ESBD_537686_1783970672317_TRS000670_Executive Search Services_RFP_Solicitation_Final.docx

Teacher Retirement System of Texas

Request for Proposals (“RFP”) Solicitation Name: Executive Search Services Solicitation Number: TRS000670 NIGP Class/Item Codes: 918-65; 961-71

Anticipated Schedule of Events

Conference call/virtual meeting information provided in the Summary Details section below.

Late Proposals may not be considered

Solicitation Contents

I. Summary Details II. Definitions III. Summary of Procurement and Services IV. Price Form (separate document) V. Veteran Heroes United in Business Subcontracting Plan Requirements and Information VI. Evaluation Process and Criteria VII. Proposal Submittal Instructions VIII. General Solicitation Instructions IX. Draft Contract (separate document)

Solicitation Section I:

Summary Details

Summary Details

3. Issuing Agency

Teacher Retirement System of Texas (“TRS”) Procurement & Contracts 4655 Mueller Boulevard Austin, Texas 78723 Attention: Noah Kellum

1) The Respondent must demonstrate a minimum of five (5) years of experience providing executive search services. To satisfy this requirement, the Respondent shall describe its relevant experience, including the duration of services and the types of executive-level positions successfully filled.

Noah.Kellum@trs.texas.gov

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

(512) 542-6867 Blender.Hill@trs.texas.gov

By attending the pre-proposal conference, attendees agree to allow TRS to include their name and email address from the pre-proposal conference virtual sign-in sheet in an Addendum issued by TRS following the conference.

During the pre-proposal conference, TRS will provide an overview of how to register and submit a Proposal in PAVES. Potential Respondents are encouraged to attend.

Questions must be received no later than the due date provided in the Anticipated Schedule of Events. Telephone inquiries will not be accepted. Each Respondent is solely responsible for verifying TRS’ receipt of its questions.

Solicitation Section II:

Definitions Definitions

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

A. Agency or TRS: Teacher Retirement System of Texas

B. Artificial intelligence (“AI”): (1) A branch of computer science devoted to developing data processing systems that perform functions normally associated with human intelligence, such as reasoning, learning, and self-improvement. (2) The capability of a device to perform functions that are normally associated with human intelligence, such as reasoning, learning, and self-improvement.

C. Bid, Offer, Proposal, or Response: Documents submitted by a Respondent in response to this Solicitation. “Response” has the same meaning as “Bid”, “Offer” or “Proposal” when such terms are used in the Solicitation.

D. Contract: The definitive written agreement resulting from this Solicitation executed by an authorized representative of TRS and Contractor that formalizes the terms, provisions, covenants, and obligations of the parties, including, but not limited to, those contained in this Solicitation.

E. Contract Manager: The person designated by TRS to be the point of contact between TRS and Contractor for monitoring Contract performance and providing day-to-day interaction and instruction during the term of the Contract.

F. Contractor or Vendor: The Respondent awarded a contract resulting from this Solicitation. “Contractor” or “Vendor” includes employees, representatives, agents, subcontractors, suppliers, and third-party service providers, regardless of how such persons or entities are employed or contracted.

G. Contractor Key Personnel: Individuals who contribute to the development or execution of a project in a substantive, measurable way and whose absence from the project would be expected to impact Contractor’s performance.

H. Days: Calendar days, unless otherwise specified.

I. Financial Interest: Receiving, or having a right to receive, money or other valuable property or benefits under or in connection with the actual or proposed contract; holding a position in a business such as a principal, officer, director, trustee, partner, employee, or the like, or holding a position of management; holding any of the outstanding debt of a person directly involved in the proposed or resulting Contract; or owning stock or other interest in the business.

J. Fiscal Year (FY): The State of Texas and TRS fiscal year that begins September 1 and ends August 31.

K. Project Manager: The individual who will have primary responsibility for planning, procurement, and execution of the project on Contractor’s behalf in any undertaking that has a defined scope, start, and finish, regardless of industry.

L. Relative: A current or former TRS employee’s spouse, father, mother, brother, sister, son or stepson, daughter or stepdaughter, mother-in-law, father-in-law, sister-in-law, brother-in-law, son-in-law, or daughter-in-law.

M. Respondent: The individual or entity submitting an Offer, Proposal, or Response in response to this Solicitation.

N. Responsive Proposal: A Proposal that meets all minimum qualifications and VETHUB and other submission requirements.

O. Services: All requirements, duties, schedules, locations, and other items specified in this Solicitation, including Services associated with Contractor’s performance under a Contract resulting from this Solicitation. Also referred to as “Work.”

P. Vendor or Contractor: The Respondent awarded a contract resulting from this Solicitation. “Vendor” or “Contractor” includes employees, representatives, agents, subcontractors, suppliers, and third-party service providers, regardless of how such persons or entities are employed or contracted.

Solicitation Section III:

Summary of Procurement and Services Summary of Procurement and Services

Introduction

TRS, a public pension fund and entity of the State of Texas created pursuant to article XVI, section 67 of the Texas Constitution and titles 7 and 8 of the Texas Government Code, issues this Solicitation to select qualified vendors to provide Executive Search Services. Contractor shall source and provide a selection of qualified (as specified by the Investment Management Division (“IMD”) hiring group) candidates including, but not limited to, positions for the Private Market (Private Equity, Real Estate, and Energy/Infrastructure & Resources) and Special Opportunities units of IMD. TRS reserves the right to make no award, a single award, or multiple awards.

Background

TRS 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”). TRS’ mission is to improve plan Participants’ retirement security by prudently investing and managing trust assets and delivering benefits that positively impact Participants’ lives.

Private Markets Programs. TRS’ IMD Private Markets function (often referenced internally as External Private Markets) administers investment programs across private asset classes and supporting capabilities. Key programs relevant to this Solicitation include:

a. Private Equity (PE): Private equity investments managed through external managers/partners, including sourcing, due diligence, underwriting, and ongoing monitoring.

b. Real Estate / Real Assets (RE): Real estate and real asset investments managed through external relationships, including acquisition/manager selection diligence and portfolio oversight.

c. Energy, Natural Resources & Infrastructure (ENRI): Investments across energy, natural resources, and infrastructure strategies, including evaluation of opportunities, monitoring, and risk oversight.

d. TRS London (TRICOT): London-based private markets presence supporting investment activity and relationship coverage, including coordination across global opportunities.

e. Private Markets Analytics: Analytics and reporting support for private markets portfolios, including performance/portfolio analytics and data-driven insights used in monitoring and governance.

These programs drive recurring talent needs for investment, portfolio management, and analytics roles (e.g., senior analyst through principal/investment manager) aligned to the Private Equity, Real Estate, and Energy/Infrastructure & Resources hiring groups described in the Scope of Work.

Services to Be Provided

The selected Respondent shall provide Services in accordance with this Solicitation, inclusive of the Contract. The Scope of Work (“SOW”) located within the draft Contract portion of this Solicitation contains one main Service categories as follows:

1. Executive Search Firm Services for the Private Market and Special Opportunities Units of Investment Management Division (IMD).

Respondents must submit Responses that address all Services sought under this Solicitation and demonstrate the ability to deliver the full scope of executive search services described in the Scope of Work (“SOW”). Respondents must also demonstrate the capability to source qualified candidates for all position levels described in the SOW, including Senior Analyst, Associate, Associate Principal/Senior Associate, and Principal/Investment Manager.

Solicitation Section IV:

Price Form Price Form

Respondent must enter pricing on Appendix A Price Form (see Excel Spreadsheet provided as an attachment to this RFP in PAVES).

If pricing is determined as a percentage of comp, use the tab titled “Price Form – Percentage of Comp”. If pricing is determined as a fixed fee based on title, use the tab titled “Price Form – Fixed by Level”.

For any additional fees or alternate pricing methodology, respondent should explicitly outline description and price in the “Additional Fees” tab.

No additional amount will be paid for any costs or charges incurred by the Contractor, which are not listed on the price form.

Solicitation Section V:

Veteran Heroes United in Business (VETHUB) Subcontracting Plan Requirements and Information

Veteran Heroes United in Business Subcontracting Plan Requirements and Information

In accordance with section 2161.252 of the Texas Government Code and section 20.285 of title 34 of the Texas Administrative Code, 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 Veteran Heroes United in Business (“VETHUB”) Subcontracting Plan (“HSP”).

A. TRS’ Determination of VETHUB Subcontracting Opportunities

An evaluation of potential subcontracting opportunities was conducted in accordance with section 2161.252 of the Texas Government Code and it was determined that there are probable subcontracting opportunities under anticipated Contract(s) resulting from this Solicitation. Accordingly, Respondents are required to submit an HSP with Responses and follow the instructions in Section B regarding how to complete an HSP.

If, after execution of any Contract(s) resulting from this Solicitation, Contractor determines a need to subcontract services, materials, or supplies to a subcontractor not on the approved HSP, Contractor must receive prior written approval from TRS regarding such subcontracting and request a review of a revised HSP. Contractor may not utilize a subcontractor without prior written approval from TRS. If an HSP is required, Contractor must complete, sign, and submit a Progress Assessment Report (PAR) form to TRS on a monthly basis via PAVES no later than the last day of the month for the remaining life of the Contract. Failure to submit the PAR Form with the invoice will cause delay in payment. The PAR Form shall be completed by Contractor, even if Contractor declares “self-performing” on the HSP. The PAR Form will be provided to Contractor following execution of the Contract.

B. Instructions for Completing an HSP

The HSP form and instructions for how to complete it may be accessed at: https://comptroller.texas.gov/purchasing/vendor/hub/forms.php. If a Respondent intends to subcontract any portion of Services to a subcontractor other than a certified VETHUB, Respondent must retain documentation reflecting that it conducted a solicitation as part of a good faith effort to locate a certified VETHUB to provide the Service.

For information on how to complete an HSP, please contact TRS’ HUB Coordinator, Blender Hill at blender.hill@trs.texas.gov. Respondents must obtain prior approval from TRS if they wish to make changes to the HSP after it is submitted.

C. VETHUB Subcontracting Opportunities for this Solicitation

The National Institute of Government Purchasing Commodity Book class, item codes, and commodity descriptions for the VETHUB subcontracting opportunities under this Solicitation are listed below. Full commodity descriptions may be found at https://comptroller.texas.gov/purchasing/nigp/. This list should not be considered exhaustive; additional opportunities may be added at Respondent’s option.

D. Finding VETHUB Vendors

For a list of VETHUB vendors, Respondents may use the Centralized Masters Bidders List (“CMBL”) and VETHUB Directory by following these instructions:

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

2. The CMBL page will default to certain fields already checked. Ensure that ‘All Vendors’ is searched.

3. Enter the Class and Item codes (leave ‘Item’ blank to select any).

4. Enter District number to select specific geographic location (leave ‘District’ blank to select all).

5. Click ‘Submit Search’ button.

6. Detail list page will default to certain fields already checked.

7. Check ethnicity fields, gender fields, business description, and any other fields needed. Click ‘Go.’

8. Identify VETHUBs on the ‘Results For CMBL Plus VETHUBs’ search page (VETHUB category is on far right).

9. Select VETHUB vendor and click on company name. Use most current listing.

10. Confirm that ‘VETHUB Status’ is “A” (Approved; Active) on ‘Vendor Detail’ page.

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

12. Repeat process until you have found a minimum of three (3) certified VETHUBs for each subcontracting opportunity/area identified by TRS or your company.

Solicitation Section VI:

Evaluation Process and Criteria Evaluation Process and Criteria

TRS has exclusive authority under Section 825.103(d) of the Texas Government Code over purchasing goods and services and is statutorily exempt from subtitles D and F of title 10 of the Texas Government Code. In purchasing and contracting for goods and services, TRS will select the vendor who represents best overall value for TRS based on the candidate’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' fiduciary duties. “Best overall value” means a combination of factors that, in the judgment of the Board, are most consistent with the best interests of TRS.

A. Initial Submission Compliance Screening and Minimum Qualifications

During initial screening, TRS will review Proposals for compliance with submission requirements. Failure to meet submission requirements may, at any time, result in a Respondent’s disqualification. Proposals that do not meet the following minimum qualifications will also be rejected as non-responsive and disqualified:

Item 1: The Respondent must demonstrate a minimum of five (5) years of experience providing executive search services. To satisfy this requirement, the Respondent shall describe its relevant experience, including the duration of services and the types of executive-level positions successfully filled.

B. Evaluation: Initial Round

Proposals which meet all minimum qualifications will advance to the Initial Round of Proposal evaluation. An evaluation committee will evaluate all Responsive Proposals during the Initial Round. TRS may ask questions of or request clarification from any Respondent about its Proposal during the Initial Round. All such questions and clarification requests shall be provided to Respondents by TRS’ Procurement and Contracts Representative. Responses will be scored under best value standards which are in TRS’ best interests using the following general categories for which weights are shown:

After Initial Round evaluations are complete, TRS may (1) ask all or only top-scoring Respondents to participate in a Presentation, Interview, and/or Demonstration Round, (2) determine that such a round is unnecessary and ask all or only top-scoring Respondents to participate in a Best and Final Offer (“BAFO”) Round, or (3) make one or more contract awards based on Initial Round evaluations.

C. Evaluation: Optional Presentation, Interview, and/or Demonstration Round – Selection Criteria: 10 points

The Presentation, Interview, and/or Demonstration Round allows Respondents to highlight the strengths and unique aspects of their Responses. TRS may ask questions of or request clarification from any Respondent during this Round. All such questions and clarification requests shall be provided to Respondents by TRS’ Procurement and Contracts Representative. Evaluation criteria for the Presentation, Interview, and/or Demonstration Round may include, but are not limited to, Respondent’s:

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

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

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

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

After the Presentation, Interview, and/or Demonstration Round, Respondents may be required to submit written answers to questions asked during this Round. Presentations, Interviews, and/or Demonstrations will be individually evaluated by each evaluator, who shall provide a score from 0 to 10, with ten being the highest score. Point allocation for this Round will be used to determine which Respondent(s) are considered for the next round. Points allocated for this Round will not be added to any previous or future round. After this Round is complete, TRS may (1) ask all or only top-scoring Respondents to participate in a BAFO Round or (2) make one or more contract awards based on Presentation, Interview, and/or Demonstration Round evaluations.

D. Evaluation: Optional BAFO Round

As the BAFO Round is an optional round, TRS strongly encourages Respondents to provide their best pricing and terms with their initial Proposal. TRS may ask questions of and request clarification from any Respondent during this Round. TRS may also request that any Respondent provide additional information during this Round. All such questions and requests shall be provided to Respondents by TRS’ Procurement and Contracts Representative. 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. Points allocated for this Round will not be added to any other round. After this Round is complete, TRS may make one or more contract awards based on BAFO Round evaluations.

Solicitation Section VII:

Proposal Submittal Instructions

Proposal Submission Instructions

Submission Through PAVES

Respondents are required to submit Responses through PAVES. If awarded a Contract, Contractor will be required to set up a PAVES account, which requires:

1. 2-factor authentication with a cell phone

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

3. Invoices and deliverables to be submitted through PAVES

A. PAVES

Potential Respondents can find information about PAVES on TRS’ website at: https://www.trs.texas.gov/Pages/procurement_PAVES.aspx. The following instructions have been developed to assist Respondents in creating and maintaining a PAVES account:

1. PAVES Basic Navigation for Suppliers

2. New Supplier Registration

3. How to Submit a Proposal

4. How to Activate Supplier Profile (if awarded Contract)

B. Creating PAVES Account and Becoming Confirmed Bidder

To become a confirmed bidder in PAVES, Respondent must complete the New Supplier Registration process. By submitting Respondent company’s information, login credentials will be generated by which Respondent can access PAVES. Respondent will then be able to add additional company contacts, edit its profile, and bid on TRS solicitations. The first step is for Respondent to log into the PAVES supplier portal and follow the instructions for New Supplier Registration. If, after submitting registration, Respondent receives an e-mail stating that its registration has been rejected, it’s most likely because Respondent has already been registered in PAVES. Respondents should note that a registration request will be rejected if the submitted tax ID number already exists in PAVES. In that case, Respondents should contact the PAVES help desk at: PAVESHelp@trs.texas.gov.

C. Submitting a Proposal in PAVES

Once a Respondent is logged into PAVES, it may submit a Proposal by following these instructions:

1. Click the “Solicitations” tab at the top

2. Then, click “Show public request for proposals”

3. Then, click the pencil icon next to the name of the solicitation round in which you wish to participate

4. Then, click “Participate in RFx” (you may be asked to click “I acknowledge receipt of this RFx”)

5. Then, select “WILL BID: our intent is to respond to this RFx”

Respondent should follow the instructions found at “How to Submit a Proposal” to complete the PAVES Questionnaire and submit a Proposal. Respondent should note that any solicitation documents, including Addenda, will be found in the section called “Round Documents” within the Overview tab of the Initial Round.

Solicitation Section VIII:

General Solicitation Information General Solicitation Information

Resulting Contract

A Response is an offer to contract based upon the terms, conditions, and specifications set forth in this Solicitation and does not become part of the Contract, unless, until, and to the extent a formal agreement is executed by authorized representatives of TRS and Contractor.

Addenda

Addenda will be created for any changes to the Solicitation. Such changes may concern, for example, deadline dates, responses to questions, the SOW, or updates to attached documentation. Addenda will generally be posted to the ESBD or in PAVES. Addenda shall be considered part of the Solicitation and will require acknowledgement via Respondent signature. No explanations, interpretations, or changes will be considered official or binding, unless stated in a posted Addendum. It is Respondent’s responsibility to ensure review of all Addenda.

Cost of Preparing Response

Respondents are responsible for all costs incurred in the preparation and submission of a Response.

Quantity and Nature of Work

Respondents are required to inform themselves of all conditions which may affect performance or pricing of Services. By submitting a Response, Respondents expressly waive claims of misunderstanding as to the quantities or nature of Work required.

Late Responses

It is a Respondent’s responsibility to ensure timely delivery of a Response to TRS by the due date and time noted on the first page of this Solicitation. Late Responses may not be considered.

TRS’ Acceptance and Rejection of Responses; Solicitation Cancellation

TRS may reject Responses that do not comply with Solicitation requirements or state law. TRS may also accept or reject all or part of a Response, request, in its sole discretion, that any or all Respondents correct any perceived minor deficiencies in Responses, or award Contract(s) by item or groups of items in the best interests of TRS. TRS reserves the right to cancel this Solicitation at any time before Contract execution.

Certification of Interested Parties

Section 2252.908 of the Government Code provides that a state agency may not execute certain contracts with a business entity, unless the entity submits a certificate of interested parties form (“Form 1295”) to the state agency at the time the entity submits the signed contract to the state agency. The Texas Ethics Commission has provided a list of Frequently Asked Questions and Form 1295 on its website at https://www.ethics.state.tx.us/filinginfo/1295/ for Respondents’ review. If Contractor meets requirements for submission of Form 1295, Contractor will be given instructions on how to obtain the form at the time of Contract award.

Conflicts of Interest

Respondents shall provide information concerning known potential, apparent, or actual conflicts of interest with their Response behind the applicable tab. Respondents maintain a continuing obligation to disclose known conflicts of interest during the solicitation process and life of any resulting Contract. TRS may refuse to contract with a Respondent or terminate any Contract due to known potential, apparent, or actual conflicts of interest.

Protest Procedures

Any protest to this Solicitation or any Contract award resulting from this Solicitation shall be governed by 34 Tex. Admin. Code § 51.2 (relating to Vendor Protests and Appeals). All protests, appeals, and stay requests, if any, must be timely submitted to LegalNotices@trs.texas.gov.

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