ESBD_File_336458_TRS000443_Solicitation_Final.pdf

Teacher Retirement System of Texas

Request for Proposals (RFP) Solicitation Name: Total Trust Risk Platform with Managed Services

Solution Solicitation No.: TRS000443

NIGP Class/Item Codes: 946-25; 946-29; 946-56; 946-75

Anticipated Schedule of Events

September 14, 2023 Issuance of RFP

October 4, 2023, 1:30 p.m., Central Time Pre-Proposal Conference attendance is Non- Mandatory but strongly encouraged. Pre- Proposal conference will be held via Microsoft Teams Meeting. Conference call information provided in section I.13, Pre-proposal Conference.

October 9, 2023, 3:00 p.m., Central Time Deadline for Submission of Questions

November 3, 2023, 3:00 p.m., Central Time Deadline for Submission of Proposals Late Proposals will not be considered

TBD Presentations/demonstrations by shortlisted Respondents, if requested. Teacher Retirement System of Texas (TRS) may elect to conduct presentations/demonstrations as part of the evaluation process.

Solicitation Name: Total Trust Risk Platform with Managed Services Solution Solicitation No.: TRS000443

I. Summary

1. Purpose/Overview The purpose of this RFP is to solicit proposals from qualified Vendors to provide Total Trust Risk Platform with Managed Services Solution.

2. Type of Solicitation Request for Proposal (RFP)

3. Issuing Agency

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

4. Purchasing Authority Competitive Procurement per Texas Government Code Section 825.103

5. Minimum Requirements Proposals that do not meet the following minimum requirements will be rejected as non-responsive and disqualified:

1) At least 50 risk management clients

2) Total unique client Assets Under Management (AUM) processed through risk platform services greater than $500 billion

3) At least 5 years of experience providing services similar to those described in the scope of work

4) Ability to simulate entire TRS portfolio (>30k positions) and generate risk reports and results daily on a T+1 business day basis

6. Responses to Solicitation Respondents are required to submit responses in the TRS

Procurement and Vendor E-System (PAVES) for each Evaluation Criteria listed above. Please see “Proposal Submission Instructions” section on how to create a confirmed bidder account to submit a proposal.

7. Deadline for Proposals Received by Teacher Retirement System of Texas (TRS) no later than: November 3, 2023, 3:00 p.m., Central Time

8. Initial Contract Term Initial term will be One (1) year from effective date of the contract.

Solicitation Name: Total Trust Risk Platform with Managed Services Solution

9. TRS Optional Renewal Terms Three (3) one-year optional renewal terms

Please note: If the awarded contract includes renewal options, the proposed annual pricing will be applied to each renewal option. TRS does not allow for escalation of pricing for subsequent renewals under this solicitation.

10. TRS Procurement and Contracts Representative for this Solicitation

Aundre Petty Aundre.Petty@trs.texas.gov

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

11. Contact with TRS Staff Upon issuance of this Solicitation, employees and representatives of TRS, other than the TRS Procurement and Contract representative identified in item number 10 above, will not discuss the contents of this Solicitation with any Respondent, potential Respondent, or its representatives.

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.

12. TRS Historically Underutilized Business (HUB) Coordinator

LaTresa Stroud

(512) 542-6307 LaTresa.Stroud@trs.texas.gov

13. Pre-Proposal Conference October 4 2023, 1:30 p.m., Central Time. A pre-proposal conference will be held virtually via Microsoft Teams. To receive an invite, Respondents must e-mail the TRS Representative identified in Section I.10 by October 2, 2023, 12:00 p.m., Central Time.

By attending the pre-proposal conference, attendees allow TRS to include their name and email address in the pre-proposal conference attendance sheet to be included in Addendum 1 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.

mailto:Aundre.Petty@trs.texas.gov

14. Solicitation Addenda Changes to items directly impacting the Solicitation will be posted on the Electronic State Business Daily (ESBD) located at www.txsmartbuy.com/sp and posted in TRS’ Procurement and Vendor E-System (PAVES) portal as an Addendum. See Subsection VIII.,A. PAVES, for information regarding PAVES portal access. It is the responsibility of an interested party to periodically check PAVES or the ESBD for updates to the Solicitation prior to submitting a Proposal.

15. Questions and Answers Questions regarding this Solicitation must be submitted in writing no later than October 9, 2023, 3:00 p.m., Central Time.

See Subsection VIII., D. Question and Answer Period, for information on how to submit questions. Telephone inquiries will not be accepted. Each Respondent is solely responsible for verifying TRS’ receipt of its questions, if applicable.

16. Respondent Presentations or Demonstrations

TRS may request that short-ilisted Respondents present an overview of the Services proposed in their Proposals. The presentations/demonstration will either be performed virtually or at the TRS offices located at 1000 Red River Street, Austin, Texas. Presentation/demonstration dates and times TBD. The number of short-listed Respondents will be determined by TRS in its sole discretion.

http://www.txsmartbuy.com/sp

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

1. Agency or TRS: Teacher Retirement System of Texas

2. Primary Contact: The person designated by TRS to be the point of contact between TRS and Conractor for the purposes of monitoring Contract performance and providing day-to-day interaction and instruction during the term of the Contract. Also referred to as “Contract Manager.”

3. 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.

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

5. Contractor or Vendor Primary Contact: The person designated by the Contractor/Vendor to be the point of contact between the Contractor/Vendor and Agency for purposes of scheduling, filling, contract management, and day-today management of Services under the Solicitation.

6. Days: Calendar days unless otherwise specified.

7. Deliverable - A unique and verifiable product, result, or capability to perform a service that must be produced to complete a process, phase, or project.

8. Electronic State Business Daily (ESBD): The public-facing website in which applicable government entities post certain competitive procurement solicitations.

www.txsmartbuy.com/sp.

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

http://www.txsmartbuy.com/sp

10. 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 the performance of the Contract.

11. Offer, Proposal, or Response: The documents, including any exhibits or attachments, submitted by a Respondent in response to this Solicitation. “Offer” has the same meaning as “Proposal” or “Response,” when such terms are applicable in the solicitation document so titled as Request for Proposals (RFP), Request for Offers (RFO), or an Invitation for Bids (IFB), respectively.

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

13. 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.

14. Respondent: The individual or entity submitting a proposal, offer, or bid in response to this Solicitation.

15. Responsive: A Proposal that meets all minimum qualifications, HUB requirements, and submission requirements.

16. Services: All of the requirements, duties, schedules, locations, and other items specified in this Solicitation. The term includes any services associated with Contractor’s performance under a Contract resulting from this Solicitation. Also referred to as “Work.”

II. Scope of Work A. Introduction

Teacher Retirement System of Texas (TRS), a public pension fund and entity of the State of Texas, issues this RFP to select a Vendor to provide Total Trust Risk Platform with Managed Services Solution to the TRS Investment Management Division for the purposes of monitoring and managing of Total Trust risk per the scope of work outlined below.

B. Scope of Work

i. Background

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 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.

TRS Investments focuses on achieving superior long-term returns to secure members’ retirement futures and deliver benefits that enrich their lives. It’s rewarding work that motivates us to excel. Our strong asset class diversification and innovative strategies ensure the highest possible, risk-adjusted rate of return. This culture makes TRS the preferred destination for investment opportunities. As Texas’ largest public retirement system, TRS ranks as the sixth largest in U.S. public pension plan and in the top 25 in the world.

Our strong asset class diversification and innovative strategies ensure the highest possible, risk-adjusted rate of return. This culture makes TRS the preferred destination for investment opportunities.

ii. Description of Work Contractor will provide daily risk loading, processing and simulation on the entire TRS portfolio based on daily feeds from custodian bank in order to estimate Value-at-Risk and other risk measures. Contractor will include access to application for access reports on simulations and risk metrics, managed services to support daily processing and client queries, and associated market data needed for simulation.

1. Application

a. Holdings and portfolio composition and decomposition based on security, accounting and rules-based characteristics

b. Historical simulation of TRS portfolio through customizable lookback windows and holding periods

c. Measurement and decomposition of risk metrics including but not limited to: Value-at-Risk, standard deviation, Expected Shortfall

d. Ability to compare portfolios vs. benchmarks on standalone and blended bases

e. Capability to measure first and second order sensitivities (i.e. Greeks) on absolute and relative basis such as: Delta, Gamma, DV01, Duration and Convexity

f. Stress testing capablities both across historical, parametric and hybrid models

g. Ability to extract reports, data and simulation data into Excel, CSV or similar file formats via Graphical User Interface, Application Programming Interface, SFTP, etc.

h. Support for cash and derivatives including:

i. Stocks

ii. American Depository Receipts (ADRs)

iii. Exchange-traded-funds (ETFs) / Exchange-traded-notes (ETNs)

iv. Bonds

v. Callable / Convertible Bonds

vi. Inflation Linked Bonds

vii. Equity Options

viii. Repurchase agreements (repo)

ix. Total Return Swaps

x. Contract-For-Differences (CFDs)

xi. Structured Products (Mortgage Backed Securities (MBSs) / MBS To-Be-Announced (TBAs) / Asset Backed Securities (ABSs) / Commercial Mortgage Backed Securities (CMBSs)

xii. Interest Rate Swaps

xiii. Inflation Swaps

xiv. Currency Futures, Forwards and Options

xv. Equity Futures, Forwards and Options

xvi. Bond Futures, Forwards and Options

xvii. Commodity Futures and Lookalikes, Options on Futures

xviii. Credit Default Swaps, including single name and baskets

xix. Private Assets via proxy or model

2. Application

a. Holdings and portfolio composition and decomposition based on security, accounting and rules-based characteristics

b. Historical simulation of TRS portfolio through customizable lookback windows and holding periods

c. Measurement and decomposition of risk metrics including but not limited to: Value-at-Risk, Standard Deviation, Expected Shortfall

d. Ability to compare portfolios vs. benchmarks on standalone and blended bases

e. Capability to measure first and second order sensitivities (i.e. Greeks) on absolute and relative basis such as: Delta, Gamma, DV01, Duration and Convexity

f. Stress testing capablities both across historical, parametric and hybrid models

g. Ability to extract reports, data and simulation data into Excel, CSV or similar file formats via Graphical User Interface, Application Programming Interface, SFTP, etc.

h. Support for cash and derivatives including:

i. Stocks

ii. American Depository Receipts (ADRs)

iii. Exchange-traded-funds (ETFs) / Exchange-traded-notes (ETNs)

iv. Bonds

v. Callable / Convertible Bonds

vi. Inflation Linked Bonds

vii. Equity Options

viii. Repurchase agreements (repo)

ix. Total Return Swaps

x. Contract-For-Differences (CFDs)

xi. Structured Products (Mortgage Backed Securities (MBSs) / MBS To-Be-Announced (TBAs) / Asset Backed Securities (ABSs) / Commercial Mortgage Backed Securities (CMBSs)

xii. Interest Rate Swaps

xiii. Inflation Swaps

xiv. Currency Futures, Forwards and Options

xv. Equity Futures, Forwards and Options

xvi. Bond Futures, Forwards and Options

xvii. Commodity Futures and Lookalikes, Options on Futures

xviii. Credit Default Swaps, including single name and baskets

xix. Private Assets via proxy or model

3. Managed Services –Contractor will be responsible for management of entire application lifecycle, including:

a. Daily processing and simulation of total TRS portfolio, benchmarks, and lookthrough on commingled vehicles as available

b. Sourcing, mapping and processing holdings and accounts from custodial bank(s), benchmark vendors and external managers

c. Producing reconciliations, investigating data quality issues, and creating appropriate solutions as agreed to with client

d. Running and assisting with what-ifs, including prospective portfolios, stress tests and rebalancing exercises

e. Designing, running and delivering agreed-upon reports for distribution to related servies including TRS Middle Office, TRS Compliance, and third-party compliance services

f. Implementing client-specific rules for data mapping and reporting levels on both holdings and portfolios

g. Additional processing for monthly and quarterly reporting including updates for closed book accounting

h. Support services including training, software upgrades and support, 24/7 access support

i. Risk proxy documentation and tracking for new issuance or incomplete holding histories

j. Process and incorporate external manager data feeds, third-party lookthrough files and derivative index / ETF proxies

4. Data and Models

a. Contractor will provide all data needed to enrich holdings and model portfolio risk such as:

i. Security identifiers such as ISIN/SEDOL/CUSIP/Ticker for holdings

ii. Country, sector, currency and other categorizations for specific securities

iii. Maturity, strike price, underlying identifiers and other terms and conditions of securities and derivatives

b. Contractor will also provide access to risk models, associated inputs and calculations used to generate VaR and other risk measures as available such as:

i. Historical revaluations, scenario profit-and-loss (PNL), model calibration values

ii. Factor covariance matrix(es), loadings and time series as available

iii. Proxy identifiers, adjustments (e.g. beta) and time series

iv. Statistical model definitions, covariance matrix(es) and holdings

v. Model documentation

5. Activities Timeline

a. Daily – Contractor must provide updated daily holdings by agreed upon time on a T+1 basis inclusive of data cleansing, mapping and simulation

b. Monthly – Contractor must provide holdings and simulations after accounting book closure date + 5 business days

c. Quarterly – Contractor must accommodate additional simulations, calculations and adjustments as needed with T+1 month

iii. Deliverables

Contractor will provide the following deliverables under this contract:

Application and associated software if needed:

i. Access

ii. Process holdings for TRS and benchmark(s)

iii. Data

iv. Risk Models

v. 24/7 support

vi. Training as needed

vii. Reports as agreed to with client

b. Service analysis and reconciliations

viii. Misvaluations and unhandled positions

ix. Proxies utilized during simulation

x. Simulation errors and issues

c. Risk reports

xi. Standardized reporting delivered to multiple end-points daily

xii. Customized risk reports as agreed to between Contractor and

TRS

xiii. Support for multiple reporting pathways including email, SFTP, API and direct downloads

iv. Acceptance Criteria for Deliverables

Application and data output must meet the following criteria to be accepted

1. Historical VaR calculations must be available and accurate

2. VaR calculations must be customizable across lookback and horizon dimensions

3. Lookback should encompass histories going to at least 2008

4. Risk calculation reporting must be flexible and intuitive

5. If available, alternative Risk Models (e.g. Fundamental Factor, Statistic or Macro-economic) must be accurate

6. Any available APIs must work with application and TRS systems

7. Reporting must be efficient

8. Risk output must be reasonable compared to baseline

v. Invoicing Requirements NOTICE: Vendors are required to use the TRS vendor portal, Procurement and Vendor E- System “PAVES,” to submit invoices. For more information, go to: https://www.trs.texas.gov/Pages/procurement_PAVES.aspx.

vi. Communication Plan

Upon execution of the Contract, TRS will set up a kickoff meeting with Contractor’s project manager. At the kickoff meeting, TRS and the Contractor will review all the terms of the Contract and discuss:

• How to perform all the tasks outlined in the contract

• Deliverables of the Contract

• Timing of delivery of the Contract deliverables

• Required forms, such as insurance certificates

• Contract terms

• Invoicing requirements

• Performance monitoring

• Contract close-out process

Below is the established communication plan for this Contract which outlines how TRS and Contractor will communicate throughout the term of the Contract.

The Contractor will dedicate a Contractor Primary Contact to TRS. The Contractor must also set up a process for alternative Contractor contacts in the event the Contractor Primary Contact is unavailable or unresponsive to requests.

Contractor will communicate via email and phone with the following TRS Staff:

• James Nield, Chief Risk Officer

• Stephen Kim, Director

Solicitation Name: Total Trust Risk Platform with Managed Services Solution Solicitation No.: TRS000443 https://www.trs.texas.gov/Pages/procurement_PAVES.aspx

• Melissa Jerkins, Investment Manager

• Chris Pan, Senior Associate

• Kelly Newhall, Investment Operations Manager

• Jeff Batas, Associate

• Other TRS IDS Representative, [Investment Data Services Team]

• Other TRS IT Representative, [Investment Information Technology]

Day to Day activities will be between TRS’ Users and Contractor’s Representative. Any escalation will go to the TRS Contract Manager and Contractor’s Representative for Contractual Matters. On a calendar quarter basis, Contractor’s Primary Contact shall meet with TRS’ End Users to discuss completed, ongoing, and upcoming projects or research needs. These meetings can be either in person or via conference call. More frequent meetings may be required if either TRS or Contractor deems them necessary to ensure a project’s successful completion.

vii. Contractor Staffing TRS reserves the right to request that Contractor replace any Contractor employee whom TRS judges to be incompetent, careless, unsuitable, or otherwise objectionable, or whose continued use is deemed contrary to the best interests of the State and TRS. Upon receipt of a formal written request from TRS’ Primary Contact, Contractor shall propose to TRS a replacement with the same or similar expertise as the individual being replaced who shall perform the services required by the Contract, subject to the approval of TRS.

Contractor may not use a subcontractor on this Contract without first receiving written approval from TRS regarding the proposed subcontractor. If Contractor is required to submit a HUB Subcontracting Plan (HSP) and the proposed subcontractor is not listed on the HSP, an amendment of the HSP will be required. Any work to be performed by such proposed subcontractor may not be initiated until the subcontractor has been added to the HSP.

As set forth in TRS’ Background Check Policy, a criminal background check (CBC) of Contractor’s staff is required if, at any time during the life of this Contract, the staff assigned to work on this contract meets any or all of the criteria listed below:

• Obtains a TRS user ID or password

• Has unlimited security badge access for any length of time

• Has limited security badge access for longer than 14 days

Further, a CBC may be required depending on the level of access to TRS resources and facilities that is required to perform the services. The CBC will be performed by TRS and the Contractor is required to reimburse TRS for the cost of the CBC within 30 days of receipt of notification that the background check is complete.

viii. Performance Tracking TRS may consider Contractor performance during the life of the Contract. At the end of each term and before a renewal option is exercised, TRS will provide written feedback to Contractor on Contractor’s performance. TRS reserves the right of non-renewal or early

Solicitation Name: Total Trust Risk Platform with Managed Services Solution termination of the contract for substandard performance. TRS reserves the right to publish and distribute results of the performance reviews or other quality or compliance reviews in accordance with 34 Texas Administrative Code section 20.509. If substantial deficiencies are identified by TRS regarding Contractor performance or competence in the delivery of services performed under the Contract, TRS may require corrective action to correct the deficiencies. TRS will monitor Contractor’s performance and may use the results of this monitoring to evaluate Contractor’s ability to provide adequate services to TRS in this contract or future contracts. If Contractor fails to meet contract goals and expected results, TRS may reduce the scope of or terminate the Contract at no cost or penalty to

TRS.

When assessing performance, TRS retains sole authority to determine whether the Contractor’s performance under the Contract is adequate. The Contractor agrees to the following:

a) Provide all Deliverables in accordance with target due dates;

b) Provide TRS with written notice of any known or potential issues with service performance within 24 hours of Contractor becoming aware of any such issues;

c) Provide TRS with an action plan to resolve any known or potential service performance issues and status updates as required by TRS; and

d) Timely respond to TRS staff questions within one to two business days.

ix. Escalation Plan and Good Faith Negotiations Contractor shall provide an escalation plan for resolving known or potential issues with service performance that arise during the term of the Contract. The plan shall be subject to TRS’ approval and must explain how issues are to be prioritized and resolved and include Contractor’s representatives of increasing authority who have authority to resolve issues. The Parties will attempt in good faith to resolve any claim or controversy arising out of or relating to the execution, interpretation, and performance of services under the Contract through prompt negotiation between representatives of the Parties who have authority to settle the controversy.

III. 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 into 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 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.

If after the contract award the Contractor determines a need to subcontract for any services, materials, and/or supplies, the Contractor must contact TRS for prior approval and request a review of its HUB Subcontracting Plan in accordance with the good faith effort requirements found in 34 Texas Administrative Code Section 20.14. The Contractor may not utilize a subcontractor without prior written approval from TRS.

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

IV. Insurance Section

A. COVERAGES REQUIRED.

Contractor shall obtain and maintain throughout the Contract term the insurance coverages listed below:

i. Workers’ Compensation Insurance:

Coverage to secure the payment of compensation to injured employees as defined in the Texas Worker’s Compensation Act.

ii. Commercial General Liability Insurance:

Coverage for claims of personal injury and bodily injury, including accidental death, and property damage which may arise from the performance of the contract. The types of coverage required are: Property Damage, Premises and Operations Hazards, Independent Contractor’s, and Contractual Liability. Excess Liability and/or Umbrella Liability insurance may be combined in order to meet the following minimum amounts:

• $500,000 per occurrence, $1,000,000 in the aggregate

iii. Professional Liability Insurance:

Coverage for financial loss resulting from errors, omissions and failure to perform the professional services associated with the Contract. Coverage can be in the form of a claims made or per occurrence policy.

• $1,000,000 per occurrence, and $2,000,000 in the aggregate; or $2,000,000 Combined Single Limit (CSL) if “claims made” policy.

iv. Professional Malpractice/Managed Care Insurance:

Coverage for financial loss resulting from errors, omissions and failure to perform professional services associated with the Contract. Coverage can be in the form of a claims made or per occurrence policy.:

• $1,000,000 per occurrence, and $2,000,000 in the aggregate; or $2,000,000 Combined Single Limit (CSL) if “claims made” policy.

v. Cyber, Privacy and Network Security Liability Insurance:

Insurance covering all claims, losses arising out of a failure of Contractor’s network security or data protection.

• $5,000,000 in aggregate

• Additional insured endorsement of behalf of TRS, unless policy contains blanket coverage endorsement.

B. POLICIES.

Contractor shall procure and maintain at Contractor’s own expense, throughout the term of the Contract and any renewals or extensions thereof, sufficient insurance coverage as may now or hereafter be necessary to insure against any claim(s) for damages based on a violation of Law or arising out of services provided or to be provided to TRS and the Project under the Contract. Such coverage and limits shall not reduce Contractor’s total liability under the Contract. To this end, Contractor shall comply with the following provisions:

• All insurance policies required under this paragraph shall be issued by companies authorized to do business under the laws of the state of Texas, licensed, eligible or registered under Texas law with a rating of A- or better in a financial size category of IV or higher according to A.M. Best Company.

• Contractor shall furnish to TRS evidence of all required insurance, validated by the certificate of insurance. Evidence of insurance shall display TRS as the Certificate Holder.

C. RENEWAL CERTIFICATES.

A TRS specific contract number associated with the Contract will be provided to the Contractor at the time of contracting. Contractor shall ensure that renewal certificates of insurance shall:

• Display the associated contract number in the description of operations section of the certificate

• Display required endorsements in the description of operations section of the certificate

• Be submitted electronically via PAVES

• List only the TRS specific contract number in the subject line of the e-mail

• Be furnished not more than thirty (30) days following the expiration of current policies

• Display TRS as the Certificate Holder

D. NOTICES OF CHANGE.

The Contractor’s insurance policies must require the insurer or the insurer’s authorized agent to notify TRS of any cancellation, or material change, other than for non-payment, at least 30 days in advance. The Contractor’s insurance policy must require the insurer or the insurer’s authorized agent to notify TRS of any cancellation or material change due to non-payment at least 10 days in advance. These notices of changes must reference the TRS contract number and be made in writing by certified mail to the TRS Contract Manager at the address shown in the Contract.

E. INSURANCE CERTIFICATE.

Contractor shall provide TRS with evidence of the insurance coverage required under the Contract.

The different coverages requirements listed in section 1, COVERAGES; cannot be added together to meet the aggregate requirements listed. Contractor will submit the certificate to TRS no later than ten days after award of the Contract, or as directed by the Special Terms and Conditions.

Certificates must bear the contract number of this Contract. If Contractor changes insurers, Contractor shall give TRS a new certificate of insurance within ten days. The certificate of insurance shall set out any deductible or self-insured retention amounts for each coverage required.

F. REQUIRED ADDITIONAL PROVISIONS.

All policies of insurance shall include the following provisions:

• Waiver of subrogation in favor of TRS, its trustees and employees for bodily injury

(including death), property damage or any other loss arising from the Contract; and

• The Contractor’s insurance must be primary insurance with respect to the TRS and its trustees and employees.

V. Evaluation Process

A. Initial Round

All Responsive Proposals will be evaluated by the evaluation committee during the Initial Round. After Initial Round evaluations are complete, TRS may request that all or only the Top-Scoring Respondents participate in future rounds.

Responses and Best and Final Offers (BAFO) 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:

Evaluation Criteria Weight Respondent Qualifications Repondent References

10% 5%

Managed Services and Respondent’s Key Personnel 25% Technical Approach 50% Pricing 10% Total 100%

B. Presentation/Demonstration Round – Selection Criteria: 10 points

After Initial Round evaluations are complete, TRS may move on to an Presentation/Demonstration round. TRS may request that all or only the Top-Scoring Respondents participate in presentation/demonstration round. Respondent presentation/demonstration provides an opportunity to highlight the strengths and unique aspects of their Response and to provide answers to clarification questions TRS may have regarding the Response.

Evaluation Criteria for Respondent presentation/demonstration round may include, but are not limited to:

1) Experience

2) Product capabilities

3) Accuracy in processing sample portfolio

4) Team

5) Communication

During presentations/demonstrations, TRS may also take into consideration the Respondent’s team member interaction, interaction with TRS, and the overall quality of the presentation/demonstration and ability to meet TRS needs. In addition, TRS will consider Respondent’s ability to fit into the TRS culture.

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

The point allocation for this round will not be added to any previous round or future round. The points are used to determine which Respondent(s) move on to the next round.

C. Best and Final Offer (BAFO) Round

After the initial evaluation and presentations/demonstrations are complete, TRS may move on to the next phase of the evaluation, which is the Best and Final Offer (BAFO) round. A BAFO may be sought from Respondent(s) whose Proposals are ranked most highly by the evaluation committee.

TRS may need a Respondent to provide additional information. All information provided to TRS during each phase of the evaluation process (including the BAFO) is taken into consideration and scored based on the same criteria, scoring matrix, and point allocation as the initial solicitation round. TRS will provide a final score during the BAFO round.

VI. Price Form

Respondent must enter a price for each item listed in this Price Form.

Unless otherwise described, the price is for one unit of each item (for example, one hour or one widget).

Where the unit is identified as “lump sum,” the price must be given for one complete item (for example, if the item is a contract task, deliverable, or milestone, the price must be given for completion of that task, deliverable, or milestone). If the item is completion of all Services, the price must be given for completion of all Services.

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

If the Contract includes renewal options, pricing will be applied to each optional renewal term. Price escalation for renewal terms is not permitted under this Solicitation.

The quantities shown below are either estimated quantities or they are multipliers (weighting factors) used solely for evaluation of pricing.

Item Description

Annual Cost Initial 1-year Term

Annual Cost Option Year 1st renewal term

Annual Cost Option Year 2nd renewal term

Annual Cost Option Year 3rd renewal term

Maximum Contract Total Cost (includes initial term and 3 – 1 year renewal terms)

Risk Management Software, Data, and Managed Services

VII. Contract Documents List

The entire Contract between TRS and Contractor consists of the Contract Documents listed on this page in the following order of precedence:

• Contract Signature Page

• Contract Documents List

• Scope of Work

• List of Key Personnel

• Approved Price Form

• TRS General Terms and Conditions

• Insurance Section

• Insurance Certificate Submitted by Contractor (incorporated by reference when completed)

• Notices, Representatives, and Records Location

• Attachments (listed below) o Attachment A: Sample Release of Claims Form to be returned with final invoice o Attachment B: Code of Ethic for Contractors o Attachment C: Non-disclosure Agreement (NDA) o Attachment D: TRS Third-Party Assessment Form o Attachment E: Information Security Policy o Attachment F: Information Security Manual o Attachment G: TRS Confidentiality Policy

• TRS Solicitation No. TRS000443 (incorporated by reference)

• Contractor’s Response to Solicitation (incorporated by reference)

VIII. 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

A. 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)

B. 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.

C. 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” https://www.trs.texas.gov/Pages/procurement_PAVES.aspx https://www.trs.texas.gov/TRS%20Documents/PAVES-basic-navigation-for-suppliers.pdf https://www.trs.texas.gov/TRS%20Documents/PAVES-new-supplier-registration.pdf https://www.trs.texas.gov/TRS%20Documents/PAVES-submit-proposal.pdf https://www.trs.texas.gov/TRS%20Documents/PAVES-activate-supplier-profile.pdf https://trstexas-supplier.ivalua.app/page.aspx/en/usr/login?ReturnUrl=/page.aspx/en/buy/homepage https://www.trs.texas.gov/TRS%20Documents/PAVES-new-supplier-registration.pdf https://www.trs.texas.gov/TRS%20Documents/PAVES-new-supplier-registration.pdf file://ad.trs.state.tx.us/SDrive/General%20Accounting/PURCHASING%20TEAM/Desk%20Reference%20Manual/Solicitation%20Working%20documents%20-%20not%20ready%20for%20release/PAVESHelp@trs.texas.gov

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.

D. 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 participatying in the Question Round of this solicitation and following the instructions found in “How to Submit a Proposal.”

https://www.trs.texas.gov/TRS%20Documents/PAVES-submit-proposal.pdf https://www.trs.texas.gov/TRS%20Documents/PAVES-submit-proposal.pdf https://www.trs.texas.gov/TRS%20Documents/PAVES-submit-proposal.pdf