HOPE02-23_-_FINAL_RFP_(05-03-24).pdf

STATE OF CALIFORNIA Fiona Ma, CPA, Treasurer

California Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Trust Account Program Board

P. O. BOX 942809

SACRAMENTO, CA 94209-0001

Request for Proposals (RFP) No. HOPE02-23

Investment Consulting Services

NOTICE TO PROSPECTIVE PROPOSERS

May 3, 2024

You are invited to review and respond to this Request for Proposals (RFP) No. HOPE02-23 for an

Investment Consultant. The California Hope, Opportunity, Perseverance, and Empowerment (HOPE) for

Children Trust Account Program (California HOPE Program) codified in Chapter 16.1 (commencing with section 18997.5) of the Welfare and Institutions Code (Assembly Bill 156, (Chapter 569, Statutes of

2022)) is seeking specific, detailed proposals from qualified firms experienced in designing investment policies and plans for state agencies.

Proposals for these services must comply with the instructions included in the RFP. The RFP includes the

Sample Standard Agreement the selected firm will be expected to execute. The agreement that will be entered into with the State of California (“State”) will include by reference the General Terms and

Conditions and Contractor Certification Clauses which may be viewed and downloaded online at:

https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-

Folder/Standard-Contract-Language. The General Terms and Conditions and all Exhibits that are a part of the Sample Standard Agreement are not negotiable. By submitting a proposal, your firm agrees to the terms and conditions stated in this RFP.

In the opinion of the California HOPE Program, this RFP is complete and without need of explanation.

However, if you have questions, or should you need any clarifying information, the contact person for this

RFP is:

Kasey O’Connor, Executive Director

California HOPE Program

901 P Street, Suite 411B

Sacramento, CA 95814

Kasey.O'Connor@treasurer.ca.gov

Questions regarding this RFP must be submitted in writing no later than May 15, 2024, before 4:00 p.m.

PT. Responses to the questions will subsequently be posted by May 17, 2024, in the California State

Contracts Register (CSCR). Please note that no verbal information provided will be binding upon the State unless such information is also issued in writing as an official addendum.

https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language mailto:Kasey.O'Connor@treasurer.ca.gov

TABLE OF CONTENTS

A. PURPOSE AND DESCRIPTION OF SERVICES Page 1

1. Introduction Page 1

2. Background Page 2

3. Scope of Work Page 3

4. Deliverables Page 3

5. Term of Agreement Page 4

B. MINIMUM QUALIFICATIONS FOR PROPOSERS Page 4

C. PROPOSAL REQUIREMENTS AND INFORMATION Page 4

1. Key Action Dates Page 4

2. Questions and Answers Page 5

3. Content and Format of Proposals Page 5

4. Submission of Proposals Page 9

5. Evaluation Process Page 11

6. Award and Protest Page 13

7. Disposition of Proposals Page 14

8. Agreement Execution and Performance Page 14

D. PREFERENCE AND INCENTIVE PROGRAMS Page 14

1. Small Business (SB) or Microbusiness (MB) Preference Program Page 14

2. Non-Small Business (SB) or Microbusiness (MB) Preference Page 15

3. Disabled Veterans Business Enterprise (DVBE) Incentive Program Page 15

4. The Target Area Contract Preference Act (TACPA) Page 16

E. REQUIRED ATTACHMENTS Page 16 Attachment 1 - Required Attachment Checklist

Attachment 2 - Proposal/Proposer Certification Sheet

Attachment 3 - Minimum Qualifications Certification

Attachment 4 - Proposer References

Attachment 5 - Resumes of Key Personnel

Attachment 6 - Cost Proposal Worksheet

Attachment 7 - Payee Data Record (STD. 204)

Attachment 8 - Darfur Contracting Act Certification

Attachment 9 - California Civil Rights Laws Certification

Attachment 10 - Contractor Certification Clauses (CCC 04/2017)

Attachment 11 - Generative Artificial Intelligence (GenAI) Disclosure and Factsheet (Std. 1000)

Attachment 12 - Bidder Declaration (GSPD-05-105)

Attachment 13 - Small Business or Microbusiness Preference*

Attachment 14 - Non-Small Business or Microbusiness Preference*

Attachment 15 - Disabled Veteran Business Enterprise Incentive Program*

Attachment 16 - The Target Area Contract Preference Act (TACPA)*

*if applicable

F. SAMPLE STANDARD AGREEMENT

Exhibit A Scope of Work

Attachment 1 Resumes of Key Personnel

Exhibit B Budget Detail and Payment Provisions

Exhibit C General Terms and Conditions (GTC 04/2017)

Exhibit D Special Terms and Conditions

California HOPE for Children Trust Account Program Board

HOPE02-23

A. PURPOSE AND DESCRIPTION OF SERVICES

1. Introduction

The California Legislature enacted Assembly Bill 156 (Chapter 569, Statues of 2022) and codified in Chapter 16.1 (commencing with section 18997.5) of the Welfare and

Institutions Code (HOPE Act or Act), which establishes the California Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Trust Account Program (herein, the California HOPE Program) to provide individual accounts (HOPE Accounts) to eligible children, specifically those from very low-income families who have lost a parent or guardian to COVID 19 or long-COVID (“COVID-bereaved”) and children who have been in foster care for at least 18 months (“long-term foster children”). The California HOPE

Program aims to create opportunities, economic autonomy, and hope, and to promote intergenerational wealth and asset building for eligible children as one of the many strategies California must employ to reverse our state’s record level of inequality.

The HOPE Act established the HOPE Account Fund in the State Treasury with $100 million appropriated through the fiscal year 2022 budget. The Fund also receives $15 million every year, through ongoing annual appropriations. To date, $115 million has been received through the California budget process for the HOPE Fund.

At its meeting in August 2023, the HOPE Governing Board (Board) authorized the

Executive Director to work with the Treasurer’s Investment Division to invest of these funds into approved financial instruments through the Pooled Money Investment Account

(“PMIA”) under statutory authority granted by Government Code sections 16430 and

16480.4 in order to maximize the amount of funds that will be available to be deposited into HOPE Accounts. The PMIA investment policy sets as primary investment objectives safety, liquidity, and yield.

The California HOPE Program seeks an investment consultant who will work under the general direction of the California HOPE Program Executive Director and with California

HOPE Program staff, other consultant(s), and Board to create an investment plan that will include investment management goals, principles, and policies. They will also help determine the amount of funds that each youth program participant will receive based on the amount of funds allocated to the HOPE Fund annually, expected returns on investment, any additional money secured or expected to be secured, and the estimated number of children who will be eligible when the program launches and annually after that. The consultant will also help the California HOPE Program determine the criteria for contracting an investment manager and a program manager to administer the accounts.

They will work with California HOPE Program staff, and other contracted consultant(s) to develop a plan for depositing money from the HOPE Fund into program enrollees’ HOPE

Accounts so that program enrollees receive an equitable amount of funds accounting for inflation.

Currently, the HOPE Fund is expected to have approximately $145 million available to fund HOPE Accounts when the program is expected to be operational in 2025. This is based on the total funds that will have been appropriated through the state budget including that for fiscal year 2025, the expected returns on the short-term investment of funds available as of October 2023, and allows for up to 5% of appropriated resources for operational costs. Based on information provided by CDSS and researchers, the California

HOPE Program is projecting that there will be about 58,500 children of various ages who will be eligible for automatic enrollment at the time of program launch (including 10,000 income-eligible COVID-bereaved children and the 48,500 long-term foster youth).

On these facts, the California HOPE Program projects that we will be able to provide each program enrollee a total of approximately $4,500 in 2025 dollars, adjusting for inflation, depending on how many children will become eligible in future years. This estimation assumes that the California HOPE Program will be able to fully fund the accounts of youth who will be entitled to withdraw from their accounts immediately or soon after program launch because they will already or soon will be 18 years old while making smaller annual deposits into the accounts of younger children.

2. Background

The California HOPE Program is designed on the model of Baby Bonds tailored to

California’s unique needs and resources. Conceptualized in modern form by economists

Darrick Hamilton and William Darity, Baby Bonds are designed to address wealth inequities, particularly the racial wealth divide, by providing the largest investments for children from households with the least wealth, disproportionately consisting of communities of color (or BIPOC communities) that have been systemically prevented from accumulating wealth through slavery, expropriation of Indigenous land, redlining, residential segregation, immigration restrictions, and exclusion from prior wealth creating programs like the GI bill.

An early version of Baby Bonds was established in the United Kingdom, which created its

Child Trust Fund program in 2005. In the last decade, economists and policymakers have built on the success of that model and introduced local, state, and national legislation, including the American Opportunity Accounts Act (AOAA), first introduced by Senator

Cory Booker in 2018 and re-introduced in 2021. Connecticut and Washington DC were the first to pass state or district-wide legislation, in 2021, California’s HOPE Act passed in

2022, and several other local jurisdictions are developing their own models, including New

York City’s COVID-19 Children's Fund, which, like California, is aiming at serving

COVID-impacted youth. 17.

The HOPE Act allows the California HOPE Program to be structured so that it can be expanded as necessary in the future. For example, the Act requires there be a way for grants, gifts, appropriations or other moneys to the HOPE Trust Account Program to be made in any amount and with the ability to have the funds targeted to specific subgroups, as defined by the entity giving, granting, or appropriating the funds, provided that they are not limited in such a way that would conflict with the intent of the Legislature in establishing the program. California HOPE Program staff are exploring ways to engage philanthropy such as by possibly creating HOPE Foundation to help create significant, long-term revenue sources in order to eventually be able to create trust accounts for all children born into poverty in California.

3. Scope of Work

Under the general direction of the California HOPE Program Executive Director, the selected Contractor will work with the California HOPE Program staff, consultant, Advisory Group, Governing Board, and eligible children and youth to develop investment management goals, principles, and policies and help the California HOPE Program’s fiduciaries to:

• Create an investment plan that will maximize both the number of children who may be enrolled in the program and the amounts to distribute to HOPE Account beneficiaries, annually,

• Work with California HOPE Program staff, and other contracted consultant(s) to determine the amount of funds that each youth program participant will receive based on the amount of funds allocated to the HOPE Fund annually, expected returns on investment, any additional money secured or expected to be secured, and the estimated number of children who will be eligible when the program launches and annually after that so that program enrollees receive an equitable amount of funds accounting for inflation.

• Work with California HOPE Program staff to determine the criteria for contracting an investment manager and a program manager to administer the accounts.

• Draft request for proposals from potential investment managers who will manage investments

• Help inspire additional investment and expansion by policymakers, philanthropic leaders, and other potential investors,

• Promote the HOPE Accounts program as a critical strategy to create wealth for some of California’s most financially vulnerable children in line with core liberatory social and economic narratives about the deservedness, resilience, wisdom, success, and independence of eligible youth (and counter to socially and economically oppressive narratives rooted in anti-Blackness, racism, xenophobia, disability, ageism, and similar cultural values).

• Help expand and adapt the program to benefit additional low-income youth.

4. Deliverables

The Contractor shall deliver materials that help California HOPE Program staff, consultant(s), governing board, and their government, tribal, and community partners to encourage and facilitate youth enrollment in and engagement with HOPE Accounts and promote additional public and private investment in the HOPE Account program. This may include:

• A multi-year investment policy and plan with goals, benchmarks, and guidelines,

• A draft request for proposals for investment managers,

• Recommendations that will help the California HOPE Program contract a program manager.

• Recommendations to help the California HOPE Program determine the amount of funds that each program enrollee will receive so that all receive an equitable amount of funds accounting for inflation.

5. Term of Agreement

The term of the Agreement will be for six months from June 28, 2024, through December

31, 2024, with a maximum amount not to exceed $75,000.00. The California HOPE

Program shall have one option to extend the Agreement by six months and an additional

$75,000.00. The Agreement shall not exceed $150,000.00 over the entire term, including any optional extensions. This agreement is subject to the approval of the Department of

General Services (DGS). In no event shall services be performed prior to the approval of the agreement by the DGS Office of Legal Services.

B. MINIMUM QUALIFICATIONS FOR PROPOSERS

Failure to meet the minimum qualifications will cause the proposal to be considered unresponsive and the proposal will be disqualified. The Contractor must have, at a minimum, the following qualifications and experience:

• Qualified to do business in the State of California.

• Fully licensed, insured, and incorporated business under applicable local, state, and federal laws.

• Must have a minimum of three years’ experience providing the services as detailed in the

Scope of Work.

• Must be technically and professionally capable of providing the services.

• Must be free from conflicts of interest, not only at the time of selection, but throughout the term of the Agreement as well.

• Must be immediately available to provide the services that will be set forth in the

Agreement.

C. PROPOSAL REQUIREMENTS AND INFORMATION

1. Schedule (Key Action Dates)

All prospective proposers are hereby advised of the following schedule and will be expected to adhere to the required dates and times (all times listed are Pacific Time (PT)).

DATE ACTION

May 3, 2024 RFP available to Prospective Proposers

May 15, 2024 at 4:00 p.m. PT Written Question Submittal Deadline

May 17, 2024 Answers to Written Questions Distributed

May 28, 2024, at 4:00 p.m. PT Deadline for Proposal Submission

May 29-June 10, 2024 Evaluation of Proposals

June 12, 2024 Interviews

June 14, 2024 Notice of Intent to Award

June 28, 2024 Anticipated Commencement of Agreement

The California HOPE Program reserves the right to change the above dates and times, and, if so, the California HOPE Program may modify this RFP prior to the date fixed for submission of proposals by the issuance of an addendum.

2. Questions and Answers

In the opinion of the California HOPE Program, this RFP is complete and without need of explanation. However, if you have questions, or should you require any clarifying information, please email Kasey O’Connor at Kasey.O'Connor@treasurer.ca.gov.

Questions regarding this RFP must be submitted in writing no later than May 15, 2024, at

4:00 p.m. PT. Responses to questions will be provided by May 17, 2024 and will be made available in the California State Contracts Register located at https://caleprocure.ca.gov/.

3. Content and Format of Proposals

This RFP, the evaluation of the proposals, and the award of any resulting Agreement will be governed generally by the rules of this section and applicable State policy. The Bidder

Instruction (DGS PD 451) provide general information for potential proposers describing how to provide a responsive proposal.

Proposals must be organized in the format shown below and contain all of the information listed:

A. Cover Letter. Include your primary business focus, the length of time your company has been in business, the size of your company (including the number of employees), and your company’s background and experience as it relates to the Scope of Work.

Include the name, address, telephone number, and e-mail address for the Project

Representative. The California HOPE Program expects to have a close working https://caleprocure.ca.gov/ https://www.documents.dgs.ca.gov/dgs/FMC/GS/PD/DGSPD%20451.pdf relationship with the selected Contractor: please include a discussion of any unique strengths possessed by your company. This is intended to provide an opportunity for your company to demonstrate its qualifications.

B. Potential Conflicts of Interest. Companies must disclose any business relationships which may be construed to be potential conflicts of interest.

C. List responses to each Question related to the firm’s Qualifications and Experience as identified below. Points will be awarded for the firm’s response(s) to each question.

The allocation of points is defined in Evaluation Process, Section C (5) of this RFP.

Questions should be answered for each relevant partner or subcontractor to the extent applicable if a firm is a consortium or is using subcontractors. In preparing proposals, the firm shall list each question and then provide the firm’s response to that question in the same order listed in this RFP.

a. Required information – this information is required for informational purposes and not rated using the scoring matrix in Section C (5). The California HOPE Program may reject a proposal due to any disclosure or conflict of interest (potential or actual) that is material in the sole opinion of the Board.

i. Has the firm ever had or received any legal or disciplinary event that is material to the Board’s evaluation of the firm or the integrity of the firm’s management or advisory personnel? If yes, please list any event by either (1) identifying the specific type of event and specifically referring to the relevant portions of the firm’s most recent Forms MA or MA-1 (and, if doing so, providing detailed information specifying where the Board may electronically access such forms), or (2) providing a writing that fully and fairly discloses the information required to be disclosed under MSRB Rule G-42(c)(ii) and (b).

ii. Has any partner, officer, investment officer, portfolio manager, research analyst, or trader of the firm been convicted or pleaded no contest in a case stemming from a felony indictment? Any such conviction or plea must be disclosed and must be accompanied by a full explanation of the circumstances surrounding it. If yes, please provide a written statement explaining.

iii. Is or was the firm a defendant in litigation relating to any services which it proposes to provide to the California HOPE Program Board? Any final settlement, administrative decision, or judgment made in connection with this litigation must be disclosed and must be accompanied by a full explanation of the circumstances surrounding it.

iv. Has the firm, any partner, related company (parent, subsidiary, sister), affiliate or joint venture, or any owner, officer, director, principal, or management level employee of the firm been involved in any enforcement action by the Securities and Exchange Commission or any other governmental regulatory agency or been named a defendant in litigation where there was an allegation of violation of fiduciary responsibility? If yes, explain in detail.

v. Has the firm ever been terminated for cause from any contract? If the answer is yes, cite the background of the contract, reason for the termination, and what the firm has done to change operations or personnel to prevent the circumstances regarding the termination from re-occurring.

vi. Does this firm have any business relationships which may be construed to be potential or actual conflicts of interest? The contractor will have a continuing requirement to disclose any business relationships that may be construed to be a potential or actual conflict. The disclosure must be sufficiently detailed to inform the Board of the nature, implications and potential consequences of each conflict and must include an explanation of how the firm addresses, or intends to manage or mitigate, each conflict. The Board may reject a proposal due to any disclosure or conflict of interest (potential or actual) that is material in the sole opinion of the Board

b. Background and Personnel Information (Maximum of twenty (20) points)

i. Provide an overview of the firm including mission statement and vision statement, number of years of experience providing consultation, and what services the firm will bring to this contract.

ii. Describe the organizational structure and explain how this structure will be used to perform the requirements of this contract. Explain the advantages of this structure.

iii. Within the past three years, have there been any significant developments in your organization (e.g., changes in ownership, personnel reorganization)? If so, please describe.

iv. Complete the following table for professionals who will be responsible for providing the consulting activities to be performed pursuant to this contract

Name &

Locations

Title &

Responsibility

Total Years’

Experience

Years with Firm

Most

Advanced

Degree

v. Provide professional resumes of each of the individuals who will be assigned to this account and the professional resumes of all individuals who will be responsible for reviewing or otherwise influencing the work of individuals assigned to this account.

vi. Indicate who will have ultimate responsibility for this contract. Indicate the availability of this person for live or telephone meetings with the California

HOPE Program. Describe the firm’s backup procedures if the primary person assigned to this account leaves the firm or is otherwise unavailable.

c. Experience/Expertise in investment management (Maximum of thirty-five (35) points)

i. Describe the firm’s experience in advising government agency boards on investment management matters. Include the names of the agencies, their mission, the size of the plans (number of accounts), type of plans (such as 529, pension or retirement, ABLE disability, or other), the number of years that the firm has provided these services, the number of agencies or boards to which the firm is currently providing investment management advice, and the approximate dollar value of the portfolios for which consultative services are provided. Explain how this experience will benefit the California HOPE

Program.

ii. Describe the firm’s understanding of the objectives of the California HOPE

Program. What does the firm see as the biggest challenge for California and how would the firm address it? What special expertise does the firm bring to advising the California HOPE Program?

iii. Explain your views on how the field of investment management for baby bonds type programs is evolving and how your firm is preparing to be competitive.

iv. Affirm the firm’s ability to perform every item listed in the Scope of Work. List any items the firm would not be able to provide and if the firm would subcontract these items. If the firm has been involved with the issuance of a request for proposals for an investment program manager, please describe the experience in detail.

v. Provide at least two recent examples within the past three years of client research or reports prepared by the firm regarding investment management strategies or analysis.

vi. Discuss any changes/material refinements in the firm’s advising philosophy which have occurred within the past five years. What prompted the changes/refinements?

vii. Provide the name, address, telephone number, contact name and title for five

(5) firms to serve as references for the firm, using the format in Attachment 4.

Provide three (3) references for any subcontractors you plan to use. Identify the individuals at the firm who were responsible for providing consulting services to these agencies. Submission of Attachment 4 is mandatory. Proposals that fail to submit Attachment 4 shall be considered non-responsive and rejected.

d. Cost Proposal (Maximum of thirty (30) points)

Use Attachment 6 (Cost Proposal) to complete your cost proposal for the term of the contract. The California HOPE Program expects the total amount of the contract not to exceed $75,000 for the six-month contract.

4. Submission of Proposals

A. Proposals should provide straightforward and concise descriptions of the proposing company’s ability to satisfy the requirements of this RFP. The proposal must be complete and accurate. Omissions, inaccuracies, or misstatements may be cause for rejection of a proposal.

B. All proposals must be submitted under sealed cover and sent to the California HOPE

Program by the date and time shown in Key Action Dates (Section C.1.). Proposals received after this date and time will not be considered. Proposals not submitted under sealed cover and marked as indicated may be rejected.

C. A minimum of one (1) unbound original and two (2) copies of the proposal must be submitted. All responses to this RFP must be submitted in hard copy. Emailed or faxed submissions will not be accepted.

D. The original proposal must be marked "ORIGINAL COPY." All documents contained in the original proposal package must have original signatures and must be signed by a person who is authorized to bind the proposing firm. All additional proposal sets may contain photocopies of the original package.

E. The proposal envelopes must be plainly marked with the RFP number and title, the firm name and address; marked with “DO NOT OPEN”, as shown in the following example:

Request for Proposal No. HOPE02-23

Investment Consulting Services

Firm Name

Firm Address

Contact Person and Phone Number

“DO NOT OPEN”

F. Proposals that omit the Minimum Qualification Certification that is included in

Attachment 5 in Section E will not be considered. Proposals shall include each of the attachments (if applicable) on the Required Attachment Check List in Section E.

Proposals that do not comply with the requirements of the RFP shall be deemed non-responsive. A non-responsive proposal is one that does not meet the basic proposal requirements and will be rejected.

G. Proposals must be submitted for the performance of all the services described herein.

Any deviation from the work specifications will not be considered and will cause a proposal to be rejected.

H. A proposal may be rejected if it is conditional or incomplete, or if it contains any alterations of form or other irregularities of any kind. The California HOPE Program may reject any or all proposals and may waive an immaterial deviation in a proposal.

The California HOPE Program’s waiver of an immaterial deviation shall in no way modify the RFP document or excuse the firm from full compliance with all requirements if awarded the agreement.

I. The proposing firm is entirely responsible for the costs of developing proposals and costs incurred in anticipation of award of the Agreement. Such costs shall not be charged to the California HOPE Program.

J. An individual who is authorized to bind the proposing firm contractually shall sign

Required Attachment 2, Proposal/Proposer Certification Sheet. The signature must indicate the title or position that the individual holds in the firm. An unsigned proposal may be rejected.

K. A firm may modify a proposal after its submission by withdrawing its original proposal and resubmitting a new proposal prior to the proposal submission deadline as set forth in the Schedule (Key Action Dates). The submission of a new proposal must comply with the requirements in this section. Proposal modifications offered in any other manner, oral or written, will not be considered.

L. A firm may withdraw its proposal by submitting a written withdrawal request to the

California HOPE Program, signed by the proposing firm or an authorized agent. A firm may thereafter submit a new proposal prior to the proposal submission deadline.

Proposals may not be withdrawn without cause subsequent to the proposal submission deadline.

M. Upon announcement and release of this RFP and until selection of a Contractor (and notice of intent to award the Agreement), proposing firms (or potential proposing firms) are not permitted to communicate with California HOPE Program staff or its consultants with respect to the RFP except in connection with the process and procedures related to the RFP. Any communication must be directed through the email contact listed above.

N. The California HOPE Program reserves the right to reject all proposals. The California

HOPE Program is not required to award an agreement.

O. Firms are cautioned against relying on the California HOPE Program to discover and report any defects or errors in submitted documents. Before submitting a response to this RFP, firms should carefully review, correct all errors, and confirm compliance with the RFP requirements.

P. Where applicable, firms should carefully examine work sites and specifications. No additions or increases to the agreement amount will be made due to a lack of careful examination of work sites and specifications.

Q. More than one proposal from any firm, organization, partnership, corporation, or association under the same or different names, will not be considered. Reasonable grounds for believing that any firm has submitted more than one proposal for the work contemplated herein will cause the rejection of all proposals submitted by that firm. If there is reason for believing that collusion exists among the proposing firms, none of the participants in such collusion will be considered in this or future procurements.

R. No oral understanding or agreement shall be binding on either party.

5. Evaluation Process

A. All proposals will be reviewed by an evaluation committee. The initial review of the proposals will confirm that all information has been submitted in conformity with the requirements of this RFP. The absence of the required information will cause a proposal to be deemed nonresponsive and may result in the proposal’s disqualification.

Responsive proposals will then be scored according to criteria herein. The scored categories and the corresponding weighting of each scored category is as follows:

Scored Category Weight

Background and Personnel Information 20 points

Experience/Expertise in Investment Consulting 35 points

Cost Proposal 30 points

Interview 15 points

Total Possible Points 100 points

The Evaluation Committee will allot points for each scored category of the RFP, up to

100 points.

The lowest total cost proposal is awarded the maximum cost points (30 points). Other proposals are awarded total cost points based on the following calculation:

(Lowest Cost Proposal/Other Cost Proposal) = (factor)

Total Cost points for Other Cost Proposal = (factor) X maximum cost points

EXAMPLE:

A maximum of 30 points is available

Lowest Cost Proposal = $56,250.00

Other Cost Proposal = $75,000.00

(Lowest cost proposal / Other cost proposal) = $56,250.00 / $75,000 = ¾

Total cost points awarded to other proposal = ¾ x 30 =22.5 points

The scoring will be done in two phases.

Additional possible points upon initial evaluation may be up to 85 points.

The first phase will be worth 85 points, with all items being scored except for the interview portion. Following the initial phase of the evaluation process, the evaluation committee will invite the two (2) firms that receive a minimum of 65 points in the first phase and that receive the highest scores based on the point system above.

In the second phase, interviews will be conducted pursuant to the specifications below:

• Interviews will be set for one hour

• There will be a maximum of three (3) presenters for each firm interviewed.

• Only the top two (2) highest scoring firms, scoring a minimum of 65 points in the first phase of the evaluation process, will be interviewed.

• Responses provided to specific questions during the interview will be the basis for awarding up to 15 points.

• Interviews will be scored based on the firm’s responses to a set of specific questions according to the point scale outlined in Section 5(b). Both firms will be asked the same set of questions. Generally, firms will be sked about the following areas:

o Background and personnel information o Experience/Expertise with Investment Consulting

• No unsolicited information, material or presentation may be provided at the interview. Firms are limited in their responses to only information provided in their written proposal and may not introduce new services, products, or other information.

• The California HOPE Program reserves the right to not conduct interviews if deemed unnecessary to the selection of an investment consultant.

B. The following point scale will be used to score the firm’s response to each scored category except with regard to costs:

100% – Excellent response backed by demonstrated ability

85% – Good response backed by demonstrated ability

75% – Fair response backed by demonstrated ability

60% – Poor response

0% – Proposer does not demonstrate ability

C. Proposals that contain false or misleading statements or provide references that do not support an attribute or condition claimed by the firm may be rejected. If, in the opinion of the California HOPE Program, such information was intended to mislead the

California HOPE Program in its evaluation of the proposal, and the attribute, condition, or capability is a requirement of this RFP, it will be the basis for rejection of the proposal.

D. The contract will be awarded to the responsible and responsive firm with the highest total score.

E. Tiebreaker - In the event two (2) or more responsive and responsible firms earn the highest score, the contract will be awarded to the responsive and responsible firm earning the higher score in Experience/Expertise in investment Consulting. If the scores for Experience/Expertise in investment Consulting are the same, the contract will be awarded to the responsive and responsible firm earning the higher score in the

Background and Personnel Information. If the scores in the Background and Personnel

Information are the same, the contract will be awarded to the responsive and responsible firm earning the higher score for Cost.

F. The California HOPE Program is not required to award an Agreement.

6. Award and Protest

A. Notice of the proposed award shall be posted in a public place in the office of the

California HOPE Program, 901 P Street, Sacramento, CA 95814 and on the following

Internet site for five (5) working days prior to awarding the agreement:

https://www.treasurer.ca.gov/.

B. If any firm, prior to the award of agreement, files a protest with the California HOPE

Program and DGS, Office of Legal Services, 707 Third Street, 7th Floor, Suite 7-330, https://www.treasurer.ca.gov/

West Sacramento, CA 95605, on the grounds provided under Public Contract Code

Section 10345(b), the agreement shall not be awarded until either the protest has been withdrawn or DGS has decided the matter. It is suggested that the firm submit any protest by contacting the Bid Protest Coordinator at OLSProtests@dgs.ca.gov.

C. Within five (5) days of filing the initial protest, the protesting firm shall file with DGS, Office of Legal Services, and the California HOPE Program a full and complete written statement specifying the grounds for the protest.

7. Disposition of Proposals

A. Upon proposal opening, all documents submitted in response to this RFP will become the property of the State of California and will be regarded as public records under the

California Public Records Act (Government Code section 6250 et seq.) and subject to review by the public.

B. Proposal packages may be returned only at the firm's expense unless such expense is waived by the California HOPE Program.

8. Agreement Execution and Performance

A. Performance shall start on the express date set by the California HOPE Program and the selected Contractor, after all approvals have been obtained and the agreement is fully executed. Should the company fail to commence work at the agreed upon time, the

California HOPE Program, upon five (5) working days written notice to the firm, reserves the right to terminate the agreement. In addition, the firm shall be liable to the

California HOPE Program for the difference between the firm's proposal price and the actual cost of performing work by another contractor.

B. All performance under the agreement shall be completed on or before the termination date of the agreement.

E. PREFERENCE AND INCENTIVE PROGRAMS

1. Small Business (SB) or Microbusiness (MB) Preference Program

A five percent (5%) preference will be applied to certified SBs/MBs submitting proposals in response to this RFP. To obtain the preference, the proposing company must either be a certified SB/MB or be in the process of becoming a certified SB/MB. Proposing companies that wish to obtain the preference shall submit a copy of their certification approval letter from the Department of General Services or shall submit a complete application for certification to the Department of General Services by 5:00 p.m. PT on the proposal due date. Proposing companies in the process of becoming a certified SB/MB must complete the certification process by the time of Agreement award.

mailto:OLSProtests@dgs.ca.gov

Apply for or Re-Apply for Certification as a Small Business or Microbusiness

The 5% preference is used only for computation purposes to determine the winning proposal and does not alter the amounts of the resulting Agreement, if any. Once each proposal has been scored, if the highest scored proposal is from a non-SB/MB, then 5% of the highest scoring proposal is added to the total “earned” points for each proposal submitted by a certified SB/MB. These final numbers, with the 5% preference included, are then used to determine the new highest scoring proposal.

2. Non-Small Business (SB) or Microbusiness (MB) Preference

A five percent (5%) preference is available to a non-SB/MB claiming at least twenty-five percent (25%) subcontractor participation by a certified SB/MB. If claiming the non-

SB/MB subcontractor preference, the proposal must include a list of the certified SBs/MBs with which the proposing company commits to subcontract in an amount of at least 25% of the net proposal price. Each certified SB/MB included in the list must perform a

"commercially useful function" as defined in Government Code Section 14837(d)(4).

The required list of SBs/MBs with which the proposing company commits to subcontract in an amount of at least 25% of the net proposal price shall be included on the Bidder

Declaration (GSPD-05-105) as provided in Attachment 12.

The preference to a non-SB/MB shall be 5% of the highest scoring proposal. A non-

SB/MB, which qualifies for this preference, may not take an award away from a certified

SB/MB.

3. Disabled Veterans Business Enterprise (DVBE) Incentive Program

A DVBE incentive will be applied to responsive proposals from responsible proposing companies that are certified DVBEs or that commit to subcontract with a certified DVBE.

Apply for or Re-Apply for Certification as a Disabled Business Veteran Enterprise

If committing to subcontract with a certified DVBE, the proposal must include a list of the certified DVBEs that will be acting as subcontractors. The required list of certified DVBEs shall be included on the Bidder Declaration (GSPD-05-105) as provided in Attachment 12.

Each certified DVBE included in the list must perform a "commercially useful function" as defined in Government Code Section 14837(d)(4).

Proposing companies or subcontractors who have been certified by the Department of

General Services as a DVBE must submit a completed DGS PD 843 (Disabled Veteran

Business Enterprise Declaration) form with the proposal response. The form is available at: https://www.documents.dgs.ca.gov/dgs/fmc/gs/pd/pd_843.pdf.

The DVBE incentive will vary in relation to the percentage of confirmed DVBE participation (up to five percent (5%)). See Attachment 15 for more information.

https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Certify-or-Re-apply-as-Small-Business-Disabled-Veteran-Business-Enterprise https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Certify-or-Re-apply-as-Small-Business-Disabled-Veteran-Business-Enterprise https://www.documents.dgs.ca.gov/dgs/fmc/gs/pd/pd_843.pdf

Any Agreement awarded to a company committing to subcontract with a certified DVBE will follow requirements as provided in MVC 999.7 including permanent withholds and deductions for non-compliance with the Std. 817 reporting process.

4. Target Area Contract Preference Act (TACPA)

This solicitation provides for an optional TACPA preference. The TACPA program was established to stimulate business investments in distressed areas of the State and create job opportunities for Californians. Proposing companies are not required to apply for this preference. Both the TACPA workplace and workforce preferences will be evaluated for this solicitation. See Attachment 16 for more information.

F. REQUIRED ATTACHMENTS

1. Required Attachments Checklist (Attachment 1)

For the proposal to be considered responsive, all required attachments listed on Attachment

1 must be included in the proposal and received by the California HOPE Program by the dates and times shown in Section C, Proposal Requirements and Information, Item 1, Key

Action Dates.

ATTACHMENT 1

REQUIRED ATTACHMENT CHECK LIST

A complete proposal or proposal package will consist of the items identified below. Complete this checklist to confirm the items in your proposal. Place a check mark or “X” next to each item that you are submitting to the State. For your proposal to be responsive, all required attachments must be returned. This checklist should be returned with your proposal package also.

Attachment # Attachment Description

_____ Attachment 1 - Required Attachment Checklist

_____ Attachment 2 - Proposal/Proposer Certification Sheet

_____ Attachment 3 - Minimum Qualifications Certification

_____ Attachment 4 - Proposer References

_____ Attachment 5 - Resumes of Key Personnel

_____ Attachment 6 - Cost Proposal Worksheet

_____ Attachment 7 - Payee Data Record (STD. 204)

_____ Attachment 8 - Darfur Contracting Act Certification

_____ Attachment 9 - California Civil Rights Laws Certification

_____ Attachment 10 - Contractor Certification Clauses (CCC 04/2017)

_____ Attachment 11 - GenAI Disclosure and Factsheet (Std. 1000)

_____ Attachment 12 - Bidder Declaration (GSPD-05-105)

_____ Attachment 13 - Small Business or Microbusiness Preference*

_____ Attachment 14 - Non-Small Business or Microbusiness Preference*

_____ Attachment 15 - Disabled Veteran Business Enterprise Incentive Program*

_____ Attachment 16 - Target Area Contract Preference Act (TACPA)*

*If Applicable

ATTACHMENT 2

PROPOSAL/PROPOSER CERTIFICATION SHEET

This Proposal/Proposer Certification Sheet must be signed and returned along with all the

"required attachments" as an entire package with original signatures. The proposal must be transmitted in a sealed envelope in accordance with RFP instructions.

Do not return the RFP nor the "Sample Agreement" at the end of this RFP.

A. Place all required attachments behind this certification sheet.

B. The signature affixed hereon and dated certifies compliance with all the requirements of this proposal document. The signature below authorizes the verification of this certification.

An Unsigned Proposal/Proposer Certification Sheet

May Be Cause For Rejection

1. Company Name 2. Telephone Number 2a. Fax Number

3. Address

Indicate your organization type:

4. Sole Proprietorship 5. Partnership 6. Corporation

Indicate the applicable employee and/or corporation number:

7. Federal Employee ID No. (FEIN) 8. California Corporation No.

9. Indicate applicable license and/or certification information:

10. Proposer’s Name (Print) 11. Title

12. Signature 13. Date

14. Are you certified with the Department of General Services, Office of Small Business and Disabled

Veteran Business Enterprise Services (OSDS) as:

a. California Small Business Yes No

If yes, enter certification number:

b. Disabled Veteran Business Enterprise Yes No

If yes, enter your service code below:

NOTE: Proof of Certification is required to be included if either of the above items is checked “Yes” and will be verified.

Date application was submitted to OSDS, if an application is pending:

Completion Instructions for Proposal/Proposer Certification Sheet

Complete the numbered items on the Proposal/Proposer Certification Sheet by following the instructions below.

Item

Numbers Instructions

1, 2, 2a, 3 Must be completed. These items are self-explanatory.

4 Check if your firm is a sole proprietorship. A sole proprietorship is a form of business in which one person owns all the assets of the business in contrast to a partnership and corporation. The sole proprietor is solely liable for all the debts of the business.

5 Check if your firm is a partnership. A partnership is a voluntary agreement between two or more competent persons to place their money, effects, labor, and skill, or some or all of them in lawful commerce or business, with the understanding that there shall be a proportional sharing of the profits and losses between them. An association of two or more persons to carry on, as co-owners, a business for profit.

6 Check if your firm is a corporation. A corporation is an artificial person or legal entity created by or under the authority of the laws of a state or nation, composed, in some rare instances, of a single person and his successors, being the incumbents of a particular office, but ordinarily consisting of an association of numerous individuals.

7 Enter your federal employee tax identification number.

8 Enter your corporation number assigned by the California Secretary of State’s

Office. This information is used for checking if a corporation is in good standing and qualified to conduct business in California.

Complete, if applicable, by indicating the type of license and/or certification that your firm possesses and that is required for the type of services being procured.

10, 11, 12, 13 Must be completed. These items are self-explanatory.

If certified as a California Small Business, place a check in the "yes" box, and enter your certification number on the line. If certified as a Disabled Veterans

Business Enterprise, place a check in the "Yes" box and enter your service code on the line. If you are not certified to one or both, place a check in the

"No" box. If your certification is pending, enter the date your application was submitted to OSDS.

ATTACHMENT 3

MINIMUM QUALIFICATIONS CERTIFICATION

The company certifies that it fulfills the minimum qualifications outlined in Section B of

Request for Proposals No. HOPE02-23.

On behalf of ___________________________________________________________, (Company Name)

I certify that said company, including any and all subcontractors, complies with the Minimum

Qualifications set forth in Section B of RFP No. HOPE02-23.

(Authorized Signature) (Company Name)

(Print Name) (Date)

(Title)

ATTACHMENT 4

PROPOSER REFERENCES

Submission of this attachment is mandatory. Failure to complete and return this attachment with your proposal will cause your proposal to be rejected and deemed nonresponsive.

List below five references for services performed within the last five years, which are similar to the scope of work to be performed in this Agreement. If five references cannot be provided, please explain why on an attached sheet of paper.

REFERENCE 1

Name of Firm

Street Address City State Zip

Contact Person Telephone Number

Dates of Service Value or Cost of Service

Brief Description of Service Provided

REFERENCE 2

Street Address City State Zip

Contact Person Telephone Number

REFERENCE 3

Street Address City State Zip

Contact Person Telephone Number

ATTACHMENT 4

PROPOSER REFERENCES

REFERENCE 4

Street Address City State Zip

Contact Person Telephone Number

REFERENCE 5

Street Address City State Zip

Contact Person Telephone Number

ATTACHMENT 5

RESUMES OF KEY PERSONNEL

A resume must be provided for each member of the staff who will exercise a significant administrative, policy, or consulting role under the resulting Agreement.

ATTACHMENT 6

COST PROPOSAL WORKSHEET

Provide the hourly rate of any personnel that will be directly involved in providing the services detailed in the Scope of Work.

Title/Classification Hourly Rate Anticipated Hours

ANTICIPATED TOTAL $________________

The total amount shall not exceed $75,000.00 for the initial term of the agreement. The California

HOPE Program shall have one option to extend the agreement by six months and an additional

$75,000.00. Rates shall remain the same during all optional extensions.

ATTACHMENT 7

PAYEE DATA RECORD (STD. 204)

Contractor must provide a taxpayer identification…