DRAFT Sole Source Contract 25-02, CEM Benchmarking Inc.

The Washington State Department of Retirement Systems (DRS) is pursuing a sole source contract with CEM Benchmarking, Inc. for independent public pension administration benchmarking services. The procurement will provide DRS with a comprehensive 300-page analytical benchmarking report that compares the agency's performance and administrative costs against a peer group of at least 15 public pension administrators with over 300,000 active members and annuitants. Deliverables include a virtual report presentation, digital tools, insights and research, three conference attendee invitations, and access to an online Peer Intelligence Network. The contract will commence on July 1, 2025, with an initial two-year term and the potential for four additional two-year extensions. Interested vendors must submit capability statements within ten working days of the announcement, detailing their ability to provide electronic and printed reports that compare performance and cost data across at least 12 different administrative activities. The benchmarking report must reconcile cost data to participants' comprehensive annual financial reports and analyze factors contributing to cost differences. The due date for the opportunity is June 26, 2025.

The procurement is a sole source contract with no specific set-aside designations or restrictions on organizational types. CEM Benchmarking is the only known vendor worldwide providing this specialized service, with over 30 years of experience and a client base of 400 blue-chip corporate and government clients. The total contract value for the initial two-year term is $128,000, with an annual fee of $63,000 for the first year (July 1, 2025 to June 30, 2026) and $65,000 for the second year (July 1, 2026 to June 30, 2027). Pricing will include annual increases commensurate with inflation based on the 12-month trailing change in the Consumer Price Index. The contract includes comprehensive insurance requirements, data protection provisions, and confidentiality clauses. Extensive market research confirmed no alternative providers exist, with searches conducted through the DES Stateside contract database, OMWBE Certified Vendors, and internet searches. The unique value of the contract lies in CEM's extensive database of 78 public pension administration participants, enabling statistically valid comparative analysis and access to best practices and innovations in the public pension sector.