PBGC01-RP-09-0021 Amendment 02.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT 1. CONTRACT ID CODE

2. AMENDMENT/MODIFICATiON NO. 3. EFFECTIVE DATE 4. REQUISITION/PURCHASE REQ. NO. 5. PROJECT NO. (If applicble)

7. ADMINISTERED BY (If other than Item 6) CODE

STANDARD FORM 30 (REV. 10-83)

Prescribed by GSA FAR (48 CFR) 53.243

FACILITY CODE

9A. AMENDMENT OF SOLICIATION NO.

9B. DATED

(SEE

ITEM

11)

10A. MODIFICATION OF CONTRACT/ORDER NO.

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers is extended, is not extended.

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:

(a)By completing items 8 and 15, and returning copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment your desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

CHECK ONE A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER

NO. IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

E. IMPORTANT: Contractor is not, is required to sign this document and return copies to the issuing office.

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15C. DATE SIGNED

15A. NAME AND TITLE OF SIGNER (Type or print)

16C. DATE SIGNED

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

6. ISSUED BY CODE

8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code) (X)

CODE

15B. CONTRACTOR/OFFEROR

(Signature of person authorized to sign)

16B. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

NSN 7540-01-152-8070

Previous edition unusable

Solicitation Number: PBGC01RP090021 Amendment 02Response to Industry Questions

Question 1. The RFP indicates the proposed product should be benchmarked to MSCI EAFE is emerging markets exposure allowed for the proposed mandate or is the proposed mandate for developed markets only?

Answer 1. PBGC prefers to have a product that invests primarily in developed markets and is benchmarked to EAFE. PBGC will consider some emerging markets exposure in the product.

In the questionaire there are detailed questions about out of benchmark holdings. Please be explicit and detailed when answering these questions.

Question 2. Can you share how you may build this EAFE portfolio? Are you looking for a value manager, as well as a growth manager?

Answer 2. This is a core international equity search. PBGC may choose multiple managers that when combined provide the optimal active portfolio for PBGC.

Question 3. Will the PBGC be utilizing a consultant for this search? Can you share who that consultant will be?

Answer 3. PBGC will not comment on individual members of the technical evaluation panel.

Question 4. Do you anticipate allowing for emerging markets exposure in the portfolio?

Answer 4. Possibly. However, we prefer a product that invests primarily in developed markets.

Question 5. Is there a level at which you are looking to cap emerging market exposure in the international portfolios?

Answer 5. Possibly. Please provide detailed answers to the questions in the questionaire that deal with Out of Benchmark Holdings.

Question 6. If we have multiple international equity teams with distinct teams and processes, can we submit separate proposals for each distinct strategy?

Answer 6. PBGC would prefer to receive one proposal with your best product.

Question 7. Would you consider hiring a value and a growth manager from the same firm, assuming that the firm submits multiple, distinct proposals?

Answer 7. This search is for a Core International equity product. PBGC would prefer to receive one proposal with your best product.

Question 8. Is the PBGC’s preference for a separate account or a fund?

Answer 8. Normally PBGC would prefer a separate account, however PBGC would prefer a commingled fund if that is the most efficient and cost effective means for investing in your proposed product.

Question 9. Regarding Section H.11 Key Personnel: As key personnel we would propose those individuals who are directly involved in management of the assets of the pooled fund in which PBGC invest. Would this be acceptable to PBGC notwithstanding the broader definition of Key Personnel used by PBGC (which could encompass employees of Administrators or Trustees)?

Answer 9. Yes.

Question 10. Regarding section III question 4: The information ratio calculation in part requires an annualized tracking error to be computed. You describe this as the ?annualized standard deviation of excess returns for each rolling 60month period.? However, in question III.5 ?

Tracking Error, you define tracking error as ?the standard deviation of the excess returns of the portfolio verses its benchmark.? We interpret these definitions as two distinct methodologies.

The first represents a measure of the deviation of excess returns from the mean excess return.

The second represents a measure of the deviation of manager returns from the index return. Are these assumptions correct?

Answer 10. Your assumptions are correct. The first seeks an average rolling 60month information ratio using geometric excess returns for each month. The second simply asks for the IR for the 3,5,10 and since inception year periods.

Question 11. Regarding section III question 4 and 5? Information Ratio: These questions define the information ratio in two different ways. The first requires the monthly geometric excess returns to be computed and then annualized over the period in question. The second requires the annualized manager and index returns to be calculated first and then the difference between the two is computed to arrive at the arithmetic excess return (this is also referred to as ?Alpha? in your instructions). Are these interpretations correct?

Answer 11. Your interpretations are correct. Refer to the response to question number 10.

Question 12. Regarding section IV B question 1 Due to privacy policy and confidentiality requirements we may be unable to provide the level of detail requested in this section. Would it be acceptable to provide statistics on the canceled accounts and any readily available reference information?

Answer 12. Yes

Question 13. Is the clause 52.24215, Stop Work Order (AUG) 1998 applicable to the solicitation (and any resulting investment services contract)?

Answer 13. Yes

Question 14. Section G.6 – PBGC42002, Observance of Legal Holidays (OCT 2004) – Does this clause apply to all firms (even those outside the United States)?

Answer 14. Yes, this clause applies regardless of place of performance or site of employees performing work on a PBGC contract. However, PBGC420002 allows a contractor to perform work on a U.S. holiday so long as the contractor obtains prior approval from the Contracting Officer’s Technical Representative (COTR).

Question 15. Section H.2 PBGC03001 – Please forward a draft of your [PBGC’s] confidentiality letter, so we may compare that to our existing confidentiality documentation

Answer 15. PBGC will not provide a Confidentiality Letter. Contractors are required to comply with Section H2.PBGC03001.

Question 16. Section H.4 and H.5 – Are these requirements applicable if performance of the contract takes place at a location other than PBGC headquarters, 1275 K Street NW, Washington, DC 20005?

Answer 16. Yes, this clause is applicable to all contractors.

Question 17. Section H.7, PBGC09001 – Does this clause apply to firms employing persons located outside the United States?

Answer 17. Yes, this clause is applicable to all contractors.

Question: 18.Section C Performance Work Statement Required deliverables/reports could you provide more detail on what type of information will be required in the weekly performance commentary. Additionally, what information would you like to glean from a monthly "Economic and Market Commentary."

Answer:18. Weekly performance commentary includes information on the performance of the product vs. the benchmark, notable sector performance or country performance that significantly influenced the performance of the product for that period.

Economic and Market Commentary would normally include significant economic news for the markets in which you invest and significant changes/developments in specific sectors, countries or regions in which you invest.

Question19. Attachment A Mandatory Requirements $2 billion benchmarked to the MSCI EAFE index. We are interested in proposing our International Growth strategy and while we are able to accept a separate account benchmarked to EAFE, the most common benchmark utilized by our clients is MSCI EAFE Growth. Are we able to submit if our strategy has over $2 billion but not with that benchmark.

Answer 19: No.

Question 20. Will you provide the investment management agreement/contract that you would expect the new manager to sign?

Answer 20. The documents in the RFP along with the offerors proposals will the form the contract upon award.

Question 21. Could you clarify what is meant to "act as resource for economic and investment information and research"? Would this be information regarding the strategy you'd be invested in, general economic information, or are you looking for actual research notes?

Answer 21. General economic information and information regarding the strategy that you would normally provide to clients.

Question 22. Will there be any need to share resources with other investment managers that may be hired within the same discipline?

Answer 22. No.

Question 23. Will you be hiring international managers in different style buckets such as core, value and growth?

Answer 23. This is a core EAFE search.

Question 24. Who/where should we send the consultant copy?

Answer 24. If you are awarded a contract, PBGC will let you know about providing copies of routine reporting to our consultant.

Question 25. We would like to ask a question regarding Attachment A, question F (page 64), “The offeror accepts the general requirements of this Request for Proposal?”By saying “Yes”, are we agreeing to Items A, B, C, D (1, 2, 3) and E in this section or does saying “Yes” mean that we accept the terms of the proposal listed in Sections B through M. Also, if a “Yes” does imply agreement to Sections B through M, are participants able to offer desired amendments to the language stated when submitting the RFP?

Answer 25. A “Yes” indicates that your firm accepts the terms as provided in the RFP. Please see FAR § 52.2151, Instructions to Offerors, for more information. Offerors may submit desired amendments, however, PBGC may be prohibited from accepting an offeror’s amendments. Please note that FAR § 52.2151(f)(4), Instructions to Offerors, provides that the “Government intends to evaluate proposals and award a contract without discussions with offerors (except clarifications as described in FAR § 15.306(a)). Therefore, the offeror’s initial proposal should contain the offeror’s best terms from a cost or price and technical standpoint.

The Government reserves the right to conduct discussions if the Contracting Officer later determines them to be necessary.”

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