Section_B.doc

SECTION B

SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PBGC-11-002 DESCRIPTION OF SERVICES (AT CONTRACTOR SITE) (Sept 2014)

The Contractor shall provide the personnel, facilities, equipment, and other materials and services necessary to perform the effort described in Section C, the Statement of Work resulting from this Request for Proposal No. PBGC01-RP-15-0013. The solicitation may result into multiple awards. The contract(s) awarded for this effort will be a Fixed Rate/Variable Quantity (FRVQ).

B.2 GENERAL DESCRIPTION

PBGC is seeking to obtain qualified, experienced, and highly competent contractors to provide passive investment management services for portfolios that will very closely track the benchmark of the respective portfolio, consistent with appropriate levels of risk.

B.3. PERIOD OF PERFORMANCE

PBGC anticipates the period of performance to be a twelve month base year plus (9) nine option years. The Contractor shall commence work immediately upon notice of award. *Note: The actual dates of the Period of Performance will be entered at the time of award.

B.4. PRICING SCHEDULE – Index Fund Investment Management Services

Offerors are required to submit pricing proposals for the twelve (12) month base year and nine twelve (12) month option periods for each index fund required in the solicitation. The required index funds are listed below with the assumed asset level for evaluation purposes to provide comparable fees. The pricing assumptions provided by PBGC in the solicitation may not be indicative of the work the Offerors can expect to receive on an annual basis under the resulting contract. Therefore, PBGC makes no guarantee as to the allocation to each index fund. As a result, Offerors shall provide pricing break points for all asset levels. The Offeror’s proposed fixed rate and pricing break points shall be incorporated into the final contract upon award. Failure to provide pricing for every required index fund listed below will result in the Offeror’s proposal being deemed incomplete and the Offeror’s proposal will not be evaluated for award.

PBGC may make awards to multiple managers. PBCG may make award to one manager for all equity index funds (Funds #1-8) as a standalone, another manager for all fixed income index funds (Funds #9-12) as a standalone, or a manager for all twelve of the index funds as a group. PBGC reserves the right to evaluate pricing on all twelve of the index funds as a group and consider relationship pricing. Relationship pricing does not constitute a second price proposal. PBGC will not accept multiple price proposals.

Optional Contract Line Item Number (CLIN) X013 will be included in any awarded contract(s). PBGC may elect not to exercise optional CLIN X013 during any particular year of the period of performance, but this decision would not impact the PBGC’s right to exercise an optional CLIN in other (or future) option periods. The Total Ceiling Price will be determined at the time of award and stated in Section B of the resulting contract. Additionally, the exact dates for the Period of Performance will be determined at time of award.

Index

Assumptions

1. Russell 1000 Value Index

$3.2 billion

2. Russell 2000 Index

$600 million

3. Russell 3000 Index

$6.4 billion

4. Dow Jones US Real Estate Securities Index

$2.8 billion

5. MSCI EAFE Index

$5.3 billion

6. MSCI EAFE Small Cap Index

$1.1 billion

7. MSCI Canada Index

$1.0 billion

8. MSCI Emerging Markets Index

$2.6 billion

9. Barclays U.S. Aggregate Bond Index

$850 million

10. Barclays Long Credit Index

$560 million

11. Barclays Long Government Index

$1.4 billion

12. Barclays Global Aggregate ex-US (Hedged) Index

$1.2 billion The contract type is a Fixed Rate/Variable Quantity (FRVQ) effort.

CLIN 0001 FEE SCHEDULE – RUSSELL 1000 VALUE INDEX

BASE YEAR: October 1, 2015- September 30, 2016

Product Name_________________________________

Asset Based Fees _____% on first $____ million

_____% on next $____ million

_____% on next $____ million

_____% on balance

__________ Total Annual Price

CLIN 1001 OPTION YEAR 1: October 1, 2016- September 30, 2017

Product Name_________________________________

Asset Based Fees

_____% on balance

__________ Total Annual Price

CLIN 2001 OPTION YEAR 2: October 1, 2017- September 30, 2018

Product Name_________________________________

CLIN 3001 OPTION YEAR 3: October 1, 2018- September 30, 2019

Product Name_________________________________

CLIN 4001 OPTION YEAR 4: October 1, 2019- September 30, 2020 Product Name_________________________________

CLIN 5001 OPTION YEAR 5: October 1, 2020- September 30, 2021 Product Name_________________________________

CLIN 6001 OPTION YEAR 6: October 1, 2021- September 30, 2022 Product Name_________________________________

CLIN 7001 OPTION YEAR 7: October 1, 2022- September 30, 2023 Product Name_________________________________

CLIN 8001 OPTION YEAR 8: October 1, 2023- September 30, 2024 Product Name_________________________________

CLIN 9001 OPTION YEAR 9: October 1, 2024- September 30, 2025 Product Name_________________________________

CLIN 0002 FEE SCHEDULE – RUSSELL 2000 INDEX

BASE YEAR: October 1, 2015- September 30, 2016

Product Name_________________________________

_____% on next $____ million

_____% on balance

__________ Total Annual Price

CLIN 1002 OPTION YEAR 1: October 1, 2016- September 30, 2017

Product Name_________________________________

CLIN 2002 OPTION YEAR 2: October 1, 2017- September 30, 2018

Product Name_________________________________

CLIN 3002 OPTION YEAR 3: October 1, 2018- September 30, 2019

Product Name_________________________________

CLIN 4002 OPTION YEAR 4: October 1, 2019- September 30, 2020 Product Name_________________________________

CLIN 5002 OPTION YEAR 5: October 1, 2020- September 30, 2021 Product Name_________________________________

CLIN 6002 OPTION YEAR 6: October 1, 2021- September 30, 2022 Product Name_________________________________

CLIN 7002 OPTION YEAR 7: October 1, 2022- September 30, 2023 Product Name_________________________________

CLIN 8002 OPTION YEAR 8: October 1, 2023- September 30, 2024 Product Name_________________________________

CLIN 9002 OPTION YEAR 9: October 1, 2024- September 30, 2025 Product Name_________________________________

CLIN 0003 FEE SCHEDULE – RUSSELL 3000 INDEX

BASE YEAR: October 1, 2015- September 30, 2016

Product Name_________________________________

CLIN 1003 OPTION YEAR 1: October 1, 2016- September 30, 2017

Product Name_________________________________

CLIN 2003 OPTION YEAR 2: October 1, 2017- September 30, 2018

Product Name_________________________________

CLIN 3003 OPTION YEAR 3: October 1, 2018- September 30, 2019

Product Name_________________________________

CLIN 4003 OPTION YEAR 4: October 1, 2019 - September 30, 2020 Product Name_________________________________

CLIN 5003 OPTION YEAR 5: October 1, 2020 - September 30, 2021 Product Name_________________________________

CLIN 6003 OPTION YEAR 6: October 1, 2021- September 30, 2022 Product Name_________________________________

CLIN 7003 OPTION YEAR 7: October 1, 2022 - September 30, 2023 Product Name_________________________________

CLIN 8003 OPTION YEAR 8: October 1, 2023 – September 30, 2024 Product Name_________________________________

CLIN 9003 OPTION YEAR 9: October 1, 2024- September 30, 2025 Product Name_________________________________

CLIN 0004 FEE SCHEDULE – DOW JONES US REAL ESTATE SECURITIES INDEX

BASE YEAR: October 1, 2015- September 30, 2016

Product Name_________________________________

CLIN 1004 OPTION YEAR 1: October 1, 2016- September 30, 2017

Product Name_________________________________

CLIN 2004 OPTION YEAR 2: October 1, 2017- September 30, 2018

CLIN 3004 OPTION YEAR 3: October 1, 2018- September 30, 2019

Product Name_________________________________

CLIN 4004 OPTION YEAR 4: October 1, 2019- September 30, 2020 Product Name_________________________________

CLIN 5004 OPTION YEAR 5: October 1, 2020- September 30, 2021 Product Name_________________________________

CLIN 6004 OPTION YEAR 6: October 1, 2021- September 30, 2022 Product Name_________________________________

CLIN 7004 OPTION YEAR 7: October 1, 2022- September 30, 2023 Product Name_________________________________

CLIN 8004 OPTION YEAR 8: October 1, 2023- September 30, 2024 Product Name_________________________________

CLIN 9004 OPTION YEAR 9: October 1, 2024- September 30, 2025 Product Name_________________________________

CLIN 0005 FEE SCHEDULE – MSCI EAFE INDEX

BASE YEAR: October 1, 2015- September 30, 2016

Product Name_________________________________

CLIN 1005 OPTION YEAR 1: October 1, 2016- September 30, 2017

Product Name_________________________________

CLIN 2005 OPTION YEAR 2: October 1, 2017- September 30, 2018

Product Name_________________________________

CLIN 3005 OPTION YEAR 3: October 1, 2018- September 30, 2019

Product Name_________________________________

CLIN 4005 OPTION YEAR 4: October 1, 2019- September 30, 2020 Product Name_________________________________

CLIN 5005 OPTION YEAR 5: October 1, 2020- September 30, 2021 Product Name_________________________________

CLIN 6005 OPTION YEAR 6: October 1, 2021- September 30, 2022 Product Name_________________________________

CLIN 7005 OPTION YEAR 7: October 1, 2022- September 30, 2023 Product Name_________________________________

CLIN 8005 OPTION YEAR 8: October 1, 2023- September 30, 2024 Product Name_________________________________

CLIN 9005 OPTION YEAR 9: October 1, 2024- September 30, 2025 Product Name_________________________________

CLIN 0006 FEE SCHEDULE – MSCI EAFE SMALL CAP INDEX

BASE YEAR: October 1, 2015- September 30, 2016

Product Name_________________________________

CLIN 1006 OPTION YEAR 1: October 1, 2016- September 30, 2017

Product Name_________________________________

CLIN 2006 OPTION YEAR 2: October 1, 2017- September 30, 2018

Product Name_________________________________

CLIN 3006 OPTION YEAR 3: October 1, 2018- September 30, 2019

Product Name_________________________________

CLIN 4006 OPTION YEAR 4: October 1, 2019- September 30, 2020 Product Name_________________________________

CLIN 5006 OPTION YEAR 5: October 1, 2020- September 30, 2021 Product Name_________________________________

CLIN 6006 OPTION YEAR 6: October 1, 2021- September 30, 2022 Product Name_________________________________

CLIN 7006 OPTION YEAR 7: October 1, 2022- September 30, 2023 Product Name_________________________________

CLIN 8006 OPTION YEAR 8: October 1, 2023- September 30, 2024 Product Name_________________________________

CLIN 9006 OPTION YEAR 9: October 1, 2024- September 30, 2025 Product Name_________________________________

CLIN 0007 FEE SCHEDULE – MSCI CANADA INDEX

BASE YEAR: October 1, 2015- September 30, 2016

Product Name_________________________________

CLIN 1007 OPTION YEAR 1: October 1, 2016- September 30, 2017

Product Name_________________________________

CLIN 2007 OPTION YEAR 2: October 1, 2017- September 30, 2018

Product Name_________________________________

CLIN 3007 OPTION YEAR 3: October 1, 2018- September 30, 2019

Product Name_________________________________

CLIN 4007 OPTION YEAR 4: October 1, 2019- September 30, 2020 Product Name_________________________________

CLIN 5007 OPTION YEAR 5: October 1, 2020- September 30, 2021

Product Name_________________________________

CLIN 6007 OPTION YEAR 6: October 1, 2021- September 30, 2022 Product Name_________________________________

CLIN 7007 OPTION YEAR 7: October 1, 2022- September 30, 2023 Product Name_________________________________

CLIN 8007 OPTION YEAR 8: October 1, 2023- September 30, 2024 Product Name_________________________________

CLIN 9007 OPTION YEAR 9: October 1, 2024- September 30, 2025 Product Name_________________________________

CLIN 0008 FEE SCHEDULE – MSCI EMERGING MARKETS INDEX

BASE YEAR: October 1, 2015- September 30, 2016

Product Name_________________________________

_____% on next $____ million

_____% on balance

__________ Total Annual Price

CLIN 1008 OPTION YEAR 1: October 1, 2016- September 30, 2017

Product Name_________________________________

CLIN 2008 OPTION YEAR 2: October 1, 2017- September 30, 2018

Product Name_________________________________

CLIN 3008 OPTION YEAR 3: October 1, 2018- September 30, 2019

Product Name_________________________________

CLIN 4008 OPTION YEAR 4: October 1, 2019- September 30, 2020 Product Name_________________________________

CLIN 5008 OPTION YEAR 5: October 1, 2020- September 30, 2021 Product Name_________________________________

CLIN 6008 OPTION YEAR 6: October 1, 2021- September 30, 2022 Product Name_________________________________

CLIN 7008 OPTION YEAR 7: October 1, 2022- September 30, 2023 Product Name_________________________________

CLIN 8008 OPTION YEAR 8: October 1, 2023- September 30, 2024 Product Name_________________________________

CLIN 9008 OPTION YEAR 9: October 1, 2024- September 30, 2025 Product Name_________________________________

CLIN 0009 FEE SCHEDULE – BARCLAYS U.S. AGGREGATE BOND INDEX

BASE YEAR: October 1, 2015- September 30, 2016

Product Name_________________________________

CLIN 1009 OPTION YEAR 1: October 1, 2016- September 30, 2017

Product Name_________________________________

CLIN 2009 OPTION YEAR 2: October 1, 2017- September 30, 2018

Product Name_________________________________ Asset Based Fees

CLIN 3009 OPTION YEAR 3: October 1, 2018- September 30, 2019

Product Name_________________________________

CLIN 4009 OPTION YEAR 4 October 1, 2019- September 30, 2020 Product Name_________________________________

CLIN 5009 OPTION YEAR 5: October 1, 2020- September 30, 2021

CLIN 6009 OPTION YEAR 6: October 1, 2021- September 30, 2022 Product Name_________________________________

CLIN 7009 OPTION YEAR 7: October 1, 2022- September 30, 2023 Product Name_________________________________

CLIN 8009 OPTION YEAR 8: October 1, 2023- September 30, 2024 Product Name_________________________________

CLIN 9009 OPTION YEAR 9: October 1, 2024- September 30, 2025 Product Name_________________________________

CLIN 0010 FEE SCHEDULE – BARCLAYS LONG CREDIT INDEX

BASE YEAR: October 1, 2015- September 30, 2016

Product Name_________________________________

CLIN 1010 OPTION YEAR 1: October 1, 2016- September 30, 2017

Product Name_________________________________

CLIN 2010 OPTION YEAR 2 October 1, 2017- September 30, 2018

Product Name_________________________________

CLIN 3010 OPTION YEAR 3 October 1, 2018- September 30, 2019

Product Name_________________________________

CLIN 4010 OPTION YEAR 4: October 1, 2019- September 30, 2020 Product Name_________________________________

CLIN 5010 OPTION YEAR 5: October 1, 2020- September 30, 2021 Product Name_________________________________

CLIN 6010 OPTION YEAR 6: October 1, 2021- September 30, 2022 Product Name_________________________________

CLIN 7010 OPTION YEAR 7: October 1, 2022- September 30, 2023 Product Name_________________________________

CLIN 8010 OPTION YEAR 8: October 1, 2023- September 30, 2024 Product Name_________________________________

CLIN 9010 OPTION YEAR 9: October 1, 2024- September 30, 2025 Product Name_________________________________

CLIN 0011 FEE SCHEDULE – BARCLAYS LONG GOVERNMENT INDEX

BASE YEAR: October 1, 2015- September 30, 2016

Product Name_________________________________

CLIN 1011 OPTION YEAR 1: October 1, 2016- September 30, 2017

Product Name_________________________________

CLIN 2011 OPTION YEAR 2: October 1, 2017- September 30, 2018

Product Name_________________________________

CLIN 3011 OPTION YEAR 3: October 1, 2018- September 30, 2019

Product Name_________________________________

CLIN 4011 OPTION YEAR 4: October 1, 2019- September 30, 2020 Product Name_________________________________

CLIN 5011 OPTION YEAR 5: October 1, 2020- September 30, 2021 Product Name_________________________________

CLIN 6011 OPTION YEAR 6: October 1, 2021- September 30, 2022 Product Name_________________________________

CLIN 7011 OPTION YEAR 7: October 1, 2022- September 30, 2023 Product Name_________________________________

CLIN 8011 OPTION YEAR 8: October 1, 2023- September 30, 2024 Product Name_________________________________

CLIN 9011 OPTION YEAR 9: October 1, 2024- September 30, 2025 Product Name_________________________________

CLIN 0012 FEE SCHEDULE – BARCLAYS GLOBAL AGGREGATE EX-US (HEDGED) INDEX

BASE YEAR: October 1, 2015- September 30, 2016

Product Name_________________________________

CLIN 1012 OPTION YEAR 1: October 1, 2016- September 30, 2017

Product Name_________________________________

CLIN 2012 OPTION YEAR 2: October 1, 2017- September 30, 2018

Product Name_________________________________

CLIN 3012 OPTION YEAR 3: October 1, 2018- September 30, 2019

Product Name_________________________________

CLIN 4012 OPTION YEAR 4: October 1, 2019- September 30, 2020 Product Name_________________________________

CLIN 5012 OPTION YEAR 5: October 1, 2020- September 30, 2021 Product Name_________________________________

CLIN 6012 OPTION YEAR 6: October 1, 2021- September 30, 2022 Product Name_________________________________

CLIN 7012 OPTION YEAR 7: October 1, 2022- September 30, 2023 Product Name_________________________________

CLIN 8012 OPTION YEAR 8: October 1, 2023- September 30, 2024 Product Name_________________________________

CLIN 9012 OPTION YEAR 9: October 1, 2024- September 30, 2025 Product Name_________________________________

NOTE: The above fees are at annualized rates, but shall be calculated and payable on a quarterly basis and are pro-rated for any period less than a quarter. The quarterly fee will be based on an average of the month end values within the quarter.

Optional Services Pricing - CLIN 0013

TRANSITION MANAGEMENT FEE

In addition, the Offerors must provide pricing for transition management services. Failure to provide pricing for transition management services will result in the Offeror’s proposal being deemed incomplete and the Offeror’s proposal will not be evaluated for award.

Please provide the pricing for transition management services in all of the following asset classes. Please list the charges in basis points or cents per share as appropriate. These fees will not be invoiced to PBGC, but rather they are assessed and paid through a netting process (i.e., brokerage charges) during the transition process.

OPTIONAL CLIN 0013 BASE YEAR: October 1, 2015- September 30, 2016 Asset Class

Cost Domestic Equities

_____cps Developed International Equities

_____bps

Emerging Market Equities

Domestic Fixed Income

International Fixed Income

OPTIONAL CLIN 1013 OPTION YEAR 1: October 1, 2016- September 30, 2017

OPTIONAL CLIN 2013 OPTION YEAR 2: October 1, 2017- September 30, 2018

OPTIONAL CLIN 3013 OPTION YEAR 3: October 1, 2018- September 30, 2019

OPTIONAL CLIN 4013 OPTION YEAR 4: October 1, 2019- September 30, 2020

OPTIONAL CLIN 5013 OPTION YEAR 5: October 1, 2020- September 30, 2021

OPTIONAL CLIN 6013 OPTION YEAR 6: October 1, 2021- September 30, 2022

OPTIONAL CLIN 7013 OPTION YEAR 7: October 1, 2022- September 30, 2023

OPTIONAL CLIN 8013 OPTION YEAR 8: October 1, 2023- September 30, 2024

OPTIONAL CLIN 9013 OPTION YEAR 9: October 1, 2024- September 30, 2025

Contract Ceiling Amount:

The ceiling amount for the twelve (12) month base year and nine twelve (12) month option periods is to be determined upon award.