HOPE03-25_-_FINAL_RFP_(08-06-2025).pdf

Hope, Opportunity, Perseverance, & Empowerment (HOPE) for Children

901 P St, Suite 411B Sacramento, CA 95814

Request for Proposals (RFP) No. HOPE03-25

Program Administrator

NOTICE TO PROSPECTIVE PROPOSERS

August 6, 2025

You are invited to review and respond to this Request for Proposals (RFP) No. HOPE03-25.

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 providing Program Administration and Investment Services for youth- focused programs.

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 for Children Trust Account 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 for Children Trust Account Program

901 P Street, Suite 411B Sacramento, CA 95814 hopeforchildren@treasurer.ca.gov

Questions regarding this RFP must be submitted in writing no later than August 15, 2025 at 12:00 p.m. PT. Responses to the questions will subsequently be posted by August 20, 2025 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://gcc02.safelinks.protection.outlook.com/ https://gcc02.safelinks.protection.outlook.com/ https://www.dgs.ca.gov/OLS/Resources mailto:hopeforchildren@treasurer.ca.gov

TABLE OF CONTENTS

1. PURPOSE AND DESCRIPTION OF SERVICES Page 1

1.1 Background and Program Overview Page 4

1.2 Scope Overview Page 4

1.3 Scope of Work Page 5

1.4 Term of Agreement Page 8

2 MINIMUM QUALIFICATIONS FOR PROPOSERS Page 8

3 PROPOSAL REQUIREMENTS AND INFORMATION Page 9

3.1 Schedule (Key Action Dates) Page 9

3.2 Questions and Answers Page 10

3.3 Content and Format of Proposals Page 10

3.4 Submission of Proposals Page 16

4 EVALUATION AND AWARD PROCESS Page 18

4.1 Evaluation Process Page 18

4.2 Award and Protest Page 20

4.3 Disposition of Proposals Page 21

4.4 Agreement Execution and Performance Page 21

5 PREFERENCE AND INCENTIVE PROGRAMS Page 21

5.1 Small Business (SB) or Microbusiness (MB) Preference Page 21

5.2 Non-Small Business (SB) or Microbusiness (MB) Preference Page 22

5.3 Disabled Veterans Business Enterprise (DVBE) Incentive Page 22

5.4 Target Area Contract Preference Act (TACPA) Page 23

6 REQUIRED ATTACHMENTS Page 23

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 – Iran Contracting Act Certification Attachment 11 – Contractor Certification Clauses (CCC 04/2017) Attachment 12 – Bidder Declaration (GSPD-05-105) Attachment 13 – Generative Artificial Intelligence (GenAI) Notification

Attachment 14 – Small Business or Microbusiness Preference* Attachment 15 – Non-Small Business or Microbusiness Preference* Attachment 16 – Disabled Veteran Business Enterprise Incentive Program* Attachment 17 – The Target Area Contract Preference Act (TACPA)* *If Applicable

7. SAMPLE STANDARD AGREEMENT (STD. 213)

Exhibit A – Scope of Work Exhibit A, Attachment 1 – Resumes of Key Personnel Exhibit B – Budget Detail and Payment Provisions Exhibit B, Attachment 1 – Cost Proposal Exhibit C – General Terms and Conditions (GTC 02/2025) Exhibit D – Special Terms and Conditions Exhibit E – Additional Provisions

Appendix 1 - California Government Code Section 16430 Appendix 2 - The Act (CA Welfare and Institutions Code, Ch. 16.1, Sec. 18997.5 et. seq.)

HOPE for Children Trust Account Program Request for Proposals No. HOPE03-25

1. PURPOSE AND DESCRIPTION OF SERVICES

1.1 Background and Program Overview

The California Legislature Enacted Assembly Bill 156 (Chapter 569, Statutes of 2022) and codified in Chapter 16.1 (commencing with section 18997.5) of the Welfare and Institutions Code (“HOPE Act” or “Act”) to create opportunities, economic autonomy, and hope; and to promote intergenerational wealth and asset building for eligible youth as one of the many strategies California must employ to reverse the state’s record level of inequality.

The HOPE Act established the California Hope, Opportunity, Perseverance, and Empowerment Fund (the “HOPE Fund”) in the State Treasurers Office. HOPE will provide accounts (“HOPE Accounts”) to eligible children, which includes those from low-income families who have lost a parent or guardian to COVID-19 or long-term COVID (“COVID-bereaved”) and children who have been in foster care for at least 18 months and family reunification services have been terminated (“long-term foster children”). Based on information received from interagency partners and researchers, HOPE projects that there will be approximately 46,552 children of various ages who will be eligible for automatic enrollment at the time of the program launch (including 10,000 income-eligible COVID-bereaved children and 36,552 long- term foster youth), and that there will be an estimated additional 8,000 children who become eligible every year after that.

1.2 Scope Overview

The Board of Directors of the California Hope, Opportunity, Perseverance, and Empowerment (HOPE) Program (“Board”) solicits proposals from qualified firms and/or organizations to serve as the Program Administrator to provide investment and administration services for the HOPE Program, who will implement and manage HOPE Accounts for eligible children in California. The Program Administrator must offer investment option(s) that meet the requirements and needs of the Program, seamless administration and recordkeeping, and a user-friendly, multilingual mobile-optimized website that provides program information. All infrastructure created to provide the services in this RFP must be operational by Program launch no later than March 1, 2026

Upon execution of the Agreement, the selected Contractor is expected to work with HOPE to develop and implement a project plan to meet the launch of the Program in first quarter 2026. The tentative timeline for Program launch, including an overview of key milestones and expectations for the selected Contractor is provided below.

November 30. 2025: Project Plan developed and shall include key milestones leading up to Program launch, such as HOPE account creation, recordkeeping platform integration and Program website launch.

January 31, 2026: Pre-Launch Website Live with Program Overview and Information Available

February 15, 2026: Funding for Accounts Created Complete

March 1, 2026: Full Website Live with Full Portal Accessible with Claiming and Distributions Capabilities Available and integrated with Outcome Tracker Recordkeeping Platform offered by VistaShare

LLC.

March 1, 2026: HOPE Program Launch: Launch shall be defined as when eligible participants can start to log in and claim their Accounts/enter their personal identifiable information, and 18+ cohort can request fund disbursements and receive their monies through EFT, check issuance, or other acceptable means as established in the Project Plan.

1.3 Scope of Work

The following scope of work details the Board’s expectations for the Program Administrator. The Program Administrator will provide all program administration services, mobile-optimized website development and management, and services coordination and other general responsibilities. Further description of each service area is provided below.

1. Contractor agrees to provide the HOPE for Children Trust Account Program, program management services for compliance, investment, administration, banking (including transaction processing), public website and coordination of recordkeeping functions, and as described herein:

A. General

(i) Contractor shall provide Program with a Project Plan within 30 Days of contract execution. This plan should include timelines and dependencies that will impact program launch and include all deliverables.

(ii) Contractor will provide overall management services for the investment, recordkeeping integration with Outcome Tracker offered by VistaShare, LLC, cash management, and custody administration of the HOPE Program.

(iii) Contractor will manage the HOPE Program in compliance with all applicable federal and State statutes, rules and regulations. The Contractor will assist HOPE in monitoring for changes in the legal and regulatory environment that may materially affect the Program, and it will assist HOPE in making recommendations for amendments or supplements to the HOPE Program.

(iv) The Contractor, affiliates, subsidiaries and subcontractors must provide services in compliance with all Federal and State regulatory bodies.

(v) Contractor will designate a dedicated key personnel team to serve HOPE, and it will notify HOPE of any changes to the management or compilation of that team as they occur. Such changes include re-assignments, resignations, terminations, additions, or other changes to the employment status or composition of the professionals assigned to the team. Additionally, the Contractor shall notify HOPE if the team takes on additional responsibilities (either internal or external clients).

(vi) All work to be performed by the Contractor will be reviewed by HOPE or its designee. Such review will not relieve the Contractor of any liability in connection with such work.

B. Investment Services

(i) Contractor must develop and recommend fee-competitive investment options that comply with Government Code section 16430, which is included as Appendix 1 in this Agreement. Any investment options must be consistent with HOPE’s investment objectives as outlined in the HOPE Act Statute Welfare and Institutions Code (“WIC”) sections 18997.5 et al which is included as Appendix 2 in this Agreement. The Board must approve any and all recommended investment options.

(ii) Contractor is responsible for the development and recommendation for Board approval an asset allocation for the investment option portfolio(s).

(iii) Contractor’s performance will be measured by criteria and/or benchmarks as established by HOPE. Contractor must also demonstrate that it (and any investment management subcontractor) has rigorous internal monitoring procedures in place for the proposed funds and investment vehicles.

(iv) On at least a quarterly basis, and more frequently as necessary, Contractor must inform HOPE about significant changes in the investment climate, market conditions or investment philosophies that could affect the Program.

(v) Contractor shall prepare an annual review of the investment options, which should include, but not be limited to, an asset allocation review as well as proposed changes to benchmarks and funds, as applicable.

(vi) Contractor will be responsible for creating HOPE account(s) in which Program account(s) and funds for each Program participant account will be held, and invested in the proposed investment portfolios or other vehicles as approved in statute and/or at the direction of the Board. The Contractor will also be responsible for distributing funds to eligible participants at the direction of HOPE.

C. Program Administration

(i) Contractor shall create and manage Accounts for the Program as established and directed by Board.

(ii) Contractor will archive and store all HOPE Program records in compliance with all federal and State securities regulations on applicable law.

(iii) Contractor will process all transactions, including but not limited to, contributions and withdrawals, exchanges, transfers, maintain all records, and comply with all tax and securities laws as required by the California Franchise Tax Board (FTB), federal and State securities regulations, and the HOPE Act.

(iv) Contractor shall be responsible for distributing funds directly to program participants via either check, electronic transfer, ACH Checking Deposit or other means as established in conjunction with the program.

(v) Contractor shall provide quarterly reports to the HOPE Executive Director indicating Program participation, including accounts claimed and monies requested for disbursement, for that quarter, and other relevant account activity, relevant investment performance results, and other program administration information prescribed by the HOPE Executive Director or HOPE Board. Contractor also will provide a quarterly report outlining performance of all investments, and such other information as HOPE requests, including prior year comparisons on requested information.

(vi) Contractor must attend all HOPE Board meetings (projected to be four to six times annually, but potentially 12, or even more, times per year) unless otherwise notified by the HOPE Chair or his or her designee and provide program-related reports as requested by HOPE or its staff. The Contractor must also respond to the need for telephone consultation within a 24-hour period and be available at minimum to HOPE and the staff between the hours of 8:00 a.m. – 5:00 p.m. PT.

(vii) Upon request, Contractor shall provide the HOPE staff with access to all files, records, documents and data pertaining to the Program that are in its possession and control, regardless of how that information is stored (Program Records). The Program Records shall be provided in a reasonable time and in a form acceptable to the HOPE Executive Director and HOPE Board. At its expense, the Contractor also shall provide HOPE all Program Records in sortable electronic form via a mutually agreeable medium after notice from HOPE that the Agreement will terminate.

(viii) Contractor shall maintain a cybersecurity plan to keep and protect the confidentiality of participant personal information, including, but not limited to, identification numbers or codes and account codes and account access numbers or codes in accordance with all applicable federal and State laws, and secure an appropriate insurance policy to protect against losses resulting from security breaches. Contractor also shall maintain a disaster recovery plan to ensure business continuity. The disaster recovery plan shall be tested twice per year with results provided to HOPE.

(ix) Contractor shall provide for the integration of Outcome Tracker, the online recordkeeping platform offered by VistaShare, to support HOPE, as it is the recordkeeping platform currently utilized by child savings account (CSA) programs administered by the State Treasurer’s Office. If Contractor is not currently integrated with VistaShare’s Outcome Tracker, Contractor must provide a pathway for integration that ensures no delay in Program launch in first quarter 2026. This isa to ensure uniformity among program participant population.

(x) Develop and employ disbursement through secure, traceable transactions that ensure that disbursements from HOPE accounts are deposited only to an eligible account, as determined in the Act.

(xi) Contractor shall create and maintain a user-friendly, multilingual mobile-optimized website that provides Program information and the ability to integrate with an online portal for Program participants, an eligibility portal, an eligibility tool, and an account dashboard.

a) Within 30 days from date of Agreement execution, Contractor shall provide an outline draft and timeline for implementing a mobile-optimized website.

b) By January 31, 2026, Contractor shall deploy a live base model website with Program information, including but not limited to, a program overview and details about eligibility criteria, that shall be phased into a fully operational Program website to begin enrolling youth within first quarter 2026.

c) By March 1, 2026, Contractor shall have fully developed, maintained, and operational Program website with full integration to the participant portal through the Outcome Tracker recordkeeping platform offered by VistaShare LLC. This website shall also include, but not be limited to, a fully updated mobile-optimized, HOPE-branded website with multilingual capabilities, a user-friendly interface, and integration with Outcome Tracker for youth to login securely and access Program account information and balances, and an option to contact technical assistance. HOPE will own any data and platform.

d) For future Program conversions, Contractor shall ensure that all data elements will transition to HOPE and new contractor with no interruption of service.

1.4 Term of Agreement

The term of the Agreement entered pursuant to this RFP, if any, will be for a three-year period beginning October 31, 2025, or upon approval by the Department of General Services (whichever is later), through October 30, 2028, and shall not exceed $1,150,000. The California HOPE Program shall have three options to extend the Agreement by an additional one-year term and up to $250,000 per year. The Agreement shall not exceed $1,900,000.00 for the entire term, including all 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.

2. MINIMUM QUALIFICATIONS FOR PROPOSALS

Firms must complete Attachment 3 certifying that the firm meets the following qualifications.

If the proposal includes subcontractors, all subcontractors must also certify compliance with the following minimum requirements via Attachment 3.

• At all times, hold and maintain all licenses and registrations required by federal and state laws for businesses offering securities, investment and municipal advisory services. All licenses and registrations must be current and in good standing

• Be qualified to do business in the State of California. If awarded a contract, firm(s) must be able to provide, at the State’s request, evidence of qualification to do business in the State of California by the California Secretary of State, if applicable.

• Have a minimum of five (5) years of experience providing the services as detailed in the Scope of Work.

• Be technically and professionally capable of providing the services.

• Be free from conflicts of interest, not only at the time of selection, but throughout the term of the Agreement

• The selected contractor shall 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.

• Be immediately available to provide the services set forth in the Scope of Work.

3. PROPOSAL REQUIREMENTS AND INFORMATION

3.1 Schedule (Key Action Dates)

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

Date Action

August 6, 2025 RFP available to Prospective Proposers

August 15, 2025, at 12:00 pm PT Written Question Submittal Deadline

August 20, 2025 Answers to Written Questions Distributed

September 5, 2025, at 4:00 pm PT Deadline for Proposal Submission

September 8 - 12, 2025 Evaluation of Proposals

September 15 - 17, 2025 Finalist Interviews

September 24, 2025 Notice of Intent to Award

October 31, 2025 Anticipated Commencement of Agreement

The Board reserves the right to change the above dates and times, and, if so, HOPE may modify this RFP prior to the date fixed for submission of proposals by the issuance of an addendum. HOPE will also provide updates online at www.treasurer.ca.gov/HOPE and https://caleprocure.ca.gov/pages/index.aspx. HOPE reserves the right to reject all proposals and not award an Agreement.

3.2 Questions and Answers

In the opinion of the Board, this RFP is complete and needs no further explanation.

However, if you have questions, or should you need any clarifying information, you may submit written questions no later than 12:00 p.m. PT on August 15, 2025, by email to hopeforchildren@treasurer.ca.gov.

Answers to all written questions received by 12:00 p.m. PT on August 15, 2025, will be available online at https://www.treasurer.ca.gov/hope/index.asp and on Cal e-Procure at https://caleprocure.ca.gov/pages/index.aspx by close of business on August 20, 2025.

3.3 Content and Format of Proposals

Proposals should provide straightforward and concise descriptions of the firm’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.

In addition to the Cover Letter noted below, responses to the questions in this Section

3.3 are intended to demonstrate the firm’s qualifications. For the questions listed in this Section 3.3, 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 4 of this RFP. Questions should be answered by each relevant partner or subcontractor to the extent applicable if a firm 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. Cover Letter (required, not scored)

(i) Provide the name, address, email, and phone numbers of the principal contact responsible for the oversight of the Agreement. Indicate the availability of this person for meetings with the Board.

(ii) 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.

B. Required Information (required, not scored)

(i) List any related program management engagements or applicable subcontractor services to similar programs (not including investment services) https://www.treasurer.ca.gov/hope/members.asp 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 http://www.pd.dgs.ca.gov/smbus 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 terminated since January 1, 2022, and note the reason the account was terminated.

(ii) Has your firm or any subcontractor or any related entity, or any owner, officer, director, principal, management level employee, or Key Personnel of your firm ever been involved in an enforcement action by or had an audit or inquiry from the SEC or any other governmental (local, state, or federal) regulatory agency, or been named a defendant in litigation where there was an allegation of violation of fiduciary responsibility? If yes, explain in detail.

(iii) Has your firm, any related entity, a parent company, an affiliate, subsidiary, or any affiliated mutual or commingled fund been subject to any enforcement action or investigation by, or entered into settlements or is party to litigation with, or been subject to any audits or regulatory or investigative inquiries by, the IRS, the SEC, FINRA or a state regulatory or investigative agency in connection with mutual fund, investment management or college savings businesses (including market timing, late trading, collusion with third parties, preferential fund family treatment, directed brokerage payments or other sales practices, or a failure to supervise sales professionals) at any time? If yes, explain in detail.

(iv) List any other recent or pending issues that may impact your firm’s ability to deliver the required Services. Include any ownership or organizational changes and substantive issues raised by independent auditors in recent financial statements.

C. Firm Background and Organization (maximum of 100 points)

(i) Describe the organizational structure of your firm and explain how this structure will be used to fulfil the requirements of this contract. Explicitly identify the entity that will serve as the Agreement party, as well as all affiliates, subsidiaries, subcontractors and other entities that will provide services to meet the requirements of this engagement.

(ii) Complete Attachment 4 of Section 6, providing the title and name, address, and telephone number, for three (3) firms to serve as references for your firm.

Provide three (3) references for each (if any) subcontractor(s) you plan to use.

Identify the individuals at the firm who were responsible for providing services to these agencies. Submission of Attachment 4 is mandatory.

(iii) Complete the table in Attachment 5 of Section 6 identifying all individuals who will exercise a significant role under this RFP be assigned to this contract including those who will be responsible for reviewing or otherwise influencing the work of individuals assigned to this contract (the “Key Personnel”). In addition to completing Attachment 5, provide professional resumes for each of these individuals.

(iv) Does your firm currently manage or otherwise provide services to an early wealth account program similar to the HOPE Program, including but not limited to, children’s savings account (CSA) or baby bond programs. If so, list in a table the details of your current engagements, including type of program, number of accounts and assets (including totals for all engagements, as of June 30, 2025), nature of your engagement and the start and expiration dates of your current contract. Describe how these relationships, if any, would have a material impact on your firm’s ability to serve as the Program Administrator.

D. Experience/Expertise in Investment Services (maximum of 250 points)

(i) Identify the investment options you propose to offer in the Program, as applicable. The options you propose must follow Government Code section 16430. As applicable, provide the percentages allocated by asset class and the benchmark(s) against which performance of the investment option(s) will be measured.

(ii) Complete the following table for each underlying investment that you propose to include in the investment option(s) which you have identified in your response to D(i) above. If the underlying investment is not a registered mutual fund, then write “N/A” on the categories that do not apply. Attach additional sheets if necessary.

Fund Name Fund Name Fund Name

Ticker

Asset Class

Benchmark

Investment Option Fund Will Be In

Share Class of the Fund to be used (also specify if retail or institutional)

Total Annual Share Class Fees

Lipper Ranking as of 12/31/2024

Morningstar Rating as of 12/31/2024

Portfolio Manager(s)

(iii) Indicate any underlying funds or other investment vehicles, included in your response to D(II), that have experienced net cash outflows of 20% or more in the three-year period from January 1, 2022 through December 31, 2024.

Provide a detailed explanation.

(iv) Describe the internal procedures your firm uses to monitor the performance of its funds and its fund managers.

(v) In the context of asset allocation, discuss how the investment option(s) proposed, and the underlying investments identified in your responses to D(I) and D(II) are consistent with your understanding of the investment objectives and requirements of the overall Program.

(vi) If the underlying investments proposed are from non-affiliated investment managers, explain the choices you have made and why. If applicable, describe any revenue sharing or other financial arrangements currently in place or that you intend to establish with non-affiliated investment managers.

(vii) If you have proposed a guaranteed (whether through federal insurance or otherwise) or cash investment option(s), describe the structure of the offering and, to the extent applicable, its yield as of January 1, 2025.

(viii) Indicate your willingness to work with California-based financial or other institutions to offer federally guaranteed investment options.

(ix) What proxy rights will the Board have with respect to the underlying investments? Describe when and how the Board will be notified about proxies.

(x) In the event of a Program Administrator conversion, describe the procedures your firm would follow, and the prerequisites to ensure that current Program assets are continuously invested throughout a conversion to ensure a smooth, timely and efficient transfer of assets that does not result in losses to the Program or its account owners. List any investment-related issues in particular that could delay an orderly conversion to your firm.

E. Experience/Expertise in Program Administration Services (maximum of 250 points)

(i) Describe your firm’s experience in providing the program administration services, as identified in the scope of work, to local, state, or federal programs of comparable size. Include a discussion of how your firm’s experience and unique strengths will benefit the HOPE Program.

(ii) Describe any other relevant early wealth account experience (including the experience of your proposed subcontractor) providing recordkeeping, transfer agent, technology systems, and administration for participants. For any experience, include the number and dollar value of accounts for which your firm is currently or was responsible for, and the volume of individual transactions processed on an annual basis.

(iii) Describe your recordkeeping system integration and its capabilities for early wealth accounts. How long have you used the current system? Are you contemplating installation of a new system in the next five years? If yes, describe.

(iv) Describe your accounting and reconciliation process and procedures that ensure processed transactions are balanced with corresponding banking activity. Also, include your procedures for identifying exceptions and final resolution.

(v) Describe your technical environment, including hardware, application and database software. Include the security features of your operating systems, including daily back-up procedures, disaster recovery plans, and business continuity plans. Indicate when a disaster recovery test was last performed.

(vi) Describe your process and system for maintaining cybersecurity and confidentiality of sensitive information as well as procedures in place to prevent and to respond to data breaches.

(vii) Describe your processes for distributing funds for participant accounts, including the ability to do so online, as well as distributing funds electronically directly to third parties.

(viii) Outline the monthly and quarterly reports as described in Section 1.3 Scope of

Work and the Sample Standard Agreement that you will provide to HOPE.

Indicate what information will be available online to HOPE on a daily and weekly basis.

(ix) Describe your experience in the development and management of a mobile-optimized website as described in the Scope of Work. Include a proposed timeline and a plan for launch of a public-facing website in advance of the Program launch in first quarter 2026.

F. Cost / Fee Proposal (maximum of 300 points)

(i) In this section, provide your firm’s proposed costs and/or fees collected for the services described in the Scope of Work. Awarding of points for this section will be completed as described below and in Section 4 Evaluation Process.

(ii) Firms must complete both Option 1 (Fixed Cost Model) and Option 2 (Asset- Based Fee Model). The HOPE Program will calculate the Total Cost for the potential 6-year term for each proposal under one or both models and will award points for each proposal based on the Total Cost as described below.

• Option 1 – Fixed Cost Model: Use Attachment 6 (Cost Proposal) to provide your proposed itemized costs for the services described in the Scope of Work. The term of the Agreement entered into pursuant to this RFP, if any, will be for a three-year period with a maximum cost that shall not exceed $1,150,000.00. The California HOPE Program shall have three options to extend the Agreement by an additional one-year term and up to $250,000 per year. Include your proposed costs for the potential seven-year term. If there are no costs proposed for this option, enter $0.00. Note that any costs not included in your proposal will not be paid during the term of the Agreement.

• Option 2 – Asset-Based Fee Model: If your firm intends to collect fees directly from investment returns instead of invoicing for expenses, complete the following table (stated in basis points) showing the proposed asset-based fee structure for each investment option, and provide a detailed description of this arrangement, including the fee structure, timing, and any relevant terms or conditions. Investment Expenses should reflect the expenses for each Investment Option. Add additional rows as applicable. If there are no fees proposed for this option, enter 0.00%. Note that any fees not included in your proposal shall not be collected during the term of the Agreement.

Investment Portfolio (Firm to specify)

Investment Expense

Program Management

Fee

Total Investment Option Fee

Total Costs - In addition to completing and including Attachment 6 and the tables above, firms shall complete the table below to identify Total Costs.

Firm

Option 1:

Fixed Cost

Model

Option 2:

Asset-Based Fee Model

Total Cost (D)

Maximum Cost for

Potential 6-year Term

(A)

Average Total Investment Option Fee

(B)

Fee Cost* (assuming $50 million in Program assets) (C)

Example ($) A B (%) $(B% X $50,000,000) $A + $C Firm $ % $ $

3.4 Submission of Proposals

A. Proposals should provide straightforward and concise descriptions of the firm’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. 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.

C. The original proposal must be marked "ORIGINAL COPY." 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.

D. The original proposal package must contain 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:

Firm Name

Firm Address Contact Person and Phone Number

“DO NOT OPEN”

F. Proposals that do not comply with the requirements of the RFP shall be deemed non-responsive 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 will be rejected if it is conditional or incomplete, or if it contains any alterations of form or other irregularities of any kind, provided, however, if any proposal includes one or more deviations from the requirements herein and HOPE determines in its sole and absolute discretion that any such deviation(s) is immaterial, HOPE may waive such deviation(s) and nonetheless score the proposal. HOPE’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 HOPE.

J. An individual who is authorized to bind the proposing firm contractually must 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 will 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 HOPE, 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 after 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 HOPE 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 hopeforchildren@treasurer.ca.gov.

N. HOPE reserves the right to reject all proposals. HOPE is not required to award an agreement.

O. Firms are cautioned against relying on HOPE 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 the 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.

4. EVALUATION AND AWARD PROCESS

4.1 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 mandatory information will cause a proposal to be deemed nonresponsive and will result in the proposal’s mailto:hopeforchildren@treasurer.ca.gov disqualification. Responsive proposals will then be scored according to the criteria herein.

The scored categories and the corresponding weighting of each scored category are as follows:

Scored Category Weighting

Firm Background and Organization 100 points

Experience/Expertise in Investment Services 250 points Experience/Expertise in Program Administration Services (Recordkeeping, Account Management)

250 points

Cost / Fees 300 points

Possible point Upon Initial Evaluation 900 points Interview (Up to Top Three Highest Scoring Proposals Only)

100 points

Total Possible Points 1,000 points

The scoring will be done in two (2) phases.

• First Phase - The first phase will be worth a maximum total 900 points, with all items being scored except for the interview portion. Following the initial phase of the evaluation process, the evaluation committee will invite up to the three

(3) firms that receive the highest scores based on the point system above.

• Second Phase - In the second phase, all interviews will be conducted pursuant to the specifications below:

o Interviews will be held for one hour o There will be a maximum of three (3) presenters for each firm interviewed.

o Responses provided to specific questions during the interview will be the basis for awarding up to 100 points.

o Interviews will be scored based on the firms’ responses to a set of specific questions according to the point scale outlined in Section 4. All firms will be asked the same set of questions. Generally, firms will be asked about the following areas:

Firm Background and Organization Investment Services Program Administration Services Costs / Fees o 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.

o HOPE reserves the right to not conduct interviews if deemed unnecessary in the selection process.

The second phase score will be added to the first phase score, and the highest scoring proposal will be determined.

B. The following point scale will be used to score the responses to the questions presented under each of the scored categories unless otherwise specified. Points earned for each scored category that result in a non-whole number will be rounded to the next whole number. For example, 75% of 250 points is 187.5 points, which would be rounded up to 188 points.

Points Awarded

Interpretation General Basis for Point Assignment

100% Excellent Response fully meets the Board’s needs, requirements or expectations with a high degree of confidence in the response. Firm offers one or more enhancing feature, method, or approach exceeding basic expectations.

75% Good Response fully addresses category being scored. Good degree of confidence in the response. Minimal weaknesses are acceptable.

50% Adequate Response (i.e. content and/or explanation offered) is adequate to meet the Board’s needs, requirements or expectations. Any omission(s), flaw(s), or defect(s) do not result in disqualification and are inconsequential and acceptable.

0% Inadequate Response fails to address any portion of the category being scored. The omission(s), flaw(s), or defect(s) are significant and unacceptable.

C. Cost Proposal

Firm Option 1:

Fixed Cost Model

Option 2:

Asset-Based Fee Model

Total Cost (D)

Maximum Cost for

Potential 6-year Term

(A)

Average Total Investment Option Fee

(B)

Fee Cost* (assuming $50 million in Program assets) (C)

Example ($) A B (%) $(B% X $50,000,000) $A + $C Firm $ % $ $

The firm whose proposal results in the lowest Total Cost (D) as identified in the Total Costs table in Section 3.3(f) of the RFP and presented above will receive the maximum cost points. All other proposals will receive points in proportion to their Total Cost using the following formula:

• (Lowest Total Cost Proposal / Other Total Cost Proposal) = (Factor)

• Cost Points for Other Total Cost Proposal = (Factor) x (Maximum Cost Points)

EXAMPLE: (assume a maximum of 300 points is available)

• The proposal with the lowest Total Cost receives the maximum 300 points.

• Lowest Cost Proposal = $750,000.00

• Other Cost Proposal = $1,000,000.00

• Factor = $750,000.00 / $1,000,000.00 = 0.75

Cost Points awarded to Other Proposal = 0.75 x 300 maximum points = 225

D. 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 Services. If the scores for Experience/Expertise in Investment Services are the same, the contract will be awarded to the responsive and responsible firm earning the higher score in Experience/Expertise in Program Administration. If the scores in the Experience/Expertise in Program Administration are the same, the contract will be awarded to the responsive and responsible firm earning the higher score for Cost.

E. Proposals that contain inaccurate 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 HOPE, such information was intended to mislead HOPE in its evaluation of the proposal, and the attribute, condition, or capability is a requirement of this RFP, HOPE, in its sole and absolute discretion, may reject the proposal.

F. HOPE is not required to award an Agreement.

4.2 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, 411B, Sacramento, CA 95814 and on the following Internet site for five (5) working days prior to awarding the agreement:

https://www.treasurer.ca.gov/hope/index.asp.

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, 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 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.

4.3 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.

4.4 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.

5. PREFERENCE AND INCENTIVE PROGRAMS

5.1 Small Business (SB) or Microbusiness (MB) Preference

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 https://www.treasurer.ca.gov/hope/index.asp mailto:kasey.o%27connor@treasurer.ca.gov 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.

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-certified 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.

5.2 Non-Small Business (SB) or Microbusiness (MB) Preference

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