Exhibit C_Cat 1-Cost Proposal.docx

Competitive Solicitation No: 2027-01

EXHIBIT C – COST PROPOSAL BID PRICE

CATEGORY 1 – PROGRAM ADMINISTRATION

BIDDER:

Instructions:

The Cost Proposal section accounts for 30 points out of the total 100 points in the overall RFP evaluation.

Using this Cost Proposal, Bidder must provide all proposed fees for the Services. Amounts, fees, or charges not included in the Cost Proposal may not be charged or assessed at a later date. This must be your best proposal – there will not be an opportunity to negotiate or otherwise provide a best-and-final offer, due to State of Washington contracting rules.

To ensure a fair, transparent, and consistent process, cost proposals are first evaluated on a 100-point internal scale that reflects the four elements of the Cost Proposal. The four elements and their weights are:

· Participant Account Fees – 55 points maximum

· State Startup Costs – 25 points maximum

· Scaled Account Fees – 10 points maximum

· Additional Fees – 10 points maximum

Each element is scored independently, with the most favorable proposal in that element receiving the maximum points and all other proposals receiving proportionate points based on their relative favorability. The four element scores are then added together to determine each Bidder’s total cost score (out of 100).

Conversion to the 30-point Program Administration cost scale: Once the four element scores are summed, each total Program Administration cost score is converted proportionally to the 30-point Program Administration Cost Proposal allocation. The Bidder with the highest total Program Administration cost score is awarded the full 30 points, even if it did not receive a perfect 100. All other Bidders receive a proportionate share of the 30 points based on how their total Program Administration cost score compares to the highest Program Administration cost score.

Example: If the top Program Administration cost score is 80 points, that Bidder will receive the full 30 points. A Bidder with a 40-point Program Administration cost score (half the top score) will receive 15 points.

Bidders should provide clear, detailed breakdowns of fees, startup costs, and breakpoints to ensure their proposals are scored accurately.

Scoring Cost Proposal Elements:

· Participant Account Fees (55 points maximum) Participant Account Fees may be proposed as dollar-based (e.g., quarterly or annual flat fees) or asset-based fees (in basis points). To ensure equitable comparison, all fees are converted to an equivalent basis point value using the calculation shown in section 1.a. These converted fees are scored per Section 1.a of the Cost Proposal with the lowest fees earning the highest scores. The best proposal scores 55 points, and others receive a proportional share based on their costs’ proportional comparison to the best offer.

· State Startup Costs (25 points maximum) State Startup Costs include implementation, development, transition, or other startup costs proposed to be charged to Washington Saves in connection with implementation and launch of the Program. Bidders may propose that such costs be paid in a lump sum or over multiple years, as specified in the Cost Proposal. The Bidder proposing the lowest total State Startup Costs receives 25 points. Other Bidders receive a proportional share of points based on their total proposed State Startup Costs compared to the lowest-cost proposal.

· Scaled Account Fees (10 points maximum) Scaled Account Fees evaluate the participant fees that would apply at standardized Program size scenarios based on each Bidder’s proposed fee schedule, including any applicable breakpoints. Each scenario is scored independently, with the Bidder offering the lowest calculated annual participant cost receiving the maximum points for that scenario. Other Bidders receive a proportional share of points based on their calculated annual participant cost compared to the lowest cost proposal.

· Additional Fees (10 points maximum) Additional Fees include charges for services like paper statements or check processing. The evaluation assesses the extent of fee waivers, reductions, or minimizations. The Bidder offering the most generous terms (e.g., lowest or fully waived fees) receives 10 points.

(a) Participant Account Fees: As applicable, please complete the following table listing the fees the Bidder would charge to participants for Program Administrator services.

Proposed Fee

Asset-Based Fee

Dollar-Based Account Fee

Please list the proposed fees in terms of annual basis points and/or dollars per account. Please note that any dollar-based fees will be converted to basis points assuming an average account size of $1,000 for cost comparison purposes across Bidders. See below calculation that will be used to convert and compare dollar-based fees and basis point fees:

Dollar-Based Fee (annual, per account)

where B = avg account balance ($1,000)

For evaluation purposes: Annual Cost = (Total bps ÷ 10,000) × avg account balance

Where:

· A = asset-based fee (bps)

· F = dollar-based fee per account per year

· B = average account balance ($1,000)

(b) State Startup Costs: If proposing State Startup Costs, please indicate the total amount proposed to be charged to Washington Saves and the proposed payment schedule for those costs. Bidders may propose that State Startup Costs be paid in a lump sum or over multiple years. Please complete the table below showing the amount payable in each applicable year and the total proposed State Startup Costs. Add additional rows as necessary.

State Startup Costs – Dollar Amount

Year 1

Year 2

Year 3

Year 4

Year 5

Total

(c) Scaled Account Fees: If proposing scaled account fees, please use the following tables to indicate the exact asset or funded account levels at which the fees described above would decrease and the corresponding fee applicable at each breakpoint.

Breakpoint Schedule – Asset-Based Fee (bps)

[specify asset level or account level;

add rows as necessary]

Breakpoint Schedule – Dollar-Based Account Fee

[specify asset level or account level;

add rows as necessary]

Scaled Account Fees will account for 10 points of the 100-point internal Program Administration cost score.

For scoring purposes, each Bidder’s proposed fee schedule will be applied to the standardized Program size scenarios below. At each scenario, Washington Saves will calculate the total annual participant cost using the Bidder’s applicable asset-based fee and/or dollar-based account fee, including any breakpoint that would apply at that Program size.

Each evaluation scenario will be worth 2.5 points. The Bidder with the lowest calculated annual participant cost at a given scenario will receive the full 2.5 points for that scenario. Other Bidders will receive a proportional share of points based on their calculated annual participant cost compared to the lowest-cost proposal at that scenario.

(Note: the Program size scenarios below are provided solely for purposes of scoring and comparing proposals. They should not be construed as predictions, projections, or guarantees of actual future Program participation, assets, or growth.)

For each evaluation scenario, total annual participant cost will be calculated as follows:

Total Annual Participant Cost = (AUM × applicable asset-based fee (bps) ÷ 10,000) + (Funded Saver Accounts × applicable annual dollar-based account fee)

The score for each scenario will be calculated as follows:

Scenario Score = (Lowest Annual Participant Cost ÷ Bidder’s Annual Participant Cost) × 2.5

The Bidder’s total Scaled Account Fees score will equal the sum of its scores across all four evaluation scenarios.

(d) Additional Fees: If proposing additional participant-driven service fees or transaction fees, identify all such fees using the table below; add rows as necessary to disclose every additional fee that may be charged to a participant. Specify the amount and frequency of each fee and, if necessary, provide a brief description of the circumstances under which the fee would apply. If no fee is charged for a listed service, enter “$0” or “Waived.”

Additional Fees will be evaluated based on the number, amount, frequency, and circumstances of the proposed fees, with preference given to proposals that waive, eliminate, or minimize participant-driven service and transaction fees. The Bidder offering the most favorable overall Additional Fee schedule will receive 10 points.

Paper Delivery of Statements

Paper Delivery of Disclosure Documents

Paper Check

Bounced Check

Failed or Rejected Participant ACH

Rollover Out

Priority Delivery

Other – specify

Other – specify

No participant-driven service fee, transaction fee, or other additional participant fee that is not disclosed in this Cost Proposal may be charged during the term of the Agreement unless subsequently approved in writing by the Board and incorporated into the Agreement, as applicable.

COMPETITIVE SOLICITATION NO. 2027-01

image1.png