PBGC01-RP-09-0021 Amendment 03.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 03Response to Industry Questions

Question 1. In relation to Section K of the RFP, it is unclear to us whether or not this section should be completed and submitted with the final RFP or if this is a section to be completed at the time of investment management contract negotiations. Should Section K be completed and submitted with the final RFP due July 31, 2009?

Answer 1. All offerors should complete all applicable portions of Section K, Representations & Certifications. However, please note that Section K.10, FAR § 52.2191 ALTERNATE I, is removed from the RFP. In addition Section K.14, FAR § 52.21922 is removed from the RFP.

Question 2. Please confirm the disclosure statement (Section K, Page 47, 22 52.2301) should be on form CASB DS1. Will there be an exemption granted to this requirement? Will the manager be required to provide this disclosure upon submission and periodically thereafter? If so, what will be the required frequency of submission going forward?

Answer 2. FAR Part 52.2301 is removed from the RFP.

Question 3. Regarding Sections K 9,10,11,12,13 & 14 Small Business Program Representations: We are a UK based firm, are these questions relevant for us?

Answer 3 . All offerors should complete all applicable portions of Section K, Representations & Certifications. However, please note that Section K.10, FAR § 52.2191 ALTERNATE I, is removed from the RFP. In addition Section K.14, FAR § 52.21922 is removed from the RFP.

Question 4. Is the RFP (Section K, Attachments A & B) available as an editable Microsoft Word document?

Answer 4. No

Question 5. Central Contractor Registration – page 28. Can you confirm that we require to register with the CCR database prior to submitting our response to the RFP?

Answer 5. Please refer to FAR Subpart 4.11—Central Contractor Registration.

Question 6. We have a question with respect to Mandatory Requirement B: "The firm must manage at least US$2 billion as of 3/31/09 in the proposed active international equity strategy suitable for a taxexempt sponsor and benchmarked to the MSCI EAFE Index."

However, due to the severe declines in the market experienced over the past year, Company XYZ’s Discounted Assets strategies had less than US$2 billion in assets as of 3/31/09. As of 5/31/09, Discounted Assets is back above the US$2 billion level.Our specific question is as follows: Can we submit our Discounted Assets strategy in response to the PBGC international equity search given that the strategy is currently above US$2 billion, has historically been above US$2 billion, but was temporarily below US$2 billion as of 3/31/09?

Answer 6. No.

Question 7. Regarding Section B.2 Fee Schedule: In addition to assetbased fees, may we include our performancebased fee schedule for your consideration? If so, where in section B can we include them?

Answer 7. No.

Question 8. Regarding Section B.2 Fee Schedule: The pricing shows a dollar amount to be entered for every breakpoint except the first. If this entry is for the calculated fee amount, then we are unable to provide the dollar amount for the first breakpoint. For example, below is an example of our fees for a $500 mill account. There is no place to enter first fee amount of $450,000. Please advise.

Market Value Fee in Percent Fee Amount for $500 mill Account

First $50 million 0.90% $450,000

Next $50 million 0.70% $350,000

Over $100 million 0.50% $2,000,000

$2,800,000

Answer 8. Please provide a dollar amount for the first breakpoint.

Question 9. Regarding Sections H.9 and H.12 Staffing Approval: These provisions appear to be identical. Is this a repetition? Please confirm who the Contracting Officer is for the purposes of these provisions. Putting this request in the context of a pooled fund investment, please confirm whether these provisions are intended to apply to third party service providers – Administrators and Trustees – with whom the investment manager works in running its pooled funds?

Answer 9. Clause H.12 Staffing Approval is removed from the RFP. The provisions do not apply to a third party service providers – Administrators and Trustees – with whom the investment manager works in running its pooled funds.

Question 10. Regarding Solicitation/Contract Page – questions # 21 and 22: Please confirm that these line items should be completed for a $500 million investment. Should the unit price (#21) be in percent? Should the amount (#22) be in $? Should the amount (#22) be based on one year or for seven years (i.e. base year + six option years)?

Answer 10. Please complete Section B in accordance with the RFP.

Question 11. Is it required to fill out the blanks in Solicitation/Contract (page 1)?

Answer 11. No.

Question 12. Section F.2 – PBGC11006, Place of Performance (OCT 2004) –

Answer 12. This section will be updated at the time of award to reflect the actual place of performance. PBGC does not anticipate requiring contractors to perform all of the contract requirements at a PBGC’s headquarters, 1275 K Street NW, Washington, DC 20005. However the Contractor may be required to occasionally travel to PBGC Headquartors.

Question 13. Since this is an international mandate, would it be appropriate for us to complete section K.20 522252 Buy American b) Foreign Ed Products or does this section not apply to investment management services since our company is headquartered in the United States?

Answer 13. Section K.19, FAR § 52.2252, Buy American Act – Supplies is removed from the

RFP.

Question 14. Could you provide risk parameters for this mandate?

Answer 14. We have not established risk parameters for this mandate and may hire multiple managers with varying risk parameters.

Question 15. I have a question for you regarding the AUM requirement for this solicitation. We have a total of $2.7B in AUM for strategies that are benchmarked to the MSCI EAFE/MSCI ACWI ex US index. Would this satisfy the $2mm AUM criteria to apply for this mandate?

Answer 15. The mandatory requirement states: The firm must manage at least US$2 billion as of 3/31/09 in the proposed active international equity strategy suitable for a taxexempt sponsor and benchmarked to the MSCI EAFE Index. The firm would meet this mandatory if the $2.7 billion in client assets were managed in the strategy proposed for PBGC and the composite performance presented was for those same assets. The composite performance must comply with the CFA Institute Global Investment Performance Standards.

Question 16. Can the proposed EAFE benchmarked product have emerging markets exposure or do you prefer a product that invests only in developed markets?

Answer 16. PBGC prefers to have a product that invests primarily in developed markets and is benchmarked to EAFE.

Question 17. The instructions for Volume I (Section L, p.53, a.) reference "appropriate CLIN", what is CLIN?

Answer 17. Contact Line Item Number (CLIN).

Question 18 The instructions for Volume III (Section L, p.53, c.), requests references, is this in addition to those presented in the RFP (Attachment B pgs. 89&90) and should it be prepared separately?

Answer 18: Yes

Question 19. Our strategy is benchmarked to both the EAFE and the ACWI exUS (rsquared is almost identical relative to both benchmarks). However, our holdings are not limited to stocks in the EAFE index, and can include holdings in Canada and emerging markets. Emerging market exposure is capped at 30% and the average range is between 1020%. While we didn't see any language in the RFP restricting this, I wanted to confirm that this would be acceptable for RFP submission.

Answer 19. One of the mandatory requirements is that your product is benchmarked to the EAFE benchmark. As long as the product meets all of the mandatory requirements, you may submit this product for our review. In the questionaire there are detailed questions about out of benchmark holdings. Please be explicit in detail when answering those questions.

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