring of the applicable round during the evaluation process. All such questions shall be provided to the Respondent by the TRS Procurement and Contracts Representative for this Solicitation.

Initial Submission Compliance Screening and Minimum Qualifications

During the initial screening, TRS will review the Proposals for compliance with the submission requirements of this RFP. Failure to meet the submission requirements may, at any time, result in the disqualification of the Respondent without further consideration or evaluation of its Proposal.

Proposals that do not meet the following minimum qualifications will be rejected as non-responsive and disqualified:

Minimum Qualifications – Pension Actuarial Services

1. Respondent’s firm must be a professional actuarial services firm that provides actuarial valuations, experience investigations, and pension consulting services.

2. Respondent’s firm must have been in existence as a business entity performing such services for a minimum of three (3) years.

3. The Principal Actuary responsible for the TRS account must be an employee of Respondent and:

a. Be a Fellow of the Society of Actuaries and an enrolled actuary;

b. Have a minimum of ten (10) years of experience as an actuary providing pension consulting services, experience analyses, and valuation assignments for public retirement systems with memberships of at least 100,000; and

c. Have testified before state legislative and administrative bodies in support of actuarial positions or the principles used in valuing a defined benefit plan or pricing legislation.

4. The Support Actuary must be an employee of Respondent and:

a. Either be a Fellow of the Society of Actuaries, an enrolled actuary, or have a minimum of ten (10) years of pension consulting experience;

b. Have a minimum of five (5) years of experience as an actuary providing pension consulting services, experience analyses, and valuation assignments for public retirement systems with memberships of at least 100,000; and

c. Have testified before state legislative and administrative bodies in support of actuarial positions or the principles used in valuing a defined benefit plan or pricing legislation.

Minimum Qualifications – TRS-Care Actuarial Valuation Services

1. Respondent’s firm must be a professional actuarial services firm that provides actuarial valuations and experience investigations.

2. Respondent’s firm must have been in existence as a business entity performing such services for a minimum of three (3) years.

3. The Principal Actuary responsible for the TRS account must be an employee of Respondent and:

a. Be a Fellow of the Society of Actuaries and an enrolled actuary;

b. Have a minimum of ten (10) years of experience as an actuary providing healthcare consulting services, experience analyses and valuation assignments for public retirement systems with memberships of at least 100,000; and

c. Have testified before state legislative and administrative bodies in support of actuarial positions or the principles used in valuing a defined benefit plan or pricing legislation.

4. The Support Actuary must be an employee of Respondent and:

a. Either be a Fellow of the Society of Actuaries, an enrolled actuary, or have a minimum of ten (10) years of healthcare consulting experience;

b. Have a minimum of five (5) years of experience as an actuary providing healthcare consulting services, experience analyses, and valuation assignments for public retirement systems with memberships of at least 100,000; and

c. Have testified before state legislative and administrative bodies in support of actuarial positions or the principles used in valuing a defined benefit plan or pricing legislation.

Initial Round

The evaluation committee will individually evaluate all Responsive Proposals during the Initial Round. After Initial Round evaluations, TRS may request that all or only the top-scoring Respondents participate in future rounds.

Responses will be scored under best value standards that are in the best interest of TRS using the following general categories for which weights are shown:

Presentations Round – Selection Criteria: 10 points

After Initial Round evaluations are complete, TRS may (1) move on to a Presentation Round, (2) determine that this round is not necessary and move on to the Best and Final Offer (BAFO) Round, or (3) make one or more contract awards based on the Initial Round evaluations.

TRS may request that all or only the top-scoring Respondents participate in presentations. Respondent presentations allow Respondents to highlight the strengths and unique aspects of their Responses and provide answers to clarification questions TRS may have regarding the Responses.

Evaluation Criteria for Respondent Presentations Round may include, but are not limited to:

1. Respondent’s demonstrated understanding of the RFP requirements and ability to satisfactorily describe the processes/methodologies for delivering the Services.

2. Respondent’s demonstrated experience in undertakings similar in scope and complexity to those indicated in this Solicitation, including past performance.

3. Respondent’s team member interaction and Respondent’s interaction with TRS.

4. Respondent’s presentation quality and ability to meet TRS’ needs.

5. Respondent’s ability to fit into the TRS culture.

After the presentations, the Respondent may be required to submit answers to questions asked during the presentation.

Presentations will be evaluated individually by each evaluator, who shall provide a score from 0 to 10, with 10 being the best/highest score. The point allocation for the Presentation Round will not be added to any previous round or future round. The Presentation Round points determine which Respondent(s) move on to the next round.

TRS Option for Best and Final Offer (BAFO) Round

If TRS decides to have a BAFO Round, a BAFO may be sought from all or only the top-scoring Respondent(s). As the BAFO Round is an optional round by TRS, TRS strongly encourages Respondent(s) to provide the best pricing and terms in its initial proposal.

BAFOs will be evaluated individually by each evaluator. TRS may request that a Respondent provide additional information. The point allocation for the BAFO Round will not be added to any other round. All information provided to TRS during each round of the evaluation process is taken into consideration in the BAFO Round. Scoring will be based on the same criteria as the Initial Round. TRS will provide a final score during the BAFO Round.

TRS Board of Trustees (Board) Selection

The Contract(s) resulting from this Solicitation requires selection by the TRS Board of Trustees (“Board”). The evaluation committee for this Solicitation will identify the top-scoring Respondents using the evaluation criteria and weights identified above. The Board will select the Respondent(s) from the identified top-scoring Respondents for contract award.

The Board will select the Response that, in the Board’s judgment, represents the best overall value for TRS based on the candidates’ qualifications, experience, proposed contract terms and conditions, proposed fees, and other relevant factors. “Best overall value” means a combination of factors that, in the judgment of the Board, are most consistent with the best interests of TRS.

Solicitation Section VI: Proposal Submittal Instructions

Proposal Submission Instructions

Respondents are required to submit their Responses to this solicitation through the TRS electronic procurement system called PAVES (Procurement and Vendor E-System). If awarded a TRS contract, the Contractor will be required to set up a PAVES account which requires:

· 2-factor authentication with a cell phone

· A separate login and password to be created for all Contractor contacts, including the Contractor’s accounting department

· All invoices and deliverables must be submitted through the PAVES system

PAVES

Potential Respondents can find information about PAVES on the TRS website at: https://www.trs.texas.gov/Pages/procurement_PAVES.aspx

The following instructions have been developed to assist vendors in creating and maintaining a PAVES account:

· PAVES Basic Navigation for Suppliers

· New Supplier Registration

· How to Submit a Proposal

· How to Activate Supplier Profile (if awarded a contract)

Creating a PAVES Account and becoming a Confirmed Bidder

To become a Confirmed Bidder in PAVES, you must complete the New Supplier Registration process. By submitting your company’s information, login credentials will be generated, by which you can access PAVES. You will then be able to add additional company contacts, edit your profile, and bid on TRS solicitations.

The first step is to log into the PAVES supplier portal and follow the instructions for New Supplier Registration.

If, after submitting your registration, you receive an e-mail stating that your registration has been rejected, this is most likely because your company has already been registered in PAVES. The registration request will only be rejected if the Tax ID Number that is submitted already exists in PAVES. In this case, please contact the PAVES help desk at: PAVESHelp@trs.texas.gov.

Submitting a Proposal in PAVES

1. Once you are logged into PAVES:

a. Click the “Solicitations” tab at the top

b. Then click “Show public request for proposals”

2. Click the pencil icon next to the name of the solicitation round in which you wish to participate

3. Click “Participate in RFx”

4. You may be asked to click “I acknowledge receipt of this RFx”

5. Select “WILL BID: our intent is to respond to this RFx”

6. To complete the PAVES Questionnaire and submit a proposal for this solicitation, follow the instructions found in “How to Submit a Proposal.”

7. Please note that any solicitation documents, including Addenda, will be found in the section called “Round Documents” within the Overview tab of the Initial Round.

Question and Answer Period

All potential Respondents must create an account and review the solicitation before the deadline for submitting proposals. In addition, Respondents should note the deadline to submit questions concerning this solicitation on page 1 under the Anticipated Schedule of Events. Respondents may submit questions to TRS through the PAVES portal by participating in the Question Round of this solicitation and following the instructions found in “How to Submit a Proposal.”

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