ESBD_File_343252_Investment Consultant RFP PDF.pdf

Request for Proposals (RFP)

GENERAL INVESTMENT CONSULTING SERVICES

R23-018-01

PROPOSAL DUE DATE & TIME:

December 13, 2023 by 5:00 PM CST

ATTN: Carminia Urrutia, Purchasing Coordinator

RFP@cacost.org

COMMUNITY ACTION CORPORATION OF SOUTH

TEXAS 204 E. FIRST ST.

ALICE, TX 78332

INTRODUCTION

The Community Action Corporation of South Texas (CACOST) is a private nonprofit organization established in 1971 and funded through State and Federal grants and fee for service programs. CACOST has a workforce of approximately 700 employees and serves a seventeen (17) county area in South and Coastal Texas. CACOST has approximately $7,500,000 in cash equivalents to invest. CACOST’s mission is to continuously improve the lives of South Texans by providing high quality healthcare, education, housing, and economic opportunities to reduce poverty through services and partnerships.

CACOST has a tripartite board structure that is designed to promote the participation of the entire community in the reduction or elimination of poverty. Board members serve voluntarily and are chosen to represent the private sector, the public sector and the low-income sector of the population. Additional information on CACOST can be located at cacost.org.

PROPOSAL SUMMARY

CACOST is soliciting proposals from qualified professional investment consulting firms to assist with strategic investment planning; investment manager due diligence; investment market research and recommendations; portfolio monitoring, investment performance measurement; asset allocation, risk management and compliance reporting.

All proposals must be completed in accordance with all applicable standards, specifications, terms, and conditions as stated in this RFP.

CLOSING DATE

All proposals must be submitted no later than December 13, 2023 by 5:00 PM CST.

INQUIRIES & CONTACT INFORMATION

All questions concerning this RFP should be directed to Carminia Urrutia, Purchasing Coordinator, as communication with other individuals within CACOST during the RFP period is strictly prohibited. CACOST reserves the right to disqualify any Proposer who is found in violation of this provision. No communication requests other than email will be accepted and no response other than written responses will be binding upon CACOST. Submittals will remain on file in accordance with the Texas Open Records Act.

EXPECTED TIMELINE

The following timeline of events is expected to be followed but shall not be considered binding:

RFP Publication November 20, 2023

Final Date for Inquiry Submission December 1, 2023

Q&A Document Publication December 6, 2023

Final Date for Proposal Submission December 13, 2023

Announcement of Intent to Award December 27, 2023

Anticipated Contract Start Date January 1, 2024

RFP EVENT DATE

GENERAL TERMS & CONDITIONS

SUBMISSION INSTRUCTIONS

To be considered responsive, proposals must fully address all sections of the RFP. All proposals should be addressed as follows:

CACOST GENERAL INVESTMENT CONSULTING SERVICES RFP

R23-018-01

ATTN: Carminia Urrutia, Purchasing Coordinator 204 E. First St.

Alice, Texas 78332 AND/OR via email to RFP@cacost.org

It is the sole responsibility of the Proposer to ensure that the proposal is received by the date and time specified in the Closing Date section. Late proposals will not be considered.

Confirmation of receipt is the sole responsibility of the Proposer. Proposals may be withdrawn in writing prior to the deadline. Unless otherwise stated, all materials submitted by the Proposer in response to this RFP shall become the property of CACOST.

NOTIFICATION OF AWARD

CACOST anticipates, but does not guarantee, a contract or multiple contracts will be awarded on January 1, 2024. An award will be made to the Proposer(s) based on the listed evaluation criteria and the responses most compatible with CACOST’s needs. CACOST will be the sole judge in making this determination. CACOST is not bound to accept the lowest bid, or any proposal submitted. A contract or multiple contracts for the approved proposal will be executed based upon the factors described in this RFP. CACOST may investigate the qualifications of any individual or firm under consideration, require confirmation of information furnished and require additional evidence of qualifications to perform the services described in this RFP. CACOST also reserves certain rights, including, but not limited to, the following:

1. Reject any or all proposals

2. Issue subsequent Requests for Qualifications

3. Cancel the entire Request For Proposals

4. Remedy technical errors in the Request For Proposals process

5. Appoint evaluation committees to review qualifications and proposals

6. Seek the assistance of outside technical experts in evaluation

7. Approve or disapprove the use of certain subcontractors

8. Establish a short list of proposers eligible for discussions after review of RFP

9. Solicit best and final offers from all, some, or one of the proposers

10. Waive informalities and irregularities in RFP

11. Award without discussion

12. Cancel an awarded contract if performance is unsatisfactory, with the provision of a written notice; no penalty and/or fee may be imposed

13. Conduct pre-contract negotiations with any and/or all potential qualified contractors

This RFP shall not, in any manner, be construed to be an obligation on CACOST to enter into a contract or result in any claim for reimbursement of cost for any efforts expended in responding to the RFP or in anticipation of any contract.

CONFIDENTIALITY

The Proposer agrees to keep the information related to all contracts in strict confidence. Other than the reports submitted to CACOST, the Proposer agrees not to publish, reproduce, or otherwise divulge such information, in whole or in part, in any manner or form, or authorize or permit others to do so taking such reasonable measures as are necessary to restrict access to the information while in the Proposer’s possession. The Proposer agrees to notify immediately, in writing, CACOST’s authorized representative in the event the Proposer determines or has reason to suspect a breach of this requirement.

LIMITATIONS & RESERVATIONS

CACOST reserves the right to negotiate the terms and conditions of the contract with any of the evaluated Proposers. Should the successful Proposer and CACOST fail to come to an agreement, CACOST may at its sole discretion award work to any of the remaining Proposers.

The Proposer to whom the contract is awarded shall be required to enter into a written contract with CACOST. This RFP and the proposal, or any part thereof, shall be incorporated into and made a part of the final contract. CACOST specifically reserves the right to vary the provisions set forth herein any time before the execution of a contract where such variance is deemed to be in the best interest of the needs of CACOST. If selected for negotiations, Proposer may be required to prepare and submit additional information before final Proposer(s) selection, to reach terms for the provision of services, which are agreeable to both parties.

FINANCIAL RESPONSIBILITY

CACOST assumes no financial responsibility for any costs in developing and submitting a proposal or any amendments or addenda, participating in bid conferences, participating in any negotiation sessions or discussions, or any other costs incurred by Proposers prior to award of a contract or agreement pursuant to this RFP. All costs incurred in the preparation of any response to this RFP and/or associated costs will be the sole responsibility of the Proposer and will not be reimbursed by CACOST.

SMALL, WOMEN, AND/OR MINORITY-OWNED BUSINESSES

Efforts will be made by CACOST to utilize small businesses and women and minority-owned businesses with the consideration that the primary responsibility is the most favorable return to CACOST. A Proposer qualifies as a small business firm if it meets the definition of “small business” as established by the Small Business Administration (13 CFR 121.201).

HISTORICALLY UNDERUTILIZED BUSINESSES

It is CACOST’s policy to encourage participation of small and historically underutilized businesses (HUBs) as defined in Government Code, Chapter 2161. “Historically underutilized business (HUB): means an entity with its principal place of Business in this State that is:

1. a corporation formed for the purpose of making a profit in which 51 percent or more of all classes of the shares of stock or other equitable securities are owned by one or more economically disadvantaged persons who have a proportionate interest and actively participate in the corporation's control, operation, and management;

2. a sole proprietorship created for the purpose of making a profit that is completely owned, operated, and controlled by an economically disadvantaged person;

3. a partnership formed for the purpose of making a profit in which 51 percent or more of the assets and interest in the partnership are owned by one or more economically disadvantaged persons who have a proportionate interest and actively participate in the partnership's control, operation, and management;

4. a joint venture in which each entity in the venture is a historically underutilized business, as determined under Government Code Chapter 2161; or

5. a supplier contract between a historically underutilized business as determined under Government Code Chapter 2161 and a prime contractor under which the historically underutilized business is directly involved in the manufacture or distribution of the goods or otherwise warehouses and ships the goods.

EQUAL OPPORTUNITY

It is the policy of CACOST not to discriminate on the basis of race, color, creed, gender, religion, marital status, age, national origin or ancestry, physical or mental disability, medical condition, sexual orientation, political affiliation or belief or any other consideration made unlawful by applicable federal, state, or local laws. Proposer agrees not to discriminate against any employee or applicant for employment to be employed in the performance of this agreement, with respect to hiring, tenure, terms, conditions, and privileges of employment, or a matter directly or indirectly related to employment, because of age or race, color, creed, gender, religion, marital status, age, national origin, or ancestry, physical or mental disability, medical condition, sexual orientation, political affiliation, or belief. The Proposer further agrees that every subcontractor entered into for the performance of the agreement shall contain a provision requiring non-discrimination in employment herein specified, binding upon each subcontractor. Breach of the covenant may be regarded as a material breach of the agreement.

CERTIFICATION WITH REGARDS TO LOBBYING

No federal appropriated funds will be paid to any person for influencing or attempting to influence an officer or employee of Congress or an employee of a member of Congress in connection with the awarding of any federal contract, the making of any federal grant or loan, the entering into of any cooperative agreement or the extension, continuation, renewal, amendment or modification of any federal contract, grant, loan, or cooperative agreement.

PROHIBITED SUBSTANCES IN THE WORKPLACE

The Proposer is considered a representative of CACOST while carrying out the duties of the contract. CACOST has a policy that prohibits the possession and/or use of alcohol or illegal drugs when conducting CACOST business. If the Proposer is observed engaging in this type of behavior while performing any aspect of the contract, termination of the contract or agreement will occur.

EQUAL EMPLOYMENT OPPORTUNITY

The Equal Employment Opportunity Clause required under Executive Order 11246, the affirmative action commitment for disabled veterans, recently separated veterans, other protected veterans, and Armed Forces Service Medal Veterans, the affirmative action clause for handicapped workers and the related regulations of the Secretary of Labor, 41 CFR Chapter 60, are incorporated by reference in the contract. By accepting the contract, the Proposer certifies that it complies with the authorities cited above, and that it does not maintain segregated facilities or permit its employees to perform services at locations where segregated facilities are maintained, as required by 41 CFR 60.

DEBARMENT AND SUSPENSION

The Proposer certifies, by submission of this proposal, that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any federal department or agency.

DISCLOSURE OF PENDING GOVERNMENT INVESTIGATIONS

It is the responsibility of the Proposer to disclose any ongoing or pending legal proceedings, including any such proceedings known to be contemplated by governmental authorities, that could affect the performance of the Proposer or the execution of any potential contract. Failure to disclose this information or any efforts to omit such information may result in the disqualification of the offending Proposer’s bid and/or termination of contract.

SCOPE OF SERVICES

PROJECT OVERVIEW

CACOST is seeking an investment consulting firm to provide general investment consulting and related support services for the period January 1, 2024 through December 31, 2024 with three optional years.

The General Investment Consultant serves the Board of Directors and works closely with CACOST staff. The selected investment consultant should provide independent, objective and creative input to assist the Board of Directors in fulfilling its fiduciary responsibility as to the investing of the assets, to maintain or exceed performance history and future benchmarks or goals, and to report and provide analysis.

The General Investment Consultant is expected to attend no less than four (quarterly) Board meetings per year in Alice, Texas and one off-site Board retreat per year.

The selected consulting firm is expected to provide the following services:

A. Policy

• Provide recommendations concerning long-term investment policy and investment objectives and strategy.

• Provide annual policy review.

• Provide recommendations regarding investment guidelines on specific mandates.

• Provide recommendations concerning risk management strategies.

• Provide recommendations regarding policy benchmarks.

• Advise on rebalancing policies.

B. Asset Allocation and Portfolio Design

• Conduct an annual asset allocation review.

• Conduct an asset allocation study at least every 3 years or sooner as circumstances may warrant.

• Provide asset class research, analysis and recommendations.

C. Investment Manager Oversight

• Provide ongoing monitoring of institutional investment managers; compliance and performance.

• Provide research and analysis of investment managers.

• Provide investment manager evaluation services and recommendations.

• Provide onsite manager due diligence for investment searches.

• Provide recommendations concerning investment manager allocation and structure, manager investment guidelines and benchmark identification.

• Provide investment manager fee negotiation services, as needed.

• Provide recommendations for investment manager transitions, as needed.

It should be noted that the Board of Directors retains its discretion in choosing investment managers using its due diligence process, located in the Fund’s Statement of Investment Policy, to determine who is best suited to fill the asset allocation role.

D. Performance Measurement and Reporting

• Evaluate total portfolio investment performance to custom policy benchmark, when applicable.

• Evaluate investment manager performance to policy benchmarks and appropriate peer groups.

• Provide quarterly performance measurement reporting.

• Provide quarterly performance review and commentary to the Board.

• Provide manager fee analysis versus peers.

• Provide annual evaluation and attribution analysis.

• Provide benchmark evaluation, implementation and analysis.

• Provide review of portfolio risk.

E. Education and Client Services

• Attend Board meetings and any other meetings as necessary. Board meetings are normally on the last Thursday of each month considering holidays and other meeting conflicts. A calendar of meetings is provided at the beginning of each fiscal year.

CACOST’s fiscal year runs from February 1 through January 31.

• Provide investment education to staff and the Board as appropriate.

• Develop educational materials to support Board and staff training.

• Provide assistance on special projects as needed.

• Communicate regularly with staff about workflow and any other operational issues between meetings.

• Respond to inquiries in an appropriate and timely manner.

• Provide prompt notification of changes in assigned consultant team for Board approval.

PROPOSAL SUBMISSION REQUIREMENTS

A. Organization of Responses (General Investment Consultant Firm’s Proposal) To simplify the review process and enable the maximum degree of comparison, the responses to this RFP should be organized specifically in the following manner:

1. A dated title page indicating the RFP subject, the firm’s name, address, phone number, the name, title and contact phone number and email address for the individual who will be authorized to represent and, if necessary, negotiate on behalf of the investment consulting firm. Please include the address of the office that will service this account.

2. The name title or position, email, and telephone number of the primary contact and or account administrator, if different from the individual indicated on the title page referenced in #1 above.

3. Table of Contents, which includes a clear identification of the material by section and by page number.

4. Transmittal Letter or Executive Summary, which briefly states that your firm understands the work to be completed and a positive binding commitment to perform the work within the required time period, if your firm is selected to perform the outlined services.

5. Detailed Responses that follow the order set forth in EXHIBIT 1.

Nonconformance with these submission requirements may result in rejection of the proposal.

B. RFP Response Submission The proposing firm shall submit an electronic version and/or an unbound copy of the written proposal labeled "Proposal for General Investment Consulting Services R23-018-01” bearing the name and address of the Proposer (or bidder) and signed by an authorized official.

The hard copy submission shall be sent to:

Carminia Urrutia, Purchasing Coordinator Community Action Corporation of South Texas

204 E. First St.

Alice, Texas 78332

Proposals must be received on or before December 13, 2023 at 5 P.M. Failure to meet the due date/deadline will result in a rejection of the proposal.

All proposals submitted become the property of CACOST and will not be returned. Any information that the proposer includes in its proposal that it considers proprietary or confidential must be marked as such. Such marking, however, is not determinative as to whether the information is considered confidential under Texas law.

All proposals shall be considered valid for acceptance 90 days after submission.

MINIMUM QUALIFICATIONS AND CERTIFICATIONS

Minimum Qualifications The Proposer must meet all of the following minimum qualifications and timely submit all required information to be given further consideration

1. At least three (3) current general investment consulting non-profit clients.

2. At least five (5) years of experience providing investment consulting services.

3. The individual(s) assigned as the primary consultant must have a minimum of five

(5) years of experience in providing investment consulting services.

4. Agree to act as a fiduciary to CACOST.

5. Currently registered as an investment adviser with the Securities and Exchange

Commission.

6. Certify that any information obtained from the CACOST will not be reproduced, sold, distributed, published or made available to any person or entity except as necessary to perform the services required by this RFP or by applicable law.

TECHNICAL PROPOSAL REQUIREMENTS

Please follow the organizational requirements as noted in in EXHIBIT 1. Label your responses accordingly.

A. Firm’s Background and History

1. Please provide a brief history of the firm including the year organized and the year the firm began providing investment consulting services.

2. Does your organization receive revenue from investment management firms?

Revenues within this request would include, among others, strategic consulting fees, conference fees, education fees, or fees from research including databases. Please identify the percentage of the firm’s total revenues that is received from investment management firms; in both soft and hard dollars.

3. Please provide an organization chart and list the total number of firm professionals by consultants, research professionals, and staff.

4. Please indicate which office would service the CACOST account, the names of the team member(s) who would be assigned to this account and their contact information. Include biographies for each team member. Also, include for the investment professional assigned to the account, the number of years investment consulting experience and number of tenured years at the firm. Please attach as Exhibit A.

5. Will your firm acknowledge fiduciary status and accept fiduciary responsibility for recommendations to CACOST?

6. Please provide as Exhibit B the name, address, telephone number and contact person for three (3) current clients to serve as references for your firm, preferably nonprofit organizations. Please detail name, primary contact, telephone number, email address, asset values, number of years the client has retained the firm and the product(s) or service(s)the client uses.

B. Investment Consulting Process

1. Briefly describe your firm’s philosophy with respect to investment consulting engagements, and the nature of the service that you provide. What key strengths and competitive advantages does the firm possess that generate superior performance and service for your clients?

2. Describe your firm’s experience in developing and reviewing investment policies and strategies for clients.

3. How frequently does the firm recommend reviewing asset allocation, asset/liability reviews, and manager structure reviews, and describe your firm’s methodology.

Please provide samples of an Asset Allocation Review and Asset/Liability Study as Exhibit C.

4. How does your firm assess risk in client’s portfolios? What are the appropriate metrics to review?

5. In your view, how should a client measure its investment consulting firm’s performance? How does your firm measure its own performance?

6. Does your firm assist in fee negotiations with asset managers?

C. Performance Measurement and Reporting

1. How does your firm monitor and analyze investment performance? Please describe any databases used by your firm. How do you determine appropriate benchmarks?

2. Please provide a sample performance report as Exhibit D.

3. Please describe your firm’s risk management philosophy. How does your firm define risk(s)?

D. Manager Search and Evaluation

1. Describe in detail your manager database and search process. Include the criteria used to make manager recommendations.

2. Describe your approach to working with client staff on investment manager searches, due diligence and final manager selection.

4. Please provide a sample of investment manager research or due diligence reports as Exhibit E.

3. How often are on-site due diligence visits conducted, on average, with your client’s managers?

E. Other Information

1. Describe your firm’s educational opportunities for Board of Directors and staff.

2. Describe your transition manager search process. Please include details such as criteria used for evaluating and ranking transition managers.

3. If your firm believed that adding a new investment idea would be beneficial to the portfolio; how would you approach educating the Board of Directors in understanding the investment recommendation.

4. Does your firm provide a web portal/access for clients? Please describe what functions are available via your portal including performance reporting, manager diligence, risk analytics, portfolio modeling, and exposure reporting.

F. Fee Proposal (Include as Exhibit F)

1. Please provide Fees for the services related to the annual investment consultant.

Provide a separate cost for travel, lodging, meals, and other out-of-pocket expenses related to attending four (4) quarterly Board of Directors meetings in Alice, Texas and one off-site board retreat.

2. List other services that would be billable to CACOST in addition to the above.

G. Insurance Requirements

The selected firm shall provide evidence of Professional Liability insurance with contractual liability coverage covering the Proposer’s liability arising from errors and omissions made directly or indirectly during the duration of the contract. The selected firm shall provide coverage for the total limits actually arranged by the selected firm but not less than $5 million combined single limit.

The selected firm shall maintain a Fidelity Bond covering employee dishonesty, in an amount arranged by the selected firm, but not less than $3 million, per occurrence.

EVALUATION CRITERIA

A committee selected by CACOST will review and evaluate all proposals and make a recommendation to the CACOST Executive Director. Each proposal will be evaluated according to the following set of criteria. The evaluation committee may use any material submitted in the proposal for any item in the evaluation process.

The following table illustrates the general evaluation criteria that will be used to determine which proposal provides the most value to CACOST:

EVALUATION CATEGORIES WEIGHT

Qualifications and Experience 25% Approach to Providing Services 30% References 20% Fee Proposal 20% Minority/Small Business 5% Total 100%

In accordance with applicable laws, rules and regulations for public purchasing, an award will be made to the responsible Proposer whose proposal is determined to be the best value to CACOST. The proposal must be submitted on time and must materially satisfy all mandatory requirements identified above to qualify for evaluation. A written acceptance mailed or otherwise furnished to the qualified proposer and a fully executed contract is required prior to commencement of any work under this RFP. Protest procedures are available upon request and must be submitted within ten (10) business days of Intent of Award notification for consideration.

EXHIBIT 1

SUBMISSION SCHEDULE

ITEM

INCLUDED IN

RFP RESPONSE

Transmittal Letter

Answers To All Questions in Technical Proposal

Exhibit A - Biographies of Proposed Team Members

Exhibit B - Client References

Exhibit C – Sample(s) of Asset Allocation Review and Asset/Liability Study

Exhibit D – Sample of Performance Report

Exhibit E – Sample of Investment Manager Research/Due Diligence Report

Exhibit F – Fee Proposal